AGENDA BEAUTY STORY BUSINESS APPROACH BUSINESS OVERVIEW

Transcription

1 July 2017 AGENDA BEAUTY STORY BUSINESS APPROACH BUSINESS OVERVIEW - BEAUTY BUFFET - BEAUTY COTTAGE - BEAUTY MARKET - CONSUMER PRODUCT - OVERSEA - E-COMMERCE INDUSTRY OUTLOOK GROWTH PLANS FINANCIAL SUMMARY 1

2 BEAUTY STORY Founded by Dr.Suwin Kraibhubes M.D. in 1998 at the time Thailand was under financial crisis. Key Success - Unique concept of multi-brand cosmetic shop in Thailand - Standout shop decoration - Variety & trendy product assortment - Difference from other cosmetic retails - Reasonable price strategy Listed on The Stock Exchange of Thailand since December

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6 BUSINESS OVERVIEW BEAUTY is the leading in the retail distribution of cosmetics and skincare. BEAUTY under the following 5 concepts (1) Beauty Buffet Shop (2) Beauty Cottage Shop operates 333 stores and 40 stores in oversea * (3) Beauty Market Shop *as of (1) Made in Nature Brand Is available in more than 640 locations of leading (2) Girly Girl Brand Supermarket, Hypermarket, convenience Store,Traditional trade, E-Commerce and Catalouge BEAUTY's products are separated in 9 categories, with more than 7,000 SKUs. 1. Make up 5. Hair Care 2. Facial Care 6. Perfume 3. Body Hygiene 7. Beauty Drink&Food Supplement 4. Body Care 8. Beauty Accessory 9. Men s Care BEAUTY Listed on The Stock Exchange of Thailand since December 2012 BEAUTY Market cap 36,900 Million Baht* & Authorized Capital 300 Million Baht. *as of

7 Shop Expansion Highlight 7

8 PRIVATE LABEL Brand character / Brand positioning / Brand target GINO McCRAY professional makeup THE BAKERY young & trendy makeup No. of shops: July 2017 Shop size : Average 35 sqm. Location : Super center Shopping plaza Hyper market Local department stores SCENTIO natural skincare LANSLEY functional skincare 8

9 No. of shops July 2017 Shop size : Average 35 sqm. Location : Super center Shopping plaza Hyper market Local department stores 9

10 Product Category Product Coverage 1. Make up - General Brands 2. Facial Care - Alternative Brands 3. Body Hygiene - Exclusive Brands 4. Body Care - Private Brands 5. Hair Care 6. Perfume 7. Beauty Drink&Food Supplement 8. Beauty Accessory 9. Men s Care No. of July 2017 : 12 Shops Beauty Specialty Store Our Largest Format Shop Average Area 100 Sqm. Almost 100 Suppliers More than 300 Brands Assortment 4,000 9,000 SKUs International Brands from Japan, Korea, USA, England, Germany, France, Thailand etc. 10

11 Consumer Product Channel Premium mass vs imported brand SKU: 14 Ingredient from Korea Fighting brand SKU: 11 Formulated from Japan Ingredient from Japan 2017 New 3rd Party Retail Channels: King Power (Suvarnabhumi / Donmueang / Srivaree ) Consumer Product Plan Modern Trade : Expand from 473 stores to 511 stores - Traditional Trade : Expand from 400 stores to 417 stores - E-Commerce : Expand from 14 websites to 16 websites - Catalog : Expand from 2 catalogs to 5 catalogs - Event : Expand from 10 events to 12 events per month 11

12 Oversea Store Expansion Independent Shops No. of shops 2014 No. of shops 2015 No. of shops 2016 : 19 Shops : 32 Shops : 40 shops Shop In Shop Indonesia -Hong Kong -Taiwan : 138 Shops : 19 shops : 100 shops : 19 shops New Distributor : Philippines Target 2017 : 8 Shops Ayala 30th Mall South Park Cambodia Laos Myanmar Vietnam 12

13 OVERSEA : EXPAND TO WELL SELECTED AND PROFITABLE CHANNELS 13

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15 INDUSTRY OUTLOOK Opportunities in Thailand. 2008: Thailand international airport seizures and unrest from Nov-Dec : The great flood in Thailand from Jul 2011-Jan 2012 Y2016,Thailand cosmetic market size : 168 bnb. Growth on average 9-10% per year. High Market Growth. -Increasing personal appearance concerns -More innovation & fashionable cosmetics -Urbanization - Rapid growth of major cities across the country -More cosmetics outlets -Expansion of market into new segments : men and the younger age -Rising spending power -Rising in social network use Spending per head per year Thailand Korea Japan $20 $200 $180 15

16 INDUSTRY OUTLOOK Competitive Advantage Lacal Brand LOCAL BRAND BEAUTY IMPORTED BRAND Less product variety- Single Brand Middle - high price Products developed to suit local people skin condition Plain and unattractive packaging design They operate their own factory and have to manage the raw material which tend to go out of style rapidly due to quick change in trend and popularity, could cause a conflict between marketing and manufacturing unit Limited in some location especially rural small town due to price positioning Limited distribution channel available only at retail shop Beauty Buffet,Beauty Cottage and Beauty Market More products and Brand Variety - multibrand, multiconcept Offer best products at reasonable price Products developed to suit local people skin color and condition Appealing packaging design OEM by Various leading manufacturers, flexible in production with specific expertise and potential to produce high quality product comparable to top Brands Targeting Mid-End market, accessing a large customer base. With a potential to expand retail and distribution channels and as a key account client, retail space provider gives us a very first opportunity to choose and secure the best retail space Available at various distribution channels Korea,Japan,UK,France Brands etc. Mostly Single Brand Very High Price Some product base and color are not suitable for local people skin color and condition Appealing packaging design Comparable quality with a higher price High end price, high positioning and high target group make it difficult to expand the retail channel to the upcountry Limited distribution channel available only at retail shop 16

17 MARKETING STRATEGIES 2017 Marketing Strategies Conversion Marketing Viral Marketing Word-Of-Mouth Digital Media Social Media Online to Offline & Offline to Online 17

18 MARKETING STRATEGIES 2017 Conversion Marketing - Online to Offline & Offline to Online get point : Point Redemption 18

19 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) PROGRAM IMPROVEMENT CRM Activities: Workshop CRM Activities: Surprise Gift Micro Agencies Bloggers Social Media Community 19

20 MAGAZINE AWARDS : CLEO Beauty Hall of Fame 2016 Best Eye Shadow Beauty Buffet GINO McCRAY Pink Passion Diamond Forever Stick Eye Shadow Best Mascara Beauty Buffet GINO McCRAY Tokyo Lash Bomb Best Color Lip Nude Beauty Buffet GINO McCRAY The Professional Makeup Lipstick No.13 Ginger bread Thailand Zocial Awards 2016 : BEAUTY BUFFET Top3 The Most Popular Brand in Instagram BY : Presented by AIS 4G ADVANCED Best Body Care 1. Beauty Cottage Milk & Walnut Dairy Farm Nurturing White Body Mist 2. Beauty Cottage Malt & Barley Dtox & Retreat Body Lotion 3. Made in Nature Hokkaido Milk Body Lotion Thailand Zocial Awards 2017 : BEAUTY BUFFET Is the Winner The Best Brand Performance BY Platform Instagram 20

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22 GROWTH PLAN How to Increase Market Share? - Shop Expansion - Same-Store Sales Growth - New Product Concept - New Channels Shop Expansion 22

23 GROWTH PLAN : Same Store Sales Growth - Increasing Transactions and Basket Size - Effective Marketing Campaign - Customer Relationship Management ( CRM ) Program Improvement - Effective New Product Launching - Beauty Advisor s Product Knowledge Improvement Marketing Strategies 23

24 PEOPLE : MOTIVATION & REWARD Teamwork Building : Beauty HyGen Seminar Quarterly & Yearly Reward Campaign Top Achievers Travel Campaign People Development : Make Up Artist Network 24

25 SALES PROMORTION & TRAINING ACTIVITIES OVERSEA TRAINING, VIETNAM OVERSEA BUSINESS MEETING & MARKET SURVEY 25

26 GROWTH PLAN : New Product Concept - Offer a wider range of products for the tourists. - Add more Food Supplement products to the line. - Add Health-Concerned products to the product line. - Add Herb products to the product line. 26

27 GROWTH PLAN : New Channels E-COMMERCE New Oversea Distributor On 3 rd Party Websites ASIA Launching: April 2014 Facebook:beauty plaza Shopping Online Launching: Q online.com 27

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29 PROFIT & LOSS HIGHLIGHT MB. 1Q17 = 688 Years Total revenue target growth F20% for Y

30 P&L Y2016 HIGHLIGHT 30

31 P&L 1Q17 Highlight (QTD) Profit & Loss (MB.) 1Q17 1Q16 YoY (%) 4Q16 QoQ (%) REVENUE % % NPAT % % % NPAT 29.04% 24.39% 4.65% 25.34% 3.70% % GP 66.66% 66.60% 0.06% 67.37% -0.71% % SG&A 30.55% 36.45% -5.90% 35.91% -5.36% % EBITDA 38.50% 32.86% 5.64% 33.87% 4.63% 31

32 Balance Sheet snapshot ASSETS 31/03/ / - Cash and cash equivalents % Temporary investments % Inventories % Total current assets 1, % Property, plant and equipment % Total non-current assets % Total assets 1, % LIABILITIES & EQUITY Trade and other payables Total current liabilities Total non-current liabilities Total liabilities 31/03/ / % 9.09% 1.98% 8.81% Authorized share capital % Retained earnings % Total shareholders' equity 1, % 32

33 Financial Ratio Liquidity Ratio & D/E Inventory Days (Finish Goods) ROA & ROE %Same Store Sales (%SSS) 33

34 Sales Structure 1Q17 By Channel 34

35 Sales Structure 1Q2017 By Product By Product By Product By Geographic By Geographic By Geographic 35

36 CAPEX 2017 Summary CAPEX Y Shop expansion 110 mb 2. Infrastructure & Equipment 50 mb Total CAPEX mb 36

37 Infrastructure: Open House New Building ( BEAUTY2) Board of Directors, Managements and Staffs of Beauty Community PCL celebrated grand opening of new training center and warehouse along with distinguished quests and business partners on June 23,

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