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- The 1,888 sq ft unit on the 60th floor of the tower will host distributors who achieve "specific sales and performance targets", with stays redeemable via accumulated sales value points, the company said in its filing with Bursa Malaysia on Tuesday.
KUALA LUMPUR (Sept 9): DXN Holdings Bhd (KL:DXN) said its proposed acquisition of an apartment unit at the Burj Khalifa skyscraper in Dubai is part of the multi-level marketing company's sales motivation scheme aimed at rewarding top-performing distributors.
The 1,888 sq ft unit on the 60th floor of the tower will host distributors who achieve "specific sales and performance targets", with stays redeemable via accumulated sales value points, the company said in its filing with Bursa Malaysia on Tuesday.
DXN said the apartment purchase is primarily intended as a "strategic incentive and marketing tool to strengthen member engagement", and will result in cost savings as the company will be able to utilise its own facility to accommodate its distributors.
The marketing company announced last week that it is buying the property for 6.4 million dirhams (RM7.37 million) in cash. The deal is deemed a related-party transaction, as the seller is DXN executive chairman and major shareholder Datuk Lim Siow Jin.
According to DXN, its distributors had already been informally using the property during Dubai visits for leadership training and networking sessions. It also forms part of the group's Travel Seminar Incentive and lifestyle programmes. Thus, the proposed acquisition, it said, will provide long-term access and formally integrate the apartment into its incentive programmes.
The company also noted that the Dubai apartment purchase is consistent with its approach to other member-focused facilities such as Boulder Valley Glamping in Penang and DXN Cyberville in Cyberjaya, which are also used to host members as part of its sales motivation initiatives.
As at June, DXN had a registered membership base of about 20.11 million individuals worldwide, of which 4.30 million were active members, according to the company's filing. These distributors form the backbone of DXN’s direct selling model, through which its health and wellness products are marketed.
DXN shares, which have slipped nearly 2% so far this year, last traded at 50 sen, valuing the company at RM2.49 billion.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
