Consumer Trends and Seasonal Fluctuations in Fashion Demand

「Continued inflation resulting from higher raw material and energy prices and the weaker yen, together with sharp fluctuations in foreign exchange rates, continues to put pressure on real purchasing power, and personal consumption has yet to fully recover. In addition, amid persistent caution about the future, including the upward trend in domestic long-term interest rates, consumers have become increasingly focused on protecting their livelihoods and spending selectively according to priorities.」

「Against this backdrop, consumers have deepened their focus on “selecting value” beyond simply saving money. While strengthening their preference for the asset value and intrinsic quality of brands, they have also firmly established a tendency to place a premium on the platforms’ underlying foundation of trust in terms of “security and peace of mind.”」

「Meanwhile, consumers have further deepened their “selecting value” beyond simply saving money, strengthening their preference for brand asset value and intrinsic quality. At the same time, they have fully established a tendency to place a premium on the very foundation of trust represented by “reliability and safety” in platforms.」

「Revenue was affected by the continued difficult consumer environment for BUYMA, our core business, as the euro strengthened further toward the second half of the fiscal year. As a result, revenue was slightly below forecast.」

「Domestic consumer appetite has shifted from “slowing” to a change in the nature of consumption toward “selecting value.” In particular, in fashion, consumers are increasingly tending to prioritize products and services offering good value for money, such as those that “make them feel good,” “enable them to save money or are inexpensive,” and offer “reliable, safe and dependable quality.”」

「The challenging environment has continued under the impact of exchange rates resulting from a historically weak yen and higher prices caused by inflation overseas, and total GMV for the interim consolidated accounting period struggled.」

「The challenging environment has continued under the impact of exchange rates resulting from an unprecedented depreciation of the yen and higher prices caused by inflation overseas, and total GMV for the first quarter cumulative period struggled.」

「Although the fall and winter demand period on BUYMA was significantly reduced by the effects of abnormal weather, total GMV for the fiscal year struggled.」

「Although demand for fall and winter items was significantly delayed by the effects of abnormal weather, total GMV for the third quarter cumulative period struggled.」

「In the fashion market, sales generally tend to be lower from April to August, when demand is focused on lower-priced spring and summer items, than in other months, while sales tend to be higher from September to January, when demand is focused on higher-priced fall and winter items, as the seasons change.」

「Consumer sentiment among light users has continued to weaken, and year-on-year growth in total GMV for the third quarter cumulative period was sluggish.」

「Consumer activity has not recovered from the stagnation caused by prolonged measures to prevent the spread of infection, and a challenging external environment has continued, partly because of the weaker yen. As a result, year-on-year growth in total GMV for the first quarter cumulative period was sluggish.」

「Meanwhile, the boost to demand from the benefits of fixed-amount cash payments had run its course, and the prolonged state of emergency caused consumer activity to stagnate, particularly for goods. Together with the subsequent increase in the desire to go out, these factors resulted in sluggish year-on-year growth in total GMV in the second half.」

「Meanwhile, domestic GMV for the third quarter accounting period remained at approximately the same level as in the same period of the previous year, owing in part to sluggish consumer activity resulting from the prolonged state of emergency and the slow initial demand for fall and winter items caused by rising temperatures.」

「In the fashion market, sales generally tend to be lower from April to August, when demand is focused on lower-priced spring and summer items, than in other months, while sales tend to be higher from September to January, when demand is focused on higher-priced fall and winter items, as the seasons change.」

「In addition, partly because of a short-term decline in consumer appetite caused by economic uncertainty under the state of emergency declared from 7 April, total GMV ended at approximately the same level as in the same period of the previous year.」

「In domestic personal consumption, selective spending has become increasingly pronounced amid a continued preference for saving, slower growth in disposable income and downward pressure from the consumption tax increase, while the outlook for an economic recovery felt by consumers remains uncertain.」

「In domestic personal consumption, selective spending has become increasingly pronounced amid a continued preference for saving, slower growth in disposable income and downward pressure from the consumption tax increase, while the outlook for an economic recovery felt by consumers remains uncertain.」

「In domestic personal consumption, selective spending is becoming increasingly pronounced amid a continued preference for saving and slower growth in disposable income, while the outlook for an economic recovery felt by consumers remains uncertain.」

「Although selective consumption has continued to become more pronounced in domestic consumer spending, the fashion e-commerce market has continued to expand steadily, driven by the omni-channel initiatives of retailers, brands and other businesses, as well as the growing number of fashion smartphone apps.」

「In addition, further increases in the consumption tax are generally said to produce a rush in demand beforehand and a subsequent decline. These consumer spending trends could affect the Company's performance in the short term.」

「In the fashion market, sales generally tend to be lower from April to August, when demand is focused on lower-priced spring and summer items, than in other months, while sales tend to be higher from September to January, when demand is focused on higher-priced fall and winter items, as the seasons change.」