Announcement Regarding the Launch of Experiential Stationery Business "Deko Station" for Gen Z and Growth Strategy

CRAVIA Inc. (hereinafter referred to as "the Company") announces that it has decided to launch "Deko Station," an experiential customization stationery business targeting Gen Z, in collaboration with the stationery and miscellaneous goods supply chain in South Korea.

This business will deploy the DIY stationery experience, which is rapidly growing in the South Korean market, for the Japanese market. By leveraging synergies with the Company's IP business and SNS marketing business, we aim to build a highly profitable and scalable business model.

Please note that "Deko Station" is currently pending trademark application.

Market Environment and Growth Opportunities

In South Korea, customized ballpoint pens (DIY pens) have rapidly expanded, driven by social media, with multiple cases of monthly sales in the millions of yen reported for single stores.

In Japan, against the backdrop of: * Oshi-katsu (Fan activity) market: Approximately 1 trillion yen * Character/IP market: Continuously growing area * SNS Commerce market: High growth

The Company positions this business as a core area for experiential consumption targeting Gen Z.

Business Model

This business will build revenue through the following three layers:

① Experiential Revenue (In-store) * Average customer spending: 800 to 1,500 yen * Turnover rate: Estimated 15 to 15 people per hour

② Parts and Repeat Purchase Revenue (EC & In-store) * Cost of goods sold ratio: Approximately 45-50% * Gross profit margin: Around 50% * Continuous purchase model via SNS

③ IP and Collaboration Revenue * Character and talent collaborations * Limited edition parts sales * Event-linked sales

Growth Strategy

This business possesses high scalability for the following reasons: * Can be opened in small spaces (5-10 tsubo) * Low initial investment and easy franchise expansion * Fast inventory turnover and high cash efficiency * Optimization of advertising cost efficiency through SNS diffusion

In particular, expansion centered on the franchise model will enable nationwide expansion with low risk.

Collaboration with Korean Partners

In this business, we will collaborate with KJ Equity Partners, which has strengths in sourcing and developing trendy products from South Korea, to achieve: * Immediate introduction of trendy products * Maximization of product development speed * Securing cost competitiveness

This will allow us to differentiate ourselves from competitors.

Synergy with the Company's Existing Businesses

This business has strong compatibility with the Company's existing businesses: * Linkage with TikTok and SNS marketing * Product development with IP business * Integration with EC platforms

Through this, we will build a revenue model of "Experience × IP × SNS," not just simple retail.