BEAUTY sees prospect to turnaround this year with the revenue growth of 65% and the net profit maintaining at 10%. The growth is achieved through 3 biggest business driven strategies: “Re Model / Refresh Branding / Re Structuring” in order to penetrate local and oversea mass markets. Reinforced by two new executives, the Company prepares to enter new effective distribution channels to gain access to mass market, focusing on Beauty & Wellness products.
Dr. Peerapong Kitiveshpokawat, CEO of Beauty Community Public Company Limited (BEAUTY), the company engaged in the retail sale of cosmetic and skincare products under the concept of “Live a Beautiful Life” revealed that the Company’s targets in this year would focus on the turnaround for profit and strong financial status and cashflow with the expected revenue growth of no less than 65% or at approximately 680 million baht while maintaining the net profit of no less than 10%. The revenue ratio as categorized by distribution channels consists of 37% from oversea, 27% from retail, 24% from trading, and 12% from E-Commerce.
The Company’s strategy aims to improve business operation by focusing on sustainable growth and business development for the strong turnaround within 3 years. To start, in this year, the 3 main strategies are: 1. Re Model; 2. Refresh Branding; and 3. Re Strcuturing.
Re Model strategy will add more distribution channels from the main channels of BEAUTY BUFFET shop while fully introducing new products to the mass market through the 13 representatives across the country. The distribution point will be enhanced to General Trade through the model of which the products are either available in stores or Store in Store model, covering a total area of 8,600 stores across the country. In addition, the products are also distributed to 6,000 Modern Trade stores while adding new products to existing distribution points. On the other hand, there will be a big remodelling of BEAUTY BUFFET SHOP to be more modern and professional in terms of products with complete bueaty advice for all customer groups with no gender and age barriers. So far, the Company has gradually remodelled 3 shops and expects to complete remodelling 50 shops across Thailand within Q2/2022.
The E-Commerce distribution channel will focus more on product presentation to the consumers, development of efficient product management system, and increasing more platforms for product access to the Company’s website, leading Market Places, and potential Social Media to respond to the customers’ demand for entering all channels, easy purchase, and accurate and fast product delivery.
The Company’s oversea market channels cover 13 countires (China, Hongkong, Taiwan, Indonesia, Cambodia, Vietnam, Myanmar, Laos, Malaysia, Brunei,Phillippines, India, and Japan). In this year, the Company focuses on distributing products to several regions of each country while having marketing activities for products to be widely recognized through more collaborations with sale representatives. On the other hand, the Product License model in China, the main market of BEAUTY, consisting of 12 items of skincare and cosmetic products produced and distributed by representatives, is expected to grow to a great extent due to the fast production, less process and cost caused by import-export, and meeting the needs of customer group. The Company has a plan to increase the number of licensed reprentatives and product items.
“Apart from the improvement of the distribution model, the product variety of the BEAUTY & WELLNESS group and the good consumers’ well response, another crucial change in this year is the Refresh Branding of BEAUTY BUFFET to be more modern and entertaining which help the Company to penetrate to all groups of consumers’ needs. From now on, the Company’s marketing will communicate with Refresh Branding through complete O2O strategy and different presenters”, said Dr. Peerapong.
In addition, BEAUTY’s Re Structuring strategy will reduce the corporate size to be appropriate with the business operation and changing economic situation, leading to the continuous decrease of the cost of production, sales, and management while the sale volume is gradually increased.
The Company is reinforced with the 2 new executives who are expertise in retial business and sale representative management. They will help develop new business model for further market expansion.
