RS to expand health and beauty unit with factory

RS Plc plans to run its own health and beauty product plant by 2019, through either under a joint venture model or through mergers and acquisitions (M&A), to strengthen multi-platform commerce (MPC) to contribute up to 60% of total revenue per year.

The move is part of a horizontal expansion into new opportunities and to drive total revenue in 2019 to an all-time high of 5 billion baht.

The company, however, has yet to decide the investment structure of the plant.

According to RS chief executive Surachai Chetchotisak, 2019 is a new era for the entire business to adopt horizontal integration, diversify business and introduce new ones.

“We are also looking into opportunities to have more partnerships in our portfolio through a joint venture or M&A model,” Mr Surachai said, adding that RS is in talks with several prospective companies and some deals are expected to be finalised by the end of 2019.

RS operates three core units: MPC, media, and music and events. MPC has been contributing more than 50% of total revenue for two years.

RS targets 5 billion baht in total revenue in 2019, with 60% from MPC, 30% from media and 10% from music and events. RS also holds a digital TV licence to broadcast on Channel 8.

As RS is listed on the stock exchange under the entertainment category, the company plans to submit a proposal to the Stock Exchange of Thailand by February 2019 to request a shift to commerce.

RS offers more than 100 products in various categories, 80% of which are in the health and beauty category, including Magique skincare, Revive hair products and food supplements. The home and lifestyle category makes up 15%, while accessories and other categories are at 5%.

RS’s media platforms include Channel 8, Channel 2, Sabaidee TV 141, Ploen TV and Cool Fahrenheit radio station, and online platforms www.shop1781.com, Line @shop1781 for instant shopping and Line @COOLanything for lifestyle online shopping.

Mr Surachai said RS will launch big campaigns throughout next year to stimulate sales, with more than 100 new items to be released.

The multi-platform commerce business model will be synchronised with media and music businesses in 2019.

Mr Surachai said the company will keep expanding the direct sales network Lifestar Biz through RS’s 1.1-million-customer database. The Lifestar Biz was launched in March this year to create a new highlight business. To build Lifestar Biz, RS will recruit salespeople nationwide.

Some 70% of customers are active buyers who purchase at least one product annually, with an average price of over 2,000 baht per sales order.

RS targets its customer base to increase to 1.5 million by 2019.

For its media business, Channel 8 is the flagship platform, and next year there will be premium magnet content, both local and international, such as Thai dramas, Indian series, news programmes, variety shows and boxing matches.

Mr Surachai said the company will stick with the motto of “Everyone watches Channel 8”.

The music business is an upstream sector that can be branched out to other business opportunities. R Siam is highlighted as a single brand under the music marketing and services strategy to produce music for all target audiences.

The main income will come from online channels such as music streaming and downloading.

Mr Surachai said RS is considering expanding business to neighbouring countries in the future.

RS reported 2.76 billion baht in total revenue for the first nine months this year, with a net profit of 381 million baht.