Bangkok--5 Feb--Work Link da Agency
BEAUTY announces 2020 business plan, leveling to be an International Beauty & Health Business and highlighting 3 strategies to increase profitability, expand to 15 countries, and grow market share in China. In the domestic market, the company aims at adding distribution channels for consumer products, boosting revenue growth at 20 percent, while retaining net profit of 15 percent.
Dr. Suwin Kraibhubes, Chief Executive Officer of Beauty Community Plc. (BEAUTY), a cosmetics and skincare product retailer with a concept Live A Beautiful Life, said the company this year has a vision to drive the policy of International Beauty & Heath Business to elevate various product brands under the distribution of the company and gain international recognition as a renowned beauty & health brand. The key strategy in driving the business plan will focus on 3 main topics including:
Strengthening Profitability in both Domestic and Overseas Business, targeting to increase share of profits from international distribution channels and effectively manage cost for domestic distribution channels.
Overseas: Cultivating and Expanding Overseas Business to 16 countries. Thirteen countries which have been distributors since 2019 will be focusing on collaborative marketing and increasing SKUs products, while another five main countries including Vietnam, Indonesia, Myanmar, India and Philippines will emphasize on marketing activities in 2020 with development plan on marketing channels and intensive expansion in the aspect of product distributor, shop licence, shop in shop or counter sales.
At the same time, the company will continue its proactive push in Mainland China with a plan to conduct a feasibility study to strengthen business foundation in the country, to increase effectiveness of expansion in the market, as well as to ensure convenience of product development and market management. The company foresees a huge market in China with tremendous business opportunities, and has plans to enhance market share through General Trade such as convenient stores, modern trades and e-commerce, while also adding sales efficiency. Furthermore, the company is also adding new products into the Cross Border E-Commerce platforms in which in 2019, the company held product placements in 10 platforms and is going to negotiate for more platforms this year.
Domestic: Expanding distribution channels for Consumer Products and improving retail business, aiming to grow new distribution channels, with high growth potential and ability to access more consumers, while not only limited to branch stores. The plan will also focus on enhancing Consumer and Health Products through collaboratively developing the products with leading manufacturers, while diversifying marketing channels to open up more distribution to consumers.
Retail Business Models will focus on growing the potential branches, improving and strengthening retail channels, while productively managing sales and administrative costs. The management of retail stores concentrates on the Local Store Marketing, establishing distribution model through the selling of Multi Brands in the Beauty Buffet stores in order to fully cover the needs of consumers. At present, the company owns 311 branches.
E-Commerce is for responding to the ever changing consumer needs, while focusing on improving and effectively managing the E-Commerce framework to proactively penetrate the online market with the O2O and partnership strategy. In addition, the company is also working on its own mobile purchasing system which is expected to become another push on a great leap of revenue growth.
Product Driven will be accelerating sales revenue to grow by launching Product Heros which could potentially attract consumers by using either existing or new products, highlighting innovative and fashionable products in response to the rapidly changing consumer lifestyles.
The operation in 2019 was a strategic restructuring, enabling the company to develop the market, laying channel establishment internationally, consumer products, as well as clarifying the E-Commerce direction to prepare for more expansion in 2020. The overview of cosmetics business is anticipated to continually grow, bolstered by supporting factors such as consumer behavior in general which shows interest in beauty, health and skincare.
As a result, the demand for beauty and health products has drastically diversified. This has become a business opportunity to promote the product and gain access to both domestic and international consumers. This year, BEAUTY targets revenue growth of 20 percent and maintains 15 percent net profits.