Suntory Food & Beverage Ltd. is adopting a new market strategy in Thailand by officially launching its first line of health supplements and selling products directly on its website, through telemarketing or Line.
Brand's Suntory International Co., a wholly owned food supplement subsidiary based in Bangkok, says annual sales of Brand's products in the Thai market from direct sales will reach 500 million baht ($16 million) in 2020.
Suntory has allocated a 25 million baht budget to launch Brand's ActivMove, a dietary supplement sold exclusively through direct sales in Thailand. It expects the new product to generate 200 million baht in sales in three years.
Suntory's Thai unit has opened a direct business department as a new market channel to bridge any gap stemming from conventional market venues, such as brick-and-mortar shops and stores, said Yuichiro Ara, head of the department for Southeast Asia and North Asia.
"Introducing a new business model also serves to respond to consumer behavior in purchasing more products through e-commerce and social media," he added.
Suntory also operates direct business channels for Brand's products in Taiwan, Singapore and Hong Kong.
Nanthana Khaopleum, general manager of Brand's Suntory (Thailand) Co., another Thai subsidiary, said sales of Brand's products in the Southeast Asian country totaled more than 11 billion baht last year and are expected to grow 8 to 10 percent this year.