Acquiring new customers and expanding products with high repeat-purchase potential

「Special collaboration products with prominent artists and characters, along with short-form video advertising on social media, resonated with consumers, and new customer acquisitions exceeded the same period of the previous year. However, total customer numbers declined because existing customers purchased less frequently, and net sales were ¥12,184 million, down 2.6% year on year.」

「Existing customers did not continue their subscriptions and new customers did not become established subscription customers, resulting in the total customer count and sales falling below the previous consolidated fiscal year.」

「The handmade-goods support business Couturier successfully acquired new younger customers through social media, and sales exceeded the previous year’s level.」

「As noted above, in addition to delays in developing new customer acquisition methods and new areas of business, insufficient outreach to potential customers and other factors caused traffic to the e-commerce site to decline, reducing new customer acquisition.」

「In the subscription business, the core business, traffic to the e-commerce site declined because outreach to potential customers was insufficient, resulting in a decline in new customer acquisition. In addition, product development with a strong competitive advantage remained insufficient, causing the total customer count to fall below the level in the same period of the previous year and sales to decline. Against this backdrop, one positive development was the emergence of successful cases of acquiring new customers through video as part of efforts to expand the customer base.」

「The average purchase price and cumulative customer count both declined because the products planned and developed by the group were insufficiently differentiated from competing offerings and the value of the products could not be communicated in an attractive and effective manner.」

「In the subscription business, the core business, changes in the external environment, including increased opportunities for consumers to go out and lower disposable income due to rising prices, combined with insufficient differentiation of the products planned by the Group and an inability to communicate their value in an appealing and effective manner, resulted in declines in both average spending per purchase and the total customer count. Meanwhile, marketing activities at physical stores, including the permanent store of the household goods brand YOU+MORE! that reopened in Tokyo’s Ueno Station, a newly opened store in Fukuoka’s Tenjin Underground Mall, and the “Dai-Henai Exhibition” held in Tokyo’s Shibuya district, progressed smoothly and contributed to “expanding the customer base” and “building ongoing relationships with customers.”」

「In the subscription business, the core business, average spending per purchase remained at roughly the same level as in the same period of the previous year. However, amid external changes such as increased opportunities for consumers to go out and lower disposable income due to rising prices, the Group’s products lacked sufficient differentiation and the value of the products was not communicated in an appealing and effective manner, resulting in a decline in the total customer count. Meanwhile, on-site marketing activities, including the permanent store of the household goods brand YOU+MORE! that reopened in Tokyo’s Ueno Station, a newly opened store in Fukuoka’s Tenjin Underground Mall, and the “Dai-Henai Exhibition” held in Tokyo’s Shibuya district, progressed smoothly and contributed to “expanding the customer base” and “building ongoing relationships with customers.”」

「In L'AMIPLUS, which sells household goods, popular products such as the “Seven-Star Shoulder Bag for Better Organization” and the “Five-Layer Layered Water-Repellent Backpack” drove sales and contributed to new customer acquisition. Although average spending per purchase remained at roughly the same level as in the same period of the previous year, sales fell below the year-earlier level as customers became more reluctant to purchase amid rising prices. In addition, the temporary suspension of advertising placements in March in connection with the development of the next-generation Web system infrastructure reduced new customer acquisition. As a result, the total customer count and sales declined year on year.」

「Although new customer acquisition exceeded the previous fiscal year, total customers declined from the previous fiscal year because the retention rate decreased, resulting in lower sales.」

「As part of developing brands, the fashion accessories brand “frauglatt” and “FELISSIMO Museum Department,” which plans and sells museum merchandise, actively conducted marketing, contributing to new customer growth and lifting sales above the same period of the previous year. On the other hand, cold weather in early spring affected orders for spring fashion products, while delays in procuring products caused by the lockdown in Shanghai, China, in late March reduced shipments to customers. As a result, average customer spending remained high, at a level similar to the same period of the previous year, but sales declined because total customers decreased from the same period of the previous year.」

「As part of efforts to strengthen the customer base, the existing fashion brand “Live in comfort” developed hit products such as Ponwari Pants and Shooty and secured stable sales. To develop new brands, the Company actively conducted marketing for the fashion accessories brand “frauglatt,” the interior brand “am&be” and the household goods brand “SeeMONO,” increasing brand recognition and lifting sales of these new brands above the same period of the previous year. On the other hand, cold weather in early spring affected orders for spring fashion products, while delays in procuring products caused by the lockdown in Shanghai, China, in late March reduced shipments to customers. As a result, average customer spending remained high, at a level similar to the same period of the previous year, but sales declined because total customers decreased from the same period of the previous year.」

「As part of efforts to strengthen the customer base, the Company promoted repeat purchases among customers with prior purchasing experience and increased the number of customers during the period.」

「In the core subscription business, the development of products designed to encourage continued purchases and optimization of media distribution to facilitate regular purchases proved effective, substantially increasing annual total customers from the previous fiscal year. Average customer spending also remained at a high level, as in the previous fiscal year.」

「In the core subscription business, internally developed products attracted a strong response and contributed to new customer acquisition. The active promotion of products designed to encourage continued purchases also increased continuing customers from the same period of the previous year.」

「To promote continued use of the subscription service by customers acquired in the previous year, the Company improved product appeal and sales methods, resulting in a substantial year-on-year increase in continuing customers.」

「In marketing, the Company made a series of proposals based on diverse values, rooted in its core value of “the happiness of being happy together,” and developed unique products not offered by other companies, as well as collaboration products featuring popular content, characters and authorities in various fields. Strengthening coordination between this extensive product lineup and social media and enhancing web content resulted in a substantial year-on-year increase in customers.」

「Multichannel marketing initiatives, including television commercials, web marketing, direct mail and direct messages, gained traction and led to increases in new customers and repeat purchases by previous customers, as well as a substantial increase in continuing customers.」

「The number of new customers, repeat purchases by previous customers and continuing customers increased substantially from the same period of the previous year, supported by product planning responsive to changing needs and effective promotions making active use of various media.」

「Effective direct-mail campaigns, expansion of products and services designed to encourage continued purchases, and improvements in sales methods also resulted in substantial year-on-year increases in repeat purchases by previous customers and continuing customers.」

「Active use of catalogs, web content, web advertising and social media, together with multimedia communications including television commercials for popular products and effective direct-mail campaigns, increased visits to the website during the period, and the numbers of new and reactivated customers rose substantially from the same period of the previous year. Improvements in sales methods to strengthen continued purchases also lifted continuing customers above the same period of the previous year.」

「Promotional activities through various media proved effective, and acquisition of new and reactivated customers, particularly in the second half, substantially exceeded the previous fiscal year. However, the annual total number of customers fell below the previous fiscal year because the number of continuing customers failed to meet targets.」

「In the subscription (collection) business as a whole, sales for the nine months ended the third quarter increased from the same period of the previous year because the number of new and reactivated customers acquired exceeded the same period of the previous year and average customer spending increased.」

「In the subscription (collection) business as a whole, sales for the six months ended the second quarter exceeded those of the same period of the previous year because the number of new and reactivated customers acquired exceeded the same period of the previous year and average customer spending increased.」

「In the subscription (collection) business, full-year total customers fell below the previous fiscal year because acquisition of new and reactivated customers failed to meet targets. However, average customer spending increased as sales of fashion items such as “Live in comfort” and “MEDE19F,” as well as consumables and household goods, categories that encourage continued purchases, remained strong. As a result, second-half sales continued to exceed those of the same period of the previous year.」

「Acquisition of new and reactivated customers fell short of targets, causing total customers to fall below the same period of the previous year and sales to decline year on year.」

「In the subscription (collection) business as a whole, average customer spending increased, but the numbers of new and reactivated customers acquired and continuing customers failed to meet targets, and total sales declined from the same period of the previous year.」

「In the subscription (collection) business as a whole, average customer spending increased, but the numbers of new and reactivated customers acquired and continuing customers failed to meet targets, causing total sales to decline from the same period of the previous year.」

「Campaigns tied to product commercials and sales activities focused on the web proved effective, and new customer acquisition slightly exceeded the previous fiscal year. Reactivated customers also increased for the full year as orders through direct mail and the web improved and the Company conducted direct-mail initiatives targeting customers in their 60s. However, total sales in the subscription (collection) business declined because the number of continuing customers decreased.」

「Advertising initiatives, including web marketing, the launch of a new shopping app and web-linked television commercials, increased new customer acquisition, particularly in the fashion division. Effective approaches tailored to customer attributes also supported strong reactivation of customers compared with the same period of the previous year. However, total customers fell below the same period of the previous year, resulting in a decline in sales for the subscription (collection) business as a whole.」

「The number of new customers increased as a result of web-centered communications, the launch of a shopping app and stronger advertising initiatives. The number of reactivated customers also remained strong through effective approaches tailored to inactive customers using postal and email direct mail. However, these gains did not fully offset the issue of continuing customers, and the total number of customers in the subscription (collection) business declined from the same period of the previous year.」

「Acquisition of new customers remained strong as the Company strengthened web-centered communications and marketing initiatives. Acquisition of reactivated customers also exceeded the same period of the previous year through effective approaches to inactive customers using postal and email direct mail. However, although the Company pursued the planning and development of products designed to encourage continued purchases to address the ongoing issue of increasing continuing customers, sales had not begun during the period. As a result, the total number of customers in the subscription (collection) business during the period declined from the same period of the previous year.」

「Acquisition of new and reactivated customers was below the same period of the previous year in the first half, but increased in the second half as web-based acquisition remained strong and orders through postal direct mail improved. For the full year, acquisitions were slightly above the previous fiscal year. However, the annual total number of customers in the subscription (collection) business fell below the previous fiscal year because the customer base at the beginning of the fiscal year was lower and the rate of continued purchases declined.」

「In the subscription (collection) business, the Company is strengthening customer acquisition by shifting from measures centered on traditional print media such as newspaper advertising to web-linked television commercials, email direct mail, web advertising and other channels. Customer acquisitions through the web exceeded the same period of the previous year. From the summer onward, acquisitions of inactive customers through postal direct mail also exceeded the previous year, but the Company remained unable to make up for the delay in acquiring new and reactivated customers from March through June. In addition, because the customer base at the beginning of the fiscal year was below the previous year and the transition mainly in fashion items to a new sales model allowing customers to select designs reduced the rate of continued purchases in the following month, the total number of customers in the subscription (collection) business during the period declined year on year.」

「As the Company shifts order-taking to the web, it discontinued the newspaper advertising used in the previous year, resulting in declines from March through June in the number of new customers acquired and reactivated customers returning from inactive status. Although both figures continued to exceed the same period of the previous year from July onward, the total number of customers in the subscription (collection) business during the period declined year on year because the number of customers at the beginning of the fiscal year was below the previous year and the rate of continued purchases decreased.」

「Orders for the “Yoga Mood Bra” television and web-linked campaign and for the highly repeatable handmade kit product Couturier were also strong.」