Insufficient Effectiveness of E-Commerce Advertising and Regulatory Compliance Costs
First written in FY2019. 2 of 5 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2021.
No other company in this theme has enough history to compare yet.
- FY2021WorsenedAnnual report
「Revenue declined because advertising expenses had been restrained, but the company is implementing various measures, including some cross-border e-commerce sales targeting China.」
Revenue from cosmetics sales and other activities was ¥134.900 million, down 21.2% from the previous fiscal year. The company reported a decline in revenue while advertising expenses were restrained, but sales initiatives are continuing. - FY2020RestatedAnnual report
「As a result, the effects of these changes in sales strategy did not materialize clearly during the fiscal year under review.」
The company continued to shift its advertising methods and pricing strategy and strengthen store sales and cross-border e-commerce in response to changes in the e-commerce advertising environment, but no clear results materialized for the full fiscal year. - FY2020-Q3WorsenedAnnual report
「As a result, revenue for the cumulative third-quarter period of the reporting segment was ¥129.105 million, down 63.0% year on year, and the segment recorded a loss of ¥19.524 million, compared with profit of ¥66.864 million in the same period of the previous year.」
Amid continued changes in sales strategy in response to changes in the e-commerce advertising environment, revenue from the consumer business fell 63.0% year on year, deteriorating from a profit in the same period of the previous year to a segment loss. - FY2020-Q1MaterialisedAnnual report
「In the consumer business, in response to changes in the e-commerce advertising environment for cosmetics and other products, the company has been making a major shift in its advertising methods and pricing strategy on its own website since the second half of the previous fiscal year, while also gradually strengthening sales at stores such as the major drugstore chain Tomod's. The effects of these changes in sales strategy are expected to become apparent from the second quarter of the fiscal year onward.」
Changes in the e-commerce advertising environment actually occurred, prompting a shift in advertising methods and pricing strategy and greater emphasis on store sales. The results of these advertising initiatives are still expected from the second quarter onward. - FY2019First statedAnnual report
「If the increase in sales volume resulting from advertising falls short of expectations, if it takes longer than anticipated for revenue to increase, or if responding to tighter advertising regulations or other requirements takes additional time or costs」
The company identifies the effectiveness of affiliate advertising, paid search advertising and other advertising, as well as regulatory compliance, as factors that may cause earnings to fluctuate.