Notice Regarding the Launch of "Deco Station," an Experiential Stationery Business for Gen Z, and Its Growth Strategy

CRAVIA Inc. (hereinafter referred to as "the Company") hereby announces its decision to launch "Deco Station," an experiential, customizable stationery business for Gen Z, in collaboration with a Korean stationery and general goods supply chain.

This business aims to introduce the rapidly growing DIY stationery experience from the Korean market to the Japanese market. By creating synergies with our existing IP business and SNS marketing operations, we aim to build a highly profitable and scalable business model.

Please note that "Deco Station" is currently pending trademark registration.

[Image: Deco Station]

Market Environment and Growth Opportunities In South Korea, customizable ballpoint pens (DIY pens) have seen rapid growth driven by social media, with multiple instances of single stores achieving monthly sales in the millions of yen.

In Japan, given the following background: - "Oshikatsu" (fan activity) market: Approximately 1 trillion yen scale - Character/IP market: A sector of continuous growth - SNS commerce market: High growth

We have positioned this business as a core area of experiential consumption for Gen Z.

Business Model This business will generate revenue through the following three layers:

1. Experience Revenue (In-store) - Average spend per customer: 800 yen to 1,500 yen - Turnover rate: 15 to 15 people per hour (projected)

2. Parts/Repeat Revenue (E-commerce/In-store) - Cost of goods sold: Approximately 45-50% - Gross margin: Around 50% - Continuous purchase model via SNS

3. IP/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 to 10 tsubo/approx. 16-33 sqm) - Low initial investment, making franchise expansion easy - Fast inventory turnover and high cash efficiency - Optimization of advertising costs through SNS viral spread

In particular, by focusing on a franchise model, we will realize nationwide expansion with low risk.

Collaboration with Korean Partners In this business, we will partner with KJ Equity Partners, which excels in the procurement and development of trendy Korean products, to achieve: - Immediate introduction of trending products - Maximization of product development speed - Securing cost competitiveness

By doing so, we will differentiate ourselves from other companies.

Synergy with Existing Business This business has a strong affinity with our existing operations: - Integration with TikTok and SNS marketing - Product development with our IP business - Integration with our e-commerce platform

Through this, we will build a revenue model based on "Experience x IP x SNS" rather than simple retail.