Nalinee: New model could double sales

Despite the uncertain economy, Giffarine Skyline Unity Co is preparing to expand its direct-sales business at a faster pace by attracting new investors to open their own licensed shops.

The new business model would help double sales at Giffarine to 8 billion baht over the next four to five years, said Nalinee Paiboon, the company's president.

"We took up to 13 years to open 96 Giffarine shops on our own. But under the new business model, the total number of shops will reach 200 within only four to five years. This method can develop greater purchasing chances and boost sales growth," she said yesterday.

The new business model will be introduced to investors on June 14 at Challenger hall at Impact Muang Thong Thani. Interested investors must have 1-2 million baht to open a Giffarine Choose & Shop outlet. They will obtain a 7% return from total sales at the shop.

Normally, sales of each Giffarine shop are about 3.6 million baht per month. Investors will break even within three years.

The company plans to open 10 Choose & Shop outlets by the end of this year, followed by another 50 next year and 200 in 2013.

Ms Nalinee said sales of Giffarine in the first five months of this year grew by 7% from a year earlier, lower than an earlier projection of 10%, mainly because of the political violence in April. However, its sales growth has been on par with that of the direct-sales industry overall.

Ms Nalinee said the company had seen signs of business recovery since early May after 10 days of sharp sales declines during the political unrest.

The number of people who apply for Giffarine memberships has been rising steadily and now averages 33,000 to 34,000 per month.

Currently, Giffarine has more than 5 million members. About 300,000 are active with purchases averaging at least 1,500 baht a month.

Apart from licensed shops, the company will expand its multi-level direct sales firm in Malaysia for the first time in the next two months. Also, it will re-enter Cambodia after withdrawing from the market six years ago.

Ms Nalinee said both markets were very promising.

Sales of Giffarine last year totalled 4.15 billion baht and it expects to grow 10% to 4.56 billion this year.