Bio consumer banks on recession-proof D-nee

So far, baby products have proved immune to the reduction in consumers' purchasing power due to the economic slowdown.

D-nee baby products contribute 10 per cent of Bio Consumer's total annual revenue, said marketing manager Sirisupa Ajsonjorn. Sales amounted to Bt250 million last year, up 30 per cent from a year earlier.

Bio Consumer serves a variety of consumer groups, with liquid detergent and fabric softener Fineline contributing 50 per cent of total revenue, followed by its Bernice firming shower cream and Tros cologne.

Even as their purchasing power declines, Sirisupa said, parents are still prepared to spend money on products for their children. Therefore, the sluggish economy should not affect this market as much as others, she said.

D-nee occupies the No 2 slot in the baby products market, with a 20-per-cent share.

The company still expects sales of D-nee products to grow 30 per cent this year from last year's Bt250 million. To achieve this target, it has increased its marketing budget for the product line to Bt30 million from Bt20 million last year.

In general, baby products are aimed at women with babies aged three years or younger, which is a short timeframe compared with other personal-care products.

The company wants to increase sales growth over the long term by launching a new D-nee baby bath for children aged over three years, with the secondary target group being working women and modern housewives.

Sirisupa said the company is developing other items for its baby-goods portfolio. It expects to launch the new products in the third quarter.

Bio Consumer has also adopted product-sizing, a sales method in which consumers are invited to test a product before deciding to buy a regular-size product.

Amid the economic slowdown, many consumer products manufacturers have adopted product-sizing, the marketing manager said.

"Even though the margin is smaller using the product-sizing method, it makes distributing products easier. Product-sizing can boost sales by 10 per cent," she said.

Bio Consumer, a manufacturer and distributor of household and personal care products, will increase the proportion of D-nee brand baby product sales from 10 per cent to 15 per cent this year.

The baby products have not been affected from the slowdown purchasing power.

Sirisupa Ajsonjorn, marketing manager of the company, said that D-nee brand baby products contribute 10 per cent of its total revenue annually. Sales of D-nee brand were Bt250 million last year, up 30 per cent from the year earlier.

Bio Consumer serves variety groups of consumers, which liquid detergent and fabric softener Fineline contributes revenue over 50 per cent of total, followed by firming shower cream "Benice" and cologne "Tros"

She said that purchasing power parents ready to spend money on buying products for their children. Therefore, the economic sluggish would not affect this market.

D-nee is number two in baby product market, with market share 20 per cent.

The company still targets sales growth of D-nee at 30 per cent from Bt250 million last year, which to achieve sales growth, it has increased marketing budget for D-nee to Bt30 million from Bt20 million last year.

In general the baby products will be provided female who have baby only 0 to 3 years, which is short period compared other personal care product.

The company wants to increase sales growth for long term by launching new product line, she said citing new product baby bath D-nee is one of the production line expansion to cover children aged over 3 years and secondary target group is office women and modern housewife.

She said that the company is developing new item to its baby goods portfolio, which expected to launch in the third quarter of this year.

Moreover, the product-sizing is one of active seller of Bio Consumer, said marketing manager, it is opportunity to attract buyers to test the product before deciding to buy normal size.

She said the product sizing is becoming a model of many consumer product manufacturers amid the economic slowdown.

"Even the margin of product sizing is smaller than normal size, it can help distribute product easier. The product sizing can boost sales by 10 per cent," she said.