The recurrence of the COVID-19 pandemic from the end of 2020 to the beginning of 2021 is holding back the economic recovery. However, RS Public Company Limited (RS) still shows superb performance in Q1/2021 with constant growth and net revenue of 992 million baht and a profit of 140 million baht or 37% higher than the previous quarter.
The growth of the commerce business with a record new high and a higher ratio of up to 67% of the net revenue resulted from the expansion of distribution channels and customer database management along with the promotions that serve the needs of each target group. Besides, the Company has effective cost control in every business.
Mr. Wittawat Wetchabutsakorn, Chief Financial Officer of RS, revealed that “although the Thai economy has been affected by the new wave of COVID-19 pandemic, our Entertainmerce business model enables the Company to make steadily growing revenue. The net revenue in the first quarter of 2021 is 992 million baht and the profit 140 million baht or 37% growth compared to the previous quarter. The income is from the commerce business by 661 million baht or a 32% increase compared to the same quarter of last year.”
The growth factors of RS’s commerce business are as below.
– Most products sold on RS Mall are health and beauty products which meet the mega trends of health, wellness, and wellbeing of customers. The trend corresponds with RS Mall’s idea to be “Your Wellbeing Partner”.
– The distribution channels and promotions are suitable for the customers, including “RS Mall Flash Sales”, “RS Mall Flash Sunday”, and “RS Mall Chinese New Year 2021”.
– The Work from Home policy and “Mobile First” with more people connected to the Internet and social networks enable real-time marketing and live streaming on RS Mall Facebook to increase sales.
– RS focuses on managing customer data and uses the Predictive Dialing System (PDS) to maximize the effectiveness of all customer groups. The voice analytics system has been fully implemented in 2021 by integrating various dimensions of data and customers’ conversation voice in the database and offering the right products and services, resulting in a customer base of approximately 1.6 million people.
– Lifestar Co., Ltd, a subsidiary of RS, focuses on the development and production of new products, such as probiotic dietary supplements under the “S.O.M.” brand and traditional herbal medicines under the “Thong Ek” brand. Just recently, the Company launched a collagen peptide and tripeptide dietary supplement under the “well u” brand. The main distribution channels are the Exclusive Distribution Network (EDN). This is the first time in the Company’s history to operate the premium collagen dietary supplement product.
– Products of Lifestar are sold on more distribution channels, apart from originally on the main channel of the Company, namely RS Mall, COOLanything, Channel 8, and COOLFahrenheit. Now the products are available on partners’ online platforms and retail stores nationwide.
In the meantime, revenue from the media, music, and other industries totals 332 million baht. It should be noted that the media industry is in the low season and affected by COVID-19. For instance, concerts and events have been prohibited. Advertising budgets have been delayed on every channel, except for the online ones. As a result, the media industry is experiencing decreased revenue like the overall business but still manages to profit.
On the other hand, the music industry earns 77 million baht or a 10% increase in revenue compared to the previous quarter because more people are listening to music online. Another source of income is artist management and more music copyrights on various platforms. Furthermore, music marketing has been adopted, making cost management more effective.
This year, RS will continue to use the Entertainmerce Model to operate the commerce industry full-scale. New product lines have been introduced, including functional drinks, pet food, and dietary supplements, to large markets all over the country and through every channel. In the second quarter, the Company is planning to invade the mass market of functional drinks under the “CAMU C” brand. Key selling points will be the trends of health and wellbeing, convenience, and accessibility, which are consistent with the current market trend and customers’ interest.
Furthermore, the company is launching R&D projects and negotiating with partners to introduce hemp into more than 8 SKUs, including dietary supplements and beverages to be introduced in the second half of the year.
Channel 8 will continue to manage existing content and create new content to make more income on the online platforms. The return of popular programs, including Thai series, news, and boxing, is also a supporting factor. Content is also managed to be continuously valuable in the new market and other online platforms.
“Merger & Acquisition and Joint venture are a key strategy to create a larger ecosystem in a short time. It is a technique that creates business value and competitiveness. In the second quarter, the company has invested in Fourth Apple Co., Ltd, an expert in online marketing. Fourth Apple has three core businesses: 1) consultation for online marketing via content and influencers, 2) producing new online content and online programs, focusing on Korean and Japanese idols, and 3) a talent agency.
In addition, RS has partnered with Plan B Media Public Company Limited, a competitive company with out-of-home media services. This partnership leads to an establishment of a new company to support RS comprehensively. The details of this joint venture will be available soon”, said Mr. Wittawat at the end.