Do Day Dream Plc, the maker and distributor of SnailWhite skincare products, has revised its sales growth projection for this year down to 10% from its initial forecast of 20%, blaming several negative factors affecting consumer sentiment.
Vanchai Srisushon, the company's chief financial officer, said that despite initially aiming for a 20% increase in sales over a year earlier, global factors such as the continuation of the Russia-Ukraine war, the Israel-Hamas conflict, oil price fluctuations, and relatively poor exports have impacted consumer sentiment.
The company's sales in the first nine months of this year edged up by just 1% year-on-year to 1.14 billion baht.
Skincare products accounted for 54% of the company's sales, while beauty products made up the remaining 46%.
According to Mr Vanchai, the company has expanded its domestic market by distributing products via new channels, including traditional brands and local distributors. Internationally, there has been a continuous increase in demand for skincare products, particularly in the Philippines. The company has also entered new markets in Southeast Asia.
However, Mr Vanchai noted that sales in the domestic beauty business declined in the third quarter due to the closure of some shopping centres for renovation.
In response to these challenges, the firm has adjusted its strategies, focusing on improving production costs and cost of goods sold for efficiency. Additionally, it plans to enhance marketing and sales efforts to meet consumer needs more rapidly, both online and offline. Collaboration with partners and the expansion of new product distribution channels are also part of the strategy.
"We are confident of achieving the new target through the optimisation of marketing activities, collaboration with partners, and the expansion of distribution channels. The launch of the Makavaric lifestyle brand from Japan in September received a positive response from Thai consumers. The company is also closely monitoring the international market situation for swift business adjustments," Mr Vanchai said.
According to Mr Vanchai, next year the company plans to continue investing but with greater caution. New products will be launched within existing business lines, and additional lifestyle products will be added to the portfolio in early 2024.
A revamp of the SnailWhite skincare brand is also planned next year, including changes to product packaging and formulas, as well as further business expansion, said Mr Vanchai.