Expansion of Distributors and Sales Offices and Support for Sales Organizations

「In terms of sales, the fiscal year was extremely challenging because there was no major new product and expansion of sales offices and BMs remained sluggish. …Training participation by the sales organization and new customer acquisition began to recover.」

「The number of new IMs (Ivy Mates, or members) increased 61.3% from the previous interim accounting period. In contrast, the number of new BMs (Beauty Managers, or sales representatives) declined 28.3% and the number of new sales offices declined 16.4%, remaining challenging.」

「Training participation, new customer acquisition and the addition of sales representatives gradually began to recover.」

「Although the number of new IMs (Ivy Mates, or members) declined 10.4% from the previous interim accounting period and remained challenging, the number of new BMs (Beauty Managers, or sales representatives) increased 26.3% and the number of new sales offices increased 29.8%. Conditions are gradually improving.」

「Specifically, we hold various training sessions and events to develop the sales organization, develop products that give the organization confidence and pride, and create an environment in which it is easier for the sales organization to sell. Through these measures, we are strengthening training participation and working to increase customers and the number of sales representatives.」

「During the nine months ended the third quarter, net sales increased 2.2% from the cumulative period of the same quarter of the previous year, indicating a recovery in demand and expanding opportunities to foster and develop sales representatives’ motivation to sell.」

「During the six months ended the second quarter, net sales increased 5.9% from the cumulative period of the same quarter of the previous year, indicating a recovery in demand and expanding opportunities to foster and develop sales representatives’ motivation to sell.」

「During the first quarter, net sales increased 47.8% from the cumulative period of the same quarter of the previous year, indicating a sharp recovery in demand and expanding opportunities to foster and develop sales representatives’ motivation to sell. Distribution inventory held by distributors and others had converged toward appropriate levels, except for certain products at some distributors. Through ongoing credit management for each distributor, we will prevent and control excess inventory within the sales organization.」

「The number of new Ivy Mates customers increased approximately 19% from the cumulative period of the same quarter of the previous year, while the number of new sales offices, which serve as sales locations, remained at roughly the same level as in the cumulative period of the same quarter of the previous year. The number of training sessions and group events, as well as participation in them, which are central to our strength in developing people, also gradually recovered, although regional disparities remained.」

「The number of new Ivy Mates members increased 26% from the cumulative period of the same quarter of the previous year, but sales declined 27.3% as the slowdown in sales training opportunities, sales office expansion and the development of sales representatives had a significant impact.」

「In developing regular users throughout the year, the number of Ivy Mates increased 37.7% from the cumulative period of the same quarter of the previous year, and participation in corporate philosophy and sales training also increased from the cumulative period of the same quarter of the previous year. Sales activities and development opportunities were gradually returning to pre-pandemic conditions, but」

「Our highest priority is achieving the target net sales. We share targets with distributors based on retail prices and work with them to build the elements needed to achieve those targets. Specifically, we hold various training sessions and events to develop the sales organization, develop products that give the organization confidence and pride, and create an environment in which it is easier for the sales organization to sell.」

「However, the meetings, events, training sessions and new-product study sessions planned for the same period had to be cancelled or postponed, prompting us to promote alternative measures such as contactless meetings and study sessions.」

「In terms of sales, we continued throughout the year to develop the sales organization, improve its utilization rate, and review training opportunities and methods under the annual theme of “thorough execution of the basics.” We also strengthened initiatives for our flagship serum and worked to expand Ivy fans. However, many face-to-face training sessions, seminars and other group events were cancelled or postponed, restricting face-to-face sales that leverage our strength in “human capabilities.” As a result, expansion of the sales organization slowed.」

「During the third quarter, we continued to develop the sales organization and improve its utilization rate, while thoroughly promoting sell-through of Red Power Serum, the sales organization’s core product, and working to expand new customers and improve customer satisfaction.」

「Amid the COVID-19 pandemic, the normalization of web-based contact, the cancellation or curtailment of customer-acquisition events and meetings, and the sharp decline in group training opportunities significantly affected our strengths in face-to-face communication and people development.」

「We will continue to actively support sales by strengthening training participation, sales initiatives for new products and campaign initiatives for priority products, with the aim of recovering net sales.」

「We will continue to actively support sales by strengthening training participation, sales initiatives for new products and campaign initiatives for priority products, with the aim of recovering net sales.」

「In terms of sales, we continued throughout the year to develop the sales organization, improve its utilization rate and expand training opportunities, particularly by reinforcing sales training,」

「During the nine months ended the third quarter, we continued to develop the sales organization, improve its utilization rate and expand training opportunities,」

「During the six months ended the second quarter, we continued to promote the development of the sales organization, improve its utilization rate and expand training opportunities, particularly by reinforcing sales training. The number of participants mobilized for training, an activity metric for the sales organization, remained at the previous year’s level,」

「During the first quarter, in preparation for the third sales cycle for Red Power Serum, we promoted an approach to developing the sales organization by strategic category, improved the utilization rate of the sales organization and expanded training opportunities.」

「Due to factors including the sales organization’s expansion falling significantly short of plan and inventory accumulating at major distributors, orders for Red Power Serum and White Power Serum remained sluggish throughout the year, resulting in lower net sales.」

「During the nine months ended the third quarter, we placed the “Gathering of Love and Beauty,” held at each sales location, at the core of our sales strategy. Through strengthening sales activities before and after these events and disseminating sales strategies, including information on new products scheduled for launch this fiscal year, we worked to raise motivation within the sales organization and promote sales. In developing the sales organization, sales office expansion increased 5.8% from the same quarter of the previous year, the number of Beauty Managers increased 6.7% and the number of Ivy Mates customers increased 7.8%.」

「As a result, sales of regular products in the second quarter were up 38% from the same quarter of the previous year. In addition, as a result of actively developing the sales organization to drive these initiatives, sales office expansion increased 9% from the same quarter of the previous year, the number of Beauty Managers increased 14%, and the number of Ivy Mates customers increased 3%, while participation in the corporate philosophy and sales training for sales representatives remained generally steady.」

「During the first quarter, we vigorously developed and promoted sales strategies centered on incentive programs for the sales organization, which drives our activities, and sales strategies centered on the “Spring Campaign,” including a strategy to make the Red Power Serum, a serum launched last year to favorable reviews, a core product. As a result of actively developing the sales organization to drive these initiatives, sales office expansion increased 35.8% year on year, the number of Beauty Managers increased 5.3%, and the number of Ivy Mates customers increased 5.9%.」

「We will vigorously promote the development of a sales organization aligned with our corporate philosophy, with the aim of doubling its size.」

「Sales office expansion, the addition of Beauty Managers and the increase in Ivy Mates customers all rose year on year and remained strong.」

「Sales office expansion and the addition of Beauty Managers increased 12.8% and 14.3%, respectively, year on year. We also continued to promote training for sales representatives, with participation in training for senior sales representatives reaching approximately 3.4 times the year-earlier level, while communicating the strength of our products and promoting our strength in training.」

「To drive these initiatives, we actively developed the organization, resulting in a 10.9% year-on-year increase in sales offices, a 30.7% increase in Beauty Managers, and a modest 0.4% increase in Ivy Mates customers.」

「In the sales area, we will work to shift to a sales strategy that promotes the rapid and flexible expansion of distributors, based on support by category; review the training systems and methods that promote organizational development; and establish a direct-support framework that prioritizes solving the specific issues faced by each distributor.」