ENTERTAINING OPTIONS
Surachai Chetchotisak is taking disruption in stride as his group moves into hotels and insurance. By Pitsinee Jitpleecheep
RS founder Surachai Chetchotisak is taking disruption in stride as his group moves into hotels and insurance.
SET-listed RS Plc is fast evolving from its long-time role in Thailand’s entertainment industry and embracing new businesses that founder Surachai Chetchotisak might never have considered in the past. In the latest development, the group is diversifying into the hospitality and insurance sector as entertainment and music fade in importance.
“A hotel is a business that we [RS] should do, although it is not the business that we want to do,” said Mr Surachai, 56. “We are now designing our hotel, which is located on more than 20 rai of land at Hua Hin beach in Prachuap Khiri Khan. This will be my personal investment, and my oldest son will help handle the project.”
At the same time, the youngest son is in the process of building a new tourism landmark somewhere in Bangkok. More details were not disclosed.
Mr Surachai said tourism continues to grow and will never face technological disruption in the way that other industries such as music and media have.
“Currently, RS is a 36-year old company,” he said. “RS has experienced several big business turning points. We started from selling cassette tapes before moving to media management, entertainment content, Channel 8 TV and multiple platforms of commerce, selling consumer products from food supplements to beauty and hair care products.
“We planned to expand into beauty in the last decade, but it was not the right time during that period. We later decided to dust off the beauty project again, along with several consumer products, when I had the idea to run digital TV at Channel 8.”
With the global trend of ageing societies and health concern, RS now sells food supplements under the S.O.M. brand, a skincare line under Magique and hair care products under Revive.
At present, RS’s wide range of products includes lingerie, electrical appliances, kitchenware, exercise equipment and, starting next month, insurance.
RS has about 160 products available; 60% are its own, and 40% are from outsiders and partners.
Sales from multiple platform commerce jumped to 1.4 billion baht in 2017 from just 240 million in the early years, with the figure expected to surpass 2 billion this year.
“We are very happy with the performance of multiple platform commerce,” Mr Surachai said, beaming with pride. “Commerce is quite new for us, and we use all existing RS staff to run this business and never recruit any from the consumer products industry.”
Behind all the success is Mr Surachai’s wellplanned homework. RS has its own artists to promote products and can leverage integrated media such as digital TV and radio.
“We are not just home shopping,” Mr Surachai said. “We do more than that.”
Crucially, RS is concerned about product quality. All products sold via Channel 8 have to pass through several processes, including approval by the company’s board.
According to Mr Surachai, the company is investing in artificial intelligence (AI) to analyse customer behaviour.
Despite the strong performance of multiple platform commerce, the company will maintain music and radio as core business pillars, he said.
“I don’t see any reason to stop music and radio business, and we will never stop them as long as they still make a good profit for RS,” Mr Surachai said.
He expects overall RS revenue to exceed 4 billion baht and jump to 10 billion within the next five years.
Multiple platform commerce is expected to be the company’s major revenue driver, making up 70% of the company’s sales next year, up from 60% this year. Music and radio will contribute the rest.
“With the success of multiple platform commerce, it’s proven that RS can do everything we want to do,” Mr Surachai said. “I don’t exaggerate now that I started the music business when I was 19,” he said. “I dare to try and make a decision. At the same time, I also think fast, do fast and solve the problem fast. Moreover, I don’t think out of the box, but I think without the box. With this, it opens up new opportunity.”
Given the flat structure of the organisation, RS is always ready to change strategy.
“RS doesn’t stop at selling consumer products,” Mr Surachai said. “We will move further. I am not afraid of any technology disruption, because we were disrupted [by music business changes] for 36 years when we were disrupted by each boom of cassette tape, CD and MP3. Each movement has forced us to be ready and has developed our ability to stay alive strongly and sustainably.
“The business model of RS is very unique, and we believe that the company can confront the wave of technology disruption, as our people are ready to change for the new opportunity coming.”
The business model of RS is very unique, and we believe that the company can confront the wave of technology disruption. SURACHAI CHETCHOTISAK RS chairman and CEO