Customer Base Expansion and Development of Loyal Customers

「As a result, the number of continuing existing customers was 102.2% of the level in the same period of the previous year, showing a trend above the previous year, and the development of a quality-focused customer base is progressing steadily.」

「These initiatives proved effective, and visits by new customers remained solid at 109.4% of the prior-year level in the fiscal year under review, following the previous fiscal year. In addition, progress in acquiring high-quality customers and improvements in the quality of service provided by store staff through enhanced training raised average spend per new customer to 104.0% of the prior-year level. Accordingly, revenue from new customers increased substantially to 119.6% of the prior-year level.」

「During the interim consolidated accounting period, in addition to active customer acquisition activities at events, the branding initiative “60th Anniversary Project,” which has been under way since the previous year, helped web advertising and visits generated through referrals from existing customers perform well. As a result, visits by new customers reached 110.9% of the prior-year level. Along with improving the efficiency of customer acquisition activities and strengthening customer-service training, campaigns for new customers and a certification system for staff who provide excellent service to new customers also proved effective. Average spend per new customer rose to 104.6% of the prior-year level and the new contract rate rose to 103.9%, resulting in a substantial 20.6% increase in revenue from new customers year on year. Retention of existing customers was broadly flat at 99.6% of the prior-year level, as some stores remained understaffed due to difficulties in recruitment and other factors.」

「Revenue from new customers increased substantially, by 12.7% year on year. Although visits by new customers were almost flat, up 0.3% year on year, the new contract rate from January to March increased 4.4% year on year, while average spend per new customer increased 11.6% year on year. The number of store staff hired fell short of plan because of difficulties in recruitment and other factors, and the number of customer interactions at directly operated stores remained broadly flat. As a result, retention of existing customers* declined 2.6% year on year, while revenue from continuing customers increased 5.3% year on year.」

「At directly operated stores, during the interim consolidated accounting period, as in the previous fiscal year, we implemented initiatives focused on expanding the new customer base and increasing the number of loyal customers. As September is typically a month with a high inflow of new customers, we held campaigns to encourage visits by new customers and contests for staff to provide further impetus. As a result, visits by new customers during the interim consolidated accounting period reached 104.0% of the prior-year level. In addition, campaigns offering larger quantities of enzyme facial cleanser and other initiatives for new customers raised average spend per new customer to 113.1% of the prior-year level, while revenue from new customers reached 111.0%. The campaigns and contests proved effective, and revenue from new customers in September was the highest for any single month since the fiscal year ended March 2020, excluding the impact of the COVID-19 pandemic. Retention of existing customers fell to 95.0% of the prior-year level, as the decline in store staff due to difficulties in recruitment and other factors had a significant impact, leaving the number of customer interactions at directly operated stores broadly flat. Average spend per continuing customer rose to 105.3% of the prior-year level, partly reflecting the effect of renewed product sales, but this was not enough to increase revenue, which was 100.0% of the prior-year level.」

「At directly operated stores, we continued to identify acquiring new customers as an important management priority and stepped up new customer acquisition activities, including event promotions. We also newly promoted initiatives involving collaboration with businesses in other industries, such as offering skin checks and hand massages while customers waited for health checkups at medical examination centers, and holding skincare seminars in collaboration with yoga instructors. As a result, the number of visits by new customers continued to trend upward, reaching 105.2% of the prior-year level. Average spend per new customer also trended upward, and revenue from new customers increased substantially to 111.1% of the prior-year level.」

「At directly operated stores, we continued from the previous fiscal year to identify acquiring new customers as an important management priority and have stepped up new customer acquisition activities, including event promotions that had been scaled back since the COVID-19 pandemic. In addition, to enable customers to experience the value of after-sales services at our salons, we introduced limited-time plans under which customers could receive after-sales services after joining without using Beauty Up Points (hereinafter, “BP”) during a specified period, depending on the amount purchased when they joined. As a result, average spend per new customer increased, and revenue from new customers rose to 112.0% of the prior-year level.」

「This fiscal year, we continued to identify acquiring new customers as an important management priority and maintained our initiatives. However, visits by new customers were 98.8% of the prior-year level, and revenue from new customers remained slightly below expectations.」

「The number of new customers acquired at events increased substantially to 141.1% of the prior-year level. Retention of existing customers was 98.5% of the prior-year level, below the previous year, as the inflow of new customers has still not caught up with the decline in existing customers. In addition, initiatives to attract new customers through the web and other channels and to raise awareness among younger age groups increased the inflow of customers in their 20s and 30s. As a result of the resulting decline in average customer spend, revenue from existing customers was 91.4% of the prior-year level.」

「At directly operated stores, our continued focus on developing new customer segments resulted in the number of new customers visiting stores rising to 119.1% of the prior-year level, while new-customer revenue reached 126.3%. Although the inflow of new customers is recovering, retention of existing customers* was 97.4% of the prior-year level, as the inflow of new customers has still not caught up with the decline in existing customers. In addition, initiatives to attract new customers through the web and other channels and to raise awareness among younger age groups increased the inflow of customers in their 20s and 30s. As the proportion of younger customers increased, average customer spend declined, and revenue from existing customers was 88.1% of the prior-year level.」

「At directly operated stores, we continued to focus on developing new customer segments, with the result that new visits, new contracts and new-customer revenue increased substantially to 128.0%, 140.4% and 130.0%, respectively, of the levels in the same period of the previous year. On the other hand, although the number of continuing existing customers has begun to trend upward as the number of new contracts increases, the lingering effects of the prolonged restrictions on activities during the fiscal year ended March 2022 meant that it was 97.9% of the prior-year level.」

「As a result of these activities, the number of new visits increased substantially to 128.0% of the level in the same period of the previous year, while the number of continuing existing customers was 96.9% of the prior-year level. Revenue from directly operated stores was ¥1,972,642 thousand, compared with ¥2,175,041 thousand in the same period of the previous year.」

「As we focused on attracting customers through new acquisition channels, the number of visits by new customers increased substantially, by 35.4% from the same period of the previous year. The proportion of new visits generated through web-based customer acquisition activities also rose significantly, from 7.2% in the same period of the previous year to 18.4% in the fiscal year under review.」

「As a result of these activities, although the same period of the previous year included a period when all stores were temporarily closed in April and May, new visitors were 176.5% of the prior-year level and continuing existing customers were 119.8% of the prior-year level. Sales at directly operated stores were ¥4,312,180 thousand.」

「However, new customer acquisition activities at events remained subject to restrictions, and the outlook for large-scale sponsored events remained uncertain. Although measures were taken to encourage existing customers to visit, the number of visits continued to be affected. Because the same period of the previous year included a period when all stores were temporarily closed following the declaration of a state of emergency due to the spread of COVID-19, the number of new visitors was 377.4% of the prior-year level and the number of continuing existing customers was 165.7% of the prior-year level. Sales at directly operated stores were ¥2,175,041 thousand.」

「As the COVID-19 pandemic spread, the number of customer-attraction events declined, resulting in a decrease in new customer traffic.」

「As a result, the number of new visitors declined 49.7% year on year, and sales to new customers were ¥239,434 thousand, down 49.2% year on year. … Although these measures generated a greater-than-expected sales impact, during the cumulative third quarter the number of continuing customers declined 31.8% year on year, and sales to existing customers were ¥5,798,737 thousand, down 24.5% year on year.」

「The number of continuing customers in September was on a recovery trend, at approximately 80% of the level in the same month of the previous year. … The number of new visitors declined 60.5% year on year, and sales to new customers were ¥127,611 thousand, down 60.7% year on year. … During the cumulative second quarter, the number of continuing customers declined 39.3% year on year, and sales to existing customers were ¥3,575,900 thousand, down 34.8% year on year.」

「As a result, during the cumulative first quarter, the number of continuing customers declined 55.7% year on year, and sales to existing customers were ¥1,313,079 thousand, down 49.0% year on year. New customer acquisition activities were restarted, mainly through relatively small-scale events with thorough measures to prevent the spread of infection, but no restart of large-scale sponsored events with strong customer-attraction capabilities was in sight. Consequently, the number of new visitors declined 83.0% year on year, and sales to new customers were ¥29,491 thousand, down 81.2% year on year.」

「The number of new visitors declined 36.6% year on year, and sales to new customers were ¥621,438 thousand, down 54.1% year on year. In addition, the decline in new visitors led to a 7.7% year-on-year decrease in the number of continuing customers, and sales to existing customers were ¥9,841,726 thousand, down 6.6% year on year.」

「Although we carried out the above sales activities, the number of new visitors declined more than initially expected because improvements to the declining customer-attraction capability of our new customer acquisition activities were insufficient and the plan to strengthen various promotions was delayed. In addition, sales at directly operated stores were affected by restrained consumer spending after the consumption tax increase, temporary closures of stores nationwide and the cancellation of promotional events to acquire new customers due to typhoons in October and other factors, resulting in sales of ¥8,215,396 thousand, down 9.6% year on year.」

「However, as the company remained in the process of building a new sales structure, including staff training, the number of new visitors and continuing existing customers declined.」

「Although the above sales activities were implemented, the number of new visitors declined as the company reviewed inefficient events and remained in the process of transitioning to new sales methods. The number of continuing existing customers also remained sluggish, resulting in sales at directly operated stores of ¥2,758,302 thousand, down 11.6% year on year.」

「After carrying out the above sales activities, the efficiency of new customer acquisition improved, including through an increase in the average purchase amount per new customer, but the number of continuing existing customers remained sluggish. Sales at directly operated stores were ¥9,087,982 thousand, down 0.6% year on year.」

「After carrying out the above sales activities, the efficiency of new customer acquisition improved, including through an increase in the average purchase amount per new customer, but the number of continuing existing customers remained sluggish. Sales at directly operated stores were ¥6,044,465 thousand, down 0.4% year on year.」

「After carrying out the above sales activities, the efficiency of new customer acquisition improved, including through an increase in the average purchase amount per new customer, resulting in sales at directly operated stores of ¥3,121,498 thousand, up 1.1% year on year.」

「At directly operated stores, our core channel, the number of new visitors declined 1.3% year on year, but sales to new customers increased to ¥1,360,710 thousand, up 7.9% year on year, as a result of enhanced training for beauty sales staff and PR staff serving new customers. Although the number of continuing existing customers declined 1.8% year on year, sales to existing customers increased to ¥10,712,177 thousand, up 0.2% year on year, owing to improved “quality of sales” through enhanced consultations.」

「For existing customers, we established four membership tiers based on annual purchase amounts and focused on providing services that enhance customer satisfaction, including enriching the services offered at each tier. We also worked to improve the “quality of sales” by rigorously managing and analyzing customer information to provide more personalized customer service and proposals.」

「During the cumulative second quarter, we focused on revitalizing existing stores and strengthening the brand by reinforcing ties with customers. To attract customers, we strengthened store-led event promotions, including closer coordination between beauty staff (facialists) and PR staff, to improve customer traffic at stores, while also strengthening web marketing. For existing customers, we established four membership tiers based on annual purchase amounts and focused on providing services that enhance customer satisfaction, including enriching the services offered at each tier. We also worked to improve the “quality of sales” by rigorously managing and analyzing customer information to provide more personalized customer service and proposals. After carrying out these sales activities, sales to new customers increased, resulting in sales at directly operated stores of ¥6,067,949 thousand, up 1.1% year on year.」

「After carrying out the above sales activities, the number of new visitors and sales to existing customers increased, resulting in sales at directly operated stores of ¥3,087,787 thousand, up 1.8% year on year.」

「In addition to developing new customer segments by strengthening television-based direct sales, the company will reinforce initiatives launched recently, including expanding nationwide the number of stores handling women’s wigs and broadening points of contact with customers.」

「After carrying out the above sales activities, sales to new customers increased as the number of new visitors rose. However, the decline in new visitors in the previous fiscal year affected the number of continuing existing customers, resulting in sales at directly operated stores of ¥9,156,827 thousand, down 1.4% year on year.」

「After carrying out the above sales activities, sales to new customers increased as the number of new visitors rose. However, the decline in new visitors in the previous fiscal year affected the number of continuing existing customers, resulting in sales at directly operated stores of ¥6,000,901 thousand, down 0.5% year on year.」

「Although sales to new customers increased as the number of new visitors rose, the decline in new visitors in the previous fiscal year affected the number of continuing existing customers. As a result, sales at directly operated stores were ¥3,032,453 thousand, down 0.2% year on year.」

「We are working to expand our customer base while seeking to turn acquired customers into loyal customers.」