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As an overview of sales by brand, as for the ”Aqua
Collagen Gel series”, the pillar of our sales, we renewed
the “Enrich Lift EX” in November 2013, and as a result
sales grew 10.2% year on year.
Although sales from “Whitening Gel” decreased 5.9% and
“Super Moisture EX” decreased 14.2% year on year, this
was because sales were concentrated on the “Enrich Lift
EX .
EX”
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As for the “Enrich Lift EX”, mail order sales grew 23.2%,
wholesale sales grew 52.7%, and face-to-face retail sales
ggrew 9.1% yyear on yyear, and overall sales was 8,603 million
yen.
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As for products other than Gel products, we implemented
sales expansion measures for “VC100 Pore White Lotion” in
order to expand our share in the lotion market. We
intensively implemented mass media advertisement in Q4,
and as a result sales grew 28.6% year one year. Although
marketing costs increased, we were successful in acquiring
new customers, which serve as a customer base for the
future.
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As for health/diet food “BI-ZEN-SHOKU”, sales grew
98.0% year on year. In particular, face-to-face retail sales
g
grew.
In the past, cosmetics counters in department stores were
places where only those customers who intended to
purchase cosmetics showed up. In the case of our Company,
we have started acquiring a new base of customers who
intend to seek other than purchase of cosmetics by selling
health food at the cosmetics counters in department stores.
These measures are examples cases in which we take
advantage of our superiority in terms of having multiple
sales channels, which are mail order channel, wholesale
channel,
h
l andd face-to-face
f
t f
retail
t il channel.
h
l
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Next, we would like to explain the situations of sales by
product.
As for 【Recoveryy and Growth of Existingg Businesses】set
out in the Fourth Medium-Term Business Plan started in the
16th fiscal year, we set up a target of raising the level of
goods by expanding “skin care methods”.
As for products ① in the washing and cleansing product
group and ② the peeling and booster product group that are
important in the skin care methods in the stages to condition
the skin before start using Gel, we have taken reinforcement
measures in series.
Sales from the washing and cleansing product group grew
1 5% year on year thanks
1.5%
th k partially
ti ll to
t the
th effects
ff t off renewall
of some products, and as for the peeling and booster
product group, active sale promotion activities for “VC100
Pore White Lotion” boosted the sales and sales grew 7.4%
year on year. These results show that fostering of product
groups other than the Gel series is in good order.
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Sales from health food “Aojiru” grew 45.1% year on year.
Although sales from the “Placenta” series decreased 9.7%
yyear one yyear, centering
g around sales from “BI-ZENSHOKU”, sales from our health food business grew greatly
in the fiscal year.
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We would like to explain general situations by sales
channel.
Sales from the mail order channel ggrew 4.7% yyear on yyear.
Expansion of our periodic product delivery service had
become a big issue and we implemented measures to
improve awareness of the service to existing customers.
As a result, the number of users is rapidly increasing.
The ratio of sales from the periodic product delivery
service to sales from the mail order channel was 15% in
the previous fiscal year, but the ratio increased to around
22% in the fiscal year under review.
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The number of good customers greatly increased during the
latter half of the fiscal year. In addition, customers we
acquired
q
duringg the last-minute demand became repeat
p
customers. Further, thanks to the campaign we
implemented in Q4 for “VC100 Pore White Lotion” ,
dormant customers also have been becoming re-purchasers.
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As for the wholesale channel, sales grew 14.0% year on
year, thanks to the strengthening of promotion activities for
“VC100 Pore White Lotion” and recoveryy of sales from
“BB Perfect Cream”.
In particular, we expanded display of “VC100 Pore White
Lotion” products in drug stores and variety stores and tried
to sell massively and this approach generated an impact of
advertising and we could make use of the product as an
advertising pillar for expansion of product recognition.
Enhanced recognition at stores had a ripple effect on sales
from the mail order channel and from the face-to-face retail
channel, and it contributed to an increase of overall sales.
A ffor th
As
the Labo
L b Labo
L b brand,
b d we have
h
reinforced
i f
d
development of joint products with leading chain stores.
As for “Whitening Gel”, although overall sales decreased,
sales from the wholesale channel alone increased 13.3%
year on year.
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As for the face-to-face retail channel, sales decreased 1.6%
year one year.
As for development
p
of salon-style
y stores,, we renewed the
Ginza principal store to provide the store with a full salon at
end of July. From now own, we would like to expand salonstyle stores around the country.
We renewed the “Genomer brand”, a brand limited to faceto-face sale,
sale in May.
May
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Expected amount of sales promotion expenses for the fiscal
year under review is 3,000 million yen.
Compared
p
with the pprevious fiscal yyear, the amount will
decrease by 423 million yen.
This is because as a measure for the current fiscal year we
plan to devote more to infomercials to appeal to direct
purchase of products rather than TV commercials to appeal
to free samples and therefore we expect that as a result costs
for free samples will be is decreased.
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Using this slide, we will explain our measures for the fiscal
year.
Currently,
y the number of good
g
customers is increasing.
g Byy
increasing the number of times they purchase we intend to
attain recovery and growth of mail order sales. As a result
of an increase in the number of users of periodic product
delivery service, although unit purchase prices will be
decreased the number of times of purchase per year will be
decreased,
increased and we expect that sale from the mail order
business will end up increasing.
Further, during the latter half of the previous fiscal year, the
number of dormant customers who became re-purchasers
i
increased,
d andd we intend
i t d to
t induce
i d
suchh returning
t i customers
t
to use the periodic product delivery service so that they will
be repeat customers.
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In terms of recognition of customers, TV commercials,
infomercials, newspapers and measures through the Web
become ppillars. In the ppast we used mainly
y TV
commercials, and since the previous year we have been
promoting shifting to infomercials gradually, and as a
result we acquired good customers. Also, in the past we
used infomercials only for some products, such as the
“Aqua
Aqua Collagen Gel
Gel”, “BI
BI-ZEN-SHOKU
ZEN SHOKU” and “BB
BB
Perfect Cream”. As a test case, we used “Gray Hair
Cover”, we were astonished at the unexpectedly large
response. Thus, we are considering enhancing hair care
products targeting older customers.
As Webb measures, we will
ill strengthen
h animation
i i contents.
As for contact points of customers, not only that we wait
for customers to call us or to show up at a store as in the
case of the past but also that we plan to implement active
measures. In pparticular,, as for “Esthetic Upp 4”,, a new
facial massager, unlike other facial massagers in general,
persons can experience physically the functions. So, we
plan to implement a nationwide experience caravan. Also,
for customers of the mail order business, we will focus on
“skin
skin care workshops”
workshops targeting them and also we plan to
hold “anti-aging seminars”.
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As a product measure, we will conduct a large-scale
renewal of “Aqua-In-Derm Super-Essence” in February.
Further, because our application
pp
for approval
pp
was ppassed
and the Gel series products, such as “Super Moisture EX”,
were approved as medicated products, we will release
medicated versions of them gradually from February to
March.
As for the foundation products,
products we have developed them for
customers having atopy or with sensitive skin. However, in
these years, the demand is increasing and thus we will
implement renewal in February. By doing so, we can
expect enhancement of appeal of the functionality in the
mail
il order
d bbusiness
i
as well
ll as th
the effects
ff t off renewall off “BB
Cream” in the wholesale business.
As for supplements, in response to requests from senior
customers, we will launch “Tokuno Blueberry Acai Plus” in
September and “Sanbai Support Glucosamine” in October.
In the future we will continue to strengthen developments of
supplements, and in doing so what we intend to do is to
improve supplements with medical taste, such as effect of
traditional Chinese medicine, instead of releasing many
inexpensive products.
products
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As for the “Genomer brand”, we discontinued it in the mail
order business in this year and we focused on selling the
brand pproducts in the face-to-face retail business. As a
result, its sales remained stable and thus we implemented a
renewal in August. Further with respect to “Derma Cream”,
which we released in February for a limited period, we will
release it from November again in response to customers’
requests.
requests
As for the “Labo Labo” brand, we sell the products mainly
at drug stores and the products mainly appeal to “pore care”
and have deep-rooted popularity. As this year is the 10th
anniversary of the foundation of the brand, we will actively
promote
t product
d t planning
l i andd collaboration
ll b ti with
ith companies
i
from different sectors.
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As measures by sales route, we implemented a renewal in
September and made a new start of the periodical product
deliveryy service as “Teiki Tokutoku-bin", and we will
further improve the service. We will strengthen measures to
corral new customers as well as increase the satisfaction of
good customers with a view to solidify our customer base.
As for the wholesale channel, we plan to release three to
four wholesale products during the period.
period Also
Also, we intend
to enhance appeal to customers with sensitive skin at drug
stores with an aim of expanding our share.
As for the face-to-face retail channel, we will be
continuously committed to expansion of sales of the
“G
“Genomer”
” brand
b d products,
d t strengthen
t
th the
th “skin
“ ki care
workshops” using our facial massagers, and enforcement of
counselling service, which has high customer satisfaction.
With respect to counseling in particular, we will enrich the
contents of counselling by renewal of the foundation
products, and increase the opportunities to contact
customers.
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In the overseas business, we withdrew from Takashima-ya
in Shanghai in April and now we have no sales channel in
China. However, sales from Chinese tourists are increasingg
in South Korea, Singapore, Hong Kong and Taiwan. Thus
we will consider starting operations in China with a view to
expand recognition in Chinese mainland while seeking the
right timing.
As measures for the future,
future we plan to adopt a business
model in which we start selling our products through a
major e-commerce site in Chinese mainland while carrying
out its operations in Hong Kong.
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In Singapore, we have already launched our store, and in
addition we plan to start wholesale distribution to leading
distribution outlet chains.
Also, as for Thailand, Malaysia and Indonesia, since we
receive many inquiries from those countries, we will choose
a selling method suited to each of those areas in order to
attain steady business developments.
As for Hong Kong and Taiwan,
Taiwan we aim to expand our
wholesale channel. In Taiwan, we will start wholesale
distribution of the Labo Labo brand products, product
awareness of which is high in Taiwan. In Hong Kong, we
are selling through several “Mannings” stores, sales chain
stores,
t
as test
t t marketing,
k ti
andd we will
ill expandd our store
t
developments in the future.
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