Malaysia Direct Seller I 2022 I BE International

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BE INTERNATIONAL PUTS A PREMIUM ON RELATIONSHIPS A PUBLICATION OF RM10 ISSN 2716-6171 ISSUE 1 / 2022 MALAYSIA DIRECT SELLER
with KODENSHI ® www.beintl.com ABSORBS BODY TEMPERATURE RELEASES FAR-INFRARED 6 SEGMENTED COMPRESSION SHAPE BETTER BODYLINE 29 DIAMOND-SHAPED FABRIC

COVER

COVER STORY

International Puts A Premium On Relationships

MARKETING

CONTENTS

HIGHLIGHTS

The direct marketing company wants to impact the lives of people it touches. While its products are its stars, its company philosophy is the compass that guides its employees and customers on the path

COLUMN

President’s Message

1Vol 1 no 1 / Malaysia Direct Seller / 13
8 Roger Barnett, WFDSA Chairman Message 10 2021 Global Direct Sales Outlook 11 Direct Selling Industry In Malaysia Demonstrates Steady Growth 13 DSAM Convention 2021: Next Is Now 16 Nu Skin Achieves 25-Year Milestone In Southeast Asia 19 Taking The Path Less Travelled
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BE INTERNATIONAL
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DIRECT SELLING ASSOCIATION OF MALAYSIA OFFICE BEARERS 2022-2023

DATUK TAN CHONG GUAN PRESIDENT

Executive Director, Vice President of Asia

Forever Living Products (M) Sdn Bhd

Amway (Malaysia) Sdn Bhd

TREASURER

General Manager, Malaysia & Singapore

Mary Kay (Malaysia) Sdn Bhd

WINSTON CHEN ORDINARY BOARD MEMBER

PHHP Marketing (M) Sdn Bhd

ORDINARY BOARD MEMBER

Director of Finance & Operations

Direct Seller Malaysia is published by Harini Management Services Sdn Bhd for Direct Selling Association Of Malaysia. ISBN 978-967-15054-4-1 by

HELEN LAM ORDINARY BOARD MEMBER

President

Shaklee Products (Malaysia) Sdn Bhd

VIVIEN LIM ORDINARY BOARD MEMBER

Vice President Operations Portfolio CNI Enterprise Sdn Bhd

HENDRIX WONG ORDINARY BOARD MEMBER

Vice President Market Operations Nu Skin (Malaysia) Sdn Bhd

HARINI MANAGEMENT SERVICES

SDN BHD (609031-W)

W-9-12, Menara Melawangi, Amcorp Trade Centre, 18, Persiaran Barat, 46050 Petaling Jaya, Selangor. Tel: 603-7932 3259

Email: harini.mservices@gmail.com www.harini.com.my

Publisher/CEO

V.S. Ganesan

Editor Christina Thomas Creative Designer Goh Wei Lee

Advertising Consultant Faridah Ismail

Marketing Manager

Karthik Ganesan Operations Manager G. Revathi

PRINTER

United Mission Press Sdn Bhd (755329-X) No.15, Perindustrian BS 9, Jalan BS 9/10, Taman Bukit Serdang, 43300 Seri Kembangan, Selangor. Tel: 603-8958 0186

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Email: allscript@allscript.com

2 / Direct Seller Malaysia / Issue 1 / 2022
All articles featured in Direct Seller Malaysia magazine represent the personal views of contributors and are not necessarily those of Direct Selling Association of Malaysia & Harini Management Services Sdn Bhd. All writers automatically agree to indemnify DSAM and Harini Management Services Sdn Bhd against any loss, costs, expenses (including legal fees), damages and liabilities that might arise from their own incapacity, negligence, breach of contract or other civil misdeeds. We reserve the right to edit all articles. All rights reserved. Copyright © 2022 by Harini Management Services Sdn Bhd. No part of this publication may be reproduced in any form without prior written permission from the publisher. Direct Selling Association of Malaysia and Harini Management Services Sdn Bhd accept no responsibility for unsolicited manuscripts, photography, illustration and other editorial materials.
A
PUBLICATION OF
MOHD ZAIHAN ARIFFIN VICE PRESIDENT DATIN FIONA KHOO HONORARY SECRETARY Group Legal & Secretarial – Head Elken Sdn Bhd VIVIEN YAP Unicity Marketing Sdn Bhd

PRESIDENT’S MESSAGE

Dear Members, 2022 has been an eventful year despite the impact of the pandemic. Over the last several months, the economic and business outlook have increasingly shown tremendous promise with the restoration and opening up of business operations across various segments.

Despite the challenges faced during the pandemic, I am pleased to say that the direct selling industry has forged ahead and has thrived in the face of adversity. According to the Domestic Trade and Consumer Affairs Ministry (MDTCA), there has been a 19 percent increase in sales among direct selling companies in 2020 recording RM25.7 billion compared to RM21.5 billion in 2019. As of end-August 2022, sales turnover of the industry stands at RM24 billion and is projected to reach RM26.5 billion. Malaysia is also ranked 6th globally and 4th in Asia Pacific in terms of sales according to the 2021 Direct Selling Retail Sales Report issued by the World Federation of Direct Selling Associations (WFDSA). This is indeed encouraging news amidst the pandemic and shows how much potential the direct selling industry presents.

This year, MDTCA launched the direct selling roadmap which is the Ministry’s blueprint on the future direction of the industry, created in the interest of all parties involved in the industry to establish a more conducive and dynamic business ecosystem that can develop both locally and internationally. My fellow committee members and I had the opportunity to speak to Datuk Azman Mohd Yusof, Secretary General of MDTCA, who shared his perspectives on the direction of the industry and its role in the digital economy. Read all about it in this issue and learn the positive impact that the blueprint is set to deliver to the direct selling industry.

During the pandemic, many of our members experienced the positive aspects of online business and transactions as well as tools to ramp up their sales capabilities. In fact, in many ways, digital capabilities were indeed a life-saver for the industry amidst the pandemic movement restrictions. The general public has also become more savvy with the use of online and digital technology in purchasing products and services. This transformed the entire business landscape not only for direct sellers but also other businesses.

Additionally, the pandemic has also opened the eyes of the general public on the importance of health products and

supplements in order to fight COVID-19 and to stay healthy. This is an advantageous prospect for the direct selling industry, which drives higher demand for our products. It has opened new frontiers for direct sellers as consumers look to boosting their immune systems, recover from COVID-19 infections and keep long-COVID at bay. So, we need to continue to promote our health food, supplements and products, and help people strengthen their health conditions while also providing them with the opportunity to earn an extra income. During the pandemic many have lost their jobs or seen their income reduced, which has also brought about the realisation that additional sources of income is important in order to sustain during tough times. These are just some of the advantages that the direct selling industry offers to society at large.

In the coming week, DSAM has various activities planned to drive a robust industry, which include engagement sessions with government agencies, such as MDTCA. With the new blueprint in place, we want to engage MDTCA on achieving synergy and moving forward to meet targets set in the blueprint.

As the economy picks up momentum and restrictions are reduced, our members have also increased their offline sales activities. I hope that you are all able to reach out to a lot more people through their various activities such as conventions, trips and events, while also continuing to build on your online tools. As we have seen, digital capabilities and offline business activities are interrelated in current times –they go hand-in-hand, and that is the future!

The silver lining is now quite clear, so let us all leverage on the opportunities available in the market, think out-ofthe-box and continue to drive the direct selling industry forward. Remember, “There is no way to go but forward.”

Enjoy the publication and I look forward to welcoming you at DSAM events in the weeks and months ahead.

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BE INTERNATIONAL PUTS A PREMIUM ON RELATIONSHIPS

The direct marketing company wants to impact the lives of people it touches. While its products are its stars, its company philosophy is the compass that guides

BE International, or Beyond Eternity International, is a five-year-old direct selling company. It believes in creating extraordinary results that lasts forever. According to Founder, President and Group Managing Director Ir Lee Suet Sen, this begins with crafting authentic relationships with the people around you.

“Only then can one achieve his or her dreams, and sometimes even surpass them,” he said.

Here is an organisation that believes in achieving success through helping others. What goes around comes around, right? BE International has grown rapidly in the five years since its establishment in 2017. Starting off in a rented office space in Glenmarie, Shah Alam, today the direct marketing company occupies a multi-storey complex at The Link 2, Bukit Jalil, Kuala Lumpur.

We have over 100 employees

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COVER STORY

internationally (in Malaysia, Singapore, Brunei, Hong Kong & Indonesia) to engage with a rapidly growing network of agents, distributors, and collaborators.

“In just five years, we have gathered an extensive and rapidly growing global network with more than 350,000 members in 20 countries including 53 RCCAs (Royal Crown Council Ambassador),” said Founder and Executive Vice President Ho Huey Chuin.

The company also has physical offices in Singapore, Brunei, Hong Kong and Indonesia.

GOING BEYOND

BE International’s principles are simple. Everyone is called to be the best version of themselves especially when in service to others. This is inspiring and, at the same time, it ingrains positive values in others, values that will help them achieve success in all that they do.

“We build people up holistically. They are no longer confined

geographically. Through our international connections and digital technology, the world is opened up for them,” said Huey Chuin.

“While our philosophy – Beyond Inspiring Minds, Touching Lives for Eternity – replicates our business model, it also speaks about the impact this makes on people. We focus not just on business results but on achievement and well-being.

By improving the quality of life for people, whether through innovative products, a rewarding remuneration system or our social projects, we create a virtuous cycle that will continue bringing good into the world far beyond our lifetime.”

WINNING PRODUCTS

BE International has four product lines, namely AULORA Series, the BElixz series, the BEYUL and BEYANG series. Each focuses on a different aspect of health.

BElixz are supplements that focus on health and wellness. When combined with healthy habits,

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these health boosters provide the body with everything it needs to regenerate and revitalise itself.

BEYUL is all about skin health and maintaining a natural, youthful and healthy appearance, while BEYANG centres around energetic and youthful living. The various household products in this series emphasise utilising natural and environmentally-friendly ingredients in one’s daily life.

Suet Sen draws our attention to the clothing range called the AULORA Series, a new generation of high-quality compression wear, imported from Japan and based on the Kodenshi® Fibre Technology. This range originally started with the AULORA Pants. Today it has expanded to feature an entire line of functional and fashionable clothing.

“The Kodenshi® Fibre Technology absorbs the wearer’s body temperature away from the body and releases far infrared energy, while providing holistic and lasting support during any activity,” said Suet Sen.

Huey Chuin said the brand’s customers are anyone who seeks to better their health through affordable and natural products.

COVER STORY

“We reach out to our clients through our professional independent business owners, or IBOs, who want to help more people achieve a state of wellness.”

IBOs receive both online and offline products training. They also receive informative marketing materials which can be shared to their customers on platforms such as Facebook, Instagram and TikTok.

While these easy-to-digest infographics and videos shared on social media have a strong impact on customers, the human touch is still vital, said Huey Chuin.

“Our goal is not only to ensure that our content is easily understood but that it is relevant to the needs of our audiences.”

On the remuneration and rewards side, BE International has a seamless and innovative compensation plan that seeks to reward fairly. 9 Benefits, which includes bonuses called Car Fund and House Fund, is one such plan.

“We help our achievers to own their dream cars and houses. The Car Fund achiever will enjoy this fund for a maximum period of four years while the House Fund

achiever will enjoy this fund for a maximum period of 20 years. From when we started until now, we have 595 Car Fund and 240 House Fund achievers, and the number is still growing!” enthused Huey Chuin.

“We also encourage selfimprovement in all aspects of life. The BE Lifestyle Travel and BE Success Travel, for instance, available to all qualified ambassadors, will soon be travelling to Japan, Korea, Dubai, Australia, Turkey, Greece and more as we explore and connect with the world.

SCALING FOR SUCCESS

BE International has a vision that is far-reaching encompassing its staff, IBOs as well as its clients.

“We are looking beyond business. We strive to create wellness in every way, for everyone,” said Suet Sen who goes on to define wellness as a feeling of liberation, one that brings health, peace, prosperity, contentment and happiness.

While the concept of eternity may be tough to grasp for some, it is imperative for the company.

“As we are dealing with people’s wellness and wellbeing, we want

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We are looking beyond business. We strive to create wellness in every way, for everyone. We want to ensure that their lives change for the better in a sustainable and lasting manner.”

to ensure that their lives change for the better in a sustainable and lasting manner,” he explained.

COMMITTED TO GIVING

In order to be a force of positive change, the socially-conscious company places an emphasis on giving back to the community. The goal, said Huey Chuin, is not so much “what should we do”, rather “how can we help”.

“Our CSR initiatives centre on giving to our communities, not just in times of crisis but also for development purposes. During the Covid-19 pandemic, we were actively involved in donations to various medical facilities supporting their fight. We’ve donated to flood alleviation charities, school building funds, and even children’s sponsorships in countries in the region.

“We’ve also donated to community betterment projects such as initiatives to promote reading among children, student school sponsorship programmes, charity donations via public events and more,” she said.

The direct selling business model is hard work, right from onboarding to training, selling and leadership development. It requires patience and stamina to keep going despite the obstacles. But some business consultants think this channel of retail has a promising future.

BE INTERNATIONAL IS LIKEWISE OPTIMISTIC

“We’re an innovation company. We strive to leverage on the best ideas and technologies to create products and solutions that will enhance the quality of life for people everywhere, in many different ways,” said Suet Sen.

“Our products are naturallyderived, made better through ground-breaking research and science.”

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Dear DSAM Members, Direct Seller Malaysia Readers / Subscribers,

During the past few years of tremendous disruption, the direct selling industry has provided high quality, proven products, and an economic opportunity to millions of people. As Chairman of the World Federation of Direct Selling, I would like to thank and congratulate everyone in Malaysia on your role in being a beacon of hope and optimism to so many. Direct selling in Malaysia provides a vital role in providing beneficial products and an economic opportunity, particularly for women. And in my other role as Chairman of Shaklee, I have seen first-hand how much of an impact we have had on the hundreds of thousands of people who joined our Shaklee family over the last two years.

We are living in challenging times in the world. We have war, inflation… and turmoil in the financial markets. A 20-year bull run may be ending and it seems after decades of globalization we are drifting more apart than together. And yet, almost every country in the world experienced

the COVID pandemic over the last two years and that changed so much. It changed our perspective on health, it changed how we work, how we live, how we interact with one another, and how we shop. The pandemic brought a sharpened focus on disparities in quality of life based on income, on gender, and on race. While it is challenging to say that there is anything good that came from a global pandemic, there was a renewed sense of how we are all connected… for worse… and for better. Many of us reevaluated our personal relationships to focus more on what really matters to each of us. We saw great acts of altruism. The pandemic also accelerated the future. The future of where the world is going. The future of where our industry is going. And most importantly, how the direct selling industry can help redefine the future livelihoods for hundreds of millions of people. Livelihood is an interesting term. It has come to be associated with earning an income. But its real definition is ”the means of securing the basic necessities of life”. That is where our industry can lead. To show the world there is a proven, scalable way for all humans to secure the basic necessities of life. That includes health, income, a sense of connection and purpose, hope, knowledge, personal development – these are the elements that our direct selling industry provides. And we provide it to anyone and everyone who chooses to join us.

With all the volatility in the world, I believe this is the time for our industry to rise and shine. Now is the time we bring a more powerful and inclusive business model to the forefront of the world’s attention. NOW is our time to broaden our view of our stakeholders to care not just for our customers, our distributors and our

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“Reimagining how we create community in a digital world is an important and exciting challenge.”
Roger Barnett, WFDSA Chairman, Chairman and CEO, Shaklee Corporation

employees, but to also care for our communities and our planet. This is our moment to lead.

The past two years has highlighted the compelling need for what our industry offers. During this time in which unemployment increased in every major country in the world…the direct selling industry ADDED 5 million people. While women, have been steadily declining in the work force for decades in the largest economy in the world, our industry is different. The majority of our 128 million representatives are women. Why? Because we have redefined work to be part-time and flexible. And that is what both women and men increasingly want. A few other statistics: Outside of China, we grew our sales and distributor count in almost every region of the world. With the global direct selling industry, health and wellness is the largest product category followed by beauty and household. Together these represent a trillion dollars of addressable market. In sum, we are growing and resilient…we represent the future of work…the future of livelihood, and the future of corporate impact to society. What does all this mean? It simply means that there is a lot of opportunity for everyone who is part of the direct selling industry.

But we must never rest on our past. We must always embrace the future. Last year we had the highest level of sales and the most number of people in the 100+ years history of the direct selling industry. And that is precisely why now is the right time to reimagine, reinvent and redefine what our industry is. That is how we will ensure we will continuously set new sales and impact milestones.

What do I mean by reimagining, reinventing, and redefining our industry?

We need to reimagine what it’s like in a digital world to build a direct selling business. Today more than one in every four human beings on our planet are connected through some sort of social media platform. In every country, the percentage of retail sales that are made through e-Commerce is growing. Increasingly e-Commerce is shifting to social commerce and that is what our industry pioneered more than 100 years ago. The direct selling industry has the opportunity to deploy these digital technologies in a way that significantly enhances and expands the earning opportunity for our representatives. But we also need to continue to create community and connection in both a digital and physical medium. Reimagining how we create community in a digital world is an important and exciting challenge. And when we do, we will provide even greater connection and support to millions around the world.

We also have to reinvent our notions about who is a direct seller. Entirely new global industries have been created in the last ten years as a result of the technology behind the cell phone and the need for hundreds of millions of people to earn a flexible parttime income. Called the “Gig Economy” in the US, marketplaces for buyers and sellers of services have cropped up in virtually every free market economy in the world. These industries have created clear and simple propositions of associating specific actions with clear and simple compensation. By reinventing who is a direct seller and how they get rewarded, we can expand our industry and include more people in the future.

And finally, we need to redefine the conversation about what direct selling is. As companies, we need

to put ethical practices at the forefront of everything we do, so that we can elevate our reputation and demonstrate our positive social and economic impact to the countries in which we operate. We will be quantifying the collective impact of our industry and emphasizing how the direct selling industry provides a diverse, powerful, inclusive economy for all.

As part of our process to Reimagine, Reinvent, Redefine, WFDSA has undertaken some transformative initiatives which we hope to complete during the next two years. Our focus has been on Advocacy, Ethics, and Regulatory. We have assembled an amazing combination of our industry’s brightest minds, external consultants, and outside thought leaders to elevate our reputation and our impact. Each committee is led by the Chief Executive of some of the largest companies in our industry. During 2022, we are preparing each initiative for the implementation stage and we expect significant accomplishments to share with you later this year and during 2023.

Finally, I would like to share a personal reflection. I have always said, “The greatest luxury in life is choosing how to earn a living.” Some of us were born in this industry, some found it by chance, and others like myself searched for years to find a business which could be both profitable and make a positive impact for millions of people. However, we all got here. I believe we are all fortunate to be part of this noble industry. Where the more we help others… the more successful we become. And so, on behalf of the 128 million members of the direct selling industry, I would like to thank you for all that you do to make a better life for so many people in Malaysia.

92022 / Issue 1 / Direct Seller Malaysia /

THE GLOBAL DIRECT SELLING INDUSTRY CONTINUED TO RECORD POSITIVE GROWTH. 2021 GLOBAL DIRECT SALES OUTLOOK

ccording to the World Federation of Direct Selling Associations (WFDSA), the direct selling industry is worth USD186.1 billion worldwide encompassing 128.2 million independent representatives. WFDSA stated that the statistics for global sales by product revealed that Cosmetics/Personal Care (24.5%) and Wellness Products (34.8%) together accounted for more than 59% of category sales. Meanwhile, Goods & Durables increased from 14.4% in 2020 to 16.0% in 2021, while Clothing & Accessories decreased from 4.7% to 4.5%.

The industry demonstrated a continued growth with a threeyear compound annual growth rate of 3.8% for the period between 2018 and 2021, excluding China’s sales. The analysis by WFDSA revealed that 78% of global sales are generated by the Top 10 countries with the USA at first place, followed by Korea and Germany at third place.

Asia Excluding China* 60.0-up 1.4% China* 18.0 - down 12.5% Americas 68.0 - up 5.8% Europe 38.4 - up 2.8% Africa & Middle East 1.8 - down 10.0%

71.4 -up 3.4% 3.1 - down 13.6% 32.4 - flat 15.7 - up 8.4% 5.5 - down 28.1%

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Highlight / Global Direct Sales
1. United States 42,670 2. Korea 19,421 3. Germany 18,959 4. China 17,961 5. Japan 14,248 6. Malaysia 8,367 7. Brazil 7,048 8. Mexico 5,788 9. France 5,419 10. Taiwan, China 4,901
aEurope 21% Europe 12% Americas 26% Americas 36% Asia 42% Asia 58% Africa & Middle East 1% Top Selling Markets in the World in 2021 Top 10 Markets In USD Millions Africa & Middle East 4% Global Sales (In USD Billions 186.1) Global Sales Force (128.2 Million) Global Business Results 4.5% 24.5% 2.9% 8.4 45.6 5.4 16.0% 34.8% 3.2% 2.8% 1.5% 2.1% 4.0% 3.7% 29.8 64.8 6.0 5.2 2.8 3.9 7.4 6.9 Clothing & Accessories Cosmetics & Personal Care Home Care Household Goods & Durables Wellness Books, Toys, Stationery, Etc Foodstuff & Beverages Home Improvement Utilities Financial Services Others In USD Billions

DIRECT SELLING INDUSTRY IN MALAYSIA DEMONSTRATES STEADY GROWTH a

ccording to the Malaysian Ministry of Trade and Consumer Affairs (MDTCA), the direct selling industry has shown steady growth over the last 20 years between 2001 and 2020. From sales of just RM3 billion in 2001, the industry now records a projected sales figure of RM26billion in 2021.

Between 2017 and 2021, DSAM members’ performance have revealed progressive growth from just RM6.2 billion in 2017 to RM13.3 billion in 2021, averaging at RM9.2 billion over the last 5 years.

Sales data gathered by DSAM in 2021 reveals that Wellness makes up 45% of sales, followed by Household Goods and Durables at 21%, and Cosmetics and Personal following closely at 20%.

An analysis of sales methods undertaken by direct selling players revealed that person-to-person made up 40% in 2021 compared to 41% in 2021, while party plans made up 26% in 2021 compared to 25% in 2020. The online approach maintained at 34% in 2020 and 2021. An overview of ordering methods by customers showed physical stores and online orders comprised 30% respectively, while mobile orders made up 23% followed by telephone orders at 12%, and traditional mail at 3%.

Total sales in the direct selling industry in 2021 stood at RM13.28 billion with RM11.14 billion recorded by foreign-owned direct selling companies and RM2.15 billion made up by Malaysian companies.

DIRECT SELLING INDUSTRY PERFORMANCE (2001-2020)

DATA (2021)

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Source: Ministry of Domestic Trade and Consumer Affairs (MDTCA) 27 25 23 21 19 17 15 13 11 9 7 5 3 1 RM (’ BILLION) 4.8 5.3 6.6 7.0 5.6 6.5 6.8 9.7 9.9 12.1 14.8 15.0 16.0 18.0 21.5 25.7 10.7 3.9 3.0 12.4 10.0 26.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 AVERAGE 2021 PROJECTED SALES
Source: Direct Selling Association of Malaysia (DSAM) Household Goods and Durables 21% 21% (in 2020) Foodstuff and Beverages 5% 6% (in 2020) Wellness 45% 45% (in 2020) Books, Toys and Stationery 2% 2% (in 2020) Cosmetics and Personal Care 20% 20% (in 2020) Clothing and Accessories 3% 3% (in 2020) Home Improvement 1% Home Care 3% 3% (in 2020)
MALAYSIA’S DIRECT SELLING INDUSTRY CONTINUES TO EXPERIENCE POSITIVE GROWTH.
Highlight / Malaysia Direct Sales

DSAM recorded a growth in membership figures from 97 member companies in 2017 to 131 in 2021.

DSAM revealed that from the perspective of company/product origins, 51% were Malaysian and 49% foreign companies, comprising 67 Malaysian companies, 32 from the USA, 7 from Taiwan and Korea respectively, and 4 from China, among others.

The number of active distributors in Malaysia stands at 3.577 million in 2021 compared to 3.2 million in 2020, and 4.5 million registered distributors compared to 4.3 million in 2020. In 2021, there were 2,198 stockists and 939 workshops provided to upskill distributors compared to 893 in 2020.

12 / Direct Seller Malaysia / Issue 1 / 2022 Highlight / Malaysia Direct Sales SALES METHODS (2020-2021) 41% (in 2020) PERSON-TO-PERSON 40% 25% (in 2020) PARTY PLAN 26% 34% (in 2020) ON-LINE 34% ORDERING METHODS (2020-2021) 30% 30% 23% 12% 3% 2%
NO. OF DISTRIBUTORS (2021) 3,200,000 (in 2020) ACTIVE DISTRIBUTORS 3,577,600 4,300,000 (in 2020) REGISTERED DISTRIBUTORS 4,500,000 893 (in 2020) WORKSHOPS PROVIDED 939 2,093 (in 2020) NO. OF STOCKISTS 2,198 PERCENTAGE BREAKDOWN OF DISTRIBUTORS (2021) INACTIVE FULL-TIME EMIT-TRAPSROTUBIRTSIDREHTO 27% 23% %62%42 Source: Direct Selling Association of Malaysia (DSAM) 27%(in2020) 23%(in2020) (%62)0202ni)0202ni(%42 PRODUCT CATEGORY GROWTH (2017-2021) Source: Direct Selling Association of Malaysia (DSAM) COSMETICS AND PERSONAL CAREHOUSEHOLD GOODS AND DURABLESWELLNESS 2021 45% 20% 21% 2019 47% 16% 19% 2018 52% 16% 17% 2017 53% 17% 15% 2020 45% 20% 21% DSAM MEMBERS PERFORMANCE (2017-2021) DSAM MEMBERSHIP (2017-2021) RM (’ BILLION) Source: Direct Selling Association of Malaysia (DSAM) COMPANY/PRODUCT ORIGINS (2021) MALAYSIA 67 USA 32 TAIWAN 7 KOREA 7 SINGAPORE 2 GERMANY 2JAPAN 3 BRAZIL 1 SWEDEN 1 OTHERS 2 SWITZERLAND 1 NEW ZEALAND 1 CHINA 4 HONG KONG 1 51% MALAYSIAN COMPANIES / 49% FOREIGN COMPANIES

DSAM CONVENTION 2021:

NEXT IS NOW

the DSAM Convention 2021, themed Next Is Now opened to much excitement as the country transitioned from the pandemic to an endemic situation. As businesses begin to pick up their pace, evolution is needed to fit into the new norm in terms of family, leisure, and most importantly the way business is done.

“We must be able to innovate, educate and activate our vision to propel us to the next level – next is now,” says Kent, before welcoming, to deliver his welcome address.

PESIDENT’S WELCOME ADDRESS

In his opening address, DSAM President Datuk Tan Chong Guan expressed his gratitude to Datuk Seri Alexander Nanta Linggi, Minister of Domestic Trade and Consumer Affairs (MDTCA), and his team for the support and help extended towards DSAM. He also thanked the sponsors of the convention for the continued support.

“With over RM23 billion in revenue, and over 4 million

distributors in our industry direct selling remains an important key in helping to develop the nation especially during tough times. Right after we come out of a difficult time, we need to put in a strong foundation to bring our industry to the next level,” says Datuk Tan.

“After one and a half years of uncertainty, we are definitely seeing a silver lining at the end of the tunnel. Our country is among the rare few that has achieved over 90 percent vaccination rate for the adult population. Syabas Malaysia!” exclaims Datuk Tan.

He adds that the direct selling industry grew by 20 percent in 2019, above the expectations of many. Continued growth rates is expected to be seen in 2022, which is still being tabulated by MDTCA.

Datuk Tan reveals that the industry has seen an additional 500,000 new distributors who have signed up from last year. “Our role in providing hope, to provide income and health to the people is indeed very relevant right now,” he notes.

Malaysia’s direct selling industry is ranked 6th in world and 4th in Asia Pacific in terms of sales, after China, Japan and Korea.

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THE 2ND ONLINE CONVENTION RECOGNISED THE BEST WITHIN THE INDUSTRY WITH ITS RECOGNITION AWARDS, AND OFFERED INDUSTRY PLAYERS UPDATES THROUGH ITS LINE-UP OF DISTINGUISHED SPEAKERS.
Highlight / DSAM Virtual Convention 2021

Highlight / DSAM Virtual Convention 2021

“We need to continue to work hard and work smart to improve our rankings,” he reminds industry players and members.

“In 2020, I talked about technology and using that technology to develop the business further. This year, I want you to nurture talents – can you imagine the half a million people who have joined our industry, and are new and fresh. It is for you to develop these talents,” stresses Datuk Tan.

He advises to use innovation to bring better value to consumers and encourages members to explore outside the Malaysian market to expand business.

“Education and learning are part of our daily routine and we need to add value in everything we do,” he explains.

He added that plans need to be activated and that each member needs to set good examples through good and ethical practices. “The DSAM Code of Ethics is among the most stringent and the best in the world. We set the standards for ourselves to maintain the good name of the industry,” he highlights.

He congratulates DSAM’s top entrepreneurs of the year and encourages all to continue to do their best and make the association proud.

Datuk Tan also thanked all those involved in the White Flag initiative for their efforts and contributions towards this noble cause.

Dato’ Haji Rosol bin Wahid, Deputy Minister of Domestic Trade and Consumer Affairs DSAM convention welcomed Dato’ Haji Rosol who addressed the audience with warmth and enthusiasm. He congratulated DSAM and its members for thriving despite the challenges posed by the pandemic. Dato’ Haji Rosol said that the pandemic has affected the world

and the domestic economy. He added that many lost their jobs and sources of income, however, in retrospect, the direct selling industry has presented hope to millions of Malaysians through entrepreneurship. The industry has presented countless opportunities in generating income for Malaysians amidst the crisis. Dato’ Haji Rosol said he was proud to share that the industry achieved RM25.6 billion in sales in 2020, an increase of 20 percent compared to 2019. He adds

that MDTCA will work closely with DSAM to ensure positive changes in the direct selling industry, while also providing better guidance.

THE ART OF CONVERSATION BY VICTORIA ONG, JOURNALIST, HOST AND PRODUCER

In the direct selling industry, the art of conversation is a key factor in successfully engaging customers. With the pandemic

14 / Direct Seller Malaysia / Issue 1 / 2022

leaving many in solitary conditions without conversational practice, some individuals may feel that they have lost their touch in the art of conversation.

Recognising that, Victoria Ong delivered an impactful session on capturing the moment through meaningful conversations. She highlights that as professionals in selling, you are likely blessed with the gift of the gap, essentially being able to talk to people confidently and convincingly. But perhaps, after months of lockdown, some may have lost their conversational mojo. She posed the million-dollar question of “how do we relearn or learn the art of conversation?”

In addressing that question, Victoria shared 7 practical experienced-based tips which include:

1. Be present – put aside all gadgets and focus on the conversation without multi-tasking.

2. Ask good questions – put some thought into asking questions and ask open-ended questions.

3. Give a compliment – be sincere, specific and smile when giving a compliment.

4. Look for common ground –do some research on the interviewee to connect better with the person.

5. Listen actively – observe non-verbal and verbal cues, clarify questions and observe discomfort in the other party.

6. Location, Location, Location – consider where is the best place to approach the person or what platform to use.

7. Commit to memory – make an effort to remember what was said such as likes, dislikes or current happenings, and follow-up in the next conversation.

She offered 3 bonus tips for presentations:

1. Wear a bold, solid colour –brighter colours pop on camera.

2. Keep webcam at eye level.

3. Remember your hands –don’t hide your hands and make gestures to bring energy to the points being made.

DIGITAL CREATION BY MIA ONG, COUNTRY MANAGER, MGAG MEDIA (OFFICIAL PARTNER OF TIK TOK MALAYSIA)

As digitalisation takes the world by storm today, especially after the pandemic, both consumers and sellers have resorted to digital means to buy and sell. Mia Ong shared on how to capitalise on digital media to reach out to target audiences, which would be tremendously beneficial for direct sellers in this age of digitalisation. Mia shared about how to engage the audience, especially Gen Z, meaningfully through content on Tik Tok accounts, as this app has more than 4 million active users in Malaysia. Mia explains that Tik Tok videos are expected to

create high impact through content density comprising value through entertainment. She offers tips on creating impactful and effective Tik Tok content;

1. Identify your niche –successful Tik Tok profiles have a very clear niche. For brands, the niche should revolve around brand tone and content value.

2. Trendjack – if brands are to tap on trends and show that they understand the content on Tik Tok, they would be a lot more welcome by the audience. Leverage on an existing trend to showcase your product, but do ensure that it suits your campaign message.

3. Feed the community –Tik Tok is great at building a cult following. Tik Tok has many interactive features that are meant to drive engagements between the content producer and the viewer.

AWARDS

The convention ended on a high-note with members receiving industry excellence awards.

152022 / Issue 1 / Direct Seller Malaysia /

NU SKIN ACHIEVES 25-YEAR MILESTONE IN SOUTHEAST ASIA

CELEBRATING AWARDS AND GIVING BACK TO THE COMMUNITY.

the premier beauty and wellness company, Nu Skin, is celebrating 25 years of success in transforming generations across Southeast Asia this year. The brand has built its name in the beauty and wellness industry since its inception, and continues to revolutionize the industry with its presence.

Nu Skin has a wide range of products and continues to achieve excellence in the ever-evolving beauty and health industry. Among their many achievements, Nu Skin has been awarded the World’s #1 Brand for Beauty Device Systems¹ The ageLOC Boost™ has been Nu Skin’s top selling beauty device, which has also bagged awards such as the Bella Beauty Award³ in 2021, proving it is at the forefront of beauty technology worldwide and within the Southeast Asia region as well.

At the 9th World Women Leadership Congress (WWLC)

and Awards, the president of Nu Skin Southeast Asia and Pacific, Dr. Vicky Leevutinun won the well-deserved Outstanding Women Leadership Award . She received commendation for her leadership and accomplishments in advancing positive ideas and applying cuttingedge techniques and tactics to boost the local economy.

Another significant milestone is Nu Skin’s Pharmanex®, once again receiving the “Pharmanex® – No. 1 weight management and wellbeing brand in Malaysia for 5 consecutive years” claim by Euromonitor International². The Pharmanex® brand offers a variety of dietary supplements.

Nu Skin’s mission is to be a global Force For Good by empowering people to improve lives with innovative products, rewarding opportunities and an enriching culture. With all these awards and recognitions under their belt, Nu Skin continues to strive to create

products that best serve the needs of consumers, with each product going through extensive research and development before its due launch. As the world continues to place more importance and priority in health and wellness, Nu Skin is excited about future innovations in the pipeline that can be introduced to the rapidly growing industry while meeting the needs and expectations of consumers.

Vice President, Market Operations of Nu Skin Malaysia & Brunei, Mr Hendrix Wong, says that “We are truly grateful to have an amazing team of staff and brand affiliates that have served generations in Southeast Asia since our inception. We were only able to achieve all these precious milestones thanks to the relationship and trust that we’ve built with our customers over the past 25 years. The market has grown and offered so many options, and yet our customers have chosen us, for which we express our

16 / Direct Seller Malaysia / Issue 1 / 2022
Highlight / Nu Skin

heartfelt gratitude for their trust and support”.

With that being said, Nu Skin is committed to continue giving back to the community for all the support they have been shown. Their recent Force For Good initiative last August 2021 featured the brand providing essential item

Sources

care packages for 600 families in the B40 income group who were heavily affected by tough times. Additionally, Nu Skin extended its charitable efforts through its CSR initiatives remotely with the annual Wish List Project bringing joy to 385 children under the Nu Skin Southeast Asia Children’s Heart Fund. Under

this initiative, gifts ranging from school essentials, sports items, toys and clothes were delivered to deserving children to cultivate their learning interests. Regardless of circumstances and challenges faced in the country, Nu Skin is committed to be a Force For Good to spread smiles and positivity.

1. Euromonitor International Limited; Retail Value RSP terms; all channels; 2017 to 2020. Beauty Systems are at-home Skin Care Beauty Devices that are exclusively paired or recommended to be used with a topical consumable of the same brand. Claim verification based on Euromonitor custom research and methodology conducted January-March of 2021. Sales of at-home skin care beauty devices includes sales of electric facial cleansers as defined in Passport database. This category does not include hair care/removal appliances, body shavers, and oral care appliances: https://www.euromonitor.com/nu-skinclaims.

2. Euromonitor International Limited; Consumer Health; as per Weight Management and Wellbeing definition; Retail Value RSP terms; all channels; 2017 to 2021.

3. Bella Beauty Award - https://cittabella.my/2022/01/28/bellabeautyawards2021-22nu-skin/

4. Outstanding Women Leadership Award - http://www.worldwomenleadershipcongress.org/winners/wwlc/world-women-leadership-awardwinners-2022.html

172022 / Issue 1 / Direct Seller Malaysia /

TAKING THE PATH LESS TRAVELLED

1m y name is Azizuddin and my wife is Nurhayati.

I was introduced to the direct selling industry in 2002 when I was 25 years old and working in a multinational company.

I was invited to attend a direct selling business function for the first time, and it was that event which filled my heart with passion as I could envisage a bright future if I were to venture into business. All the while before that I have been looking for opportunities to get

involved in business but I found that the biggest challenge for me was the substantial capital required.

However, in the direct selling business, even with a small capital, I found that I could start doing business and at the same time receive guidance from really great mentors.

So in 2002, I started my direct selling business on a part-time basis and after a lot of hard work, it took only 6 months for me to decide to resign from being an employee at the age of 25, to plunge full-time into building my own direct selling business.

From then onwards, I went through a really enlightening business experience which enabled me to earn 5-star fully-paid overseas holidays annually.

My overseas trips enabled me to really see how much knowledge one can learn from countries that are more developed and advanced.

In the direct selling business, we do not run our business alone, but we have a team. Together, we need to help one another to ensure that our team members too can achieve their dreams.

The more people that we can help succeed in the business, the more successful we will be in our business.

I have already been building my direct selling business for 20 years now, and I have even become more excited and passionate because it not only provides me with financial independence but also the freedom of time that people out there can only dream of, because it is something that they cannot get from their businesses or careers.

And my most precious priority which gives me all the happiness, is being able to always be with my beloved family i.e. my wife and children.

For me, building a business is not solely for making money, but what we need to learn is to possess the knowledge in order to mould ourselves to become someone more trustworthy, honest, and full of integrity, in living our lives in the world of business.

In the direct selling business, everything is provided for us. It is a complete package and what we need to do is to grasp and equip ourselves with invaluable knowledge from real mentors and real company platforms.

I wish all my colleagues in the direct selling industry every success and urge them to strive further to help others out there who are searching for ways to make their dreams come true.

192022 / Issue 1 / Direct Seller Malaysia /
THREE ENTREPRENEURS SHARE ABOUT THE MAGIC OF THE DIRECT SELLING INDUSTRY AND THE REWARDS IT OFFERED THEM WITH COLLABORATIVE EFFORTS AND HARD WORK.
Highlight / Testimonial

2when my friend

Danny from Singapore spoke to me about

a new direct selling opportunity, I was not ready. It was not because I was against the ideology or business model of this industry, instead I always thought the business model of referrals is brilliant. However, my circumstances at that particular time did not allow me to be involved actively in the company.

I have been in the entrepreneurial scene for the past 20 years. I was seated on the board of 9 companies, my business interests in the tourism and hospitality industries, amongst other investments, was really thriving.

I knew from my experience almost 20 years ago that the direct selling industry has the ability to help any individual to achieve his or her dreams as well as achieve financial independence. However, after a short encountered with a direct selling company 20 years ago whereby the company eventually collapsed and ceased its business, I have never been involved in any other players in the direct selling industry since then.

When my friend Danny shared with me about a company

providing breakthrough health science technology in the form of direct selling, I did not give it much thought at that moment.

However, due to my personal health situation, I agreed to start with a cellular health rejuvenation program as a consumer, suggested by my upline sponsor. I was surprised with how much better I felt after just a few weeks. That was when I decided to share more of the benefits that I experienced with my family members and friends, and the “duplication” process of the business naturally happened unexpectedly. Before long, I was able to receive some “thank you cheques” from the US-based company which has just started its presence here in Malaysia. Danny (my friend and upline sponsor) has started to connect me to the team support and eventually he exposed me to learn more about the company’s culture and philosophy. I was especially attracted with its philosophy of “People before Profit” and also the true meaning of sharing the direct selling. I learnt that it should be called the NLM - The “Next Level Marketing” since this industry truly provides ordinary people a chance to achieve an extraordinary life. More importantly, it fulfils all the requirements of a New Normal economy.

After a year consuming the products, I found myself actively sharing the business opportunity.

Credit goes to the constant follow up by my friend/upline sponsor

Danny and his support team who continuously invited me to various events online, and shared all the information about this industry.

When the pandemic hit the world in 2020, my tourism and hotel industry was devasted. We had to let go of many staff, as survival was the only objective for that entire year and all my fees and income from these companies were terminated

unexpectedly. Fortunately, it was also during the same time that my network marketing account with this company started to thrive. We managed to attract more and more leaders and entrepreneurs with the same vision, and I am forever grateful that the income which was derived from direct selling venture in fact, equivalent and surpassed my previous income.

I attribute this amazing success not to myself but to my marvelous team, where everybody contributed small efforts in bringing the message of health and financial freedom to their friends and family members, and especially our business associates who believe in the destiny and vision that our team set forth for them to accomplish.

Today, after 3 years in the industry, I am among the top 1% income earners of the company and achieved the highest rank so far in Malaysia. The achievement does not mean that I am super smart as I was actually a total “newbie” in the direct selling industry previously. Hence, I truly believe that all those who are willing to improve, and achieve extraordinary success through helping others as part of their core values, then the direct selling industry is the Next Level in their life that they should really consider and learn about.

Today in the year 2022, I am forever grateful because of those amazing people on my team and company, and the direct selling industry which will empower the potential of millions of future network entrepreneurs here in Malaysia.

About: Tony Ch’ng lives in Penang with his wife and family. He is an Investor and Network Entrepreneur. He is currently actively helping more than 3000 of his team associates expand the network marketing business in South East Asia.

20 / Direct Seller Malaysia / Issue 1 / 2022 Highlight / TESTIMONIAL

3lizaimi Lihin is recognised as one of the elite players in Malaysia’s direct selling industry. He always works his way up to the category of top income earners in the companies he is involved with, including the current one. However, his success did not happen overnight. Instead, it was a 20-year journey that began with full of scepticism towards this industry at that time.

In 1997, I graduated in Mechanical Engineering from a local university. I was introduced to direct selling in 2002 by one of my closest friends. Even though I was sceptical about the business model, the people in the business attracted me to explore the opportunity. Moreover, the potential to a earn passive residual income stream and financial freedom, motivated me to get started as well as to stay focused in the business.

Nevertheless, it was actually not an easy journey for me. The first eight years were really a disaster. Initially, the situation was so hard, especially when I did not have any skills and experience in this

industry. I can’t remember how many times I wanted to quit the business, but my dream of financial freedom kept me moving. I am glad that I went through all the struggles because it helped me to understand more about the business and how to work with my team, especially for those who experienced the same challenges when they started their journey in this industry.

I made my first breakthrough in 2011 in my direct selling business. The system and the mentorship helped me to build a big team all over Malaysia. It was a huge success. I have discovered the importance of a duplicatable system in building a successful business that is able to provide a steady stream of income eventually.

This industry has grown and helped me to become a better person as well as a leader of my team. However, it is not an easy task. The most challenging part of this journey is ourself. Most people have stopped before they really started a business. This is because, most of them do not want to humble themselves by learning something new or to start from scratch. They hesitate to get out of their comfort zone which might challenge their ego. As a result, they would stop before they are able to tap into their potential.

The direct selling business is

proven to be a recession-proof business. I have been going through a couple of economic recessions while building my business, which did not affect my business and income at all. In fact, during this COVID-19 pandemic, by using these technology gadgets such as zoom meeting, Facebook messenger and Whatsapp application, we are still able to build the business effectively and successfully. Our income has doubled if compared to the time before the pandemic. This is further proof of direct selling as a recession-proof business as well as a pandemic-proof business where you can still reach out to your team and customers effectively by using this amazing technology.

I believe this business model is just brilliant! We can move products or services effectively all over the globe without having any of those struggles like a conventional business. The economic potential is so huge, and I am glad that I made the right decision to get involved in this industry 20 years ago. For the past 20 years, it has been worth my time and effort, and it could not be any better than this. I am always excited about this industry’s opportunities, and I am looking forward to impacting more people’s lives with my current business venture.

212022 / Issue 1 / Direct Seller Malaysia /

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