Berli inks direct-sales deal for cosmetics, eyes e-commerce
Berli Jucker is moving into direct sales and e-commerce, expecting better margins than it would gain from only selling its consumer products, especially cosmetics, on supermarket shelves.
Demand for cosmetics through direct sales and e-commerce has the potential to grow by 10 per cent a year on average, while the modern-trade channel has a growth rate of only 5 per cent, senior vice president Sanchai Thienparsertkul said.
“We are expanding our business into direct sales and e-commerce to boost our long-term growth, testing the market first with our cosmetics products,” he said.
Berli Jucker yesterday signed a contract to distribute its cosmetics through direct-sales firm MyBiz International Co.
Berli Jucker targets sales of between Bt150 million and Bt200 million next year as it launches three new cosmetics products to the direct-sales market.
It has also set aside an investment budget of Bt50 million to develop its e-commerce business, which will kick off in December, he said.
“Although direct sales and e-commerce will generate less than 5 per cent of our total non-food revenue, which averages Bt6 billion a year, they will be our new distribution channels to expand our customer base,” eventually generating high returns for the firm, Sanchai said.
This year, the company targets revenue from non-food products worth Bt6 billion, about the same as last year. Demand for such products has been hit by the economic slump.
