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Published on January 26, 2008

They say they are offering the biggest incentives ever for their sales representatives and also boosting their marketing budgets to lift their performance amid the current economic downturn.

Nu Skin Enterprises (Thailand) announced yesterday its new working concept called "The Difference, Demonstrated" which has four fundamental factors for success: people, products, opportunity and culture. With the change, it expects to reach at least 15-per-cent sales growth from last year's 10-per-cent growth, or Bt1.2 billion, and to ultimately reach Bt2 billion in 2010.

The introduction of "The Difference, Demonstrated" in Thailand follows the lead of US headquarters, which has applied it for three years now. Its previous working concept was "All of the good, none of the bad." At the same time, it has set a new marketing theme for this year: "Anti-ageing and weight loss."

Meanwhile, Synergy Worldwide Marketing (Thailand) has established seven factors in what it calls "re-managing" its business after failing to reach its sales target due in part to an abrupt change in executives last year.

In adjusting their new working and marketing strategies, the two companies say they aim to make their companies and the Thai direct-sales industry as a whole more attractive. Nu Skin has seen rapid growth of 30 per cent in its membership to 230,000 members from the usual 10 to 15 per cent growth per year.

"The total direct-sales market has grown well throughout the past few years. Last year, it grew 10 per cent to Bt40 billion and the industry should maintain the same growth rate this year," said Pakapun Leevutinun, Nu Skin general manager. Beauty and personal care products contribute 38.8 per cent and food supplements 31.6 per cent to the total market.

Under the new working concept, she explained how her company is focusing on four factors.

First, it is developing not only independent sales representatives but also all the staff in the company. Second, all products must have high quality. Third, its independent sales representatives will have an opportunity to show their work in all 47 countries that have Nu Skin sales. Fourth, Nu Skin must give back to society.

The company is also focusing on doing what it's good at instead of trying to make everything the best. Pakapun said the company has expertise in developing supplementary foods. The category contributed 90 per cent of its total annual sales and has experienced steady growth throughout the eight years since the category was launched. The remaining 10 per cent were contributed by the personal-care segment. She said focusing on food supplements creates differentiation from competitors. The company plans to launch two or three new food supplement products this year, starting from July.

Pakapun said the company allocated 10 per cent of its expected sales as a marketing budget, together with the most attractive incentives ever for its sales representatives.

Meanwhile, Synergy has seven factors it is focusing upon, including recalling members who left the company last year following some executives through its "welcome home" campaign, as well as increasing membership from the current 90,000. It will promote its three flagship products to build awareness of its food supplement line as a whole; establish a Synergy Academy in March; create strong brand awareness through distribute specific type of catalogues and materials; arranging marketing activities separately between its sales representatives and its consumer members, and improve its IT system.

Synergy has allocated Bt60 million as a marketing and advertising budget, said Subhajati Angsuvarnsiri, general manager of Synergy Worldwide Marketing (Thailand). It expects to reach 90-per-cent sales growth this year from Bt200 million in sales last year. It also targets to reach sales of Bt1 billion over the next three to five years

Synergy's headquarters has a policy to highlight Thailand as the regional hub of its new market expansion. In the first quarter, Synergy will expand into the Vietnamese market, especially in Ho Chi Minh City and Hanoi, as it has found that consumers in Vietnam are health conscious and interested in the opportunity of doing new business.

In the middle of last year, Synergy entered into four countries in Europe, for a total of 15 countries including  the US, Australia and nine Asian countries.

Subhajati said the Thai market was expected to grow by three times over the next three to five years. Following the latest data, total world direct-sales revenue was not less than US$100 billion (Bt33.1 billion) last year. Of the total, 87 per cent came from 15 countries, including Thailand.

In the meantime, Subhajati said Synergy would launch 10 new products: six food supplements and four cosmetics. Synergy provides 28 items in three product categories: food supplements, skincare and personal-care products.

Synergy in Thailand is ranked fourth in sales worldwide.

Nitida Asawanipont

The Nation