DXN Holdings Bhd will be strengthening its presence in Latin America with its upcoming entry into Brazil, as the group’s first registered office in Sao Paulo, Brazil is set to commence operations in March 2024.
In a statement today (Feb 5), DXN non-independent executive chairman and founder Datuk Lim Siow Jin said that he is optimistic the group’s growth prospects in Brazil, underscored by the country’s significant population of over 210 million and increasing urbanisation.
“The country’s huge population and rapid urbanisation present opportunities for consumer business like DXN. Our strategic entry into Brazil is aimed at leveraging the strong brand presence and success DXN has achieved in other Latin America countries including Mexico and Peru.
“DXN’s ‘One World One Market’ marketing strategy allows any of our global members to conduct and grow their business in any country where DXN operates without geographical constraints.
“We are confident about the potential our members have in expanding into Brazil,” he said.
Lim said so far, DXN has successfully registered 10 products which 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. DXN’s offerings, which include products formulated with herbs and medicinal plants such as spirulina, and lion’s mane mushroom, are well-positioned within this expanding market.
“As the health supplement sector continues to grow, there is a significant opportunity for us to accelerate on global expansion efforts to capitalise on this rising market,” he added.
The global health-oriented and wellness consumer product direct selling company said it is committed to expanding its product portfolio in alignment with dynamic consumer demands.
“In addition, we are actively in the process of establishing another branch office in Brazil as part of its strategic efforts to expand its market presence in the country.
“To support DXN’s growth in the Latin America region, our second production facility in Mexico is now operational, with a size 2.8 times that of the first, and is involved in manufacturing coffee products, food supplements and beverages,” it said.
Since DXN’s entry into the Latin America region in 2004, the group has strengthened its network there to 3.6 million members.
Meanwhile, sales from the region have been instrumental in its revenue growth, accounting for 60% of total revenue in the nine-month financial period ended 30 November 2023.
“DXN’s entry into the Brazil market is expected to further enhance this growth trajectory,” the group added.
