Aggressive investment to rapidly expand Demae-can’s fan base

「On the cost side, we continue to optimize fixed costs and invest in marketing with an emphasis on market trends and return on investment.」

「On the cost side, we continue to improve unit economics, optimize fixed costs, and invest in marketing with an emphasis on market trends and return on investment. In addition, we introduced targeted coupons that can be issued and granted to specific users.」

「We continue to monitor market trends and implement advertising and promotion initiatives that emphasize return on investment.」

「On the cost side, the optimization of cost of sales is progressing smoothly, and we are implementing advertising and promotion initiatives that emphasize return on investment while continuing to monitor market trends.」

「On the cost side, the optimization of cost of sales is progressing smoothly, and we are implementing advertising and promotion initiatives that emphasize return on investment while continuing to monitor market trends.」

「We continue to monitor market trends and implement advertising and promotion initiatives that emphasize return on investment.」

「We continued to monitor market trends and prioritize investment efficiency in advertising and promotion expenses, which consequently declined as a percentage of GMV.」

「For advertising and promotion expenses, we invested flexibly after assessing market conditions, focusing on cost efficiency in light of the external environment and strengthening retention among existing users rather than prioritizing new-user acquisition.」

「As a result of continued aggressive investment to acquire new users through coupons and other initiatives in order to expand its share of the delivery market, the Company maintained its first-place ranking in category-based app downloads from the first quarter and steadily expanded its market share as competitors rationalized the market.」

「Beginning in November 2021, the Company conducted large-scale campaigns across the 1 metropolitan area and 3 prefectures (Tokyo, Saitama, Chiba, and Kanagawa), increasing the numbers of users, delivery personnel, and affiliated stores.」

「The Company made concentrated business investments in the growth strategies of “accelerating the development of the Sharing Delivery® business,” “expanding the number of affiliated stores,” and “expanding the number of users”」

「As a result, although business expansion continued, with revenue for the cumulative third quarter consolidated period rising 171.0% year on year to ¥18,493 million, aggressive business expansion and investment resulted in an operating loss of ¥12,907 million.」

「As a result of aggressive business expansion and investment, operating loss was ¥8,387 million, compared with an operating loss of ¥989 million in the same period of the previous year, in terms of profit」

「As its medium-term vision, the Company has adopted “transforming from a mere meal delivery service into an essential life infrastructure for Japan’s future,” and has pursued aggressive business expansion to realize this vision.」

「As a result of aggressive business expansion and investment, operating loss was ¥1,608 million in terms of profit」

「Although this will involve large-scale investment unlike anything undertaken previously, the Company reached the conclusion that the following initiatives needed to be implemented promptly.」

「In December, Masatoshi Hamada was appointed as CDO (Chief Demae Officer), and the company sought to raise awareness of Demae-can and promote everyday use through messaging combined with a new commercial. These measures resulted in a new record for daily orders in December, when demand was expanding.」

「To focus on its core business, DEMAE-CAN, the Company changed its corporate name to DEMAE-CAN CO.,LTD and made concentrated business investments in the growth strategies of “accelerating the development of the Sharing Delivery® business” and “expanding the number of active users”」

「As a result of aggressive business expansion and investment, operating profit was ¥23 million, down 95.7% year on year, in terms of profit」

「As a result of aggressive business expansion and investment, operating loss was ¥40 million in terms of profit」

「Regarding “aggressive investment to rapidly expand the DEMAE-CAN fan base,” we promoted initiatives to encourage customers to place 3 orders, which had been underway since the first quarter consolidated accounting period, and continued operating DEMAE-CAN’s proprietary loyalty program, “Demae Nyan Club.” In addition, we strengthened the system to prevent a recurrence of the system failure that occurred in February 2018. As a result, the system became capable of supporting continued growth in order volumes, and the “Mother’s Day Campaign” in May 2018 recorded a daily order volume of 130,688, the highest since the Company’s founding.」

「Regarding “aggressive investment to rapidly expand the DEMAE-CAN fan base,” we promoted initiatives to encourage customers to place 3 orders, which had been underway since the first quarter, and continued operating DEMAE-CAN’s proprietary loyalty program, “Demae Nyan Club.” In addition, from early December 2017 through early January 2018, we ran spot television commercials for DEMAE-CAN throughout the Kanto and Kansai regions to raise awareness of DEMAE-CAN, while also conducting campaigns linked to the commercial content to encourage usage.」

「“Aggressive investment to rapidly expand the DEMAE-CAN fan base”」