Strengthening Product Capabilities and Developing New Markets for Private-Brand Products

「Under “strengthening branding,” the company actively developed products in line with its brand concept, including by working mainly to improve the quality of Asahi-brand products and launching “COOSA” as a new product brand. COOSA was planned by a project team consisting mainly of employees in their 20s selected through an internal open recruitment process.」

「Among the new products launched were “ENERSYS U (エナシスユー),” a model from the Asahi-brand ENERSYS series of electric-assist bicycles designed for commuting and everyday shopping, and “ENERSYS MELTY (エナシスメルティ―),” which makes daily school commuting enjoyable and comfortable with reliable safety equipment and powerful assistance. In addition to high functionality and attractive design, the series offers accessible pricing, helping us enhance the product lineup.」

「In particular, sales increased as the Asahi-brand Enasys electric-assist bicycle, which combines high functionality and design with an affordable price, performed well, and as the company's previous store openings in urban areas with strong demand for e-commerce sales began to bear fruit.」

「Regarding helmets, for which wearing became a legal obligation to make an effort, securing a stable supply of products contributed to higher sales of parts and accessories.」

「Among electric-assist bicycles, our original brand “ENERSYS,” which focuses only on the functions needed to meet customer needs and thereby achieves a reasonable price, increased sales.」

「Under its product strategy, the Company continually identifies customer needs and works on planning and development with the aim of offering products that combine reliable quality with good value.」

「Among its new products, the company further expanded its product lineup in April by launching ENERSYS every from its in-house electric-assist bicycle brand ENERSYS. The product is equipped with features designed to provide comfortable use for a wide range of purposes, including everyday outings, shopping, and taking children to and from school or daycare.」

「As a new product, the Company launched “ENERSYS Life (エナシスライフ)” in mid-September under its proprietary electric-assist bicycle brand “ENERSYS (エナシス).” Designed with the ease of use of senior customers in mind, the product combines safety and comfort through features including an easy-to-mount frame and smooth, natural assist performance.」

「Regarding its store-opening strategy, the company opened “THE BASE Minamiosawa” in Hachioji, Tokyo, on Saturday, 29 May as a sports bicycle store based on a new concept. In addition to stocking brands not previously handled by the company and high-end road-bike models, it created community spaces inside and outside the store as places for cyclists to interact. It also held various events on weekends, adopting the concept of a “bicycle base” where more people could easily enjoy sports cycling.」

「Product sales remained strong, including the “ENERSYS Me (エナシスミー)” school-commuting model launched in January as a private-brand electric-assist bicycle and the compact “ENERSYS compact (エナシスコンパクト)” model. “ENERSYS Me (エナシスミー)” is built for the strength and durability required for commuting to school, while “ENERSYS compact (エナシスコンパクト)” has a compact design that allows storage in tight spaces, making it suitable for urban living.」

「In the medium-term management plan “Asahi VISION2020,” for which the current fiscal year is the final year, we promoted the adoption of sports bicycles under the main theme “SHIFT TO SPORTY,” while working to strengthen the culture model comprising the 3 areas forming the organizational foundation: “people,” “products” and “stores.”」

「Among new products, we launched the private-label electric-assist bicycle “Office Press e” in late October. As more people have switched their commuting method from public transportation to bicycles, the product is equipped with enhanced features to make commuting more comfortable. Its stylish design, which preserves the formal appearance of a suit, was well received, and the product won the 2020 Good Design Award, sponsored by the Japan Institute of Design Promotion.」

「To enhance its product offering, the Company launched special limited-edition models in collaboration with renowned brands in Japan and overseas to commemorate its 70th anniversary. All were well received for their high added value and attractive pricing. The Company also broadened customers’ choices by introducing numerous proprietary private-brand (PB) products through its nationwide store network, including the ENERSYS feel electric-assist bicycle featuring the Company’s proprietary assist function.」

「Among its new products, the company launched the private-label electric-assist bicycle “ENERSYS Feel.” The product uses the new direct-drive assist unit “PLUS-D,” delivering powerful yet refined ride comfort that builds smoothly from the moment pedaling begins, together with a natural assist feel.」

「As part of our product initiatives, to mark the 70th anniversary of our founding this year, we announced special 70th-anniversary models developed in collaboration with overseas sports-cycle brands, including GIANT’s carbon road bike “TCR ADVANCED PRO 1” and LOUIS GARNEAU’s school-commuting model “MULTIWAY 26.” At our Rakusai-guchi store in Kyoto, an experiential store for electric-assist sports bicycles (E-sports bikes), we added products related to bicycle travel, including touring and bikepacking, and developed a sales floor that offers customers a more in-depth way to enjoy bicycles by combining cycling with outdoor activities.」

「To enhance its product offering, the Company expanded into new product areas to meet increasingly diverse customer needs by strengthening its selection of electric-assist sports cycles (E-sports bikes), an increasingly popular new category of sports cycles, as well as products for seniors and older adults.」

「At the Cycle Base Asahi Rakusai-guchi store in Kyoto Prefecture, which opened in October, the Company offers one of Japan’s largest selections of electric-assist sports bicycles (E-sports bikes), a popular new category of sports cycles. It also established a structure for providing guided cycling, bicycle rentals and various workshops so that customers can enjoy E-sports bikes more casually.」

「By product category, sales of high-value-added products, such as sports cycles and electric-assist bicycles, remained strong, resulting in average spending per customer significantly exceeding the previous year.」

「In March, the company sought to strengthen the Louis Garneau brand by renovating the second floor of Kitahorie DEPT. in Osaka Prefecture as a Louis Garneau store, thereby expressing the brand identity of Louis Garneau, a Canadian sports-cycle brand for which it acquired the exclusive distribution rights in Japan last year.」

「To enhance its product offering, the company expanded its sports bicycle lineup following the acquisition last year of the exclusive nationwide distribution rights in Japan for the sports bicycle brands LOUIS GARNEAU and GARNEAU. It also expanded its product range to suit each customer's cycling lifestyle, including by strengthening its offerings for seniors and older adults, which have attracted attention in recent years amid Japan's declining birthrate and aging population.」

「As part of these initiatives, following our acquisition of the exclusive Japanese distribution rights for the Canadian sports cycle brands Louis Garneau and Garneau, we strengthened our wholesale business by beginning to serve as the exclusive Japanese distributor for 8 overseas sports cycle parts brands. We now handle a full range of sports cycle products, from complete bicycles to parts and apparel. Among our new products, we began selling bicycles based on new concepts with previously unavailable features, including the junior mountain bike Dride S3, equipped with the Speed Watch speedometer that can also be used as a wristwatch, and the Kicker Grande, which can be used as a regular bicycle by adding a drive mechanism to a children's training bike. The Outrank folding bicycle, which can be easily taken along for leisure activities, and the Fast Ride Hubs, a 16-inch bicycle that children can ride safely and securely as they grow, were selected as recipients of the 2017 Good Design Award, organized by the Japan Institute of Design Promotion.」

「In July in particular, as part of its strategy to promote sports bicycles, the company acquired exclusive nationwide distribution rights in Japan for the 2 brands LOUIS GARNEAU, which has many fans across generations due to its strong design appeal, and GARNEAU, whose authentic, professional-grade design is supported by cyclists.」

「Under these circumstances, during the cumulative first quarter, which includes the spring peak demand season, products with high added value, including sports cycles and electric-assist bicycles, performed well in addition to key school-commuting products.」

「In product development, we developed a diverse range of models, including the “Office Press Mobable,” a commuter sports bicycle with a folding function; the “Feliq × Sanrio,” a collaboration model with Sanrio characters; the “88 Cycle,” based on the concept of “what a dad can do to help his family by bicycle”; and “ENERSYS VIVE,” the third model in our private-label electric-assist bicycle series. We also expanded our range of sports parts by adding accessories such as cycling apparel and helmets and custom parts such as saddles and bar tape, thereby strengthening our offering for sports cycles.」

「In product development, we began selling the “Mario Kart” children’s bicycle jointly produced with Nintendo Co.,Ltd. and “ENERSYS VIVE (エナシスヴィーヴ),” the third model in our private-brand electric-assist bicycle series.」

「During the second quarter, the Company developed and launched Asahi original cyclewear, and introduced recommended parts such as related gloves and helmets for enjoying sport cycles. It also began advance reservations for 2 electric-assist bicycle models jointly developed with the well-known Canadian brand Louis Garneau.」

「For private-brand products, the Company collaborated with Daytona magazine, published by Neko Publishing Co., Ltd., to develop and launch the new “88CYCLE” product, themed “A bicycle Dad can ride in style.” The product received considerable attention even before its launch, giving the Company confidence in its ability to develop a new market.」