KARMARTS
BUSINESS EXPANSION
Korea, China, Thailand, Laos, Cambodia, Vietnam, Malaysia, Indonesia, Singapore
Company Business
Company Business
Marketing & Sales

Marketing Segmentation

As Karmarts imports products of various brands and targeting them at different groups of consumers, therefore, the products are categorized as follows.

  • Imported Products which are well-marketed and well-recognized in the market
    This middle range pricing group of products is suitable for Class B consumers. Karmarts markets these products through every distribution channels nationwide whose target groups have been appropriately selected for each brand so as to effectively deliver branding and best respond to customers’ needs.

    Moreover, for the optimum marketing results, Karmarts delicately selects brands and product types to suit our business partners’ target end-users as this channel has costly new-product entrance expense which is different from other channels.

    Products chosen for Karmarts franchise shops are considered suitably according to brands and each shop locations whereby certain brands are solely picked specially for this channels only to create differentiation of market channels.

  • Imported products which do not need after-market support
    This group of products have low retail prices which are well-received by class B to class C retail end users. Suitably, these products are well-distributed across the country.

  • OEM product group
    By cooperating with world leading cosmetics research institution, Karmarts always gathers new ideas and researches to innovatively create new product property concepts, tests product quality with the laboratory before production which later launches to the market. Therefore, Karmarts delicately selects qualified manufacturers from various countries depending on factories’ specialty and expertise. At present, main source of manufacturers Karmarts selected are from Korea whose background are qualified and acceptable by many well-known cosmetic brand in Korea. Hence, this consistently allowing our new products to be launched along the period the big cosmetic brands do in the market.

Apart from quality concern and readiness of rapid change among the competitors of the same industry, Karmarts also emphasize on design and creativity of the product packaging as well. Continuously, Karmarts product designers apparently never stop thinking of new product concepts, outstandingly creating new masterpieces with market differentiation so as to truly meet customers’ needs and satisfaction.

Currently, Karmarts’ major brand “ CATHY DOLL” Inspired by modern Korean fashion styles and beauty trends, Cathy Doll is an in-house cosmetics brand specially developed to satisfy the unlimited imagination of teenagers. Similar emphasis is placed on achieving beautiful skin from head to toes and products are designed to incorporate skin solution needs specific to every teenager. Evident results can be achieved through sustained use of the products which not only serve as cosmetics but also skincare which are provided at affordable prices for the young ones. The brand focuses on categorized product concepts and details and tells a story through cartoon characters including “Cathy Doll” which has been created as a simple illustration that is representative of a joyful and cheerful character. Distinguished packaging has also been introduced to enhance the brand identity and customer’s retention. Cathy Doll’s target group ranges from 15-40 years old and well-responded to all income levels. Cathy Doll products pricing averagely ranges from 200-400 Baht focusing on class B to C customer levels. However, there are certain specific product whose properties respond well to class A customers. For example, Cathy Doll Botox Eye Serum, used to apply around eyes’ area as to tighten skin and reduce wrinkles before putting on make ups.

Karmarts lawfully holds the right of trademarks on OEM products being manufactured locally, as well as, internationally.

Product Categories
  • Facial care products ; Foam cleanser, Facial essence, Sun protection cream, Facial serum, Mask sheet, Powder mask, etc.
  • Body care products ; Liquid Soap, Sun protection lotion, Body serum, Powder mask, Body lotion, etc.
  • Make up cosmetics products ; Compressed powder, Lipstick, Brush on, BB cream, Foundation, Mascara, Eye liner, etc.
  • Nail care products ; Nail color polisher, Nail color remover, Nail deco sticker, Nail care essence, etc.
  • Hair Care products ; Shampoo, Conditioner, Treatment, Hair-dye products, Hair essence, etc.
  • Private Care products ; Skin toner, Salt Scrub, Cleanser, etc.
  • Cosmetic Tools and Accessories ; Facial massage tools, Eyelash adhesive, Eyelash curler, Make up brush, etc.
  • Food and Beverage products ; Body firming supplements, Whitening supplements, Chocolate, etc.
  • Consumer products ; Insects repellent products, Detergents, Dish washing liquid, etc.
Pricing Strategies

As Karmarts imports assorted products of more than 3,000 SKUs with wide price range depending on each brand’s position which can categorized as follows.

  • Product group with retail price less than 150 Baht
    These products consist of make up tools, nail products, and other reduced size products to meet low income group of customers’ needs who prefer to purchase products in a small portion but more frequent. Also, this price range responds well to customers who would like to test products in a small portion first before making decision to purchase normal sizing products.

  • Products with retail price 150-500 Baht
    This group of product price range is found to be the most suitable to Thailand Market at present, whose target group is the middle income people where Cathy Doll places itself in this group too.

  • Product group with retail price more than 500 Baht
    Mostly, this product group is facial care products which focus on Class B to A income level. Usually, Brands selected are well marketed brands from overseas.

Distribution Channels

Karmarts has mainly focused on 4 distribution channels

  1. Traditional Trade
    This includes retail shops and wholesales shops nationwide as follows.

    Retail Shops
    • Local cosmetic shops
    • Local pharmaceutical / drug Stores
    • Local Supermarket Store and Minimarts
    Wholesales Shops
    • Major cosmetic products distributor / agent
    • Major consumer products distributor / agent

    Presently, there are active 252 agents nationwide and more than active 500 wholesalers nationwide who have direct account with the company.

  2. Karmarts shops
    Under a service Trademark license “ KARMARTS ” whose concept comes from beauty room for women who appreciate skin care, make up, Korean grooming style, Karmarts’ Shocking-pink Painted Shop decoration always easily catches attention of the passerby and customer alike. Products selection within shop comprises of various brands across Asia with more than 1,000 items covering every product categories depending on the size of the shop.

    Retail prices and promotions are set under single POS system whose data are compiled from the head quarter and send to the branches accordingly. By continuously working together with the partners, promotions and co-promotions are set in each period to serve the market demands and maximize franchisees’ sales income.

    Operating under a franchise term only, Karmarts shop franchisee must strictly follow rules and regulation set forth in the agreement made by Karmarts.

    Branches as at year ending 2012 has a total value of 80 locations distributed across the country as follows;

    Area No. of Branches
    Bangkok and vicinity areas 41
    Other provinces 39
    Total 80

  3. Modern Trade
    Karmarts has begun sales operation in Modern trade channels in 2012. Strategically expanding sales location throughout the country, Karmarts covered sales opportunities in the unreachable areas through this channel to serve consumer better as follows;
    • Hypermarket ; Big C, Lotus, etc.
    • Supermarket ; Home Freshmart, Gourmet Market, etc.
    • Minimart ; 108 Shops, 7-Eleven, etc.
    • Cosmetic Chain Store ; Watsons, Boots, etc.
    • Catalogue ; Friday Catalog, 7-Catalog, etc.
    • Online ; Lazada, etc.
  4. Export Market
    Begun distribution through export channel in 2012, Karmarts products has been exported to Laos, Cambodia, Myanmar, Singapore, and etc. Steadily growing in demands from overseas market, different marketing strategies have been adopted for each individual country to server different demands.

    In addition to normal export channels, Karmarts shops have been established in Myanmar and Cambodia market to serve customers with all range of products too.