(b) Marketing and Competition Description of Customer
End users and HORECA businesses consist of Hotel, Restaurant, and Catering businesses.
Credit Term
1) For distributors, credit-terms of 90-150 days are granted.
2) For direct sales under Single Level Marketing, sales are mainly in cash.
3) For Srithai Network under Multi-level Marketing, sales are made in cash.
4) For grand sale event, sales are made in cash.
Competitive Strategy
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Focus is made on offering diversified innovative products and quality products which are safe and popular or with large market accommodation in local and foreign markets at affordable prices.
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The Company focuses on selling full range of products or product groups that can be offered to the same target customers. This is carried together with sales promotion.
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Membership base is expanded in the direct sales of single-level marketing and multi-level marketing systems.
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Information and communications systems are developed and used for on- line ordering via smart mobile devices, that help enhance direct access to the targeted consumer and other groups, as well as that are convenient, speedy and modern. This also facilitates the achievement of a competitive edge for the Company and enables the products to reach fast traction in the market, and widespread awareness and recognition to consumers.
Distribution Channel
Sale made directly to consumers and via distributors. Direct sales channel both Single-level Marketing (SLM) and Multi-level Marketing (MLM) through domestic market covers more than 90 per cent of revenue.
(c) Competitive Environment Products sold by the Company are widely diversified, especially Srithai Network products are distributed via network marketing system. Focus is made on quality and safety of products and its fulfillment of contemporary trend of demand in the markets. Also interested are the products of daily life differentiated from others products or products that pass a test in daily use with sizable market, e.g. a new kind of organic substance for plants under agriculture-related product group. The Company is confident that our network marketing business can offer goods of high quality as another option to consumers. It could be new products or a substitute of product with declining life cycle. The Company has launched sales campaign activities to motivate members in driving up sales volume and business expansion by holding conferences and trade exhibitions which received good response from attending people. Year 2016 was another year continuing from 2015 in which Srithai Network Business has been impacted, by the sluggish domestic economy, the drought crisis, low prices for agricultural commodities, high household debts, and low consumer confidence that driving down consumer demand and purchasing power. Higher degree of competition was also experienced due to the continued increasing number of network marketing operators. All of which caused the total sales of the Srithai Network business to be down compared to 2015. Nevertheless, the Company is confident that the Srithai Network is a positive business and a leading choice in the Thai market for those willing to undertake a network marketing activity. Also, the Company believes that it can maintain its competitive status within the market due to the following strengths and business activities:
Srithai Superware Public Company Limited
Annual Report 2016
31