Kudos to the management for being creative in these difficult times. Weak exchange rate makes it difficult to sell imported stuff which is compounded by GST.
Good, I have no confidence with this company at all since their independence distributors are all con artist and always trap B40 people with Cloud 9 promises
It’s not just e-commerce that resulted in the drop in profits. It’s the nature of MLM business structure itself. They can’t grow: at best, profits will just flattened out. Only the EPF can artificially prop up the price.
Last time they were hard hit by the introduction of GST, which dampened the consumer spending due to decrease in disposable income. And 2nd blow when ringgit drop to lowest RM4.40. Now that ringgit has recovered to RM3.97, their cost of importation would be reduced. However their would increase gradually, instead of V shape recovery since they need to mark to market their cost of inventory. Earlier purchases of goods at higher USD/MYR need to be cleared off quickly.
On Hai-O they were not spared but they are somehow insulated a bit since their raw material probably come from China instead of US, and the rest sourced locally. That explains the difference between Amway and Hai-O
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
sheldon
1,414 posts
Posted by sheldon > 2015-11-20 17:30 | Report Abuse
Kudos to the management for being creative in these difficult times. Weak exchange rate makes it difficult to sell imported stuff which is compounded by GST.