Revised Medium-Term Management Plan
Overseas Business Strategy
Key Initiatives for Overseas Businesses in the Revised Medium-Term Management Plan
Assuming that the situation will continue to be uncertain, we will prioritize profit generation in fiscal 2024 to fiscal 2025 in each key company while working to improve our management base and implementing growth strategies for the next medium-term management plan
| Basic Strategies | Growth strategies |
1. Growing e-commerce (EC) business
Expanding contact points with customers and achieving EC business growth by promoting our digital strategy (OMO, CRM, Asia EC platform)
2. Developing and providing new products that meet market trends
Expanding contact points with new customers by developing and selling new products based on market trend analyses in China and other countries in Asia
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| Reviewing strategy for inefficient businesses |
Review of the business plan for China
We will achieve a return to a growth path through selection and concentration initiatives, while at the same time implementing cost structure reforms
Withdrawal of LIVELY brand (Intimates Online, Inc.)
After considering various possibilities for future business development, we determined that it would be difficult to improve the performance of this business in the future, and decided to withdraw
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| Strengthening supply chain management |
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U.S.
We will review the plan based on the current external environment. While working to grow the EC business, we will begin to review our cost structure to address the decrease in profit ratio due to increased costs.
| FY2023 | FY2026 target (*as of December 2024) | |
|---|---|---|
| Revenue | 184.2 million US dollars | 198.7 million US dollars |
| Business Profit | 10.6 million US dollars | 9.4 million US dollars |
| Business Profit retio | 5.8％ | 4.7% |
Note:
- Results and targets are for Wacoal America, Inc. only.
- Includes internal sales revenue.
- FY2026 targets are based on internal management figures.
- Accelerating the transition to an EC-focused business model
Achieving continuous growth in the EC business by developing new competitive compensation product groups and strengthening CRM centered on digital fitting services - Reviewing cost structure
In order to address the pressure of costs, we will review retail prices, promote automation of distribution operations (automatic picking, etc.), reduce procurement costs, and begin reviewing our business model to optimize our cost structure
Europe
In addition to promoting brand strategies to meet the diverse values of customers, we will also form and promote growth strategies in regions with room for growth, such as Germany and France.
| FY2023 | FY2026 target (*as of December 2024) | |
|---|---|---|
| Sales Revenue | 117.7 million GB pounds | 132.5 million GB pounds |
| Business Profit | 16.3 million GB pounds | 14.5 million GB pounds |
| Business Profit retio | 13.8% | 10.9% |
Note:
- Includes internal sales revenue.
- Business profit includes brand depreciation expense.
- FY2026 targets are based on internal management figures.
- Accelerating the transition to an EC focused business model
Improving the efficiency of the Dutch warehouse, strengthening EC business outside the UK (development of Wacoal’s own EC, collaboration with other companies’ EC) - Increase sales in continental Europe
In addition to cultivating existing areas, we will strengthen sales activities in Germany and France, where there is significant room for growth
In addition to expanding our sales network, including EC and brick-and-mortar stores, we will also consider alliances and M&As with other companies to achieve growth with quality and speed
China
Through a brand strategies (product functions, prices, and promotions) that achieve EC growth, we aim to return to sales and at the same time embark on a business model reform to improve profitability.
| FY2023 | FY2026 target (*as of December 2024) | |
|---|---|---|
| Sales Revenue | 525.4 million renminbi | 660.0 million renminbi |
| Business Profit | -34.9 million renminbi | 44.0 million renminbi |
| Business Profit retio | ― | 6.8% |
Note:
- Includes internal sales revenue.
- FY2026 targets are based on internal management figures.
- Sales by department stores (store prices) are included unchanged in the totals.
- Developing products that meet customer needs
(1) Strengthening our ability to respond to changes in customer purchasing behavior, needs, and product trends. Conducting purchase analysis in major EC
marketplaces, formulating and executing brand strategies (product functions, prices, promotions), and aiming for EC growth
(2) Developing sports and athleisure products and expansion of high-end products - Improving management efficiency
Reviewing our cost structure to improve profitability
Withdrawing poorly-performing stores and reducing inventories
Asia
Cooperate among Asian subsidiaries under the Asian headquarters system. We will implement measures that take advantage of the strengths of our own EC and other companies’ EC to achieve growth.
| FY2023 | FY2026 target (*as of December 2024) | |
|---|---|---|
| Sales Revenue | 402.3 million Indian rupees | 733.1 million Indian rupees |
| Business Profit | -91.1 million Indian rupees | -89.0 million Indian rupees |
| Business Profit retio | ― | ― |
Note:
- Results and targets are for Wacoal India only.
- Includes internal sales revenue.
- FY2026 targets are based on internal management figures.
- Expanding customer contact points and improving LTV
(1) Other companies’ EC: Focusing on acquiring new customers by strategically strengthening cooperation with EC marketplaces
(2) Wacoal own EC: We will enhance our own content, such as membership programs, and accelerate collaboration with brick-and-mortar stores - Strengthening business in India
(1) In addition to the existing premium line, new affordable products will be developed to expand the customer base (24AW)
(2) Implementation of product planning in India and improvement of domestic procurement ratio