The aim is to build an extensive new distribution network to complement U-Star's 100,000-member sales force.
The company signed a contract with Thailand Post to house U-Star kiosks, which will showcase its products and receive applications for sales representatives, in 1,200 post offices across Thailand.
"This is an innovative move in creating business synergy between the public and private sectors, as U-Star will have a larger and more efficient distribution network while post offices and letter carriers will be able to earn additional income," Paiboon said.
Under the contract, U-Star will pay Thailand Post for its logistics and postal services, as well as a rental fee for the placement of the kiosks.
In addition, Thailand Post's 3,000 postmen will have the opportunity to earn extra income by enlisting new sales representatives or selling the cosmetics themselves.
Dhirapong Suddhinond, president of Thailand Post, said the contract would help improve the state-owned company's financial status, which is now in the red.
"We hope to create post offices like supermarkets, offering all kind of services," Dhirapong said. Customers who order U-Star cosmetics at post offices will receive the products within four business days.
With the new distribution network, U-Star expects to generate more sales and reach its break-even point this year. It is targeting sales of 900 million baht (US$21.7 million).