Dependence on face-to-face sales channels
First written in FY2021. 4 of 7 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025MitigatedAnnual report
「Workplace sales, installation and referral sales, in-store event sales, and sales during maintenance and repairs, all of which mainly involve face-to-face product explanations, account for 78.1% of water ionizer revenue. If circumstances such as the COVID-19 pandemic restrict opportunities for face-to-face contact, sales opportunities may decline and affect the group’s performance. The company is also focusing on building sales channels that do not rely on face-to-face contact, including remote sales and web marketing.」
Although reliance on face-to-face sales remains significant at 78.1% of water ionizer revenue, the company continues to build alternative channels through remote sales and web marketing. - FY2023RestatedAnnual report
「Workplace sales, installation and referral sales, in-store event sales, and sales during maintenance and repairs, all of which mainly involve face-to-face product explanations, account for 79.3% of water ionizer revenue. If circumstances such as the COVID-19 pandemic restrict opportunities for face-to-face contact, sales opportunities may decline and affect the group’s performance.」
The company reconfirmed the risk arising from its sales-channel dependence, with 79.3% of water ionizer revenue generated through face-to-face product explanations and similar methods, as well as its response through web-based and other channels. - FY2023-Q3MitigatedAnnual report
「The number of COVID-19 cases has been declining from its peak at the beginning of this year, and it has also been decided that COVID-19 will be reclassified under Category 5 of the Infectious Diseases Act in May this year. Face-to-face sales are finally moving toward normalization.」
Regarding reliance on face-to-face sales channels, the company stated that face-to-face sales are moving toward normalization against the backdrop of the decision to change the classification of COVID-19 under the Infectious Diseases Control Law. - FY2023-Q2MitigatedAnnual report
「Although the direct-sales division of the water ionizer sales business continues to feel some aftereffects of the COVID-19 pandemic, the sales environment has improved overall, and we will work to move from recovery to growth.」
Although the aftereffects of the COVID-19 pandemic, including restrictions on face-to-face sales, remain, the company aims to shift from recovery to growth as the operating environment for its direct sales divisions improves. - FY2023-Q1MitigatedAnnual report
「During the first quarter, as the COVID-19 pandemic relatively subsided and face-to-face sales began to normalize, each direct sales division, including workplace sales, gradually recovered, and water ionizer revenue increased year on year.」
The company stated that temporary easing of COVID-19-related restrictions on face-to-face sales led to a recovery in the direct sales divisions and water ionizer revenue. - FY2022-Q1RestatedAnnual report
「Although domestic water ionizer sales remain significantly constrained by the COVID-19 pandemic, including in workplace sales, the company continues to focus on expanding among local small and medium-sized businesses and rolling out from corporate customers to individuals through proposals centered on corporate health management.」
While COVID-19-related restrictions on face-to-face sales continue, the company is continuing its expansion among local small and medium-sized businesses and its rollout from corporate customers to individuals through corporate health management proposals. - FY2021First statedAnnual report
「Direct sales, comprising workplace sales, installation and referral sales, and in-store event sales, account for approximately 78% of water ionizer revenue in the group’s core business of selling electrolyzed hydrogen water ionizers. These sales rely mainly on face-to-face product explanations. If circumstances such as the COVID-19 pandemic restrict opportunities for face-to-face contact, sales opportunities may decline and affect the group’s performance, so the company is currently strengthening web marketing.」
The company newly disclosed separately the risk that its direct sales division, which accounts for approximately 78% of water ionizer revenue, depends mainly on face-to-face sales, as well as the resulting decline in sales opportunities during the COVID-19 pandemic and its response through web marketing.