MC Unveils 2021 Business Strategy, Proactively Pursues New S-Curve to Achieve 10-12% Revenue Growth
Mc Group Public Company Limited reveals its 2021 business strategy. For implementation, the firm proactively pursues New S-Curve, expands customer base with a focus on women, millennials, and urbanites, takes a customer-centric approach, develops products that fulfill both functional purposes and lifestyle needs, and embraces customized marketing communications for the goals of boosting revenue by between 10 and 12 per cent, maintaining the net profit margin of between 14 and 16 per cent, and reaffirming its position as “high-dividend stock”.
Mrs. Chananyarak Phetcharat, chief executive officer of Mc Group Public Company Limited (MC) that engages in fashion/lifestyle-product retailing, says fast-evolving digital technologies have seriously disrupted the business sector and COVID-19 outbreak has shaken trading scenes with New Normal lately. Yet, fashion and denim industry looks set to enjoy the upward trend with its growth averaging at between 3 and 5 per cent a year.
“Mc Group”, which has been the market leader in the denim industry for well over 45 years, therefore has formulated its 2021 business strategy (July 2020 – June 2021) with a focus on New S-Curve. Under the strategy, the firm seeks to expand its customer base further with women, millennials, and urbanites as key targets. Customer Centric is the key in product development and marketing as Mc Group intends to respond well to the need of each target group. Marketing communications are being customized for each target to tap deeper into women’s group, which now accounts for between 40 and 50 per cent of its customers. Mc Group will increase product lines, introduce a greater variety of designs, and create more of “Product Heroes” through Brand Collaborations. In addition, the strategy prescribes Seamless O2O (online-to-offline) Customer Experience and emphasize importance on Omni-Channels. As sales staff are empowered to sell products through both offline and online channels efficiently, Omni-Channel plays a key role in distribution. Therefore, Online sales grew by more than 61 per cent in accounting year 2020. As online sales look set to soar further, Mc Group expects growth to reach 15 per cent in fiscal year 2021.
To satisfy Millennials who demand innovations, individuality, and modernity, Mc Group is preparing to enter into collaborations with millennials’ favorites. Products from the collaboration will be marketed via social media by influencers. For urbanites, Mc Group is now negotiating for Strategic Partnership with aim to develop non-apparel products and innovations for their various lifestyles. New shopping experiences will also be created for them via New Concept Stores. More than 20 points of sale in Thailand will be overhauled before the end of December.
Mrs. Chananyarak discloses that Supply Chain is at the heart of her firm’s flexibility and agility. Recently Mc Group has integrated Big Data and Artificial Intelligence into its operations which cost management and product distribution have been even more efficiently improved. Importantly, Mc Group enjoys high liquidity and debt-free as well as good foundation for organizational management and clear strategy. Therefore, the firm are ready to invest as soon as opportunities emerged. Despite the COVID-19 crisis, Mc Group has found opportunities and strengthened its businesses further. The firm is thus confident that in fiscal year 2021 revenue will grow by 10 to 12 per cent and its Net Profit Margin will be maintained between 14 and 16 per cent, reaffirming the firm’s status as a “high-dividend stock”. Since listed on the Stock Exchange of Thailand in 2013, Mc Group has regularly paid dividends in line with its policy to allocate no less than 50 per cent of net profit for dividend payment.