By KWANCHAI RUNGFAPAISARN
Surachai Chetchotisak, chief executive of RS, said that the company’s expansion into the health and beauty business was in line with current trends as Thais have become increasingly health-conscious, and strong growth at 7-8 per cent per year of the country’s market for such products, with expected value of around Bt150 billion this year.
Give this strong growth potential, RS will promote its health and beauty business as one of its main pillars, which will generate significant income for the company, together with its media and music businesses.
He said RS targeted Bt3.5 billion in total revenue this year, of which 15 per cent would be from health and beauty business.
The main proportion or 75 per cent would be from its core media business, while the music business would contribute about 5 per cent to this year’s revenue.
RS’s health and beauty business is handles by its subsidiary LifeStar Co.
The company plans to expand the distribution of its health and beauty products to more modern-trade channels, such as Watsons, Eve and Boy, Tops, Boots, Gourmet Market and 7-Eleven, after offering them via TV home shopping and the 1781 call centre.
The expansion should help the company grow sales of its LifeStar products to Bt1 billion over the next three years.
“We don’t want to be [known only] as a media-and-music entertainment company or as a beauty company, but rather as a company that can be a diverse as well as successful,” Surachai said. “That’s my vision.”
He added that the company hoped to expand its LifeStar business outside Thailand, first in Myanmar. It expects to begin collaborating with a local partner in that country this year.
LifeStar is expected to break monthly sales records this year, thanks to the company’s “Synergise in all Dimensions” strategy to offer high-quality products, in-depth media, and expansive distribution.
15 new products
The company is introducing 15 new products.
Surachai said LifeStar was now entering its third year and had seen significant growth along with the health and beauty market’s overall expansion, as people today care more about their health.
Currently, LifeStar has three brands. Skincare brand Magique offers Magique Noble White with mineral water from Mount Fuji, targeting people over 20 who want brighter skin, Magique Youthful Radiance with red algae for those 30 and up who want firmer skin, and Magique Gravitas with a special ingredient from starfish for those over 45 who want to slow the signs of ageing.
The other two are haircare brand Revive and food-supplement brand SOM (Science of Body & Mind), which offers Time Capsule for knee problems, Sleek for prevention of health issues caused by excess fat, and Piera for brighter skin.
Surachai said the company estimated that LifeStar’s revenue would grow by 100 per cent this year. It has already achieved its monthly sales targets so far this year.
“We are quite confident that LifeStar’s annual sales will exceed|its target of Bt440 million this |year, thanks to its ‘Synergy in|all Dimensions’ strategy,” Surachai said, adding that the strategy |would be enhanced in three core |elements.
1. New product segments: The company is investing Bt30 million to introduce 15 new products for Magique, Revive and SOM. It says it will partner with world-class laboratories to create the best products for consumers.
2. Utilisation of RS’s own media: RS will use all of its media platforms to reach its target consumers for efficient communication.
3. Aggressive expansion in other channels: It will expand its distribution and services by doubling the number of its telesales staff to make sure that its call centre 1781 can serve its customers. Customer data analysts are being employed to understand consumer behaviour in order to suit their needs better. It will also launch a direct-sales channel, while also looking to expand into neighbouring countries.
“Our dedication in every aspect has been a successful strategy, and therefore LifeStar has grown beyond our expectation,” Surachai said.