CPO Reduction, LTV Improvement, Expansion of Product Offerings, and Expansion into Overseas Markets
First written in FY2020. 5 of 20 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2019: 2 of 20 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As advertising efficiency for new customer acquisition deteriorated in recent years, we shifted our policy to focus on acquisition efficiency and conversion rates. As a result, advertising expenses fell to 21.9% of net sales in the fiscal year.」
We continued to manage advertising investment with an emphasis on new customer acquisition efficiency and conversion rates, reducing advertising expenses as a percentage of net sales from 24.3% to 21.9%. - FY2026-H1RestatedAnnual report
「Direct-sales revenue, where advertising efficiency for new customer acquisition has not improved, fell below the previous year's level.」
The traditional policy of restraining advertising investment while prioritizing new customer acquisition efficiency remains in place. Sufficient improvement in efficiency has yet to be confirmed. - FY2025Continued reduction in the advertising expense ratio and restriction of new customer acquisitionAnnual report
「Since the previous consolidated fiscal year, advertising efficiency for new customer acquisition has deteriorated, prompting a shift to a policy focused on acquisition efficiency and conversion rates. As a result, advertising expenses declined to 24.3% of revenue in the current consolidated fiscal year.」
The company continued to manage advertising investment with a focus on new customer acquisition efficiency, reducing the advertising expense ratio to 24.3%. - FY2025-H1Advertising expense restraint due to insufficient improvement in advertising efficiencyAnnual report
「In the direct-to-consumer channel, selling expenses, particularly advertising expenses, were restrained because advertising efficiency for new customer acquisition had not improved sufficiently.」
The company describes a policy of restraining direct-to-consumer advertising expenses because new customer acquisition efficiency has not improved sufficiently. - FY2024-Q3ReframedAnnual report
「The company controlled advertising investment based on persistently high advertising costs in the direct-to-consumer market and a new customer acquisition policy focused on acquisition efficiency and conversion rates.」
The response to persistently high advertising costs was clarified from simply restricting new customer acquisition to managing advertising investment with a focus on acquisition efficiency and conversion rates. - FY2024-Q2Restricted new customer acquisition due to persistently high advertising costsAnnual report
「Advertising and other expenses for new customer acquisition were restrained because advertising costs in the direct-to-consumer market remained high.」
The company states that it restrained advertising expenses related to new customer acquisition in response to persistently high advertising costs. - FY2024-Q1Reduced advertising investment due to increased competitor spendingAnnual report
「Advertising investment declined as the customer acquisition environment deteriorated due to increased advertising by competitors.」
The customer acquisition environment deteriorated as competitors increased their advertising, resulting in lower advertising investment. The disclosure describes changes in the external environment affecting the company's traditional new customer acquisition initiatives. - FY2023ReframedAnnual report
「As competition for digital advertising customers intensifies, we will actively invest in encouraging subscription members to continue using our services, strengthen cross-selling between brands to maximize the value of our customer base, and reform the balance between new and existing customer revenue streams.」
In addition to the traditional focus on lowering CPO and increasing LTV, the company broadened its priorities to include continued use by subscription members, cross-selling between brands and the profitability of existing customers. - FY2023-Q3Differentiated customer acquisition strategies by brandAnnual report
「The CANADEL brand continues to steadily grow sales through unique new products, including the retail launch of a renewed version of CANADEL Premier Lift reformulated as a quasi-drug. Because the relationship between CPO and LTV was favorable, the company strengthened customer acquisition efforts and sought to expand among the core target segment of the all-in-one cosmetics market.」
While strengthening new customer acquisition for CANADEL based on the relationship between CPO and LTV, the effectiveness and direction of acquisition initiatives differ by brand. - FY2023-Q2Lower new customer acquisition due to a focus on marketing efficiencyAnnual report
「The company prioritized the efficiency of its advertising investments, resulting in fewer new customers acquired and lower revenue in both the direct-to-consumer and wholesale channels.」
The company states that prioritizing the efficiency of advertising investments resulted in fewer new customers acquired. - FY2023-Q1AdvancedAnnual report
「The Clayence brand, launched in March, has continued to achieve a high level of new customer acquisition, surpassing DUO and CANADEL. In conjunction with television commercials launched in October, the brand was rolled out to retail stores, with distribution completed to 8,000 stores by the end of October. Until the previous fiscal year, the brand was available only through direct-to-consumer sales, but awareness has been further increased through a media-mix strategy using mass marketing, including television commercials, and sales are growing through both direct-to-consumer and wholesale channels.」
Clayence was expanded beyond direct-to-consumer sales into wholesale and retail, supported by a media-mix strategy using television commercials and distribution to 8,000 retail stores. - FY2021ReframedAnnual report
「The company has identified the following key objectives: reducing CPO and increasing LTV in the direct-to-consumer channel, increasing sales per store in the wholesale channel, and expanding the Chinese market in its overseas business under other channels.」
The new medium-term plan updated the key objectives by channel. In wholesale, the focus shifted from expanding the product range to increasing sales per store, while overseas operations explicitly identified expansion in the Chinese market. Additional initiatives include cross-selling, bringing web advertising in-house and strengthening CRM. - FY2020First statedAnnual report
「The company has identified the following key objectives: reducing CPO※1 and increasing LTV※2 in the direct-to-consumer channel, expanding the product range in the wholesale channel, and expanding sales regions in its overseas business under other channels.」
Key channel-specific initiatives in the medium-term plan, using measurable indicators such as CPO, LTV and cross-sell ratio.