Unilever and RS Public Company Limited (RS Group) today announced that they have entered into an agreement under which Unilever will sell its direct selling business in Thailand, Unilever Life, to RS Group for THB 880 million ($26.717.505).
ULife, a direct sales business unit under Unilever, is the market leader in premium health supplements and beauty products in direct selling business. Several SKUs are the most popular and one of the highest sales in the industry, such as Beyonde MAQUI PLUS+ (a super antioxidant health supplement beverage made from maqui berries and 12 superfruits) and Aviance Collagen Matrix (100% collagen from France and Japan).
The purchase operation will bring under RS Group control the following assets: Three premium brands, namely “Beyonde” (Health & Wellbeing supplement products), “Aviance” (Beauty & Personal Care products), and “I-Fresh” (Oral Care) which comprise of 76 SKUs under 43 products); distribution channels, including online stores and physical stores; Business management & operating systems and softwares a team of high experienced managers along with all employees.
The offer, which is still subject to certain conditions. Completion is expected in 3-4 months.
With this strategical purchase RS Group aims to supporting their Entertainmerce model growing it exponentially and drive ULife, a leading direct sales player, in the modern era.The movement seeks broadening RS Group’s ecosystem as well.
This move will strengthen RS Group in terms of products, distribution channels, new business models for the commerce business group, and create synergy among its affiliates. ULife has specialized in direct selling business for a long time, and once merged into RS Group’s Entertainmerce model will be unleashed its potential to become a modernized direct selling business with exponential growth. The plan ins making of ULife one of the top 5 in the country within 3 years.
Surachai Chetchotisak, CEO of RS Group, stated: “With long experience and expertise of the executives and more than 150,000 business partners of ULife, together with the synergy from the ecosystem of RS Group’s, it is expected for ULife’s revenue to reach 1,000 million baht post Covid-19 situation. We also have a goal to unlock the full potential of ULife to be in the top-five league of direct selling industry in Thailand by 2024”.
Robert Candelino, CEO of Unilever Thailand, said: “For the past 20 years, Unilever Life has disrupted the market with its unique business model, dynamic innovation, wonderful people and noble purpose of creating opportunities for people to realise their dreams. We are proud of this business, our people and its legacy. We are excited for this business to begin its next chapter under the new ownership and the continued leadership of Unilever Life President, Suchada Theeravachirakul.”
Suchada Theeravachirakul, Head of Unilever Life, said: “Unilever Life is a strong business supporting Thai people to have a sustainable source of income. We look forward to the next stage of Unilever Life under the ownership of RS Group.”
Direct sales market, expected to grow at 6-7% yearly
“Mergers and Acquisitions (M&A) are one of the key strategies that RS Group usually adopts to take over companies with considerable potential for growth as M&A will significantly broaden our ecosystem. The decision to fully acquire ULife – which is a purposeful business that helps Thai people become entrepreneurs through trusted platform, will strengthen the commerce business of RS Group and allow the company to reach more wider target groups through new distribution channels. Therefore, this transaction increases business opportunities and creates added value for the Group while highlighting its mission to fill people’s lives with quality products and services and inspire Thai people to be passionate about having stable jobs and income.”
“Besides, ‘direct sales’ is a business that RS Group is keenly interested in, as the overall growth of the industry is expected to reach a minimum of 6-7% a year, meaning ULife has tremendous potential to grow. When merged with the Entertainmerce model of RS Group and its affiliates, ULife can maximize its efficiency and distinguish itself in marketing and product distribution, thus leading to new opportunities in terms of increasing sales, strengthening current business partners, attracting new prospects and more variety of new product lines for stronger growth potentials. Crucially, ULife can use RS Group’s Popcoin, smart marketing platform, to create added value for the business in all dimensions such as helping to enhance and increase marketing efficiency to meet consumers’ needs and thus to build engagement and drive sales. More importantly, it also helps on ‘seamless big data’ within the organization, which will ultimately lead to the creation of ‘seamless customer experience’ to our customers. This is another hi-lighted and key tool to drive ULife to be differentiated from other players in the industry,” Suraachai added.
