Policy and Overview of Business

Vision, Objectives, Targets and Strategies

The Company formulated its business plan to drive the organization to meet its financial targets in the future by achieving sustainable revenue growth. To enhance its capacity in maximizing profitability, the following strategies will be implemented thoroughly to achieve its objectives and targets.

1. Product strategy: Extend and strengthen product offerings, innovations and brands to meet demands of customers of all groups, ages and lifestyles.

The Company emphasizes diverse and modern design and development of its products and regularly introduces new innovations to match demands of different customer groups. To achieve long-term sustainability and competitiveness, the Company never ceases to make investments that create value added and raise brand awareness in broader market for all product lines. Our 3 product lines include denim, non-denim and lifestyle products and the Company formulated and implemented product strategies that are suitable for each product line. To begin with, the Company’s denim line features products under “Mc Jeans” brand through its selvedge denim collection or red-edge denim. This collection offers unique identity as it is made from sanforized denim of narrow and tightly woven fabrics processed under higher quality control compared to general fabrics. The edges of denim are woven with colored yarns that give it a sturdier hand. Selvedge has long been considered a premium feature of denim people seek after. Secondly, the Company further introduced activewear products under non-denim or casual wear product line led by launching a new brand “U-P” (Yoo-Pii) with “Conceal & Reveal” collection under the concept that expresses fun, coolness, energy and minimalism followed by a new collection of “Monochrome and Pastel”. This new collection caters for people with sport casual styles who prefer one-tone looks of monochrome or fresh and comfortable tones of pastel colors. Recently, “Livelihood” collection was made available offering soft, comfortable and breathable wears with graphical prints that tell stories of people’s lifestyles through signs and cool quotes perfect for exercise and casual occasions, easily to mix and match on a daily basis. What’s more, the Company is dedicated to creating new products under fashion accessories and personal care line that fit diverse lifestyles of consumers and appeal to their tastes. For instance, MC GROUP introduced “Mc Sneaker” and Slip-on” that offer modern-shaped and easy-to-wear shoes that represent agile lifestyles as well as Mc Backpack which is a functional bag for new generations with notebook compartment, inside back support and small compartments for gadgets and electronic devices including USB charger that add convenience to everyday use.

2. Sales channel strategy

1. Expand existing sales channels nationwide to cover growing customer base

   The Company set its sales footprint target to cover all parts of Thailand by increasing the number of free standing shops, points of sales in modern trade venues and mobile units as well as expanding spaces in high potential outlets. At the end of June 2020, the Company had in total 657 points of sales. The reason is that these channels allow better product management, greater flexibility of new product introduction and more diverse sales promotions to create new and exciting experiences for the customers while fun will be emphasized as before.

   This sales network expansion strategy will enable Mc Group to better access target customer groups. Mc Group will prudently review the feasibility by considering locations, potentials of malls, population, target customers and purchasing power at new points of sales.

   The point of sale in the Modern Trade department is the local department store ,Department stores with branches all over the country and stand-alone retail stores

2. Continuously expand internet or online channel

   Look Balance Company Limited, a subsidiary of MC GROUP refurbished its website and online distribution channel, www.mcshop.com to promote more appealing features including an enticing and well-organized blog to make customer’s online shopping experience more fun and convenient. The website offers mostly apparels and lifestyle products under its group of companies. Certain collections or items will be made available exclusively on this channel. This online channel will appeal to both existing and new customers, raise brand awareness as well as provide customers with higher convenience to try its products.

3. Continuously integrating offline and online distribution channels

   Company enhance online shopping experience for its customers, MC GROUP constantly upgrades its e-commerce through mcshop.com by connecting offline and online channels together. Customers can purchase items online to be delivered to stores nearest to them and are allowed to change or return items as they feel convenient. This leads to higher traffic to the brick-and-mortar shops.

3. Expand into foreign markets to cover countries under ASEAN Economic Community (AEC) as well as other countries with good potentials.

Mc Group planned to broaden their customer base to foreign markets especially in ASEAN Economic Community (AEC) and others with strong potentials and business opportunities. Our current ASEAN footprint includes appointed sales agents in Myanmar, Lao and Iran. At the end of June 2020, the Company had in total 12 points of sales.

Besides, the Company expected to expand further to other markets under AEC even though distributions in Vietnam and Cambodia were discontinued as the Company took a step back to search for better timing and business partners. Bearing in mind the unique ways of doing business and associated risks in respective countries, the Company will consider the best possible business models to expand into these countries, either in forms of direct operation, joint ventures with business partners or sales agent appointment.

4. Seek M&A opportunities or joint ventures opportunities with business partners.

The Company is still active in searching for M&A and joint venture opportunities in related businesses to attain its business expansion goal according to group of companies’ strategic plan.

5. Emphasize on efficiency improvement in management

Mc Group put an importance on all of its business units from raw material sourcing, production line management, finished product management, country-wide product distribution to sales channel management. Process improvement and implementation of information technology are also essential to enhance production efficiency and distribution effectiveness, control productions of outsource suppliers as well as reduce time-to-market of the products, manage and distribute products more efficiently.

In addition to stated strategies, the Company realized the importance of human resources development in supporting its business growth. Our human capital strategy covers talent acquisition to competency development to promote career advancement in the organization. Furthermore, fair compensation and benefits management and performance management with clear and measurable criteria are also stressed to engage and incentivize our employees.