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Published on December 14, 2007

"The advantage for Charoen Osot is to add more product items in our distribution channel without investment, while U-Star can increase its channels for selling cosmetics. It's a win-win solution for us," said Somchai Hatchalelaha, managing director of Charoen Osot International.

U-Star, an affiliate of the diversified GMM Grammy Group, will supply more than 100 cosmetic products to Charoen Osot branches and Joy Mart, the nationwide distribution channels of Charoen Osot International.

Somchai said the collaboration, which will run for at least three years, would be in harmony with his company's policy of increasing sales by offering a wide variety of products for its nearly 500,000 direct-sales members.

He predicts company revenue will rise 20 per cent this year to between Bt700 million and Bt800 million and maintain that pace in the coming years.

U-Star senior sales and marketing manager Nuttapach Atchariyachai said the cooperation with Charoen Osot came about because U-Star wanted to expand its sales channel.

U-Star sells cosmetics through single-level marketing, serving more than 500,000 members, 400,00 of whom are active, while Charoen Osot specialises in multilevel marketing (MLM).

"We, however, will not diversify into MLM," she said.

Nalin Viboonchart

 The Nation