Kittawat Ritteerawee President of Thai Direct Selling Association

Network Marketing Business… A Boundless Opportunity for AEC

Thai Direct Selling Association

35 Companies as 70% of Total Market

Strategy 1. Branding 2. Membership 3. Integrity and Development 4. Network Marketing Guru

Thai Direct Selling Association

กลยทธ 1. เสรมสรางภาพลกษณ 2. สมาชกคณภาพ 3. ธรรมาภบาล 4. ศนยกลางความร

World Federation of Direct Selling Associations (WFDSA)

Thai Direct Selling Association

Commitments of TDSA Member

Code Administrator

Direct Selling Education Foundation (DSEF)

Thai Network Marketing 2002-2012

Source: WFDSA 2012

CAGR 9.48%

2016

100 Billion

0

10

20

30

40

50

60

70

80

90

100

2002 2004 2005 2006 2007 2008 2009 2010 2011 2012

27.76 32.29

35.2 37.2

41.7 44.62

52.89

60 64.2

68.7

Billion Baht

Network Marketing Business in Thailand

Network Marketing Business in Thailand

GDP VS Thai Network Marketing Growth 2008-2012

CAGR 5.76%

CAGR 11.39%

Source: WFDSA 2012, World Bank 2012

7%

18.5%

13.4%

7% 7%

2.48%

-2.33%

7.81% 0.08%

6.43%

-5%

0%

5%

10%

15%

20%

2008 2009 2010 2011 2012

N-Mktg

GDP

AEC Network Marketing Growth 2009-2012

2,957

3,863

4,359 4,667

2,269 2,574

2,754 2,947

810 891 980 1,088

545 709 770 1,011

305 319 330 367

162 184 261 292-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

CAGR 16.4%

CAGR 9.1%

CAGR 10.3%

CAGR 22.9%

CAGR 6.4% CAGR 21.7%

Source: WFDSA 2012

6 AEC Major Markets = US$ 10,372 million (2012) 2009 – 2012 CAGR = 13.7% US$ (mill)

Malaysia

Thailand

Indonesia Philippines

Singapore Vietnam

88.8

76.7

247

66.8

29.3 0.4

6.6

15

53

Productivity per Head (US$)

Network Marketing Business in AEC

Distributors VS Population

Vietnam

1 : 79

Philippines

1 : 32

Indonesia

1 : 27

Singapore

1 : 13

Thailand

1 : 6

Malaysia 1 : 6

Thailand

270

Malaysia

983

Singapore

932

Philippines

332

Vietnam

260

Indonesia

118 Source: WFDSA 2012, World Bank 2012

5.3

Per Capita Income by Market

50,714

36,521

8,617 5,281 3,469 2,255 1,362 1,204 912 804

3,527

-

10,000

20,000

30,000

40,000

50,000

60,000

Source: World Bank 2011

US$

Network Marketing Business in Thailand

Thai Network Marketing Companies

MLM 82.7 %

SLM 18.9 %

Others 2.5 %

MLM

SLM

Others

Source: TDSA Research 2010

Total Thai Network Marketing Companies 380

Network Marketing Business in Thailand

0 20 40 60 80 100

Product quality

Price

Branding

After sales service

Convenient to…

Product trial

Product image

Speedy delivery

Others

Source: TDSA Research 2010

Reasons to Buy Direct Selling Products

Network Marketing Business in Thailand

Product Category in Thailand

Clothing & Accessories,

3% Cosmetics & Personal Care,

27%

Home Care, 2%

Household Goods &

Durables, 17%

Wellness, 39%

Books, Toys, Stationery, Etc.

4%

Foodstuff & Beverages,

2%

Others, 7%

Clothing & Accessories Cosmetics & Personal Care

Home Care Household Goods & Durables

Wellness Books, Toys, Stationery, Etc.

Foodstuff & Beverages OthersSource: WFDSA 2012

Thank You