Direct sales firms adjust for outbreak

Direct sales firms adjust for outbreak

Targeted approach taken during dearth

Dr Nalinee says Giffarine's domestic focus has shielded it from the coronavirus contagion.
Dr Nalinee says Giffarine's domestic focus has shielded it from the coronavirus contagion.

The coronavirus contagion has prompted two of Thailand's leading direct sales companies -- Giffarine and Mistine -- to fine tune their strategies after business in China has been slammed since the outbreak.

An executive at Better Way Thailand, the operator of Mistine single-level direct sales in Thailand, who requested anonymity confirmed China is an important market for Mistine, with sales worth several billions of baht a year.

"We are experiencing a heavy impact from China because of the outbreak and logistics services halting," said the source.

"Workers at logistics companies stopped working two months ago. Though logistic services are about 70% recovered, our priority is essential items such as food and consumer goods for daily use rather than cosmetics or luxury items."

Ongart Wongdacharoj, marketing director of Better Way Thailand, said the company would focus on the domestic market for the short term.

To boost domestic sales, the company introduced Mistine's sister brand Myss to the market on Feb 23.

The new brand targets recruiting younger customers.

Mistine tried to approach young customers at secondary schools, universities and first-time workers in their early 20s with traditional product ranges, but the brand has not gone over well.

"We tentatively launched the Myss brand to the Thai market last year to test the response among young customers, and it was positive," Mr Ongart said.

The company is committed to continuing stimulating sales of Mistine product lines domestically this year.

Dr Nalinee Paiboon, president of Giffarine Skyline Unity, the operator of Giffarine direct sales, said the company has been hurt by the outbreak in China and just started resending its first shipments to China this month.

Dr Nalinee said she is still worried Chinese customers will be more cautious in their spending, buying only necessary items.

She said the company has been somewhat shielded from the outbreak as a majority of Giffarine sales are in the domestic market.

The disease outbreak has led the company to cancel planned meetings and events for safety, ramping up its business via social media.

"Fortunately, we already built a strong foundation for our online business through sales representatives a few years ago. Online sales contribute about 40% of our business," said Dr Nalinee.

The company plans to reduce new product launches this year to keep sales representatives focused on products with high demand such as hand sanitiser gel.

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