KUALA LUMPUR: DXN Holdings Bhd has entered the Brazilian market due to its optimism over Brazil's growth potential and the opportunity it presents for consumer businesses, according to its founder, Datuk Lim Siow Jin.
Lim expressed his optimism in light of the country's substantial population of over 210 million people and growing urbanisation.
"Our strategic entry into Brazil is aimed at leveraging the strong brand presence and success DXN has achieved in other Latin American countries, including Mexico, Peru, Bolivia, Columbia, and more," he said in a statement today.
Lim said that DXN's 'One World, One Market' marketing strategy allows its global members to conduct and grow their businesses in any country where DXN operates without geographical constraints.
"We are confident about the potential our members have for expanding into Brazil. So far, DXN has successfully registered 10 products that are already approved for the Brazilian market.
"Our flagship instant coffee product aligns well with Brazil's rich coffee culture, enhancing our confidence in capturing market share there.
"Furthermore, interest in health supplements that improve wellbeing is on the rise globally," he said.
Products made with herbs and medicinal plants like spirulina and lion's mane mushrooms are among DXN's offerings, which are strategically positioned in this growing industry, he said.
According to Lim, DXN has a great chance to capitalise on this expanding market by accelerating its global expansion efforts, given the continued growth of the health supplement industry.
He said the company is dedicated to growing its line of products to meet the changing needs of its customers.
The registered office of the wellness and health-focused consumer product direct selling company is scheduled to open in Sao Paulo in March 2024.
Lim said that as part of its strategic plans to increase its market share in Brazil, DXN will open a second branch office there.
Meanwhile, DXN has opened a second production facility in Mexico, which is 2.8 times larger than the first, to assist its expansion in the Latin American market. The facility produces beverages, food supplements, and coffee products.
According to Lim, DXN has expanded its network to 3.6 million users in Latin America since its 2004 entry into the region.
DXN's revenue growth has been largely attributed to sales from the region, which accounted for 60 per cent of total revenue in the nine-month financial period that concluded on Nov 30, 2023.
It is anticipated that DXN's entry into the Brazilian market will accelerate this growth trajectory even more.