Nature of business operation

The Company operates the retail business of apparel and lifestyle products as a manufacturer, supplier, and distributor of high-quality, modern products at reasonable prices. Today, the Company has a wide range of products covering both apparel and everyday life from head to toe, including clothing, accessories, hats, bags, and shoes, etc., to meet the needs of customers of all groups and occasions under the Company’s main trademark, "Mc". The Company has two main distribution channels: 1) offline channels through storefront branches and distribution points, most of which are located in leading shopping centers and department stores; and 2) online channels through the Group's website, mcshop.com, and various online trading platforms (Marketplace). The Company’s business model focuses on brand management, sales and marketing management, product design and procurement, warehouse management, and distribution as follows:

1) Merchandising Plan and New Product Development

The merchandising plan and new product development are the key factors in the Company's business operation process. The Company focuses on analyzing and studying consumer behaviors from the Company’s internal database, global fashion and lifestyle product design database, and trending product market survey data. The Company analyzes sales data from the past and considers various important factors that affect the industry’s growth trends to prepare sales targets and use them as information to determine the purchase budget, including the development, design, procurement of new products, and strategic planning in sourcing raw materials. In addition, the Company has exchanged information and cooperated with business partners in developing raw materials together to obtain quality products at a competitive cost.

2) Supply Chain Management

Since the Company focuses on quality and delivery time to customers accurately and timely, the Company plans and sets working standards throughout the supply chain, starting from design, procurement, production, product quality control, delivery of products from the Company’s manufacturing facilities and from external contractors to the warehouse, as well as inventory management and product distribution to consumers, to ensure that every operational step can meet the needs of customers in terms of quality, quantity, and timing, as well as being able to manage the Company’s costs well.

3) Retail Network Management

3.1) Offline Business Administration

The Company manages its retail channels to reach consumers thoroughly through storefront branches and distribution points in leading shopping centers and department stores, including mobile vehicles, which can directly reach consumers, and Mc Outlet located in gas stations. The Company will primarily focus on opening its own retail stores. The Company has a team responsible for planning the network expansion systematically and establishing criteria for consideration that can be effectively measured. Moreover, the Company has an overseas retail network through its partners, which are product distributors with expertise in marketing in each country.

3.2) Online Business & E-commerce

In addition to the above offline distribution channels, the Company also manages its online business, or e-commerce, by focusing on using technology and online marketing strategies to reach the modern consumer group. The main tools are the Company’s website,mcshop.com, and various e-marketplaces and social media channels , such as Lazada, Shopee, and Tiktok. The online business continues to grow, and the Company continues to have plans to expand its sales channels and implement online marketing strategies to reach new customers and markets, including increasing its business competitiveness.