Message from the Chief Executive Officer

The performance of the year 2019, total revenue was 2,020.77 million baht, and net profit 232.58 million baht, decreased from the previous year with total revenue 3,501.24 baht, and net profit 991.59 million baht mainly due to the decrease in purchasing power of domestic consumers. Chinese tourists, a large group of small wholesalers, hugely reduced because of the newly updated Chinese customs law – resulting in lesser export of all product categories to China. Nonetheless, the situation slightly improved in the 4th quarter of 2019 in terms of revenue, net profit, and net profit margin as a result of effective cost management and foreign businesses’ strategic adjustment since the beginning of 2019. Strategic adjustments concentrates on increasing the profit proportion, amending international business model by turning non-official to official customers for sustainable growth, especially in the Chinese market. The company has appointed Product Distributors to import products through the Cross Border E-Commerce (CBEC) and through General Trade channels consisting of offline channels and online channels. At the same time for the domestic approach, the company implemented the products development plan for the Consumer Product market as well as clearly established E-Commerce guidelines for market expansion in 2020.

In 2020, Beauty Community’s business vision is to be “International Beauty & Health Business –” upgrading Beauty’s brand to be an internationally recognized beauty and health brand with details of the 2020 plan as follows: focusing on increasing the profitability of international distribution channels and managing the cost of domestic distribution channels efficiently.

For international markets, focus is on the intense expansion the business model will be the method of dealerships: Product Distributor, Shop License, Shop in Shop or Counter sales and work on marketing together with distributors along with the increasing number of product SKUs to sell in the People’s Republic of China continuously. Building a business base in China helps increasing the efficiencies of market expansion, new products development, and markets management in convenience stores, Modern Trade, and E-Commerce channels. The number of new products and the number of platforms in the Cross Border E-Commerce will certainly continue to increase. Domestically, we stress our resources on expanding the Consumer Product market as it shows high growth potential, as well as its ability to reach more customers. Excitingly, Beauty is planning to develop more health products with leading manufacturers in this field. For retailers, although the focus remains on the improvement and strengthen high potential branches, properly manage the cost of sales and improve local retail stores’ managing standard (Local Store Marketing) are also as important. Furthermore, a selling Multi-Brand products at Beauty Buffet intents to meet the needs of consumers more comprehensively. For E-Commerce, its structure to support mobile shopping is urgently being developed in order to meet the rapidly changing needs of customers and to penetrate the online market with O2O strategy, which is expected to be another channel to generate income exponentially. The management is confident that we can and will lead the company to the expected goals.

Finally, I, as a representative of executives and employees, promise to manage and run the business to the best of our ability to lead the company to grow steadily and sustainably. Thank you to all shareholders, customers, business partners, and employees for the support in the company all along.


Dr. Suwin Kraibhubes

Chief Executive Officer

Beauty Community PCL

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