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 stores and convenient locations in the heartlands. Some of the Company’s existing partners in this segment include 7-Eleven, 24 Shopping, Family Mart, Jiffy, Big C Mini, Lotus Go Fresh, Tops Daily, CJ Express, Turtle Shop, Lawson108 etc.
- Supermarket, Hypermarket and Discount Store
Listed under this category are retail megastores delivering 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, CJ Express, MaxValu, Makro etc.
- Beauty Store
Focusing on consumables, pharmaceuticals, cosme-ceuticals, cosmetics, along with skin care and hair care products, beauty stores are obtaining popularity in view of their friendly services, convenient locations and up-to-date product offerings and can be considered as one of the high-potential sales channels exhibiting sustainable growth potential. In this segment, KARMART currently distributes through Watsons, Boots, Beautrium, EVEANDBOY, Tsuruha etc. We also distribute products in pharmacies such as I Care, 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.
With a key emphasis on general consumers, unique products well suited to the mass markets are selected for publication and sales via catalogs such as 7-Catalog.
In 2022, modern trade remained a strong sales channel for generating continuous sales growth, as the COVID-19 situation improved significantly and resulted in consumers returning to offline channels to purchase products. On the overall, sales in 2022 significantly increased compared to 2021 for modern trade.
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 Referring to retailer that specializes in consumer beauty products and cosmetics, cosmetic shop offers both retail and wholesale distribution, making it an effective channel for reaching small, localized communities.
- Localized Supermarket Located in easily accessible community areas where people travel frequently, this category of channel has close connections to local consumers and understands their behaviors well, typically offering both consumer and non-consumer products.
- Traditional-Turned-Online Grocery Store
- Drug Store Drug Store specializes in selling cosmetics and health products such as dietary supplements, as well as COVID-19 related items including face masks, hand sanitizer gel, and alcohol-based hand rubs.
- 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 2023, the Company plans to focus on expanding its distribution network to new distributors in each region, in order to increase the availability of products in local community stores. Currently, the Company has over 10 distributor stores and aims to increase this number, as well as the number of community stores. The Company also aims to expand its market share in mass products, with a focus on personal care products, to meet the needs of all consumers.
KARMART shop is an important channel for the company and serves to represent the overall corporate image and ensure 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 related to brand loyalty. Furthermore, the Company plans to implement a Customer Relationship Management (CRM) with the aim of not only maintaining existing customer base but also acquiring new ones.
In the previous year, the Company collaborated with various partners in different businesses, such as financial institutions, loyalty card programs, and other retailers such as bakeries and beverage shops, to expand its customer base and provide more exclusive benefits to its customers as a way of showing appreciation.
At present, there is a total of 18 KARMART shops nationwide, of which 17 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.
In 2022, the Company increased the number of Reunrom stores to 10. All such stores are operated as company-owned entities to increase efficiency in managing store and brand image, staff quality and product stock availability, as well as to respond quickly and effectively to customer needs.
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. Business partners in export markets are generally divided into 3 groups: Sole Distributor, Distributor and Joint Venture Partner. Presently, KARMART has successfully secured 16 distributorships in overseas markets which are Malaysia, Vietnam, Myanmar, Laos, the Philippines, United Arab Emirates, Hongkong, Singapore, Malaysia, Taiwan, Japan, Kuwait, Iraq, Russia, Peru, and Bahrain. In addition to international distributors, the Company also sells products to agent stores located in border areas of Thailand in order to distribute products to agent stores in other countries. In 2022. The Company successfully achieved its sales targets in Malaysia, Vietnam, Myanmar, Philippines, and Japan. 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 have gained ever-more recognition and appreciation among Kuwait's beauty enthusiasts and influencers than the previous year, and despite the unstable political situation in Myanmar, distribution and sales of products continued to achieve remarkable growth.
In 2022, online channels continued to play a crucial role in conducting business, especially in the retail industry, as consumer behavior shifted significantly towards online shopping. Consumers continue to show increasing interest in purchasing products online, leading to the expansion of online channels in various forms of sales, including websites, marketplace platforms and social media platforms such as Line, Facebook, and Tiktok.
There are 3 types of online channels which have been established presently:
- KARMART Online Store: www.karmarts.com and www.reunrom.com
- Social Commerce:
- Line Official Account: @karmart, @karmarts_onlineshop, @reunrom_everyday, @jejuvita
- Facebook / Instagram : Live shopping on Karmartsclub
- Tiktok : Karmartsclub
- Electronic Marketplaces:
- Marketplace : Lazada, Shopee, JD Central, Central Online, NocNoc, Buzzebees
- E-commerce partner : Konvy, ShopAt24 (Consignment) and such
In 2022, there was a notable expansion of sales volume across online marketplaces, as businesses sought to increase brand awareness and reach customers more effectively. Online channels have become increasingly important for retailers due to the growing trend of online shopping. As a result, many businesses expanded their online presence through various above-mentioned platforms. To that, KARMART launched an official store on Tiktok called "Karmartclub" to cater to customers' needs by presenting products in the form of short video clips. This new platform allows the Company to create interesting content and conduct live product sales to engage with target audience.