Under the reshuffle, a new business development unit has been formed to focus on extending product distribution to other sales channels in addition to single-level direct-selling. They include retail shops, a dealership network and overseas markets.

Paiboon, who is chairman of GMM Grammy, said U Star had seen opportunities for exporting to markets such as Cambodia, Vietnam, Laos and the Middle East.

"I don't have any sales target set for the company," he said.

"I have told the management of U Star to make the company profit-oriented."

U Star also unveiled a new logo yesterday, changing its colour from orange to red.

Deputy managing director Kriengsith Sirichatchai said U Star's new distribution channels would also support its single-level direct selling activities. The company aims to double its number of sales managers, from 200 to 400, by the end of this year. These people oversee the direct sales of U Star cosmetics in all regions.

"We have also developed a dealership network with three types of dealers, Gold, Platinum and Silver, according to their loyalty to the brand and sales performance," Kriengsith said.

"Gold" dealers will be those with the highest loyalty to U Star and who sell the company's products in their stores exclusively. "Platinum" dealers may be those who sell U Star cosmetics in their stores along with other brands, while "Silver" dealers will be non-active for the brand.

Kriengsith said that with its new distribution structure, U Star expected sales growth of 20 per cent this year.

"We also expect to increase overseas sales by almost 30 per cent this year," he said. "U Star products are already being exported to many markets, including China, Brunei, the United Arab Emirates, Cambodia, Laos and Myanmar [Burma]."

However, direct selling is expected to continue to contribute the largest portion - about 60 per cent - of U Star's sales this year.

"We are the single-level direct-selling cosmetics brand with the highest purchase rate per order, at about Bt1,800," he said.

Paiboon said that in overseas markets, U Star would appoint agents who will purchase the company's products for cash.

"We will select major potential markets, starting with Indochina, where we can apply our direct-selling model and our know-how, in partnership with a local partner," he said.

In addition to U Star, Paiboon's other businesses include the Hou Yuu Japanese restaurant at GMM Grammy place and Revitalize wellness centres at Soi Ruam Ruedee and Siam Paragon.

Kwanchai Rungfapaisarn

The Nation