Strong Entertainmerce fuels RS Group’s skyrocketing profit, with commerce sector phenomenal growth, making new high
With the ability to adapt readily, RS Public Company Limited or RS Group boasts its Q3/2020 performance with phenomenal income from the commerce sector for two consecutive quarters. The income reached 644 million baht or 45% higher than Q3 of last year, pushing the handsome profit of 131 million baht, which is 41% and 20% higher than the same quarter last year and the latest quarter, respectively. Despite the Thai economic slowdown and the impact from the COVID-19 pandemic, RS Group under the Entertainmerce business model managed to grow with a pro-active strategy to access the customers by introducing modern technology to perform in-depth analyses, smart advertising campaigns and presenting unique yet satisfactory products. With the right campaigns and promotions, RS keeps hitting new highs. The other business sectors under RS Group also saw a brighter trend from Q2, promising constant growth and healthy profit. RS Group kicked off the product to fully invade the mass market, take control of the management, and create content on online platforms while introducing new artists, ensuring the target growth for 2020.
Mr. Wittawat Wetchabutsakorn, Chief Financial Officer of RS Group, revealed that “Thailand’s overall economy in the third quarter showed a positive trend from the second quarter when the lockdown measure was lifted. RS Group, having adapted quickly and continuously, managed the content from all businesses strategically for the maximum outcome and made use of customers’ data effectively. Therefore, in the third quarter of 2020, the Company earned 938 million baht, which is higher than the same quarter last year by 6% and higher than the previous quarter by 13%, while the net profit reached 131 million baht or 41% higher than the same quarter last year and 20% higher than the previous quarter. The phenomenal growth was attributed to 644 baht earned from the commerce business, 255 million from the media business, and 40 million from music and other sectors.”
It is worth noting that the income of the commerce business was from the sales of products by Life Star Co., Ltd, a subsidiary of RS Group, and products of business allies via RS Mall and COOLanything on Channel 8, digital TV allies, satellite TV, radio, online media, and modern trade stores nationwide. In addition, the diversity of distinct yet direct advertisement of each content attracted the customer base of over 1.5 million people, while the Company never ceases to manage the customers’ data and improve the accuracy of the predictive dialing system (PDS). With this efficient tool, the tele-sale team can contact more customers and march forward to introduce health product with positive feedback from the promotions of “Happy Mom,” “RS Mall 1st Anniversary”, and “Flash Sale” to promote sales. Moreover, a positive relationship with customers was maintained and improved by applying the point credits to use as a discount, driving increasing income from the new target group and the existing customers.
The income of the media business comes from adaptation in sales strategies and content management to expand to the overseas markets and other online platforms (OTT media services) as part of the “four-legged chair strategy”, the risk management strategy with the mutual support of income. The gist of this strategy is to strengthen the income of Channel 8 from its true potential and to not rely on income from one particular source. Also, the radio media of COOLfahrenheit has resumed its entertainment service for the waiting audience, making more considerable income compared to the second quarter and guaranteeing positive profitability.
Mr. Surachai Chetchotisak, CEO of RS Group, stated that RS Group aimed to operate the business under the Entertainmerce model and expand the customer base to cover all platforms. In the fourth quarter, we will see the steady development of RS Group and more capability of satisfying customers’ needs both on the online and offline channels. We are going to launch new products for the mass market. In the TV business or Channel 8, we are still pushing the management and creation of new content to expand to the overseas markets and online platform to stimulate more income and the full-scale comeback of the content favored by Channel 8 viewers, including Thai dramas and boxing sports. Notably, “Thai Fight” will bring Thai boxing to the international scale to build the rating continuously toward 2021. In the music industry, we are planning to introduce new artists to integrate star commerce with the commerce business fully.”
Thanks to the strategy of all businesses under the Entertainmerce model, which works smoothly and effectively, the Company’s income in the past two quarters has grown tremendously despite the hardship in the domestic and international economies. However, this is a guarantee that RS Group has established a robust business and drawn the potential from the unparalleled expertise of each business sector. It is expected that by the end of 2020, the income will hit the Company’s goal.
For more updates about RS Group, please visit our website: www.rs.co.th.