Hai-O Enterprise Bhd says consumer sentiment improved in November, thanks to lower petrol prices.
“October was our weakest month in the second quarter but sales showed improvement last month as the Government started to reduce petrol prices and consumers geared up for the festive season,†financial controller Hew Von Kin told StarBiz.
The company, which provides Chinese healthcare products, has been benefiting from the growth of its multi-level marketing (MLM) division.
Hew said MLM customers were mainly civil servants, who enjoyed fixed income and therefore unaffected in terms of spending.
Besides, its products are not premium-based, hence there will still be demand as consumers shift to mid-range products from high-end ones.
“We expect the wholesale and retail divisions to weaken after Chinese New Year while the MLM division is likely to stay resilient as people seek part-time jobs to supplement their income,†he said, adding that new MLM memberships would offset the slower spending next year.
Logo from Hai-O.