Russian Direct Sales Market in Steady Growth, a Pathway to the CIS Including Uzbekistan … Atomy Magazine September 2018

Atomy is advancing into the world’s largest country, Russia, which spans widely across Europe and Asia. After its recent opening in Australia, Atomy has lost no time in working towards the official opening of Atomy Russia scheduled to launch in early December of this year. Russia is the largest country in the world by area, covering more than 17 million square kilometers. That’s 170 times the size of South Korea which is only about 100,000 square kilometers. Russia’s population is over 144 million (2018 estimate), and its per capita income is $12,000 (2018 IMF). Although its population is relatively small with respect to the size of the country, 15% of the population is concentrated in Moscow and other metropolitan areas. Thus, manufacturing and distribution of consumer goods and food products are well developed in this area. In addition, the Russian market is closely linked to the CIS (Commonwealth of Independent States) market, which will assist Atomy in opening its doors to other countries such as Uzbekistan, Kazakhstan, Turkmenistan, and Moldova in the future.

Wellness Market Sees 11.5% Growth This Year
Since the transition from the Soviet Union to Russia, 43% of consumer goods have been imported from abroad. The import market has expanded rapidly with an increase in consumer purchasing power, especially due to a boom in the economy boosted by a high export of energy resources since the early 2000s. The middle class, making up about 25% of the total population, is steadily becoming the major consumer group. It is worthwhile to note that the middle class in Russia has a fairly high disposable income because of the country’s low public utility bills and high housing penetration rate. According to a report by Credit Swiss, a middle manager with an annual income of $24,000 is estimated to have about $10,000 of real disposable income in Moscow. This is very high compared to the $7,000 of disposable income of people in the U.S. with an annual income of $60,000. Likewise, Rosgosstrakh, an insurance company in Russia, assessed that these middle-class consumers tend to purchase goods and services for life’s conveniences without restriction.
The cosmetics market in Russia is expected to become a booming field with continuous market growth for the time being due to economic recovery. In particular, the market for Korean cosmetics has been expanding with increasing popularity recently. This is because the cost-effective Korean cosmetics are said to be replacing luxury European cosmetic brands since the economic recession in 2015. Another reason for this increased demand in Korean cosmetics could be attributed to the rise of e-commerce and the development of online distributors who import and sell various goods on a smaller scale.
The wellness market is also showing a very rapid growth rate. According to KOTRA, Russia’s health food market was worth 63.1 billion RUB (about $15.8 billion) in 2013, but it was projected to grow by 11.5% to 70.9 billion RUB ($17.6 billion) in 2018.
With interest in diet and health foods spreading through Russian mass media, social media, blogs, etc., the health food market is expected to continue expanding. In addition, so-called ‘healthy snacks’ such as organic products and fitness low-carb products that were only sold by some online shops and specialty stores are now widely available in large supermarkets, and their sales continue to increase.

2017 Direct Sales Industry Worth 3.18 Trillion KRW, Grown by 18.67%
Direct sales in Russia is growing steadily. The direct sales industry had grown by 18.67 % from 2.37 billion U.S. dollars (2.68 trillion KRW) in 2014 to 2.81 billion U.S. dollars (3.18 trillion KRW) in 2017. On the contrary, the number of direct sellers had decreased from about 5.43 million to 5.08 million, and 89% of them were shown to be women. Accordingly, cosmetics and personal care products accounted for the largest share of direct sales, followed by wellness, home care products, clothing and accessories.
In addition, wellness products expanded its market share from 16.8 % in 2014 to 28.4 % in 2017, while cosmetic sales were reduced from 61.1 % to 48.2 % during the same period. Home care products and clothing and accessories accounted for 9.7% and 8.8%, respectively.
Meanwhile, before doing business in Russia, we should try to learn more about the country and its people. Many Koreans understand that Russia is an important global influence that is recognized by the international community. In addition, Russians are generally proud of their country and its rich cultural assets. They are also said to show high interest in art, history, culture and learning.
Acquiring a deeper understanding of these culturally rich people and their historical heritage seems to be a must before Atomy officially starts business in Russia.

https://www.atomy.ru/ru/Home  #atomy #atomyrussia

[ Atomy Russia Update ]

1. Company’s official web bage www.atomy.com/ru will be lauched in December, 2018
2. Address of our office: 7th floor, 23/3 Orbucheva str. 117630 Moscow
3. Seminars:
A. Introductory mini-seminar is planned to be held after October, 20th, 2018 in Company’s office. All official information will be published additionally in social media.
B. Pre-launch One-day Seminar will be held on last week of November 2018 in Moscow and Vladivostok and also other cities (exact information we will announce later)
4. Events of official opening of Atomy Russia – April-May, 2019 together with Success Academy

GSGS, Global Sourcing and Global Sales, is Atomy’s unique strategy for striving to become a global hub of distribution. Products that meet the company’s Absolute Quality Absolute Price standard are sourced and sold around the world through Atomy’s global sales network. These products, regardless of country of origin, are distributed from suppliers to consumers based on buyer demand. This is a goal of Atomy which aims to become a global distribution hub by implementing the GSGS strategy.

Where there is consumer demand, distribution of products may occur naturally. But from the corporate point of view, this is not always an easy task to accomplish. Especially for Atomy, who is committed to upholding its Absolute Quality Absolute Price motto for all the products it distributes, there are many things to take into consideration. For example, in an effort to maintain masstige quality for all the products that cross the borders, Atomy has to afford the increasingly high cost of market research. This increase in cost is often a big burden for a company that starts doing business abroad since the costs can easily outweigh the benefits.

However, Atomy has strong confidence to overcome these challenges. During the last decade, consumers in Korea as well as abroad have witnessed with their own eyes that Atomy never fails to stand by its Absolute Quality Absolute Price standard, which in turn has resulted in a strong sense of trust by more than 4 million loyal members worldwide. And this great accomplishment in under 10 years did not just happen by a stroke of luck.

Now, Atomy is focused on developing and distributing masstige products all over the world as a global distribution hub through the Global Sourcing and Global Sales (GSGS) strategy. The word “hub” refers to the center axis of a bicycle wheel where the spokes converge. It can also represent a central point where signals are gathered from various places and transmitted out to other locations. Similarly, a distribution hub brings together products from all over the world and then circulates them to new locations. The sourcing and sales of products can work in both directions, meaning that the products can circulate back to its place of origin. And now, Atomy aims to be the center axis of the distribution wheel where global consumers and business partners converge; a distribution hub.

Atomy is dedicated to making it easier for global consumers to acquire “products of exceptional quality at reasonable prices” and seeks a win-win relationship with its global business partners at the same time. When consumers encounter Atomy products anywhere in the world, regardless of where it is produced or whom it is manufactured by, they should feel assured by the brand name ‘Atomy’ alone. This is a main focus of Atomy as a global distribution hub. The GSGS strategy can benefit both Atomy members as well as its business partners worldwide resulting in a win-win situation.

Driven by the ‘Win-Win Project in Search of Business Partners’ initiated last year, Atomy continues to actively seek out global business partners within and outside of the country who can work together to provide Absolute Quality Absolute Price products for global consumers. Atomy prefers partnering with small to medium-sized companies in an effort to pursue a true win-win relationship where both sides have an opportunity to grow. As Atomy makes its way into more and more countries, there will be an increasing number of cooperating partners who can work together to source masstige products that meet the global Absolute Quality Absolute Price standard. These partnering businesses will surpass national boundaries and expand with Atomy, which is another step towards Atomy’s goal of becoming a global distribution hub through the GSGS strategy.

Through GSGS, a few products have already been sourced and sold through Atomy in many countries. For example, aroma pain relief patches and sandwich seaweed-paper are from Taiwan. Himalayan pink salt and Chia seeds are sourced through Atomy US.  Black pepper is from Cambodia, and pelvic support stockings from Japan. Moreover, all Atomy branches are now participating in the GSGS strategy including Atomy Thailand and Atomy Mexico who opened just last year. Atomy Vietnam is also scheduled to launch into business within the year, expecting to source GSGS products for Atomy global members. Therefore, the GSGS strategy will eventually support the local economies of the countries in which Atomy opens its branch offices since the local products can be given a chance to be exported to other global markets. This means Atomy is not only selling products, but also buying products in the markets it advances into, which results in a win-win for the manufacturers as well as the consumers of the partnering countries with Atomy branch offices. That is why Atomy’s GSGS strategy is highly valued by its members and business partners worldwide.

#atomygsgs #atomy

Atomy Oceania’s Grand Opening:
Opening a new era of Direct Selling in Australia.
“To spread the word of Atomy through verbal, motivational means”

On the 11th of August 2018, Atomy celebrated its official launch of Atomy Oceania at the Melbourne Convention Exhibition Centre (MCEC) marking its’ beginning in the southern hemisphere.
Mr. Park Han Gill, the founder and president of Atomy Global and Sally Kim, directing manager of Atomy Oceania, welcomed the opening of Atomy Oceania with congratulatory speeches. Gillian Stapleton, executive director of DSA Australia, was a special presence at the opening ceremony. Many members of Atomy Royal Leaders’ Club members were also present, expressing their gratitude and promising support for the growing market in Australia and New Zealand. Other 600 participants from in and outside of the country celebrated the opening.
During his congratulatory speech, Mr. Park Han Gill said:
“If you look at the fundamental principles of network marketing(directing-selling), it is about acquiring quality products that I need at good prices. And after using those products and seeing the value in them, I would then introduce those products to others around me. And if those people like the products, they will pass them on to yet others, resulting in a kind of chain effect of purchasing and introducing. In this way, network marketing has the potential to be a very successful model in the distribution industry.” He also added, “If you(Atomy member) truly wish to succeed in network marketing, you need to put your partner’s success above your own. “
The total amount sold through direct-selling in Australia reached 1.38 Billion Australian Dollars, with the number of active members exceeding 576,000. According to WFDSA, 40% of the products sold through direct-selling are health supplements or health functional supplements. 29% were skincare products or cosmetics. 18% were household essentials, 4% being accessories. The market size is also getting bigger. Gillian Stapleton, executive director of DSA Australia said, “The environment of direct-selling in Australia is evolving. The market is shifting towards younger consumers who are more familiar with and so more closely connected with mobile and online sales platforms than offline retail shops.”
Lastly, Sally Kim, directing manager of Atomy Oceania, added her opinion on the Australian direct-selling market:
Australia is a diverse and multicultural society where the majority of the population speaks English and a big percentage of the population also speaks at least one second language, which shows a great potential for Atomy Oceania’s business to expand into other international markets.” She said, “Atomy Oceania will always put its utmost priority on members’ success. Atomy Oceania will help all Atomians(Atomy members) in Australia to be financially independent and ultimately lead family-oriented happy lives. We’ll dream together, working together to achieve the dream.”
Atomy’s goal of becoming a premier direct-selling company in Australian and New Zealand will be achieved through the 3 corporate cultures as follows:
Culture of Observing Principles – Success is more rewarding when achieved through a fair process of abiding by the rules.
Culture of Growing Together – Atomy will grow together with the community it belongs to.
Culture of Sharing – Atomy will share love with all constituents of the society by giving back to them what it makes through Atomy business.
While adhering to these 3 cultures of Atomy, Atomy Oceania will do their best to help all members to become successful business owners by providing them accurate information through diverse seminars and on/off-line marketing materials.