Better Way adds touches to Mistine's China strategy

Better Way adds touches to Mistine's China strategy

Cosmetics seller tries to keep sales level

Mr Padungsak says business in China has gradually restarted activity.
Mr Padungsak says business in China has gradually restarted activity.

Better Way Thailand, the operator of Mistine direct sales, is refining business strategy for cosmetic products in China to maintain sales there in 2020 at last year's level of 4 billion baht.

Padungsak Suksudet, the company's executive director, said instead of being imported from Thailand, Mistine products sold in China will be increasingly produced by contracted manufacturers there.

This strategy will decrease operation costs by 20-30%, Mr Padungsak said, adding it is easier for Mistine to ask China's Food and Drug Administration for licensing, which allows a quicker response to the market.

Products that are produced in China include Mistine eye shadow, makeup brushes, sunscreen, cleansing water and foundation.

According to the new strategy, Mistine products made in China will comprise 50% of the total, up from 20% at present.

"Competition in online cosmetics shopping in China is heating up because more local makers are making inroads in this market," Mr Padungsak said. "Chinese cosmetic brands are recognised by the Chinese, which is why we have to produce more Mistine products there."

The company also wants to market more sunscreen products.

"As Thailand is a tropical country, Mistine sunscreen is likely to garner higher recognition than Chinese products," Mr Padungsak said.

Mistine expanded business into China four years ago via Better Way Shenzhen, a joint venture company in which a Chinese partner controls 51% stake while Better Way Thailand and an unnamed Thai partner hold the rest.

Mistine has established a somewhat strong e-commerce presence in China, selling products via major e-commerce platforms including Tmall Global, JD, VIP, Koala, Red Book, Kuaishou, TikTok China, Youzan, Daling Family, Jubei and Miya.

The company's products are also made available via more than 3,800 offline stores in China such as 7-Eleven, FamilyMart, Sanfu and Afiona.

"Though cosmetics competition in China is fiercer, there is still huge potential," Mr Padungsak said. "We've just expanded our business in four cities, including Shanghai, Guangzhou and Shenzhen. We aim to rank among the top five for regional colour beauty brands in Asia in the future."

He said business in China has gradually restarted activity, though logistics are have not yet returned to 100% of what they used to be.

The company hopes the overall businesses in China will be back to normal soon.

Better Way in China also plans to join forces with TikTok to launch a marketing campaign by live streaming during May 8-10 and expect 1.9 million viewers and sales of 600,000 pieces during this campaign.

In 2018, sales of Mistine in China totalled 3 billion baht and rose to 4 billion last year. The company expects to maintain sales in China at 4 billion baht in 2020.

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