Narrowing Priority Investments

「We have expanded our product lineup and strengthened our sales channels. We have also continued to implement logistics and sales initiatives aimed at improving profitability and promoted efforts to improve profit margins.」

「In the EC Marketing Business, we have promoted the expansion of the D2C business of delivering products planned by the company and manufactured overseas directly to customers, as well as the launch of a cumulative total of 10 stores under the Unique Stores Platform Business (the “USP Business”) and the expansion and selection of products. In the Product Planning-Related Business, we accelerated the development of recovery wear and negotiations with prospective sales outlets to expand functional fibers into the apparel business, focusing on securing orders.」

「We are narrowing the focus of our priority investments for this purpose. Currently, in the EC Marketing Business, we are investing in expanding our D2C model of delivering products we plan and manufacture overseas directly to customers. At the same time, as a new business, we have begun building a platform business based on a group of proprietary EC sites, by establishing numerous distinctive proprietary EC sites that would be difficult to realize through existing EC marketplaces and organically linking them together. This business is named the “Unique Stores Platform Business.” In the Product Planning-Related Business, we plan to establish a manufacturing subsidiary in the Lao People’s Democratic Republic in order to diversify procurement sources, primarily in Asia, and expand manufacturing capacity for functional fiber products, which continue to grow steadily.」

「We are narrowing the focus of our priority investments for this purpose.」