Insufficient Product Differentiation and Declining Customer Support
First written in FY2017-Q2. 2 of 5 entries say "Restated". Latest entry: FY2025.
Star seeds moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 3 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「The RICO series was a high-priced product, but it was very well received by customers familiar with our company, partly because of its extensive embroidery. However, it took longer than expected to appeal to new customers, and penetration among general consumers did not progress as planned. As a result, we were required to review our marketing strategy, including adjustments to the balance between product quality and price.」
Even a high-priced product that was well received by existing customers familiar with the company was slow to gain traction among new customers, making it necessary to review the marketing strategy, including the balance between quality and price. - FY2019RestatedAnnual report
「In this situation, we recognize that providing new value on an ongoing basis and winning consumer choice are essential to achieving future growth.」
The recognition of the challenge, namely that providing new value and winning consumer choice are necessary conditions, remains unchanged. - FY2018RestatedAnnual report
「In this situation, we recognize that providing new value on an ongoing basis and winning consumer choice are essential to achieving future growth.」
The previous recognition of the need to provide new value and win consumer choice has been reiterated. - FY2017ReframedAnnual report
「In this situation, we recognize that providing new value on an ongoing basis and winning consumer choice are essential to achieving future growth.」
The wording has shifted from the direct identification of the challenge as an inability to express product originality and gain customer support to recognition of the need to provide consumers with new value and win their choice. - FY2017-Q2First statedAnnual report
「However, there was also an aspect of the business in which we were unable to express the originality that had been our strength, and we were unable to gain strong customer support. As a result, the year-on-year number of customers at existing stores was 88.8%.」
The internal challenge of being unable to express product originality and gain strong customer support has been explicitly identified for the first time, alongside the figure of 88.8% for the year-on-year number of customers at existing stores.