Direct-to-Consumer Sales and Cross-Selling Promotion Centered on PERFECT ONE

「Targeting new customer acquisition in the fourth quarter through new products in the all-in-one serum gel series」

「In PERFECT ONE cosmetics, the PERFECT ONE All-in-One Beauty Serum Gel series surpassed cumulative sales of 90 million units in the highly competitive all-in-one market (Note). Meanwhile, total brand net sales ended lower due to the effects of restrained advertising investment. However, stronger database marketing, a company strength, improved various KPIs, increased LTV and expanded the subscription customer base.」

「Based on investment efficiency, we strategically restrained offline marketing investment while strengthening the launch of new products aimed at acquiring middle-aged customers and marketing for e-commerce. As a result, the number of new middle-aged customers increased steadily but lagged behind the plan, and total brand net sales ended lower.」

「In direct-to-consumer cosmetics sales, PERFECT ONE's e-commerce net sales grew as new customer acquisition progressed through the launch of new products and new initiatives targeting the middle-aged segment, those in their 40s and 50s. Meanwhile, brand net sales declined against a backdrop of lower average selling prices due to expanded sales of refill products and restrained advertising investment based on investment efficiency. Through the launch of multiple new products targeting the middle-aged segment in the second half, the company aims to return to full-year sales growth through expanded e-commerce net sales.」

「In direct-to-consumer cosmetics sales, PERFECT ONE continued to see increases in the proportion of subscription customers purchasing multiple products and average spend among subscription customers as a result of initiatives to maximize LTV through stronger CRM. Domestic net sales ended at approximately the previous year's level. Meanwhile, brand net sales declined due to the effects of reviewing the business strategy for overseas sales and lower average selling prices resulting from expanded sales of refill products.」

「In direct-to-consumer cosmetics sales, domestic net sales for PERFECT ONE, excluding the effects of overseas sales and other factors (Note 1), ended above the previous year, although brand net sales declined. Through an LTV-focused advertising investment strategy and a CRM strategy centered on the 3STEP skincare approach of Remove, Replenish and Reveal, the PERFECT ONE All-in-One Beauty Serum Gel series achieved the No. 1 share of domestic sales in the all-in-one market, which has many competitors, for the 8th consecutive year (Note 2).」

「In direct-to-consumer cosmetics sales, PERFECT ONE progressed as expected under an LTV-focused advertising investment strategy. A CRM strategy centered on the 3STEP skincare approach of Remove, Replenish and Reveal proved effective, and the proportion of subscription customers purchasing multiple products continued to rise. Strong sales of high-priced seasonal limited-edition products such as lucky bags and night creams also contributed to higher average spend among subscription customers.」

「In direct-to-consumer cosmetics sales, we focused advertising investment on LTV, centered on PERFECT ONE All-in-One Beauty Serum Gel, our flagship product, and promoted the development of subscription customers as a foundation for growth. In addition, cross-selling through call centers based on the 3-step skincare approach of Remove, Replenish and Reveal resulted in continued increases in the proportion of customers purchasing multiple products and average purchase value among subscription customers. PERFECT ONE brand net sales turned to growth from the fourth quarter.」

「In direct-to-consumer cosmetics sales, we focused advertising investment on LTV, centered on the PERFECT ONE All-in-One Beauty Serum Gel series, and promoted the development of subscription customers as a foundation for growth. Continued efforts to recommend multiple products based on the 3-step skincare approach of Remove, Replenish and Reveal resulted in further increases in both the proportion of customers purchasing multiple products and average purchase value among subscription customers.」

「In direct-to-consumer cosmetics sales, we have been reviewing our investment strategy since the first quarter, shifting the focus of advertising investment from the number of new customers acquired to LTV. During the second quarter, we strengthened advertising investment in the All-in-One Beauty Serum Gel series, including PERFECT ONE Medicated Wrinkle Stretch Gel. In addition, stronger promotion of the 3-step skincare approach of Remove, Replenish and Reveal and a CRM strategy to increase customer engagement resulted in a continued rise in the proportion of customers purchasing multiple products.」

「In direct-to-consumer sales, in cosmetics, we increased advertising investment centered on PERFECT ONE Glow & Cover Cushion Foundation and strengthened advertising investment in PERFECT ONE Medicated Wrinkle Stretch Gel, while working to build a subscription customer base as a foundation for growth. In addition, stronger initiatives to recommend subscriptions to multiple products, centered on the 3-step skincare approach of Remove, Replenish and Reveal, resulted in strong cross-selling and contributed to higher average spend among subscription customers.」

「In direct-to-consumer sales, we continued to invest actively in advertising for PERFECT ONE Glow & Cover Cushion Foundation in cosmetics, following the second quarter. This further accelerated new customer acquisition and drove sales. In health foods, increased advertising investment in the Foods with Function Claims product W no Kenko Aojiru supported strong new customer acquisition. In addition, strengthened product recommendations and promotions by call center communicators brought the conversion rates for upselling and cross-selling to subscription customers to a record-high level, raising average customer spend.」

「In direct-to-consumer sales, continued active advertising investment following the first quarter drove strong new customer acquisition through PERFECT ONE Glow & Cover Cushion Foundation and supported sales. In addition, stronger product recommendations and promotions by call center communicators increased the number of customers purchasing multiple products on a subscription basis, leading to higher average customer spend. In e-commerce sales, stronger promotional initiatives through campaigns and social media resulted in strong sales at external marketplaces.」

「In direct-to-consumer sales, active advertising centered on PERFECT ONE Glow & Cover Cushion Foundation resulted in strong new customer acquisition and drove sales. Upselling of PERFECT ONE Medicated Wrinkle Stretch Gel to existing customers also continued to perform well, contributing to higher average customer spend.」

「In direct-to-consumer sales, proactive product recommendations by call center communicators supported strong upselling of PERFECT ONE Medicated Wrinkle Stretch Gel to existing customers throughout the year, while cross-selling of seasonal limited-edition products such as UV-care products also remained strong.」

「In direct-to-consumer sales, upselling of PERFECT ONE Medicated Wrinkle Stretch Gel to existing customers continued to perform well, following the second quarter. In addition, proactive product recommendations by call center communicators drove strong cross-selling of seasonal limited-edition products, mainly UV-care products, and the order conversion rate among subscription customers remained at a record-high level. As a result, direct-to-consumer net sales progressed above expectations.」

「In direct-to-consumer sales, upselling of PERFECT ONE Medicated Wrinkle Stretch Gel to existing customers continued to perform well, following the first quarter. New customer acquisition also progressed steadily as a result of active advertising investment, and domestic e-commerce net sales grew steadily.」

「In addition, promotional campaigns offering merchandise including items featuring Kento Nakajima (中島 健人) and upselling efforts for PERFECT ONE Medicated Wrinkle Stretch Gel to subscription customers progressed beyond expectations. This increased average purchase value, and cosmetics net sales through the direct-to-consumer channel exceeded the year-earlier period.」

「In direct-to-consumer sales, sales of seasonal limited-edition products designed for use with the All-in-One Gel by customers using the PERFECT ONE All-in-One Beauty Serum Gel series remained strong. Together with initiatives to acquire new customers through domestic e-commerce sales and active advertising investment in external e-commerce marketplaces, this resulted in net sales exceeding the year-earlier period.」

「In direct-to-consumer sales, we continued cross-selling winter-limited products such as 3 types of lucky bags, skincare gift sets for early spring, and healthcare products. In addition, sales through external e-commerce marketplaces performed well after we increased advertising investment, resulting in higher net sales.」

「In direct-to-consumer sales, we continued cross-selling winter-limited products such as night creams and highly moisturizing lotions, as well as healthcare products, to customers using the previously mentioned PERFECT ONE All-in-One Beauty Serum Gel series. Sales through external e-commerce marketplaces also performed well, resulting in higher net sales.」

「In direct-to-consumer sales, we strengthened cross-selling to customers using the previously mentioned PERFECT ONE All-in-One Beauty Serum Gel series, combining winter-limited night creams with high moisturizing properties, sunscreens whose demand rises mainly from early spring through summer, seasonal limited-edition products, gift sets and bundles, and healthcare products. Net sales grew steadily, also benefiting from a rush in demand before the consumption tax increase.」

「In direct-to-consumer sales, sales of PERFECT ONE All-in-One Beauty Serum Gel products, particularly PERFECT ONE Medicated Whitening Gel, our flagship product, remained strong. In addition, we strengthened cross-selling of products such as sunscreen and peeling gel to customers using the series, resulting in steady growth in net sales.」