Karmart Global

expansion of distribution channels to better reach our target markets. The management team constantly recruits experienced personnel and experts in the field of cosmetics and has assembled an effective and efficient marketing team to contribute to the goals of the company. Performance of the company in the year 2012 was exceptional, in part due to the overall strong growth of the cosmetics market combined with Karmart’s enhanced marketing strategies. Brand equity was raised significantly and outstanding sales records were achieved in wholesale markets in both Bangkok and other provinces over the past 3 years. A strong brand preference has been established and clients including traders, wholesalers and consumers now identify "KARMARTS" as a leading cosmetics and beauty products provider. In addition, substantial positive feedback have been received from traders who reported profits through the retailing of Karmarts products. In response to promising market trends in the cosmetics industry and further building upon the excellent results achieved through the wholesales channel, retail chain stores and concept stores were introduced under Karmarts trademark as a way to expand the business. The business model which operates under central management and applies standard business methods attracted general traders who see investment opportunities. A franchise system was hence developed and Karmarts commenced the distribution of products to franchisees, across the country, who sell consistent varieties of products and operate under coherent marketing strategies. Centrally, Karmarts provides management support for franchisees in the form of advertising, continuous analysis and reporting of sales data and a contingency business planning. By 2012, the number of franchised stores increased from 20 to 80 in Thailand, with more than 10 stores under construction. This year, Karmarts will continue to expand and increase the number of stores situated in locations ideal for retail operations, The company also plans to place more emphasis on the selection criteria of franchisees to ensure that our high quality products are provided by established franchisees with the right service mindset to our customers. In addition, Karmarts entered into partnerships with local departmental stores in 2012 to reach out to an even greater mass market and achieve increased sales volume and profit in the long run. The strategic move has proved successful as we witnessed improved sales figures in the past year. In relation to the business of NGV vehicles, the Company plans to continue to provide after-sales service and spare parts sales to existing customers. No further expansion of the business segment has been planned to date.