RS Group is unstoppable, winning the declining market. Commerce is soaring and hitting new high in sales
Despite a challenge of the new normal, RS Group is making a profit and winning the declining market. In Q2/20, RS has made the new high sales in commerce up to 586.2 million baht or has grown 17% QoQ. The remarkable growth is attributed to the Entertainmerce model and efficient cost management of commerce and media businesses, raising the gross profit margin up to 53%. The Company also reveals its plan for the second half of the year to launch the star commerce and expand the product to mass market to drive sales even higher.
Mr. Wittawat Wetchabutsakorn, Chief Financial Officer of RS Group, revealed that “although the overall Thai economy in the second quarter of 2020 has been affected by the COVID-19 pandemic since the end of the first quarter of the year, RS Group has managed to thrive with its Entertainmerce model and flexibility of the business plan. As a consequence, the revenue from the commerce business in Q2/20 has reached its new peak of 586.2 million baht or 8% YoY and up to 17% QoQ. The net profit of this quarter was at 108.6 million baht.
The profit of the commerce business comes from selling products on RS Mall, the platform that offers a variety of products, ranging from those of Lifestar Co., Ltd., which is an RS subsidiary, and others from partners via Channel 8, other leading digital TV channels, radio, online media, and modern trade all over the country. The successful expansion of selling channels has brought a more immense customer base over 1.4 million people to RS Mall. The Company is aiming at customers’ data management by introducing the Predictive Dialing System (PDS) to develop an efficient tele-sale system, customers’ data analysis, presentation of health products, and promotions that customers can hardly resist. The recent campaign “RS Mall Mid Year Super Sale” has met an enormous success, attracting the additional revenue from the old and the new customers alike. The top three best-selling products that brought the most income are S.O.M. CORDY Tibet & Bhutan, S.O.M. I-Kare, and S.O.M. CMax, all of which are in the health products of high quality that really fulfil the current needs of the market.”
Mr. Surachai Chetchotisak, Chief Executive Officer of RS Group, stated “RS Group is committed to doing the Entertainmerce model and fully becoming the commerce business, covering the customers on every platform, including TV, radio, and online via RS Mall and COOLanything. In the second half of the year, the Company is pursuing more pro-active strategies including:
1) Developing the online platform accessible to customers and satisfying their needs by using the application and website of COOLISM with more than 2 million audiences per month, along with launching new marketing campaigns on RS Mall website with more than 400,000 users
2) Presenting the products in a new way that blends harmoniously with the content of the programs on Channel 8
3) Diversifying the product lines led by Lifestar which is hitting the mass market and offering a variety of products such as functional RTD (ready-to-drink) and new products developed in conjunction with superstars and celebrities which will attract more fans, known as star commerce.
Apart from the above, RS Group is prepared to run in full force to accelerate the leap of the commerce business by introducing new products and revealing the progress of each subsidiary businesses in the second half of the year.”
RS Group believes that the power of media and working creatively under the concept of storytelling commerce, which is the expertise and strength of the Company, will make phenomenal sales both in terms of functional benefits and emotional values. This will eventually drive the commerce business toward new peaks repeatedly.