Building a High-Performance Product Portfolio Centered on Serums

「Meanwhile, orders for the focus product Red Power Serum totaled 16,980 sets, roughly in line with the previous year (17,083 sets in the corresponding cumulative quarter of the previous year). In September, the focus month, orders for existing regular products increased, partly because the extreme heat had eased.」

「Shipments of the strengthened product Red Power Serum increased to 18,058 sets, compared with 17,903 sets in the previous fiscal year. Meanwhile, White Power Serum (a quasi-drug) remained sluggish at 10,529 sets, compared with 10,710 sets in the previous fiscal year. Regular products also remained sluggish.」

「Sales initiatives proved effective for Red Power Serum, one of our core products. Shipments totaled 17,083 sets, exceeding the 16,513 sets shipped in the same period of the previous year.」

「Shipments of priority product Red Power Serum recovered to 17,903 sets, compared with 16,473 sets in the previous fiscal year. Meanwhile, White Power Serum (quasi-drug) remained weak at 10,710 sets, compared with 13,754 sets in the previous fiscal year, partly because the priority-product campaign coincided with the launch month of a major new product.」

「Shipments of Red Power Serum, one of our core products, totaled 16,513 sets, exceeding the 14,766 sets shipped in the previous interim accounting period, although the target of 20,000 sets was not met. Euglena Vital EX, a beauty-support product launched in June 2024, received orders in line with initial expectations, but the order value was below that of new products in the previous interim accounting period. Overall, net sales therefore declined.」

「Shipments of Red Power Serum totaled 16,473 sets against a target of 30,000 sets. Shipments of White Power Serum, designated as a product to be strengthened in the fourth quarter, totaled 13,754 sets against a target of 20,000 sets.」

「Lip Repair Cream, also launched in June 2023, received strong orders. Although additional production was carried out, some units were not ready in time for September shipments. Meanwhile, shipments of Red Power Serum, one of our core products, struggled as the prolonged heat from July through September also depressed organizational activity. Shipments during the cumulative third quarter totaled 14,964 sets, down from 17,470 sets in the same period of the previous year.」

「Meanwhile, shipments of Red Power Serum, one of our core products, struggled as the prolonged heat from July through September also depressed organizational activity. Shipments during the cumulative second quarter totaled 14,766 sets, down from 17,297 sets in the same period of the previous year. For regular products, we worked through facial cleansing to build a community of like-minded customers and product users. The favorable reception of the new Ivy Attracty facial cleanser series also spread to other regular products, which performed well.」

「For sales during the cumulative first quarter, the Ivy Attracty facial cleanser series (all products are quasi-drugs), launched in June 2023, received orders exceeding initial expectations. Production could not keep pace, and some shipments were delayed until the second quarter. Lip Repair Cream (lip treatment), also launched in June 2023, likewise received strong orders. White Stick C (stick-form cream), launched in June 2023, has been below expectations partly because of seasonal factors, but is expected to perform well over the full year.」

「During the fiscal year, we launched the new products Medicinal Scalp Care Stem Signal〈hair-growth product〉 (quasi-drug), the foods with function claims Glucosamine Jelly NA (Consumer Affairs Agency Notification No. G1014), Eclat Dure moisturizing oil for the face, body and hair, and Tulier New Color Premium makeup products, and worked to expand our customer base and improve customer satisfaction.」

「In December, the company launched the food with function claims Glucosamine Jelly NA (Consumer Affairs Agency notification number: G1014) and Eclat Dure, a moisturizing oil for the face, body and hair, and also worked to improve customer satisfaction.」

「Secondary shipments of Yakuyo Scalp Care Stem Signal, the quasi-drug hair-growth product launched in June, also remained strong. However, the seventh wave of COVID-19 that occurred this summer forced some group training sessions to be canceled or postponed, and in-person sales activities were significantly restricted, so Red Power Serum did not reach its initial target.」

「In June, the company launched Yakuyo Scalp Care Stem Signal, a quasi-drug hair-growth product. It was well received and generated approximately 65,000 orders, exceeding expectations, so approximately half of the orders were scheduled for shipment during the second quarter.」

「The Ivy Cosmos II Enrich Lotion, Ivy Cosmos II W Emulsion Cream and Ivy Cosmos II Night Wrinkle Guard quasi-drug for wrinkle improvement shipped more than 105,000 sets in total on a set-equivalent basis over the full year.」

「In December, the company launched the Ivy Makeup Collection Fortune Twinkle makeup product and worked to improve customer satisfaction.」

「Against this backdrop, the Ivy Cosmos II series generated shipments of 95,431 units of the Ivy Cosmos II Night Wrinkle Guard quasi-drug for wrinkle improvement, 93,436 units of the Ivy Cosmos II Enrich Lotion and 86,593 units of the Ivy Cosmos II W Emulsion Cream, representing approximately 80% to 88% of the initial plans. Red Power Serum shipments totaled 11,908 sets, approximately 60% of plan, but revenue increased year on year on a cumulative quarterly basis.」

「During the three-month period, the company firmed up plans to launch this autumn the new Ivy Cosmos II skincare series, including the company’s first quasi-drug for wrinkle improvement, Ivy Cosmos II Night Wrinkle Guard, formulated with niacinamide.」

「Since its launch in July, the Ivy Beauty Partner home-use multifunctional beauty device has shipped 7,165 units, including units sold in advance of the launch, and contributed to sales as a self-care product alongside efforts to strengthen serum sales.」

「Although no new products were launched during the third quarter, advance sales within the sales organization of products scheduled for launch in the fourth quarter, including testers, generated the planned order volume. Sales of flagship skincare products also remained 7% to 50% higher than in the same quarter of the previous year.」

「In July, the company launched Crea Spark, a health food product consisting of effervescent chewable tablets designed to support physical performance and healthy body development, and worked to improve customer satisfaction and expand sales in the health-food market.」

「The Ivy Beauty Partner home-use multifunctional beauty device, which was scheduled for a paid advance launch in March as a new product, had its initial shipment in May after procurement of some components resumed, followed by phased shipments. In June, the company launched the Hair Primary hair-care series, designed to guide women who wish to remain beautiful toward suitable scalp care and beautiful hair, and shipped more than 194,000 units across the series, receiving a favorable reception.」

「In November, the company launched the new Garland Series body-care products. In December, it launched the limited-edition Ivy Makeup UP Collection Beauty Integration and the Slendy Style Soup Type health supplement, and worked to improve customer satisfaction and expand sales in the health-food market.」

「In June, we launched Bright & Clear Mask, a quasi-drug product that removes dead skin cells and dirt from pores and helps produce smooth, radiant-looking skin. We also worked to improve customer satisfaction while promoting bundled sales with skincare products and serums.」

「However, due to the significant impact of inventory adjustments at sales companies, orders remained below 20% of the initially planned total volume of serums.」

「In December, the company launched the Ivy Makeup Collection The Glowing Smile makeup product and worked to improve customer satisfaction.」

「Red Power Serum, entering its third period since launch, generated orders substantially below the initially planned volume due to the significant impact of inventory adjustments at sales companies. Because the product accounted for a high 75% of the sales budget, revenue declined substantially.」

「In June 2018, the company launched the Re White Clear Up Lotion and Re White Clear Up Cream whitening products, both quasi-drugs, aimed at achieving radiant, translucent skin by focusing on the skin’s natural condition, and rolled out initiatives to strengthen sales.」

「In February 2018, the company launched White Power Serum, a serum designed to more actively support the skin’s natural abilities and lead to even greater beauty. It reallocated and invested management resources to offset the shortfall in Red Power Serum orders through this product, but the expansion of the sales organization by the end of the fiscal year fell substantially short of plan, and inventory of Red Power Serum accumulated at major sales companies, causing them to hold back on purchases. As a result, total orders for White Power Serum remained just below 400,000 units, against the initial target of 1 million units.」

「Specifically, the company actively advanced the expansion of its sales organization, including efforts to encourage initiatives for the new White Power Serum scheduled for launch in February 2018, sales promotion and advance-reservation activities centered on following up with purchasers from the Spring Campaign conducted during the cumulative second quarter, and initiatives to promote actual sales. It also worked to improve customer satisfaction through the Ivy Makeup Collection Graceful Lady makeup product launched in December.」

「However, against a backdrop of sales personnel falling short of the initially planned number, time required to adjust inventory within the organizations of top-tier sales companies, and rapidly rising expectations for the new White Power Serum scheduled for launch in February of the following year, initial orders for Red Power Serum during the fiscal year remained subdued at approximately 360,000 units.」

「The company strongly rolled out and advanced sales and marketing strategies centered on the “Spring Campaign” to develop the well-received Red Power Serum, launched the previous year, into a flagship product.」

「As a result, the company shipped more than 610,000 units by the end of the fiscal year, and the unprecedented initiative generated many positive responses.」

「During the quarter, we continued promotional campaigns and salesforce development centered on our flagship product, Red Power Serum, which we have consistently promoted from an early stage to help each individual achieve their “dreams,” and sought to drive sales alongside skincare products. In December, we also launched the new Ivy Makeup Collection Bright Up Power and worked to improve customer satisfaction.」

「During the quarter, the company shared with many sales organizations nationwide the excitement and anticipation of launching Red Power Serum as an anti-aging product designed to enhance the effects of skincare, marking its 40th anniversary, and worked as a unified organization toward the realization of each individual’s “dreams.” Combined with the thorough and sustained promotional campaigns, advance-reservation efforts and sales-organization development undertaken from an early stage, these efforts resulted in orders for more than 600,000 units of the new product before its September launch, leading to an unprecedented initiative.」

「Specifically, the company rolled out promotional campaigns for the new Red Power Serum scheduled for launch this autumn, seeking to build anticipation and promote advance reservations. It also actively developed its organization to drive these efforts, resulting in a 10.9% year-on-year increase in the number of sales offices, a 30.7% increase in beauty managers and a slight 0.4% increase in new Ivy Mates members.」

「In the product segment, the company is developing a product portfolio that establishes Ivy as a serum brand while developing products that are easy to sell and offer high functionality.」