Amway (Thailand) Co, the country's largest direct sales company, projects its Nutrilite food supplement business will grow at least 15% to 4.8 billion baht in sales this year as the health trend is still popular among Thais.
Marketing director Ratana Channara said the fact that more Thais are taking care of their health will drive strong growth in the local food supplement market. Nutrilite sales were solid even during the economic slowdown.
In the past, people spent on vitamins,calcium tablets, and nutritional or diet drinks. Now, Amway notes, they consume more collagen and dietary supplements that claim to enhance their appearance.
Ms Ratana said the overall food supplement market would grow around 10%this year from 22.8 billion baht last year.Nutrilite will account for 14% of the market and be the second-largest player.The worldwide dietary supplement market is currently worth US$65 billion or 2.3 trillion baht and gaining every year.
"We see high potential in the food supplement business, both globally and locally. Since it launched in Thailand,Nutrilite's sales have grown steadily the past 10 years," said Ms Ratana.
Besides the health trend,300,000 Amway business owners will drive the item.
In 2010, Amway expects Nutrilite revenue growth of at least 7%.
"We've made a conservative projection for next year because its revenue base is quite big. However, we will revise the figure again in the middle of the year,"she said.
Amway also plans to launch two new food supplements for the elderly next year. Ms Ratana said Thais are living longer because of medical advancements,and the lifespan of a Thai woman is more than 70 years, up from 60 in the past.
Since Nutrilite is marking its 75th global anniversary this year, Thai Amway is celebrating the event with a 100-million-baht TV commercial campaign.It is also staging the Nutrilite Super Tour on Oct 20, where it expects to attract at least 15,000 visitors.
Direct sales business should improve in the last quarter in line with an improving economy, and many players are doing aggressive marketing. During the first nine months, the overall market grew 7-10% to 45 billion baht, said Kittiwat Ritteerawee, Amway's general manager for business relations and marketing.
Saturday, October 17, 2009
Thursday, October 8, 2009
Cerebos (Thailand) embarks on bird's-nest education campaign
Cerebos (Thailand), manufacturer of bird's-nest soup and essence of chicken, has launched a Bt50-million marketing campaign to educate consumers about the nutritional value of its products.
The campaign is aimed at countering misconceptions about the quality of birds' nests that are harvested from natural caves and those from "cavelike" structures.
CEO Lackana Leelayouthayotin yesterday said local consumers did not understand the difference between ingredients from natural caves and ingredients from structures built specifically to house bird's nests. This is harming the image of manufacturers of premium-grade bird's-nest products, including Cerebos.
"We must educate the public about soup made from nests found in natural caves, which provide the best quality," she said.
The campaign features Brand's new formula, which uses 30-per-cent more bird's-nest content. Cerebos (Thailand) has also raised its price for the soup 5 per cent.
The company is also using "love ambassadors" to promote the new formula's theme of "Love and Care".
Lackana said Cerebos (Thailand) had not been much affected from the misperceptions, as sales revenue grew 10 per cent in the first nine months of the year. The overall bird's-nest market is expected to grow in double digits this year, from last year's value of Bt2.5 billion.
Cerebos has targeted sales growth of only 10 per cent this year, less than the 20 per cent seen in recent years, because of the economic slowdown. But Lackana said health supplements in general were still experiencing growth despite the economic slowdown.
"The downturn has led people to be more selective, and so bird's-nest and chicken soup products are still growing to an extent," she said.
Lackana said a complete economic recovery was expected next year, which meant the company could then look forward to a return to 20-per-cent sales growth.
The campaign is aimed at countering misconceptions about the quality of birds' nests that are harvested from natural caves and those from "cavelike" structures.
CEO Lackana Leelayouthayotin yesterday said local consumers did not understand the difference between ingredients from natural caves and ingredients from structures built specifically to house bird's nests. This is harming the image of manufacturers of premium-grade bird's-nest products, including Cerebos.
"We must educate the public about soup made from nests found in natural caves, which provide the best quality," she said.
The campaign features Brand's new formula, which uses 30-per-cent more bird's-nest content. Cerebos (Thailand) has also raised its price for the soup 5 per cent.
The company is also using "love ambassadors" to promote the new formula's theme of "Love and Care".
Lackana said Cerebos (Thailand) had not been much affected from the misperceptions, as sales revenue grew 10 per cent in the first nine months of the year. The overall bird's-nest market is expected to grow in double digits this year, from last year's value of Bt2.5 billion.
Cerebos has targeted sales growth of only 10 per cent this year, less than the 20 per cent seen in recent years, because of the economic slowdown. But Lackana said health supplements in general were still experiencing growth despite the economic slowdown.
"The downturn has led people to be more selective, and so bird's-nest and chicken soup products are still growing to an extent," she said.
Lackana said a complete economic recovery was expected next year, which meant the company could then look forward to a return to 20-per-cent sales growth.
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