The Company plans its marketing strategy that mainly emphasizes the customer’s buying behavior. This is because, business trends in the future will not limited to offline channels or the online world only but must be a combination of the strengths of both styles. The current consumer’s behavior tends to favor the consumption of online media and a more comfortable lifestyle (Lazy Economy). In addition, the competition in the cosmetics market both offline and online channels increases. There is a production of products, creating their own brand to sell products online directly to customers including many online merchants.
O2O Marketing
The Company hence focuses on the O2O Strategy to reach the target customers as much as possible.
Branding
The company operates a cosmetic and skincare retail business. Shop Brand is Beauty Buffet and Product Brands – both entails different concepts in term of market position, price, design, customer group, and distribution channel, which makes each branding strategy different :
- Creating a Unique Identity: making its brands recognizable to the consumers are creating a unique identity for each brand, the Company has designed the products, the packaging, and the stores to represent the unique identities of each individual brand.
- Service Differentiation: Beauty Buffet is not only focusing on selling the products, but also offering complete Beauty Solution to the customers. Customers who visit our stores will receive a friendly, warm-welcome and excellence service from our employees who have passed the standard training of the Company. Our employees can recommend the most appropriate style of makeup and cosmetics for each individual customer, and the products that are suitable for the customer’s skin. The underlying objectives of this strategy are to make our customers feel more comfortable to choose and to buy our products, to make them more confidence in, and access more of our products.
- Branding Strategy for Capturing the Market via Other Distribution Channels: Building a new brand for creating the new market and the new distribution channel.
Customer Base Retention
Retaining the existing customer base or inviting repeat customer is an important factor for a business’s survivability and the revenue security. Therefore, the Company emphasizes the customer base retention strategy, as follow.
- Increasing the Available Channels for Accessing our Products: The Company has the policy on continuously expanding distribution channels to reach as many consumers as possible.
- Simultaneous Products’ Quality Maintaining and New Product Development.
- Customer Relationship Management: The Company develops a specific information technology system for storing its customer database, which is used for the purpose of Customer Relationship Management (CRM). This allows the Company to answer the customer’s demands more specific.
- Creating “Beauty Community” To reach the target group of the company through various kinds of the internet, which enable them to respond to the customers conveniently and quickly, as well as understand needs of each person and the problems of products and services.
In summary, BEAUTY focuses on 5 key distribution channels in relation to sales:
Retail Channel “Beauty Buffet”
“Beauty Buffet” is a retail shop with the cross concept of buffet restaurant and cosmetic retail sales in order to create an outstanding uniqueness. Beauty Buffet offers a wide range of cosmetic products so that customers can try different beauty products before confidently selecting the best option. The store is known for decorating in vivid colors with warm and friendly service. Also, a chef figure in front of each Beauty Buffet shop is intended to exemplify both the buffet concept and “The Most Delicious Beauty Shop in Town” slogan.
Beauty Buffet shops, at the end of 2021, 50 branches are available in multiple shopping centers, such as Central Plaza, The Mall, and large supermarkets like Lotus, BigC, etc.
E-Commerce Channel
E-Commerce channel is B2C (Business to Consumer), which retail buyers buy products from sellers through online platforms. Today, various online media are easily accessible by most customers. Surfing the Internet has been considered as a main daily activity for most people. E-Commerce channel minimizes storefront necessity and employee expenditures and replaces conventionality with automatic 24-hour system that can constantly support customer purchase or requisitions across the globe – eliminating travel need, reducing management costs but increasing marketing accuracy and masurability Currently, the company has a number of products available for sale on E-Commerce channels 580 items, 1100 SKUs as follows:
- Distribution channel through the company’s website is www.beautybuffetshop.co.th which has been well-received by the customers
- The company’s Social Commerce includes Facebook, Instagram, Line etc.
- Marketplace distribution channel – the company sells products on the famous platforms, as of December 30, 2021 – a total of 12 platforms: Shopee, Lazada, Konvy, etc.
Modern Trade Channel
The company has introduced the products through the Modern Trade channel. As of December 30, 2021, there are more than 40 products available – a total of 20 department stores and 3,279 points of sale – divisible into 4 categories as follows:
- Supermarket: Foodland, Tops, MaxValu, The Mall, Golden Place, etc.
- Convenience Stores: 7-Eleven catalog, CJ Express, etc.
- Hypermarket: Big C, Lotus, Makro, etc.
- Specialty Stores: Watsons, EVEANDBOY, Kong Power, Boots, etc.
General Trade Channel
The company has developed products for the Mass Market by appointing 13 major distributors across the country, which focus on expanding the distribution points to small retail stores across the country. As of December 31, 2021, there are 1,385 distribution points total.
International Channel
Since 2011, the company has started expanding into international markets. As of December 31, 2021, the products – more than 100 SKUs – are sold in 13 countries across Asia: China, Taiwan, Hong Kong, Indonesia, Vietnam, Cambodia, Myanmar, Laos, Malaysia, Brunei, Philippines, India, Japan with 20 distributors in forms of Product Distributor, Shop License, Product License, and Wholesaler.
The Chinese Market is the main market that generates 89% of the overall international sales. 4 business models in China as follows:
1. Product Distributor Product Distributor: the company appoints a distributor for distribution of the company’s products. Currently, there are 7 distributors selling products through the General Trade with a total of 34,000 points of sale.
2. Product License started in the 4th quarter of 2020, the company appointed distributors to distribute products in China. The brand rights is also authorized, so distributors can produce and sell products under the company supervision. In the future, there are plans to appoint more distributors and increase the number of products. As of now, 12 products are skin care and makeup as follows:
3. CBEC (Cross border e-commerce) appointing distributors to sell products through CBEC channel. At the moment, our 3 distributors are selling on 9 platforms: JD.com, TMALL HK, Little Red Book, Pin Duo Duo, Kaola, Beidian, Jumei, VIP.com, Aikucun.com.
4. Wholesaler : wholesaling products to various channels in China.
Other countries (other than China) consists of Indonesia, Cambodia, Vietnam, Myanmar, Laos, Malaysia, Brunei, Philippines, India, and Japan. The company is aiming to expand additional distribution channels through our distributors in Modern Trade and Traditional Trade by enabling them to perform their marketing (distribution format) with their domestic agents. Also, online channels will help spearding the products into a wider range of consumers, and more dealers will be appointed. The small, portable, and affordable skincare products must be introduced to help expanding more trading channels.
