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Published on January 10, 2008

This follows a poor growth forecast for the entire high-end cosmetics market.

Marketing director Arporn Supmonchai yesterday said the sales-growth target was only Bt500 million for this year.

The company limited the growth target to only 5 per cent due to deteriorating consumer confidence, the economic downturn and political uncertainty.

Previously, DHC had consistently achieved two-digit growth in Thailand until last year.

In order to achieve its goal this year, DHC plans to spend up to Bt300 million on marketing from Bt200 million last year and another Bt80 million on new investment.

As part of its advertising strategy, the company plans to begin a new television ad campaign next month, as well as focus more on magazine advertising. It will also continue to expand sales upcountry.

The company started concentrating more on provincial markets last year, where sales increased 30 per cent in 2006 and 50 per cent last year.

It expects sales outside of Bangkok to rise 60 per cent this year, spurred by more roadshows.

"Inside Bangkok, it's more difficult to expand cosmetics sales, because consumers have a lot more choices, while people living upcountry don't have so many options available," Arporn said.

She said DHC's main distribution channel - home delivery - was another advantage, because many customers lived quite a long way from sales outlets and did not want to travel too far to make their purchases.

However, the company's marketing strategy for Bangkok involves different marketing activities and continuous sales campaigns for retaining customer loyalty.

The company's Loyalty Club now has 70,000 members, with another 5,000 targeted for this year.

DHC has three product categories: skincare, health foods and supplements, 400 items in all.

In terms of sales, the three contribute 70 per cent, 20 per cent and 10 per cent, respectively. The company plans to introduce about 25 new products during each quarter.

For its investment plan, DHC will spend Bt50 million in the first quarter on expanding its presence in shopping malls, but Arporn declined to elaborate.

She said DHC would also upgrade its information system this year after revamping it last year and hire more staff for its call centre.

Nitida Asawanipont

The Nation