Amway Thailand Ltd, a direct sales company, expects its sales to grow at a 3-4% clip next year, down from 5% in 2017 and an average of 6-7% over the past several years, due to its larger base.
Managing director Kittawat Ritteerawee said the company's sales are expected to top 18 billion baht this year and grow to 18.5-18.7 billion next year.
"This year marks another one where Amway has had continued success, as our health and beauty products have continued to receive a good response," he said. "Whether the economy is good or not, the popularity of both product categories remains high. Health and beauty contributed up to 70% of the company's sales this year, up from 50 percent last year."
Mr Kittawat said sales of Amway via online channels are also growing, with the contribution up from only 5% of total sales last year to almost 10% this year or 1.7 billion baht.
"We are on full alert about the online channel, but we are not afraid of that trend, as Amway products are very unique. Consumers cannot find them just anywhere," said Mr Kittawat.
But he said that as the world goes digital, online media will be an indispensable part of people's lives and thus Amway needs to keep pace with that trend by deploying digital tools in responding to consumers' lifestyles in the social-media era.
"You will see a clearer picture of Amway via its online business by 2019,'' said Mr Kittawat.
He said he believes that Thailand's 95-billion-baht direct sales industry in 2018 will fare better than this year, citing positive signs for the country's economy, politics and consumer confidence.
"Since the middle of this year, we've started seeing better consumer spending, especially for premium or high-end items. And we hope the increasing sales momentum will continue next year,'' said Mr Kittawat.
The Thai Direct Selling Association (TDSA) predicts the market will intensify next year as the proliferation of digital platforms has dismantled entry barriers and opened the market to more competitors.
The booming online business and the growing digital wave in Thailand has made it easier for new companies to enter the direct sales market this year, said the association, forecasting that digital marketing will also draw more foreign direct sales companies to enter the Thai market next year.
Normally, at least 100 new direct sales companies register with the Commerce Ministry's Business Development Department each year.
The TDSA projects the direct sales segment will grow by 2% this year to 95 billion baht, driven by health and food supplements.
Health and food supplements sales are expected to contribute over 30% of the TDSA's total direct sales value due to growing health consciousness among consumers this year, up from only 10% in the past decade.
The association projects that Thailand's direct sales segment will grow by 5% to 99.8 billion baht in 2018.
Mr Kittawat said not only direct sales, but business in general will fare better next year due to myriad factors, including the government's active investment in infrastructure projects, the growing economy, improving domestic consumption and robust exports and tourism.
