Issues to be addressed
1.Domestic: To shift to a business model that is capable of responding to diversifying customer needs and shorter trend cycles
We will transform ourselves into a business model that is capable of responding to diversifying customer needs and shorter trend cycles, to achieve a recovery and expansion in top line which has been gradually declining and recover our profitability. By reviewing the uniform product mix and delivery style of new products, we will establish a model that reliably delivers top-selling products to stores to reduce missed sales opportunities. We will also change to a production system to match the demand situation at the store, from the conventional batch production system, to improve the supply ratio for top-selling products. With respect to product planning and development, we will shorten development and delivery lead-time by utilizing existing patterns and reviewing business processes such as planning and development meetings, to accelerate the speed of launching products that capture customer needs and improve sales activities.
2.Domestic: To execute “brand strategy” and “customer strategy” that capitalize on the power of digital and our strengths
In order to evolve into a company that is capable of offering products and services that can contribute to customers’ individuality on a continuing basis, we will implement customer-driven brand management to develop highly attractive brands with clear value offered We will also promote customer-driven DX to build deep, broad long-lasting relationships with customers and offer optimal customer experience. With respect to customer-driven DX, we will utilize digital to analyze “customers’ voice” and “sales staff’s knowledge in customer service,” in addition to purchase history data, for use in providing customer experience. Further, we provide highly satisfactory customer experience throughout at physical stores and online by utilizing 3D measuring service and apps in addition to consulting service by our sales staff. Our sales staff also post product reviews online. Like these, we will promote initiatives aimed at improving customer experience from various angles.
3.Overseas: Execution of growth strategy toward the next medium-term management plan
In Europe and the U.S., we will promote the product strategy to respond to diverse values of customers, in addition to continuing to promote the initiatives to expand customer contact points utilizing digital for realizing growth in our e-commerce business and to expand sales areas and channels. In China, although the restrictions on activities due to COVID-19 were eased, response to changing consumer needs and consumer behaviors from the experience of COVID-19 has been inadequate and a recovery in profit has been slow. We will realize return to a growth path through the selection and concentration of businesses and, at the same time, implement cost structure reforms to increase business efficiency.
4.Governance: Improvement of profitability and capital efficiency through strengthening of our corporate management platform
Our group has decided to introduce ROIC management to improve capital efficiency and realize robust corporate structure. We will use ROIC not only for managing enterprise-wide financial targets, but also as a means of performance management to accurately measure results and quantitatively link improvement activities on the ground with improvements in profitability and capital efficiency expected by investors and other stakeholders.
5.Other issues
Environment issues such as climate change and human rights issues are becoming increasingly serious, and we believe they require appropriate response and prevention. Our group will continue promote “sustainability management” that achieves both “resolution of social issues” and “sustainable growth” through our business activities, by viewing our efforts to address increasingly complicated and diversified social issues as future “growth opportunities.” The Company will endeavor to achieve resolving social issues on one hand and sustainable growth on the other hand through our initiatives for “maximizing the value provided to customers,” “building an organization in which each employee can grow and be highly motivated,” “preserving the global environment for future generations,” “realizing a society in which everyone can excel at their roles” and “enhancing governance toward realization of sustainable growth,” which we have defined as our materiality (material issue) items.