Danai Deeroja-nawong, managing director of Better Way (Thailand), the direct-sales operator of Mistine cosmetics, wants to realise his father's dream of Mistine products being recognised by consumers throughout Asia and beyond.

Danai's father, Amornthep, founded Better Way 17 years ago. He died in 2000 at the age of 57.

"We're planning to expand our business to major markets in Asia, including Taiwan, Indonesia and India, over the next three years," said Danai. "Many Thais working on Taiwan are demanding Mistine products. We've seen a high domestic demand for cosmetics in Indonesia, where local production technology is not yet able to make world-standard cosmetics, while India is enjoying high economic growth."

He said the company began exporting in 1999, and Mistine products were now sold in Burma, Cambodia, Laos, Vietnam, Pakistan, the Philippines and Malaysia.

Better Way has set up branch offices and manufacturing facilities in Burma and the Philippines and appointed local distributors in other markets, including Pakistan and Laos. "We sell Mistine products in these markets through local retail outlets, but we plan to develop our direct-selling format, starting in Cambodia, within the next two or three years," said Danai. He said his company had been distributing Mistine products in Cambodia for almost two years now and that people there had become familiar with direct sales.

However, in countries like Burma, the local infrastructure, mail-delivery system and logistics were not yet ready to support direct sales.

Danai said Better Way would not position itself as a cosmetics firm, but rather as a networking company. It expects to increase its ratio of non-cosmetics products, such as electrical goods and insurance, in its portfolio from 20 per cent now to 35 per cent in the near future.

Danai said the company recently raised the prices of its personal-care products, such as roll-on deodorant, powder and shampoo, from 5-10 per cent. Next year, its make-up products will face a similar price increase percentagewise. The increases follow a 30-per-cent rise in transportation costs and 4-5 per cent rise in production costs for cosmetics so far this year.

Better Way has also restructured its Logistics Division to make it more efficient and plans to reduce its transportation costs 15 per cent.

"On some routes, we've outsourced transportation services, so our products will be delivered more cheaply," said Danai. "We've also begun converting our delivery trucks to run on natural gas."

The company also plans to add two more depots to its logistics network in the North and Northeast this year, adding to its current depots in Lampang, Khon Kaen, Surat Thani and Chon Buri.

Danai said the company had also frozen its advertising budget at about Bt400 million for the past three years.

Better Way has targeted domestic sales of more than Bt6.2 billion this year, up 10 per cent from last year.

Kwanchai Rungfapaisarn

 The Nation