Dr. Suwin Kraibhubes, CEO of Beauty Community Pcl., the retail business leader of cosmetics and skin care products under the concept "Live a beautiful life", disclosed that after BEAUTY's being included in the SET 50 index, the Company had stipulated the 5-year business strategy plan (2018 – 2022) targeting the average revenue growth rate of no less than 20% and the net profit growth rate of no less than 20% and in 2020 the Company's total revenue would reach 10,000 million baht and the market capitalization of no less than 100,000 million baht. Its brand, as Thailand's cosmetics products, would receive with the recognition from consumers across Asia.
The overview of the business of this year, the Company has targeted the total revenue of no less than 4,290 million baht or at the growth rate of no less than 20%, maintaining the net profit of no less than 20%. The investment of 120 million baht consists of new branches launch worth 80 million baht and improvements of infrastructure and Business Intelligence (BI) worth 40 million baht in order to enhance the efficiciency of revenue increase to serve the Company's future growth.
The Company's main strategy for business operation is performed under the policy of "Fast & Smart" which consists of 5 aspects:
1. Marketing - O2O Strategy (Online to Offline synchronization) with the utilization of all online platforms including local and oversea Influencer and all levels of staff, leading to the engagement with wide range of customers as well as significant growth of sale volumes of offline and online platforms;
2. Product - Product Driven Strategy to drive the sales volume growth through the establishment of Product Hero for existing products and new products as well as the focus on trendy innovative products suitable for swiftly changing lifestyles of customers. The strategy is performed in line with the O2O Strategy.
3. Infrastructure - The investment and system development of Business Intelligence (BI) to analyze information of sales and customers from all channels in order to facilitate the management's utilization of the in-depth information for monitoring and preparing marketing, sales, and CRM strategy for maximizing business;
4. Human Capital - Personnel development for sales and marketing efficiency enhancement and professional proficiency development for sustainable growth;
5. Sales Channel – High potential growth distribution channel expansion and efficiency enhancement of local and oversea existing channels with the plan of 34 branch-launches i.e. 22 branches of BEAUTY BUFFET and 12 branches of BEAUTY COTTAGE, and the 9 branches of BEAUTY MARKET to become online and offline stores. At present, the Company has 345 branches in Thailand which consists of 261 branches of BEAUTY BUFFET, 75 branches of BEAUTY COTTAGE, and 9 branches of BEAUTY MARKET. The Company products are also distributed at King Power's 22 distribution points of 8 branches, 7-ELEVEN's 650 branches, and in this year, Boots's 145 branches, as well as at modern trade channel and traditional trade channel across the country.
The Company has an aggressive marketing strategy for oversea markets by focusing on Shop Brand and Product Brand establishment to receive the recognition among oversea customers especially from the AEC countries. The expansion consists of license shop and easy access distribution channels in the forms of Offline Retailer and Online Retailer which are popular in each country with the objective to use the products as market entry strategy for countries in Asia such as AEC countries, China, Hong Kong, Taiwan, etc. and for the future target countries are in large countries such as India Russia and Middle East.
In addition, there is a plan to add another 13 branches of License Shop from 21 branches which leads to the total of 34 branches by the end of 2018 in 3 countries, namely, Vietnam, The Phillippines, and Myanmar. The Shop in Shop branches will be increased in 2 countries, namely Cambodia and Malaysia with 5 distribution channels, adding from the existing 4 countries with 136 distribution channels in Indonesia, Hong Kong, Taiwan, and Laos of which the new 5 distribution channels were launched around the end of 2017. In Q1/2018, there is a plan to launch new distribution channels in Malaysia. Therefore, by the end of 2018, there will be 145 distribution channels in 6 countries in the form of Shop in Shop.
In 2018, it is expected that the cosmetics market continues to grow due to the good economic expansion. With the Company's business operation of variation of distribution channels of Shop Concept and Product Concept which meet with the local and oversea coustomers' needs, this has led to the continuous growth of the operating results of the Company in the past 5 years. It is confident that in 2018, the operating result will be as targeted.