RS yesterday announced its new vision, following a full-stream migration to the commerce and retail business sector.
The company is confident that the new business model will bring in a new high in profits, with the plan to expand its business in CLMV countries (Cambodia, Laos, Myanmar, and Vietnam) starting from next year.
RS has moved its business category in the Stock Exchange of Thailand from “media & publishing” to “commerce” with effect from March 29.
“Now the company is entering the second phase and will focus on expanding its multi-platform commerce (MPC) business via TV channels in Thailand, as well as online channels and sales representatives,” said Surachai Chetchotisak, CEO of RS Plc.
“We will also join forces with partners to produce original equipment manufacturer [OEM] and original brand manufacturer [OBM] products, while also pushing big data to reach 1.8 million people. The focus is to build a new retail empire and reaffirm our image as a leading manufacturer and distributor of health and beauty products, accessories and amulets. Our goal is to generate Bt10 billion in annual sales in three years,” he said.
Surachai said Thailand’s commerce and retail business are worth a total of about Bt2.5 trillion, and are expected to grow further after the general election. The new government will boost confidence in the business sector, and consumers will spend more, in line with the growth of the company’s MPC business, which suits the lifestyle of consumers in the 4.0 era.
“The current contribution of MPC business at RS is now about 60 per cent, while media shares about 30 per cent of revenue, and the rest 10 per cent come from music and other businesses,” he said, adding the proportion of MPC is increasing.
“Our auction of the Channel 8 digital TV business was made as TV was considered the main media before it was disrupted by new media, due to the increase in the number of channels. Of course, not all ads are dated. Our advantage is that all the ad space has been utilised to create maximum benefits. We will not leave the ad space vacant but remove those spaces to provide strong support for our new commerce business,” said Surachai.
He added that RS also has a plan to expand its business into neighbouring countries in CLMV next year.
“Our partnership with Thairath TV in 2019 is estimated to bring in some Bt455 million. For vertical growth, RS has plans to partner with OEM and OBM companies to produce own-brand products. These new partnerships will begin to yield results in the third quarter of this year. With our experience, we are ready to become a manufacturer offering high-quality products in high-margin categories. We are confident that RS will expand its empire with stability and become Thailand’s leader in commerce and retail, going beyond where other players have gone. Our goal is to generate Bt10 billion in sales within three years, and we know it’s possible,” said Surachai.
On March 29, RS will fully enter the commerce and retail business, following the company’s significant growth both vertically and horizontally. The company has adjusted its estimated revenue for this year to Bt5 billion, a 30 per cent increase from the previous year. It is expected that its MPC business will generate Bt3 billion, a 41 per cent increase over 2018.
Surachai said that MPC revenue has reached a new high thanks to the expansion of channels reaching more viewers. Currently, its platforms include Channel 8, Call Centre 1781, Thairath TV T Shopping 02-117-3232, Channel 2, Sabaidee TV Channel 141, Ploen TV, and COOL Fahrenheit radio station, which together reach some 20 million people. It also has online platforms: www.shop1781.com, LINE@shop1781, and LINE@COOLanything, as well as LifestarBIZ representatives, modern trade retailers, and traditional trade retailers nationwide.
He said that adding diversity to its products and services is crucial. RS will introduce 200 new products and services in collaboration with world-class laboratories to develop new innovations that meet the needs of consumers. It will also join forces with partners to introduce high-quality products.
Today, its offerings include health and beauty products (80 per cent) such as skincare products under the brand Magique, haircare products under Revive brand, and food supplements under the SOM brand, home and lifestyle products (15 per cent), accessories and amulets, and others (5 per cent).