Aviance eyes Malaysia

Aviance eyes Malaysia

Market size and potential big draws

After gaining a strong foothold in Thailand over a decade, Aviance, a direct-sales business under Unilever Thai Trading, is expanding its business internationally, beginning with Malaysia this month.

Suchada Theeravachirakul, the managing director of Aviance, said the company chose to expand in the Malaysian market first because of its huge potential.
Malaysia's direct-selling business has achieved healthy and sustainable market growth, similar to Thailand's. In addition, the country has a diversity of cultures and races, including ethnic Malay, Chinese and Indian.
Malaysian people speak at least two or three languages, which is considered one of the country's main advantages in attracting investors, said Mrs Suchada.
Moreover, the Malaysian direct-selling business is attractive, with a market size of US$1.1 billion, close to Thailand's $1.5 billion.
In 2009, Malaysia's population stood at 28.3 million. About 75% of the people had enough purchasing power to buy Aviance products.
"Malaysians have positive thoughts about the direct-selling business because they have long experience with it. Moreover, the Malaysian business network is widespread throughout Asia," Mrs Suchada said.
She added that while there are many players in the direct-selling business in Malaysia, most are local firms.
The joint venture in Malaysia is registered as Unilever Malaysia Aviance and is ready for member recruitment this month, with products and services available in October.
As people are the most important resource for this type of business, Aviance will implement a new compensation plan in Malaysia, allowing members to earn commissions as well as a guaranteed income to support new members during their first year of work.
At home, the company is investing 100 million baht in new software to help its members make use of its services and businesses wherever they are in the world.
The Aviance Cyber Office will give members personal web pages where they can check their points and do other tasks.
As well, Aviance will soon introduce the Aviance Cyber Shop for online shopping. Its application will be added to Apple's App Store for the iPad. The company expects to recruit about 200,000 members in the first year of operations in Malaysia.
Aviance was set up 10 years ago in Thailand for direct sales of premium beauty products. It now has 450,000 members in the Thai market.
Aviance products are also available in India and Cambodia. After the company has succeeded in establishing its system in Malaysia, Aviance Thailand plans to seriously establish its operation in Cambodia.