analyst meeting...target –beauty aims to establish a strong distribution channel with the...
TRANSCRIPT
Analyst Meeting
15 August 2019
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AGENDA• Business Summary
• Business Strategy• Target 2019
• BEAUTY Business Update • Oversea Business• Retail Business• Consumer Product• E-Commerce• Product Driven• Marketing
• Business trend & Performance analysis
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Revenue target : 2.2 billion baht.
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BEAUTY Business Update • Oversea Business• Retail Business• Consumer Product• E-Commerce• Product Driven• Marketing
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..
New Market Research
CBEC10 Platforms
Non-Official Market
CFDA Registration
• 12 Products
DEC
Distributors
Sign Contract & First Shipment
20182017 2019 2020
Tourist Market- Create Product- Brand Awareness
ChinaE-commerce
Law
China MarketExpansions
General Trade
Official Market
5 Distributors in China1.Product Distributor : Facial Foam Q10 2.HK Distributor 3. Product Distributor : Mask Sheet T-Beauty 4.Beauty Cottage Distributor5. Product Distributor : Milk Plus Lotion & Bath Cream (CFDA Products)
Gerneral Trade in ChinaTarget = 100,000 outlets
China Market Timeline
JAN FEBJUN MAR
Beauty
Cottage Distributor
APRT-Beauty
JUNNEW
Distributor
• Sign Contract• Distributor
Assignment• Non-Official
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15 Countries
20182017 2019 2020
Other Countries Achievement Timeline
Inter-Countries
5 Countries 13 Countries
Shop license
Product Distributor
Online Distributor
Distributors
New 3 Concepts
Product + Online Model
• Japan Distributor• Brunei Distributer
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: Actual 1H2019 : 13 Countries
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BEAUTY has partnered up with Carrot
Mall – China’s leading distributor
BEAUTY appointed Tyden
International to be our Beauty
Cottage distributor in China
BEAUTY appointed
Rayanskin as a facial mask
(T-Beauty) distributor in
China
BEAUTY appointed
PARKSON to be our
distributor in Malaysia
BEAUTY selected Kutiepy
cosmetics as our distributor in
India
BEAUTY officially signed
Anouvong Export as our
distributor in Laos
International Distributors
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BEAUTY appointed JAPAN FUNCTIONAL COSMETICS LABORATORY
CO., LTD. to be our Beauty Cottage distributor in Japan
BEAUTY has partnered up with Yangzhou Royal
Cosmetic Company Limited– China’s leading
distributor
BEAUTY selected KIAN BEE COMPANY
cosmetics as our distributor in Brunei
International Distributors
Beauty Exhibition 2019
Top Thai Brand 2019, Vientiane
Laos
Top Thai Brand 2019, Phnom
Penh, CambodiaTop Thai Brand 2019,
Myanmar
China international Beauty Expo
Guangzhou
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China international Beauty Expo Beijing Beauty world Middle East Dubai 2019
Beauty Exhibition 2019
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ASEAN Beauty 2019 Top Thai Brands 2019, Hochiminh
City, VietnamChina Beauty Expo in Shanghai
Selling in USA Selling in Canada
International Traders
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Actual Y2018 : Selling on 8 platforms
Target Y2019 : Selling on 2 additional platforms – a total of 10Actual 1H2019 : Selling on 10 platforms
PIN DUO DUO Global Scanner
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Target : 100,000 Potential Outlets
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China Offline Store
Enhance Offline Channel ( General Trade ) in Mainland China.
Target Y2019 : 100,000 Outlets
Actual 1H2019 : 25,296 Outlets
娇兰佳人 GIALEN好德 Alldays华润 Ole
罗森LAWSON万宁Mannings
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BEAUTY Business Update
Domestic Market • Retail Business• Consumer Product• E-Commerce
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Domestic Achievement Timeline
20182017 2019 2020
Retail shop
Commerce
Multi -Brand Proj.
JULY
BB New Prototype Design
Beauty Fest
M 100 Proj.
Health Products
Modern Trade
Traditional Trade
Home Shopping
New E- Commerce Platform
3 Concepts models **
** *Expansion to consumer product*
**
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2. Retail Business Models
Strengthen & improve business models to create and capture more customer value.
• 10 stores expansion ( Beauty Buffet 8 stores and Beauty Cottage 2 stores)
primarily targeting well-recognized areas.
• Prioritizing in opening a new branch in prime locations that can immensely attract
potential customers while demoting the underperforming branches to minimize
the operation costs
• Strengthening store management and product allocation to maximize the concept
of “Space Utilization”.
• “Local Store Marketing” is improvised by each store branch.
• Shelving other popular brands in Beauty Buffet to holistically attract customers.
• Redesigning Beauty Buffet store to swiftly respond changes in lifestyles starting
at MBK branch : July 2019
• Booth exhibition selling various brands under the concept of “BEAUTY FEST
OUTLET”
• Introducing “Beauty Outlet Model” offering affordable products to accelerate
products diffusion.
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Shop expansion
Prioritizing in opening a new branch in prime locations that can immensely attract potential customers while demoting the underperforming branches to minimize the operation costs
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Redesign Beauty Buffet store to swiftly respond changes in lifestyles starting at MBK branch : July 2019
New Shop Design
BEFORE
Booth exhibition selling various brands under the
concept of “BEAUTY FEST OUTLET”BEAUTY FEST OUTLET
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Multi-Brand Project ( M- Project )
Shelving other popular brands in Beauty Buffet to holistically attract customers.
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3. Consumer Product
Leverage sales efficiency on existing channels and
expand to well-selected channels with high potential growth.
• Increase a number of stores, selling spots, and SKUs in Modern Trade, Convenience Stores, and
Traditional Trade.
• Boosting promotion and activities with these trade platforms.• Home Shopping : new and very promising alternative to increase sales channels.
• No. Of Store : 707 Stores
• No. Of SKUs : 12-15 SKUs
• No. Of Account: 40 Accounts
• No. Of Store : 955 Stores
• No. Of SKUs : 5-42 SKUs
• No. Of Store : 448 Stores
• No. Of SKUs : 28 SKUs
• Target 2019 : 3 Distributor
• Target 2019 : 11 Channels
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Home Shopping
Home Shopping : new and very promising alternative to increase sales channels.
Launching : July 4, 2019
Target 2019 : On air 11 Channels
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Restructure and reorganize E-Commerce platform to grow
stronger future revenue.
• Invigorate e-commerce platform with a solid team of professionals.
• Establish user-friendly features to current websites to encourage online
transaction.
• Increase 3rd party platform and SKUs availability.
4. E-Commerce
On 3rd Party Websites: S-COMMERCE Market Place
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www.beautybuffet.co.th
Establish user-friendly features to current websites to encourage online transaction.
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Deliver more innovation trendy and health concepts into new and
existing product to add up value and drive customer engagement.
Sales growth stimulation – 57 product heroes will be initiated with 3 noteworthy products as follows
1. GINO McCRAY The Professional Make Up Powder Foundation (แป้งทองค ำ) 2. Skincare Serie “Beauty Idol”
3. Beauty Cottage Elegant Impressionist Semi – Matte Lipstick (ลิปSemi Matte)
5. Product Driven
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Additional Product Heroes
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New products 2018Total New product 68 items, 191 SKUs
• Make up 24 items, 147 SKUs • Skin care 44 items, 44 SKUs
Target New products 2019Total New product 66 items, 130 SKUs
• Make up 20 items, 84 SKUs • Skin care 46 items, 46 SKUs
New products 2018Total New product 31 items, 79 SKUs
• Make up 11 items, 59 SKUs • Skin care 20 items, 20 SKUs
Target New products 2019Total New product 47 items, 72 SKUs
• Make up 14 items, 39 SKUs • Skin care 33 items, 33 SKUs
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Health Products
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Health product categories hold immense marketing opportunities derived from the increasing
concern of personal appearance.
• In 2018, Health Products were 1.5% of total income
• In 2019, Health Products are expected to gain 3% and 10% respectively in the next 3 years (2022) of total income.
BEAUTY COTTAGE DIETARY SUPPLEMENT PRODUCT (STRAWBERRY SC PLUS)
BEAUTY COTTAGE DIETARY SUPPLEMENTPRODUCT (ROSE COLLA BRAND)
BEAUTY BUFFET BERRY TRIPLE COLLAGEN
BEAUTY BUFFET DIETARY SUPPLEMENT
PRODUCT (FRUITA PLUS BRAND)BEAUTY BUFFET BRAND PROTEIN
PLUS MULTI-VITAMINBEAUTY BUFFET DIETARY SUPPLEMENT
PRODUCT (VEGGIES BERRIES)
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Health Products Actual 2018 : 21 items, 21 SKUs
Target 2019 : 30 items, 30 SKUs
LANSLEY DIET COCOA PLUSLANSLEY DIET COFFEE PLUS
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Marketing PR
Digital mediaBlogger & Micro agencies : China
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We Chat : Beauty Buffet Official Dou Yin (Tik Tok)
Baidu & QA
Marketing PR
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Digital media
Blogger & Micro agencies : Japan
Lipstick Semi-Matte from Japan to Thailand
Marketing PR
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Digital media
Blogger & Micro agencies : Thailand
Lipstick Semi-mattGINO McCRAY The professional make up powder
Marketing PR
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Presenter & Blogger : Thailand
Meet & Greet “Sweet Saint”
By Beauty Buffet “#แป้งทองค ำซับทุกฟีล”
Marketing PR
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Digital media
Presenter & Blogger : Thailand
“Saint” Beauty newest presenter of
Scentio Milk Plus Whitening Facial
Foam Q10
Traditional media Chiangmai Airport
Marketing PR Digital media
Presenter & Blogger : Thailand
“Maprang” Beauty newest presenter of Beauty Cottage Elegant Impressionist Semi Matte Lipstick
BEAUTY Idol
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Marketing PR
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EventBeauty Blossom is Blooming with I'm Mayyr
11th Anniversary Beauty Buffet
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Business trend & Performance analysis
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Revenue Target Summary
Revenue 2,200 million baht and maintain net profit 12-15% Maintain gross profit (%GP) no less than 60%
2020 Target : Revenue growth 20% and maintain net profit 15% Maintain gross profit (%GP) at 60%
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2019 Target :
71%
29%
Y2018
75%
25%
FY2019
65%
35%
FY2020
Domestic
International
76%
24%
1H19
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Revenue Structure 2018-2020
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56%
14%
2%
26%
3%
Y2018
57%17%
1%23%
2%
1H19
56%
17%
1%22%
4%FY2019
46%
18%1%
29%
6%
FY2020
Retail Shop
Commerce
other Sales
China
other Countries
Revenue Structure 2018-2020
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56% 57% 56%
46%
0%
10%
20%
30%
40%
50%
60%
Retail Shop
Y2018
1H19
FY2019
FY2020
14%
17% 17%18%
0%
5%
10%
15%
20%
Commerce
Y2018
1H19
FY2019
FY2020
26%23% 22%
29%
0%
5%
10%
15%
20%
25%
30%
35%
China
Y2018
1H19
FY2019
FY2020
3%
2%
4%
6%
0%
1%
2%
3%
4%
5%
6%
other Countries
Y2018
1H19
FY2019
FY2020
Revenue Structure 2018-2020
*Excludes Other sales
Performance Summary
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A transformation from retail-based business into more Consumer & Overseas.
Opportunity for Success – BEAUTY is fundamentally strong – yet very adaptive – organization to contend with constant external changes knowing the potential within beauty industry.
Target – BEAUTY aims to establish a strong distribution channel with the supportive components of wide range of products and well-recognized brand.
Management concentrates on the competency of minimizing evitable expenses to improve the profit margin.
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