Nuline expects slower sales
KUALA LUMPUR: MAM Baby brand product sales growth is expected to slow down in the coming years impacted by higher taxes.
Nuline Products Sdn Bhd director Blan Lee said from 2017 to this year, sales growth for MAM Baby products was roughly between 10 and 15 per cent in the local market, compared with the United States and Europe.
She said despite plans to expand its product footprint to 90 per cent of main towns and rural areas in the coming years, the company would still expect a challenge in achieving higher sales as product prices would be higher and no longer be affordable to the public.
“When people cannot afford to buy baby products, especially those imported and quality ones, they are forced not to choose the best for their babies.
“However, for those who can afford, they need not to worry about the our new product pricing. We only see middle-income earners impacted by the new pricing adjustment,” said Lee at the briefing of MAM Baby Malaysia, here, yesterday.
She said the government should give tax exemptions for services to cushion the impact, especially baby products.
The government imposed service tax on imported services, including online services, from Jan 1 this year, to ensure fair competition between foreign and local providers of services.
Previosuly, Finance Minister Lim Guan Eng was quoted as saying that tax measure would create a level-playing field between physical retailers and online retailers, especially online retailers.