New markets to provide support to DXN

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.

(THE STAR, 27 JULY 2023)