In summary, KARMART focuses on 5 key distribution channels in relation to sales and marketing:
Presently, KARMART distributes through the following modern trade channels:
- Convenience Store
Convenience stores offer distribution advantages with large number of branches and convenient locations in the heartlands. Some of the Company’s existing partners in this segment include 7-Eleven, Family Mart, MaxValu, Jiffy, Big C Mini, Lotus Express, Tops Daily, CJ Express and Lawson108 etc.
- Supermarket/ Hypermarket and Discount Store
Listed under this category are retail megastores deliver huge varieties of products of moderate to high-end quality at affordable prices to mass markets. KARMART’s partners in this category include Tops, Home Fresh Mart, Gourmet Market, Food Hall, Tesco Lotus, Big C and Makro etc.
- Special Store
Focusing on consumables, pharmaceuticals, cosmetics, skin care and hair care products, specialty stores are obtaining popularity in view of their friendly services, convenient locations and up-to-date product offerings which can be considered as one of the high-potential sales channels that has shown sustainable growth potential. In this segment, KARMART currently distributes through Watsons, Boots, Beautrium and EVEANDBOY. Additionally, we also distribute the products in pharmacies such as Save Drug, Pure and eXtra Plus etc. that target special groups such as the health-conscious consumers. Unique diet supplements and pharmaceutical products are selected to match the distinguished nature of such distribution channel.
Additionally, we also distribute the products in pharmacies for special groups such as the health-conscious consumers. Unique diet supplementary and pharmaceutical products are selected to match this distribution channel.
Focusing on general consumers, unique products well suited to the mass markets are selected for publication and sales via catalogs such as Friday Catalog and 7-Catalog etc.
Due to the emergence of Coronavirus, the modern trade industry experienced a historic contraction in sales at the onset of the disease in 2020 as consumers were required to stay home and avoid crowded settings in order to prevent viral transmission and turned to digital channels instead. Reacting to the sharp decline in sales, many modern trade stores shifted from offline to online, including 7-Eleven, Tops Supermarket as well as Watsons. In 2021, modern trade made a gradual rebounce as normalcy slowly resumed in the country.
KARMART shop is an important channel for the company, representing the overall corporate image and ensuring convenient access to all KARMART products in mass markets. It is also a key channel through which the company continuously gather and study consumer needs and create effective customer relationships which is a critical factor tied to brand loyalty.
At present, there is a total of 19 KARMART shops nationwide, of which 18 branches are standalone shops in department stores, community shopping centers, BTS skytrain stations located in Bangkok and its vicinity, and 1 branch is situated along high street.
As the digital economy continue to boom thanks to the pandemic, KARMART sees a great opportunity in growing its digital presence in the beauty industry and to serve the growing online market. In 2021, KARMART also launched online stores via Line and Facebook to facilitate more effective communication with customers and actively respond to their needs.
Traditional Trade or Dealer
Despite the rapid expansion of modern trade channel, the traditional trade channel remains a key sales generator for the company by virtue of their strategic locations across the entire country.
This sales channel can be broadly sub-categorized as follows:
- Cosmetic Shop Retailer
- Localized Supermarket
- Traditional-Turned-Online Grocery Store: 7-Eleven, Tops Supermarket and Watsons etc
- Drug Store
- Specialty Store
Apart from the above sales channels, the Company also implemented Van Sales marketing campaign with the goal of distributing products to localized communities directly and/or through localized grocery stores, supermarket and convenience stores, thereby enhancing brand presence and awareness among niche groups of locals in such localized communities and effecting increased sales and profitability.
In 2022, the Company will focus on gaining new retail distributors with the goal of distributing products to even more localized communities.
Ventures into overseas export markets are prudent and strategized decisions which follow in-depth market analysis and the Company went to substantial lengths to launch our household brands internationally. Export partners or potential business partners are generally divided into 3 groups: Sole Distributor, Distributor and Joint Venture Partner. Presently, KARMART has successfully secured 14 distributorships in overseas markets which are Vietnam, Japan, Myanmar, China, Laos, the Philippines, United Arab Emirates, Malaysia, Taiwan, Iraq, United State of America, Hong Kong, Russia and Kuwait.
In 2021, Asian markets recovered from the pandemic-related recession faster than expected which enabled the Company to reach its sales goals in Malaysia, Vietnam, Myanmar, Philippines and Japan. Furthermore, Cathy Doll brand was introduced in the land of the Rising Sun in 2021 and received hugely positive feedback. At present, Cathy Doll products are sold through over than 30 Japanese modern trade channels, including TRIAL, Welcia, Tsuruha, Kawachi Pharmaceutical, Toshiya Pharmacy, Thank you drug, Drug Store Mori, Fit Care Depot, Don Quijote, Heiwado and such. In Kuwait, Cathy Doll skincare products are widely known and beloved by Kuwait influencers and beauty enthusiasts.
Social Media is currently the most important communication channel predisposing consumers’ buying behavior and KARMART penetrates this channel with delivery of extensive product information across the internet, thus allowing consumers to shop with utmost convenience anywhere at any time via E-commerce platforms. The company designs and builds the online sales channels upon critical founding aspects of offering prompt responses to meet customer needs, building and preserving positive relationships with customers as well as increasing brand loyalty. In 2021, the lingering spread of COVID-19 brought about a plethora of changes in consumer shopping behavior. With physical stores being closed for long periods of time, shoppers have no other alternative but to shop virtually. Hence, it is essential that the Company establish strong presence in the digital retail space though online stores on various E-commerce platforms.
There are 3 types of online channels which have been established presently:
- KARMART Online Store: www.karmarts.com
- Social Commerce:
- LINE Official Account: @karmart, @karmarts_onlineshop, and line OA of Karmart Store Branches
- Facebook Karmartsclub: Live shopping and shopping via messenger
- Electronic Marketplaces: Lazada, Shopee, Konvy, ShopAt24, JD Central, Buzzebees and such