- 5% GDP growth target set for 2017-21—The12th National Economic and Social Development Plan (2017-21) has set targets of 5% annual GDP growth and per capita income of US$8,200 (286,200 baht), up from $6,000 now. (Bangkok Post, 25/07/16)
- First-half loan loss provisions sufficient to handle rise in NPLs in second half, central bank says – LOAN-LOSS reserves put in place by the banking sector in the first half of the year are sufficient to cope with a rise in non-performing loans (NPLs) in the second half, Tongurai Limpiti, Bank of Thailand deputy governor for financial institutions’ stability, has said. (The Nation, 25/07/16)
- NINE BID FOR ORANGE LINE – Nine private companies have bought bid envelopes to construct the Orange Line electric train route linking the Thailand Cultural Centre to Min Buri district in eastern Bangkok. (Bangkok Post, 24/07/16)
- Cabinet approves Bt44-billion rail projects – THE CABINET yesterday approved construction of two Bangkok urban rail lines worth Bt44.16 billion, part of a larger infrastructure initiative by the ruling junta as it seeks to revive the sluggish economy. (The Nation, 27/7/16)
- Section 44 urged for rice sales – The government is being urged to exercise the powerful Section 44 of the interim charter to cut red tape and speed up sales of state rice stocks. (Bangkok Post, 27/7/16)
- Tourism, investment to atone for exports — Despite a deeper cut in its export forecast, the Fiscal Policy Office (FPO) has maintained its economic growth projection of 3.3% this year as ramped-up state investment and the robust tourism industry are expected to offset sagging outbound shipments. (Ba ngkok Post, 29/7/16)
■ Truly independent corporate boards are vital to effective governance, so no board should be beholden to the CEO or management. Every board should meet regularly without the CEO present, and every board should have active and direct engagement with executives below the CEO level;
■ Diverse boards make better decisions, so every board should have members with complementary and diverse skills, backgrounds and experiences. It’s also important to balance wisdom and judgment that accompany experience and tenure with the need for fresh thinking and perspectives of new board members;
■ Every board needs a strong leader who is independent of management. The board’s independent directors usually are in the best position to evaluate whether the roles of chairman and CEO should be separate or combined; and if the board decides on a combined role, it is essential that the board have a strong lead independent director with clearly defined authorities and responsibilities;
■ Our financial markets have become too obsessed with quarterly earnings forecasts. Companies should not feel obligated to provide earnings guidance — and should do so only if they believe that providing such guidance is beneficial to shareholders;
■ A common accounting standard is critical for corporate transparency, so while companies may use non-Generally Accepted Accounting Principles (“GAAP”) to explain and clarify their results, they never should do so in such a way as to obscure GAAP-reported results; and in particular, since stock- or options-based compensation is plainly a cost of doing business, it always should be reflected in non-GAAP measurements of earnings; and
Karmarts finds a beautiful formula for success
Karmarts Plc (KAMART) was first incorporated as Distar Electric in 1982 and listed on the Stock Exchange of Thailand in 1994. It changed its business focus to cosmetics in 2009 and changed its name to Karmarts Plc in 2011. Wongwiwat Theekhakhirikul, director and assistant managing director for business development, discusses the company’s strategy and outlook.
Please explain the history of Karmarts.
Karmarts originally started as an electrical appliance business with the Distar brand in 1982 and shifted to the business of NGV for automobiles in 2006 before we began to focus purely on consumer products in 2009 as a distributor of beauty and cosmetic products. In 2010 and 2011 we focused on marketing these products through traditional trade channels before expanding into franchising to create the Karmart brand. This has proved successful and we have continued to grow, expanding via modern trade and exporting to Asian countries, and in 2015 we incorporated a joint venture in Vietnam.
What is Karmarts’ business model?
Today we have more than 1,000 beauty products under our six house brands: Cathy Doll, Cathy Choo, Baby Bright, Jejuvita, Reunrom and Crayon. We also manage the distribution of other brands such as Missha. Our core distribution channels are our franchised Karmart shops, traditional trade to both retailers and wholesalers, modern trade, exports through joint ventures in China, Malaysia and Vietnam, and our online store.
We have 54 shops and by 2017 we aim to remodel all of our franchised locations to ensure that every shop has the same standard to further build the reputation and awareness of the brand.
Who are Karmarts’ target customers?
Typically, our customers are teenagers because of the product type, design and price point. Recently, we have been adding new products to cater to a more mature audience and with this strategy we aim for our brand to achieve the same levels of awareness as international brands in consumers’ minds. This will also expand our existing customer base.
- Its always interesting to note who the participants are in the market. The advent of mutual funds, tax benefits and continually decreasing interest rates have led to local institutions becoming larger and larger holdings in equities versus pre 2010.
- It does appear that the prop desks aren’t doing that well (if they sell less than they buy, doesn’t this imply a loss?)
- Retail investors seem to be a wilder variant of the prop desks and;
- Foreign institutions, well if this is a long term reversal in flows, we could be seeing the market maintain these levels of going higher in the future