Amway Cleans Up In Thailand
LONDON — Amway Thailand posted sales of 8.99 billion baht (roughly $220 million) for the fiscal year that ended in August, and expects sales next year to rise to around 10 billion baht (roughly $250 million).
The projected growth of 6 percent to 7 percent should be driven by sales of health supplements and beauty products.
Preecha Prakobkit, the managing director of Amway Thailand, said that while cosmetics currently generate around 53 percent of the company’s sales, nutritional supplements and vitamins were expected to take a greater share in the near future.
Regulatory uncertainty over the classification of certain products as food supplements or drugs has been an obstacle to Amway’s ability to introduce new products in recent years.
Preecha said recent rulings by authorities expanding the definition of supplements would help the company expand its product lines for consumers.
Amway claims a 25 percent share of the Thai direct-sales market, estimated to generate 40 billion baht annually.
The Alticor subsidiary has operated in Thailand since 1987 and is a local pioneer in multi-level marketing. Amway currently claims 400,000 members and a direct-sales force of 280,000.
“'We are quite happy that we have been able to maintain our customer base and that our marketing strategy is correct. We will continue to build up our brand and customer relationship management,” Preecha stated.
He said direct sales in Thailand had grown dramatically, and that he supported initiatives by the Thailand Direct Selling Association to strengthen codes of conduct for operators to help maintain public trust in the industry.
Dick DeVos, a former Alticor president and the outgoing chairman of the World Federation of Direct Selling Associations, said global revenue through direct sales was around $100 billion last year, with growth of 10 percent projected in 2006.