Giffarine sets up Vietnam joint venture
Direct sales company Giffarine Skyline Unity Co plans to enter the Vietnamese market in the last quarter of this year.
It will establish Giffarine Vietnam with a group of Thai businessmen with experience in the country. Giffarine Skyline Unity will hold a 20% stake in the joint venture, which will have 10 million baht in registered capital, with the remaining 80% going to its partners.
The joint venture is undergoing company and direct sales registration.
Nalinee Paiboon, president of Giffarine Skyline Unity, said the new company would use about 50 million baht to start its business in the next seven months.
"We see huge market opportunities in direct sales in Vietnam because of the big population and the country's high economic growth compared with other Asean countries. Moreover, Thai products are popular among Vietnamese people," she said.
Direct sales companies Kangzen and Nu Skin already have a presence in Vietnam after using Thailand as their springboard.
Mrs Nalinee expects the new venture to achieve sales in Vietnam of about 30 million baht in the first year, rising to 60-80 million baht in the second year.
In Thailand, the company's business has improved this month.
"We are still concerned about many factors affecting consumer spending such as the drought. We have many customers in the agriculture and export sectors," she said.
Senior marketing director Pongpasu Unaphom said Giffarine was gearing towards a digital approach to respond to younger distributors who will join its direct sales network.
The younger distributors are expected to comprise about 30% of its distributors this year, up from 20% last year.
Digital services will suit the new generation who will take over from their parents.
Sales of Giffarine reached 5.3 billion baht last year and will grow by 5% this year.
Meanwhile, Nu Skin Enterprises (Thailand) Co expects to grow its sales this year by 10% to 2.9 billion baht.
It will achieve its goal by expanding its business via online shopping. The budget for social media will increase to promote its products this year.
The company expects its growth from the online channel will be 40-50%, said general manager Vipada Tangpakorn.
Nu Skin is also adjusting its pricing strategy while increasing the frequency of promotion campaigns to stimulate customers to buy its products.
The company also plans to spend 20 million baht to open two Nu Skin centres in the North and Northeast this year to expand its upcountry business.
Mrs Vipada forecast Thailand's 73-billion-baht direct sales business will grow by 3-5% this year.