Exploring Four Strategies Mr. Surachai uses to turn RS Group into the Game Changer,
Embarking on 10-billion baht path in 2 years with Entertainmerce model
There is no real success formula in the current business environment due to high competition, economic fluctuations, and the ongoing crisis of COVID-19 pandemic. Only the flexible and risk-taking corporates guided by visionary leaders and driven by solid teamwork can survive on this battlefield. RS Group has survived disruptions time and again, transforming from media and entertainment businesses into a commerce business today. This is proof that RS has become an iconic game-changer for the media and entertainment industry by introducing the ‘Entertainmerce’ as a core business model. The model has facilitated the corporate to march into the commerce business and other businesses faster and distribute risk factors more effectively while making exponential income and growth amid the hardest challenge in history.
Apart from being a game-changer and accepted as a successfully transformed company, RS Group, led by Mr. Surachai Chetchotisak is aiming to generate an income of ten billion baht within two years. The company is using four strategies under the Entertainmerce model. The ideas of the strategies are to use innovative technology and digital systems to improve the operation of all businesses and to expand to another industry with interlinked ecosystems in order to support each other and establish a strong foundation from upstream to downstream.
Strategy 1: Establish sustainability to the media and entertainment businesses as the original core business by earning from several sources.
The advantage and expertise of the media and entertainment businesses under RS Group are enhanced and used to promote the commerce business and other businesses. This synergy must be seamless, powerful, and sustainable.
– Media business (Channel 8 and COOLISM)
The promotion of media business emphasizes varying the sources of income using the synergic technique. The technique proves highly effective despite the COVID-19 pandemic. The income comes from selling media and sponsorships from Channel 8 and COOLfahrenheit, copyrights of TV shows and series, selling products of RS Mall through various programs on Channel 8, and concerts and events by Channel 8 and COOLive. Furthermore, COOLanything, an online shopping platform, has been developed so that COOLfahrenheit fans can shop on the application and website at the same time.
– Music business (RS Music)
RS Group still places a strong emphasis on copyright management of the music store and creating content for 90’s songs, creating a trend of ‘growing up with RS’. In addition, RS Music increases the value from social media of its artists, including the current artists with a strong fan base and nine new artists from three music houses. The company also builds artists into influencers from unique lifestyles and potentially into business partners according to the music star commerce model. More income can be generated from concerts and events.
Strategy 2: Strengthen RS Mall as a wellbeing partner of choice by Thai people
Currently, the customer base of RS Mall reaches 1.6 million and continues to grow. RS Mall aims to become a wellbeing partner of its customers with the following supporting factors.
– The exponential growth of health products in all dimensions: Most recently, RS Group Open Day 2021 introduced a new lineup of cannabis and hemp products with 8 SKUs, including dietary supplement and beverages under the S.O.M, well u, and Camu C products. These products will be available on RS Mall and other platforms.
– The development of solid customer relationship management (CRM) system results in more than 2.4 repeat sales. Repurchases might be attracted by quality and variety of products that serve the healthy lifestyle and well-trained tele-sale team who have extensive knowledge about wellbeing. When tele-salespersons can answer questions about the products, customers become confident in buying the products even more.
– RS Group emphasizes the introduction and application of new technology to build customer data platforms, data analytics, and voice analytics. These tools collect a wide range of data and customer’s conversation voices to process the data and present products and services that serve their specific needs. The expansion of the predictive dialing system (PDS)to all customer groups helps tele-sale teams to work much more effectively.
Strategy 3: Develop Lifestar products to invade a new market
Lifestar is a subsidiary of RS Group with expertise in innovative health and beauty products. This year, the company launches more diverse products to serve healthy and new normal lifestyles and march toward the mass market. The latest products are as follows:
– ‘well u collagen’ is a premium collagen product with higher innovation and effective benefits from 6 essential ingredients. The product is sold through 3 main channels: the exclusive distribution network (EDN), the exclusive modern trade at Watsons, and online channels. The concept of this product is “the one and only collagen product that we choose for You…every day.” Three famous celebrities will be the presenters of this product, including Janie Alphach Na Pomphet, Natapohn Tameeruks (Taew), and Napapa Tantrakul (Patt).
– The functional drink product is promoted under the “CAMU C” brand. Rich in CAMU CAMU, vitamin C 200%, and high vitamin B 12, CAMU C drinks are available for sales nationwide at convenience stores, modern trade, and retail stores. The concept of this product is “Have you taken care of yourself?”. The presenter of this product is Kim Soo-hyun, the highest-paid Korean superstar at the moment.
– Pet food has the market share over 40,000 million baht and continue to rise by 10% every year. Therefore, Lifestar ready to launch and release pet food in the middle of this year on RS Mall and other online channels.
Furthermore, Lifestar is planning to launch more new products to mass market under the brands ‘well u’ and ‘camu C’ to serve customers with healthy lifestyles throughout the year.
Strategy 4: Mergers and Acquisitions (M&A) and Joint Venture (JV)
To perform well in the business world today requires good partners with expertise, fund, and the potential to grow. Mr. Surachai Chetchotisak, CEO of RS Group, once said that “in the business world, it is hardly predictable where competitors will come from. Every company can cross their horizon to do another business when they see a good chance. There is nothing to worry about as long as we are ready to compete with other players.” Therefore, RS Group expects to conclude at least 2-3 deals to expand its ecosystem, with a budget of 300-600 million baht per deal, aiming to expand the business both vertically and horizontally. Earlier this year, RS Group acquired 35% of the stocks of Chase Asia Co., Ltd., with a value of 920 million baht to march into the “asset management & personal loan lending service” and establish horizontal growth. The M&A and JV efforts of RS Group boost the Entertainmerce business model and expand the endless ecosystem of RS Group and serves to manage risk factors that the company is highly cautious about.
RS Group operates the business with opportunity and does not stick to traditional ways. The company prides itself on flexibility, fun, challenge, and preparedness to fulfill lives and inspire people. Today, RS Group has become an iconic game-changer that has successfully transformed itself and become domestically and internationally acknowledged. The above mentioned four business strategies will function as a springboard that pushes the corporate to leap high and reach the goal of ten billion baht within a short time.
Those who are interested may follow news and updates of RS Group on www.rs.co.th.