The global health and wellness direct-selling group has identified new markets in neighbouring countries. Its existing markets are in Latin America and Africa.
PETALING JAYA: DXN Holdings Bhd
expects both new and existing markets to support the group’s business growth in the next few years, according to Maybank Investment Bank (Maybank IB) Research.
As part of its future plans, the global health and wellness direct-selling group has identified new markets in neighbouring countries. Its existing markets are in Latin America and Africa.
“The ease of crossing borders between both the group’s existing and new markets will allow for better organic growth in membership,” said Maybank IB Research in a note to clients.
Furthermore, the strategically-located branches and agencies will support DXN’s 14.9 million registered members and 3.6 million active members in over 180 countries.
The research house noted that DXN would only consider opening dedicated sales branches or appoint external distribution agents once its member base reaches 500 active members with monthly sales of at least US$50,000 (RM228,275).
“This model has been tried and tested in its Latin American and African markets. It had set up sales branches in Mexico and Morocco before branching out into neighbouring countries,” Maybank IB Research said.
It would take between 24 and 36 months to enter a new market with a total set-up cost of RM2mil to RM3mil, said the reseach house.
