

Product Characteristics
The commerce business is conducted under Lifestar Company Limited (“Lifestar”) and RS Mall Company Limited (“RS Mall”) which are subsidiaries of RS. The business model includes “Lifestar” as a product R&D, designer and developer by outsourcing production to original equipment manufacturers (OEMs) for both health and beauty products especially innovative solutions that are based on “Innovative Health and Wellness” concept to apply science as the basis to conduct R&D of products to address healthcare needs of consumers. The emphasis of the products is on supporting and solving issues at one stop or solution with the objective to create dietary supplements that meet international standards. There are 4 main brands and 4 supporting brands for Lifestar’s product portfolio. The 4 main brands are listed below:
- “well u” : a dietary supplement for health and beauty.
- “Vitanature+”: a dietary supplement made from herbal extracts with the perfect combination of local wisdom and innovation.
- “CAMU C” : a functional drink.
- “Lifemate” : health & wellness products for pets.
For the production of each type of product, Lifestar has collaborated with domestic and international research institutes and manufacturers with international standards to create quality products that fulfill customer needs. Product manufacturing begins with analyzing market data in conjunction with R&D activities run by leading laboratories and testing facilities together with Lifestar. To understand trends and needs of the overall market as well as customer needs before developing each type of product, the Company collects data from customers directly through its telesales system. Before and during the distribution of products, regular random checks of product quality are performed by sending product ingredients to the laboratories for inspection. Products are distributed through the Company’s sales channels, including the “RS Mall” and “COOLanything” platforms, online marketplaces as well as modern trade. During 2021, the Company has developed products and extended to target mass market customers through convenient stores focusing on the selling point of being healthy and convenient that customers can get anytime anywhere, consistent with the market trends and the behavior of consumers at present.
The main distribution channels of the commerce business are operated under RS Mall through both offline and online platforms. These platforms are to sell products and services that promote good health and wellbeing in a holistic way. Product quality and standards are guaranteed and certified by the Food and Drug Administration, ready to be “Wellbeing Partners” of every consumer to live a comfortable, happy and healthy life. The Company’s product offering ranges from health, beauty and fashion, electrical appliances, home appliances to animal food - from Lifestar as well as products of partners. The Company currently carries more than 600 items in its portfolio which can be categorized in to 4 groups namely, 1) Mind, 2) Body, 4) Home and Pets and 4) Social and Travel.
During the past year, RS Mall has broadened the variety of its introductions of different products for different TV programs in different parts of the day. The marketing channels the Company deployed include both offline and online channels consisting of
- The Company's own offline media namely, Channel 8, and digital TV channels that are partners of the Company as well as the RS Mall channel via satellite television which can reach over 5 million viewers per days
- The Company's online media platforms, including www. rsmall.co.th and LINE SHOP through @RS Mall with over 793,000 accounts, as well as other leading online platforms such as Shopee and Lazada. Note that in 2021 the RS Mall has extended its online distribution channels by launching RS Mall application on smartphones to accommodate customers to be able to order products online more conveniently and faster. RS Mall shop was also launched on V-Avenue by AIS 5G to create and deliver virtual shopping experience for customers.
- Telesales and digital marketing are deployed to facilitate customers to order and purchase of products and services via phones. The Company reaches out to customers by phone to introduce its appealing products as suggested by the analysis from existing customer database. At the end of 2021, the customer base has grown to more than 1.7 million customers. With the capacity for in-depth customer data analysis in various dimensions, customer data are analyzed accurately and precisely to better fulfill customer needs and lifestyles. This includes improving the skills and capabilities of the outbound call center team to be able to present products and effectively close sales. In addition, Predictive Dialing System or PDS technology was adopted to connect the outbound call center system for maximum reach as it helps reduce calls with no answer, call with busy lines or calls that go into voicemail. The Company will continue to develop the PDS system to cover all1.7 million customers with the highest efficiency including the implementation of the Voice Analytics system to analyze phone conversations using artificial intelligence (AI) to target customer groups more clearly and precisely as well as obtaining in-depth customer learning to further develop products and services that are right for customers.
In addition, RS Mall values existing customers who are loyal to the brand and added a team of Customer Relationship Management (CRM) to take care of VIP customers. This is to further promote customer satisfaction and maintain their loyalty to the RS Mall brand, which will increase the number of repeat orders to be more than 2 times per year. Other efforts include the development of a marketing and campaign team through sales and marketing activities throughout the year.
On product delivery, the Company outsources the activity to external parties. Customers in Bangkok and metropolitan areas will receive their products within the next day following the order of the products and services. Customers in other provinces will receive the product within 1 to 5 days. They can choose to pay cash on delivery or via credit card; however, more than 99% of customers choose to pay cash on delivery.
Market and Competition
2021 is considered a year that retail market in Thailand was still affected by the prolonged and severe COVID-19 pandemic which forced the government to heighten the lockdown measures, continuously weakening consumer purchasing power. Kasikorn Research predicted that volume of retail sales will contract 2.1% compared to the same period of the previous year with the market size of over 3 trillion baht. Nevertheless, the government issued relief measures and stimulus packages to help affected businesses and people such as “Khon La Krueng Phase 3” and “Ying Chai, Ying Dai” to support retail market during the last quarter of 2021 especially for food and consumer products (FMCG) including personal items. The outbreak of coronavirus has forced the retail industry to adapt as consumers pick up new behaviors and turn them into habits under the new normal, especially the popularity of online shopping as they can search for information and compare products and services in an instant. These new behaviors are here to stay in the long run after the COVID-19 situation subsides. This requires retail business operators to review and reformulate their business strategies to focus more on online market with speed.
According to the Research Department of Kiatnakin Bank, the Thai e-Commerce will continue to grow as the COVID-19 situation continues to serve as a growth catalyst for the market. There are also 3 other key factors that drive e-Commerce business toward continuous growth namely, 1) Increasing internet penetration 2) Intense mobile and social network usage especially for Gen Y and Gen Z population and 3) Online payment systems that are ubiquitous, convenient and secure. It is expected that 2021 will record a growth rate of 30% and the market value is expected to top THB 400 billion, which is more than THB 300 billion in 2020. The online channels with high growth include Social Commerce. It is found that online shopping of Thai consumers through this channel accounted for 40% and it has a tendency to grow consistently in the future. As a result, this channel has become more attractive with multiple popular platforms such as Facebook Page, LINE Shopping, TikTok and Instagram. This social commerce channels are also used for communication to inform customers of news and promotions.
In 2021, the Company continued to extend its distribution channels to online platforms in response of consumer behavior trend which include the launch of RS Mall application and Virtual Mall under collaboration with powerful business partners such as AIS. This contributed the increase in proportion of revenue to 9% of total revenue. The Company also aims to emphasize sales promotions and properly build engagement with customers to reach customers via various online channels.
Procurement of Products and Services
Lifestar, in collaboration with domestic and international research institutes, come up with formulas for key ingredients of each product. Once key ingredients or extracts are obtained, they will be used to manufacture products by leading national manufacturers. Certain products that are sold through RS Mall, COOLanything and Virtual Mall are from the collaboration with partners who are contracted to produce quality products to be advertised and distributed through the Company’s sales channels.