Dependence on Internet Sales to Digesearch and Advertising
First written in FY2019. 2 of 9 entries say "Reframed", first in FY2022. Latest entry: 2026-04-10.
0 other companies' latest entry also says "Mitigated".
- FY2025RestatedAnnual report
「Although metrics such as customer acquisition costs and repeat rates at ATAOLAND＋ are improving, inquiries continue to be received from members of the former e-commerce site because similar brands are being offered in a way that causes them to be mistaken for the Company's ATAO brand. Accordingly, the Company believes that continued proactive investment in promotional expenses and other areas will be necessary to re-expand online and in-store sales.」
Following termination of the agreement with the former outsourcing provider, the Company notes improvements in ATAOLAND＋ metrics, while continuing to identify inquiries from former e-commerce members and the promotional investment required for renewed expansion as risks and challenges. - FY2024ReframedAnnual report
「The basic merchandise sales agreement with the company ended at the end of July 2022. Although metrics such as customer acquisition costs and repeat rates at ATAOLAND＋ are improving, the Company believes that growth in online sales will require a certain amount of time and investment in promotional expenses and other areas.」
Dependence on outsourced services provided by Degisearch and Advertising shifted following termination of the agreement. The focus is now on the growth of ATAOLAND＋, customer acquisition costs, repeat rates and the investment burden. - FY2023-Q2AchievedAnnual report
「The contracts that ended upon expiration during the second quarter consolidated accounting period were as follows.」
The basic merchandise sales agreement with Degisearch and Advertising Co., Ltd. relating to online sales for ATAO and IANNE ended on 31 July 2022 upon expiration of its contract term. - FY2023-Q1AdvancedAnnual report
「Although promotional expenses were temporarily controlled in connection with the transition to the new e-commerce site ATAOLAND＋ and there was a reaction to the TV commercial for the ILEMER brand aired in the first quarter of the previous consolidated fiscal year, online sales amounted to ¥729,172 thousand, partly due to the application of the revenue recognition accounting standard and other factors.」
Notes that the transition from the former online-sales structure, including dependence on Degisearch and Advertising, to the new e-commerce site ATAOLAND＋ is progressing in actual results. - FY2022ReframedAnnual report
「Online sales outsourced to the company accounted for 46.2% of total net sales in the fiscal year ended February 2020, 52.6% in the fiscal year ended February 2021 and 51.3% in the fiscal year ended February 2022. In addition, the Company opened a new marketplace-style e-commerce site aggregating the online shops for each of the brands it operates in May 2022. Accordingly, the basic merchandise sales agreement with Degisearch and Advertising Co., Ltd. relating to online sales for the ATAO and IANNE brands will terminate at the end of July 2022.」
While the percentage of online-sales revenue generated through the outsourcing provider declined to 51.3%, the termination of the agreement at the end of July 2022 and the transition to the Company's new e-commerce site became concrete. The Company also notes the possibility of a temporary decline in online sales after termination of the agreement. - FY2021WorsenedAnnual report
「Online sales outsourced to the company accounted for the following percentages of total net sales: 49.6% in the fiscal year ended February 2019, 46.2% in the fiscal year ended February 2020, and 52.6% in the fiscal year ended February 2021.」
The percentage of online-sales revenue outsourced to Degisearch and Advertising rose to 52.6% in the fiscal year ended February 2021. - FY2019First statedAnnual report
「If the Company terminates its transactions with Degisearch and Advertising Co., Ltd., the contract provides that intellectual property rights relating to the online site and customer information relating to online sales will belong to Degisearch and Advertising Co., Ltd.」
Notes that, if transactions with the primary online-sales service provider are terminated, the site's intellectual property rights and customer information would belong to that company, potentially affecting the business if the transition cannot be completed appropriately. Online sales accounted for 49.6% of sales in the fiscal year ended February 2019.