Building an earnings base and increasing corporate value through the medium-term management plan

「This review responds to changes in the business environment, including rising customer acquisition costs and changes in customer acquisition efficiency, and represents a shift from pursuing excessive sales growth to a stable-growth model that emphasizes profitability and efficiency.」

「① Continued implementation of measures to improve the store-based sales business ・Improving profitability by closing unprofitable stores: 4 stores closed in the first half ・Strengthening and renovating stores in prime locations: 3 stores scheduled to be relocated and renovated in the second half ② Reviewing basic measures for acquiring new customers ・Expanding products for customer acquisition: introducing new products such as hair oil and skincare powder, for which market demand is high ・Establishing the F2 conversion process (second purchase and continued purchases): reviewing the approach to customer touchpoints, resulting in a higher conversion rate in the first half」

「Under the Second Medium-Term Management Plan, covering the fiscal years ending March 2026 through March 2028, the company has identified 1. strengthening human capital, 2. improving the earnings structure, 3. strengthening product development and 4. expanding customer touchpoints as specific strategic priorities for strengthening its foundation and expanding its business, and aims to restore its earnings capacity and grow the business.」

「The company is also working to formulate a new medium-term management plan beginning in fiscal 2025 and covering the fiscal years ending March 2026 through March 2028, aimed at fundamental structural reforms addressing the Group’s management challenges, including strengthening governance and management efficiency, strengthening coordination among sales-channel divisions and expanding customer touchpoints, as well as achieving sustainable growth and increased corporate value from a medium- to long-term perspective.」

「The Group is promoting business activities based on the medium-term management plan for the fiscal years ending March 2023 through March 2025. From a medium- to long-term perspective, it is working to build an earnings base for sustainable growth and increased corporate value, prioritizing customer loyalty and maximizing LTV, core IT systems, and environmentally conscious research and development, while seeking to increase brand value.」

「The Group is promoting business activities based on the medium-term management plan for the fiscal years ending March 2023 through March 2025. From a medium- to long-term perspective, it is working to build an earnings base for sustainable growth and increased corporate value, prioritizing customer loyalty and maximizing LTV, core IT systems, and environmentally conscious research and development, while seeking to increase brand value.」

「The company will celebrate its 40th anniversary this May and, to commemorate the anniversary, is offering limited quantities of the “Smile Friends Squalane Set” and “Smile Friends UV Kids Gel Set,” featuring “Disney 100” designs, through mail order and Shop HABA stores nationwide from 20 July 2023. Through these initiatives, we aim to build a strong business foundation.」

「In the medium-term management plan beginning in the current consolidated fiscal year, we began activities positioned as a period for “building an earnings base for sustainable growth and increased corporate value.” In Japan, we unified the company’s points service, strategically closed and rebuilt stores, expanded web advertising to increase brand awareness, refreshed TV commercials and held virtual events to increase awareness of health foods. Overseas, we pursued initiatives under the basic strategies, including live commerce.」

「Based on the medium-term management plan, the Group broadcast new TV commercials for the high-quality “Squalane” nationwide on a rolling basis from October through November 2022 and distributed web videos on social media. For health foods, it held a media seminar in October 2022, “Happy Gut Health Life,” on gut-health habits based on HABA’s Inner and Outer Beauty®, marking the first anniversary of the relaunch of the Oligowan® drink.」

「Based on the medium-term management plan launched in the current fiscal year, the Group has positioned this period as one for “building an earnings base for sustainable growth and increased corporate value” and has begun initiatives. In Japan, it is strengthening coordination among sales channels by unifying its points service, strategically closing and rebuilding stores, expanding web advertising to increase brand awareness, refreshing its TV commercials and holding virtual events to increase awareness of health foods. Overseas, it is pursuing initiatives under the basic strategies, including live commerce. It is also working to improve convenience and expand customer touchpoints, including unifying the company’s points service for mail-order sales beginning in November 2022 and for Shop HABA stores, and holding online beauty classes every month for customers nationwide.」

「The Group is promoting business activities based on the medium-term management plan for 2022–2024, with the fiscal year ending March 2023 as its first year, and has begun initiatives to build an earnings base for sustainable growth and increased corporate value from a medium- to long-term perspective.」

「The Group formulated a medium-term management plan with the fiscal year ending March 2023 as its first year. Based on our founding spirit, “Our Pledge,” we are pursuing sustainable growth by building an earnings base and working on ESG and SDGs initiatives to increase corporate value, with improving relationships with stakeholders as our basic policy.」