Growth Strategy for Cross-Border E-Commerce Centered on East Asia

「In the overseas e-commerce business, operations targeting East Asia excluding China, which were advanced during the previous fiscal year, continued to perform solidly.」

「In the overseas e-commerce business, operations targeting East Asia continued to perform solidly, and net sales remained above the level of the same period of the previous year.」

「Overseas e-commerce sales reached 104.4% of the same period of the previous year as a result of the expansion across East Asia outside China undertaken in the previous fiscal year.」

「In the overseas e-commerce business, the expansion across East Asia outside China promoted since the previous fiscal year continued to perform steadily.」

「Overseas e-commerce sales increased to 140.3% of the previous fiscal year as the Company strengthened its expansion across East Asia outside China.」

「Overseas e-commerce sales increased to 158.3% of the same period of the previous year as the Company strengthened its expansion across East Asia outside China.」

「Overseas sales increased to 164.7% of the same period of the previous year, supported by the opening of stores in Taiwan and strong performance from advertising initiatives.」

「In overseas sales, the refund rate declined following the end of lockdowns, and higher average spend per customer resulting from various advertising initiatives brought sales to 111.1% of the previous fiscal year, indicating a recovery trend. However, sales have not returned to pre-pandemic levels, and the Company expects uncertain conditions to continue amid concerns about the outlook for the Chinese economy.」

「Overseas sales increased to 112.4% of the same period of the previous year, driven by higher average spend per customer resulting from various advertising initiatives and strong sales during China's W11 (Double Eleven) shopping event.」

「Overseas sales had begun to show signs of recovery following the end of lockdowns, supported by effective advertising and a lower refund rate. However, after the discharge into the ocean of treated water from the Fukushima Daiichi Nuclear Power Station began on 24 August 2023, consumers' reluctance to purchase Japanese products increased, and sales for the cumulative second-quarter period reached 127.5% of the same period of the previous year.」

「Overseas sales have begun to show signs of recovery, reaching 134.3% of the same period of the previous year because of the effectiveness of advertising and a lower refund rate. However, sales have not returned to pre-pandemic levels, and the Company expects the uncertain and challenging conditions to continue.」

「Meanwhile, overseas sales were challenging as orders were cancelled one after another because of logistics disruptions caused by the COVID-19 pandemic, with sales at 83.2% of the previous fiscal year.」

「Although events performed well, overseas sales were affected by the continued impact of COVID-19-related lockdowns, with returns and order cancellations occurring one after another. Sales fell substantially to 74% of the same period of the previous year, and the Company expects the uncertain and challenging conditions to continue.」

「Although overseas sales received a slight benefit from the weaker yen, returns and order cancellations occurred as the effects of COVID-19-related lockdowns continued, as in the first quarter. At the kaola store, orders were suspended because the marketplace changed its store-opening arrangements, and sales fell substantially to 69% of the same period of the previous year. The Company expects the uncertain and challenging conditions to continue.」

「In overseas sales, the effects of COVID-19-related lockdowns continued, with shipments suspended and orders cancelled one after another. Sales fell below the same period of the previous year, and the Company expects the uncertain and challenging conditions to continue.」

「Although overseas sales have been challenging because of marketplaces' policies prioritising local stores, logistics disruptions caused by the COVID-19 pandemic and consumers' reluctance to purchase overseas products, the Company implemented measures including raising average spend per customer by expanding bundled-discount products, switching promotional advertising to a performance-based model and renovating product pages. It also closed unprofitable sites, including its main Global site, to reduce personnel and promotional costs.」

「Meanwhile, the Company's main Global site, where sales had stagnated, was closed on 31 August 2021 because it was not expected to become profitable.」

「Concentration and selection of overseas e-commerce sites」

「Overseas sales also continue to be affected by intensified competition following the entry of national-brand manufacturers, as well as shipping restrictions and delays caused by the COVID-19 pandemic.」

「Meanwhile, overseas sales were sluggish as competition from manufacturers selling directly to consumers intensified price competition, compounded by weak performance during Singles' Day, China's largest shopping event on 11 November.」

「Sales through overseas sites fell well below the previous year's level as competition among manufacturers and price competition intensified during China's largest shopping event, Singles' Day, on 11 November.」

「Against this operating backdrop, we actively worked to expand our sales channels by opening the LAZADA Malaysia store in April, our 14th store in total across Japan and overseas.」

「As the East Asian e-commerce market is expected to continue growing, the cross-border e-commerce business that the Company is currently pursuing as part of its overseas business strategy, including stores on Tmall Global (Tmall.hk) in China and Qoo10 Singapore, is highly likely to expand further, and the Company will continue to pursue such opportunities.」

「Net sales for the period were ¥5,083.161 million, up 10.6% year on year. The main factors were successful growth in visitor numbers resulting from further expansion of the product range to meet customer needs, steady sales through online shopping malls such as Rakuten and Amazon, and efforts to support cross-border e-commerce through overseas online shopping malls.」

「This year as well, we participated in the Singles’ Day (W11) sales campaign, China’s largest event, on Tmall Global, and although the order value met the plan, foreign exchange had a considerable impact this time.」

「With the expected growth of the East Asian e-commerce market, cross-border e-commerce, which we are currently pursuing as part of our overseas business strategy by opening stores on Tmall.hk (Tmall.hk) in China and Qoo10 Singapore, among others, is highly likely to expand further. We will therefore continue to pursue it as an important sales strategy.」