Polarization of Consumption and Diversification of Consumer Needs

「In the jewelry industry in which the Group operates, demand for high-priced products, particularly among affluent customers, remained firm. However, a stronger defensive attitude toward household spending accompanying inflation and increasingly polarized consumption made purchasing behavior more cautious.」

「In the jewelry industry in which our group operates, sales of high-priced products remained firm, particularly among affluent customers and inbound visitors. However, the overall business environment was challenging due to increasingly polarized consumption, a growing preference for saving amid rising prices, and higher costs including raw material and labor costs.」

「The jewelry industry in which our group operates faced an overall challenging business environment. Although high-priced products, particularly luxury brands, remained firm, supported in part by the recovery in inbound demand, downside risks to earnings continued due to a growing preference for saving against the backdrop of rising prices, soaring raw material costs and chronic labor shortages.」

「The jewelry industry in which our group operates faced an overall challenging business environment. Although high-priced products remained firm, particularly at department stores, and the recovery in inbound demand supported consumption, consumers' preference for saving increased against the backdrop of successive increases in utility bills and prices of daily necessities. In addition, raw material costs remained high and the labor shortage continued to worsen.」

「In the jewelry industry in which the Group operates, high-priced products performed steadily, particularly at department stores. However, the business environment was broadly challenging as a stronger preference for saving, driven by higher utility costs and inflation, was compounded by soaring raw material prices, including bullion, and the chronic labor shortage.」

「In addition to a stronger preference for saving against a backdrop of successive product price increases and income conditions」

「As consumption remains polarized and a preference for saving persists amid concerns about the future」

「In the jewelry industry in which our group operates, demand for high-priced products remained firm against a backdrop of rising stock prices and online consumption expanded. However, following the third declaration of a state of emergency issued on 25 April 2021, jewelry sales at large commercial facilities, including department stores, were designated as businesses subject to requests for closure as part of municipality-led measures to restrict the movement of people, resulting in a challenging business environment.」

「The jewelry industry in which the Group operates also saw sluggish consumer sentiment, driven by polarized consumption and concerns about the future, partly due to the impact of COVID-19, while consumption trends changed as the new normal became established.」

「Against the backdrop of new lifestyles becoming established as a result of COVID-19, values and consumption trends are expected to change at an accelerating pace.」

「In the jewelry industry to which the group belongs, the business environment was extremely difficult as the spread of COVID-19 had a significant impact. Business activity was substantially curtailed nationwide amid continued requests for people to refrain from going out and the closure or shortened operating hours of commercial facilities, compounded by the declaration of a state of emergency in April 2020 and the expansion of the areas covered.」

「In the jewelry industry, the business environment was difficult as soaring personnel expenses resulting from the chronic labor shortage, successive natural disasters including typhoons, the higher consumption tax rate, and the spread of COVID-19 further worsened consumer sentiment.」

「Consumption continues to polarize by region and income level, while a defensive attitude toward household spending, driven by concerns about the future and other factors, persists,」

「As technological advances in areas such as AI and IoT accelerate, regional and income polarization associated with demographic and employment changes, together with increasingly diverse values and consumption trends driven by changes in lifestyles and other factors, are expected to progress further.」

「In the jewelry industry, consumption has become polarized by region and income level, while consumers' defensive attitude toward household spending remains entrenched and personal consumption lacks strength,」

「The business environment remains challenging as consumption continues to polarize by region and income level, a preference for saving persists amid concerns about the future, and competition among companies intensifies with the diversification of sales channels, compounded by the chronic labor shortage.」

「As technological advances in areas such as AI and IoT accelerate, regional and income polarization associated with demographic and employment changes, together with increasingly diverse values driven by changes in lifestyles and other factors, are expected to progress further.」

「In the distribution industry, the business environment was difficult as consumption became increasingly polarized by region and income conditions, household preferences for saving remained strong, the labor shortage became more severe, and competition among companies intensified as sales channels diversified.」

「As technological advances in areas such as IoT, big data and AI (artificial intelligence) accelerate, regional and income polarization associated with demographic and employment changes, together with increasingly diverse consumer preferences driven by changes in lifestyles and other factors, are expected to progress further.」

「A preference for saving remains entrenched amid stagnant wage growth and higher social insurance contributions, and the situation calls for stimulating consumption by addressing polarized consumption and highlighting added value.」

「In the jewelry industry to which the company belongs, the business environment was difficult as consumption became increasingly polarized by region and income conditions, personal consumption lacked strength amid stronger preferences for saving and selective purchases, competition among companies intensified, and the labor shortage became more severe.」

「As consumer values and purchasing behavior change, consumption continues to polarize by region and income level, while a preference for saving driven by uncertainty about the future also persists. Overall, the business environment became challenging.」

「Polarization of consumption and diversification of consumer needs, driven by changes in social structures, economic conditions, technology, lifestyles and other factors, are expected to progress further.」