Mar 12, 2016

QNET Opens Second Office to Tap Mandalay’s Direct Selling Market

Hong Kong-based direct selling firm QNET has opened its second agency office in Mandalay in a bid to make further inroads into Myanmar.

The new office opening comes less than a year after QNET entered the direct selling sector in Myanmar in March last year when it appointed local firm Kyi Min Brothers Company Limited as its agent in Yangon.

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. The size of the global direct selling industry is about $200 billion.

The launch marks the formal introduction of a local customer service centre for QNET’s independent representatives (IRs) in Mandalay, after Yangon.

QNET claims Myanmar has been a top 20 market for the firm during the last 11 months, and that it helped elevate standards of living by garnering entrepreneurship spirit among non-business background individuals.

“QNET firmly believes that there is nothing more empowering to individuals than the financial freedom that a career in the direct selling industry provides, and we believe the people of Myanmar, and particularly in Mandalay, with their ambition and strong sense of entrepreneurship, will appreciate the quality consumer products we sell and the business opportunities we offer,” Stevenson Charles, QNET’s regional general manager, Southeast Asia, said.

QNET said the firm, based on its projected plan, is optimistic that the direct selling industry in Myanmar will be as progressive as is trending in other emerging economies.

“Myanmar is one of QNET’s product-based markets where consumers and IRs like to touch, feel and benefit from the high quality global products that we offer,” Charles added.

QNET’s bestselling products in Myanmar are HomePure, a water filtration system, and AirPure, an air purifier. For professionals who are interested in continuing their education, QNET offers e-learning courses on a number of topics. The company recently launched LifeQode, a selection of lifestyle-friendly food supplements.

QNET said its products are sourced from all over the world including France, South Korea, Germany and Australia. The firm utilises the direct sales business model on a proprietary e-commerce platform to market its products.

“With around 2.2 million residents [Mandalay] is one of the largest city in the country. Hence, we are not limiting our operations in Yangon,” Charles said.

Globally, the World Federation of Direct Selling Associations (WFDSA), which QNET is affiliated through the Direct Selling Associations of Singapore, Malaysia, the Philippines and Indonesia, reported 6.4 percent growth generating close to $200 billion in 2015. Asia continued to outpace other markets, accounting for 45 percent of global retail sales. WFDSA said that in the past three years, the industry has seen a compound annual growth rate of 6.5 percent.

Kyi Min Han, managing director of Kyi Min Brothers Group of Companies, said, “This is a tremendous development for the direct selling industry in Mandalay.

“As in Yangon, we look forward to deepening our relationship with QNET through strong partnership with the people of Mandalay in the areas of entrepreneurship and international trade.”

The local agency will provide training for QNET’s distributors (IRs) and will facilitate educative coaching sessions, QNET said. Currently, there are more than 5,000 registered IRs of QNET in Myanmar – mainly in Yangon, Mandalay and Bagan.

Source: Myanmar Business Today