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DSAP 2017 1st Quarter E-Newsletter
Posted on July 31, 2017
Categorized under: Newsletters
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DSAP Quarterly E-Newsletter, Volume 1 / Issue No. 1, May 2017
1ST GMM 2017 – Stronger Together: Committed to Excellence
DSAP had its 1st GMM for this year last March 22 at the Unilab Bayanihan Center in Mandaluyong. The event was well attended as almost all company members were present.
DSAP President Joey Sarmiento (Max International VP for Asia) opened the meeting by presenting the Industry Updates. DTI Undersecretary Ms. Zenaida Maglaya talked about the importance of entrepreneurship in the growth of the economy.
DSAP also inducted new Officers and Board of Directors to serve the DSAP Members. Amongst the new set of Officers are: Chairman – Joey Sarmiento, VP for Asia of Max International; Vice Chairperson – Arlene Asidao, Director of Sales & Operations of Nu Skin Enterprises Philippines, LLC; Treasurer – Juliver Buted, Operations Manager of Neolife International, Inc.; Corporate Secretary – Atty. Errol Palaci, Legal & Compliance Head of Avon Cosmetics, Inc.; and Board Members: Leni Olmedo, Country Manager of Amway Philippines, LLC.; Beth Añana, Country Manager of Symmetry Philippines, Inc.; Maricar Sandalo, HR Sr. Manager of Gano Itouch Philippines Inc.; Bernie Mercado, Country Manager of New Image International Far East (Phils.), Inc.; Engr. Ric Camaligan, CEO of Edmark Philippines, Inc.
DSAP members became interested when COL Financial took the stage and talked about Stock Market/Financial Forecast and Financial Literacy.
The event ended with a closing remarks from Neolife International Director of Operations, Juliver Buted who reminded members about integrity.
Industry Updates: Direct Selling in the Philippines (source Euromonitor) by Joey Sarmiento, DSAP Chairman [Source: Euromonitor]
Last year, direct selling registers retail current value growth of 4%, reaching Php 62.7B. New products were introduced and reached out to new consumer segments. The international players continue to perform better than the home-grown players, given their greater resources, wider experience and larger portfolios.
Direct selling is expected to register a retail value CAGR of 2% at constant 2016 prices over the forecast period, to reach Php67.8 B in 2021.
Industry Forecast
It is expected that the consumers will continue to enjoy the personal relationship offered by direct selling players, along with the convenience and easy payment schemes. The channel will be driven by the success of sales representatives in their direct selling businesses. More people, especially women, will be encouraged to start their own direct selling business, enabling companies to widen their customer reach and product distribution. There will be increasing appreciation of the difference between direct selling and pyramiding, which companies will continue to highlight.
Beauty and personal care products and food and drink are expected to continue to be the most popular products in direct selling as they constitute daily consumables and enjoy product thrust. Although players will continue to build their online presence, the majority of sales will still come from traditional direct selling, as the consumers that benefit most from direct selling have limited access to online channels.
DSAP Survey Updates: Member Companies 2016 Sales Growth
65% of the DSAP company members said they have experienced sales growth in 2016 and registering an average growth of 8% within the year while 76% grew their sales force count during the year and registering an average growth of 16%.
Stock Market Outlook: Financial Forecast (source: Bloomberg consensus estimates) by April Lynn Tan of COL Financials Group, Vice President and Head of Research and Development
April Tan of COL Financials shared financial market outlook this year. She reported that we have a weaker economy this year, GDP is down by .4% (6.8% growth in 2016 as against the 6.4% this year). The Philippine Peso also has weakened with 50.5 exchange rate as against the 49.6 last year. Inflation rate is up at about 1.1% this year. The Sales Tax is also bad for many this year. Most of the taxes has gone up this year. We have slow growth and expensive valuations aggravated by foreign fund outflow. Year 2017 is indeed a year of accumulation.
The present administration has the Duterte’s Vision 2040 where it is expected to sustain 7% GDP growth, reduce poverty from 21.6% in 2015 to 17% by 2022, reach high middle income by 2022 and reach high income by 2040. There are also additional planned investments on infrastructure, education and training, health and social protection. The President is also bent on passing the Tax Reform for Acceleration and Inclusion (the proposed reduction in the personal income tax (PIT) as contained in HB 4688 authored by Albay Rep. Joey Salceda), or TRAIN for short. The passage of TRAIN means 20% disposable income (93% of taxpayers); 3% deficit/GDP; 46.5% government INFA spending; and 7-8% GDP growth.
There are many reasons to be cautious about 2017 including slower economic growth, higher inflation rate and interest rates, a weaker peso, painful Sales Tax policies, slower earnings growth and expensive valuations. Nevertheless, pullbacks should be viewed as opportunities to accumulate stocks for a stronger 2018 and beyond. The passage of TRAIN will allow the economy to sustain faster long-term economic growth as the Philippines and the Filipinos become more productive and globally competitive.
The Importance of Financial Literacy: Why do you need it by Eduard Lee, Founder and Chairman of COL Financials Group, Inc.
The 3 Basic Laws of Money: Save 10-20% of your income; Invest it; Reinvest it to benefit from the power of compounding. Reinvesting dividends has been important, even over two long periods when US stocks achieved virtually no appreciation for 25 years (1930 to 1955) and for another 20 year (1965 to 1985).
DSAP – Eduard Lee highlighted the importance of investing money.
Eduard Lee highlighted the importance of investing money. COL makes investing easy and simple. The COL Easy Investment Program is among the services that makes the peso cost averaging method easy to apply. Peso Cost Averaging is a personal wealth-building strategy that involves investing a fixed amount of money into your favorite stocks at regular intervals over a period. It is designed to reduce market risk by stretching out the purchase of stocks over time, buying more when prices are low and buying less when it is high, effectively keeping your average cost down. The earlier you start, the bigger your nest egg.
DSAP Committee Reports: 2017 Plans
Government Affairs Committee will work with DTI on a revised Memorandum of Understanding for the following projects: Review of the compensation plan of direct selling/MLM companies; assist in providing proper education on the direct selling model to promote the industry as the legitimate entrepreneurship option in the over 400 DTI Negosyo Centers nationwide; approval of Anti-Pyramiding law by the senate and House of Representatives; Support consumer protection thru Consumer Education presentations on how to distinguish legitimate DS/MLM vs pyramid scams; host the ASEAN DSA Working Group meeting in the 4th Quarter of 2017.
Communications Committee will focus on three (3) areas: Awareness and favorability through impactful media-related activities; enhance access to relevant industry-related information among DSAP members; development of new relevant support materials for DSAP.
2017 Schedule of Events:
2017 COMMITTEE DIRECTORS AND MEMBERS:
