Linking up with Amway's network

"We expect the new direct selling channel will help expand our reach to a new group of housewives, who have less time to go shopping at supermarkets," said Kitsada Ruayjaroensap, deputy managing director of Mae-Ruay Snack Food Factory.

The maker of Koh-Kae peanut snacks and 13 other manufacturers yesterday joined 55 companies already exploiting Amway's extensive direct-selling network via a listing in its "Personal Shoppers Catalogue".

The other 13 firms are Malee Sampran, Oishi Group, Berli Jucker, Thai Roong Ruang Sugar Group, JD Food Products, Sino-Pacific Trading (Thailand), Dermasalve Science Asia Pacific, Taokaenoi Food and Marketing, T-Holding, Plan Creations, Precision Time, Mae-Ruay Snack Food Factory, Unicef Thailand, and Artchit International Pepper & Spice.

Kitsada said sales of Koh-Kae canned peanuts have pulled back by almost 10 per cent so far this year as foreign visitors, who are key customers for the 225-gram size, stay away.

"This new channel will help offset the drop in sales to foreign tourists during the economic downturn and local unrest," he said.

Tan Passakornnatee, chief executive of Oishi Group, said the company would explore direct selling for its ready-to-drink green tea.

"We have seen direct selling as one of the most appropriate channels for our one-litre size as it serves directly household customers, who can keep our product in their refrigerators to serve their guests and family members," he said.

"So far, sales of Oishi one-litre containers are quite slow on supermarket shelves. We however believe that catalogue sales, which reach more than one million new potential customers, will help boost sales of our one-litre products overall," he said.

Boontum Tiamwaratat, group manger at T-Holding, the distributor of Fisho fish snacks, said Amway's network would expand Fisho's customer base beyond children and teenagers.

"With Amway's efficient distribution coverage, it will be easier for us to access new customers," he said.

Fisho sales in the first three months of this year are expected to increase by 10 per cent, on par with projections, he said. However, demand from the traditional trade started to slow down early this year.

Suwanna Chokdee-anand, senior vice president for branded business at Malee Sampran, said the manufacturer and exporter of preserved fruit products is keen on looking for new opportunities to reach its target customers besides its retail channel, which has suffered from the economic turmoil.

"We will distribute our Nutimax UHT milk and I-Corn sweet corn milk via Amway's catalogue sales channel, which has been recognised as one of the most efficient channels of distribution amid this time of recession," she said.

Local demand for sweet corn milk fell by almost 20 per cent last year while ready-to-drink UHT milk posted a slight growth of only 1-2 per cent.

"By entering Amway's direct-selling network, we want to maintain growth of not less than 5 per cent for both sweet corn milk and UHT milk products this year," she added.