COVID-19 Impact and Slowing B2C Demand Due to the Pullback in E-Commerce Spending
First written in FY2022-Q3. 4 of 6 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2024-Q1.
The whole theme swung hardest in 2022: 2 of 11 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2024-Q1MitigatedAnnual report
「Although GMV for merchants in the beauty and health-related industries was affected in the previous fiscal year by the amendments to the Pharmaceuticals and Medical Devices Act made in August 2021, the impact of the Act is now showing signs of improvement.」
The explanation of the impact of the amendments to the Pharmaceuticals and Medical Devices Act on the beauty and health-related industries has shifted to indicate signs of improvement from the impact seen through the previous fiscal year. However, it does not state that the risk has been completely eliminated. - FY2023-Q3Some signs of improvement, but impact continuesAnnual report
「GMV for merchants in the beauty and health-related industries continued to be affected in the third quarter by the amendments to the Pharmaceuticals and Medical Devices Act made in August 2021, although some signs of improvement were also visible.」
It explains that the impact of the amendments to the Pharmaceuticals and Medical Devices Act on GMV in the beauty and health-related industries continues, although some signs of improvement are visible. - FY2023-Q2MaterialisedAnnual report
「• Following amendments to the Pharmaceuticals and Medical Devices Act in August 2021, existing merchants in the beauty and health-related industries curtailed new advertising placements. The impact on the Company gradually intensified from the amendments through year-end and continues to this day, resulting in a year-on-year decline in the current quarter. In the six months ended the second quarter of the current fiscal year, total transaction volume increased 4.9% year on year, comprising a 3.0% decline in BtoC services and a 36.0% increase in BtoB services.」
Restrictions on advertising placements by beauty and health-related merchants following amendments to the Pharmaceuticals and Medical Devices Act continued, and BtoC service GMV fell 3.0% year on year. - FY2023-Q1MaterialisedAnnual report
「As restrictions on activity related to COVID-19 were eased, consumption shifted from e-commerce to physical stores, resulting in sluggish growth across the e-commerce market.」
As restrictions on activity were eased, consumption did in fact shift from e-commerce to physical stores, and BtoC service GMV fell 1.5% year on year. Restrictions on advertising placements in the beauty and health-related industries following amendments to the Pharmaceuticals and Medical Devices Act also continued. - FY2022MaterialisedAnnual report
「For our BtoC services, e-commerce consumption in the beauty, health and apparel-related industries, where our merchants mainly operate, increased sharply in the previous fiscal year due to the impact of COVID-19, but temporarily slowed in the current fiscal year as a result of that reaction. In addition, during the second half of the current fiscal year, merchants in the beauty and health-related industries rapidly curtailed new advertising placements following amendments to the Pharmaceuticals and Medical Devices Act, temporarily slowing growth in the transaction volume handled by the Company.」
In addition to the post-pandemic correction in e-commerce consumption, restrictions on advertising placements following amendments to the Pharmaceuticals and Medical Devices Act led to slower growth in BtoC transaction volume. - FY2022-Q3MaterialisedAnnual report
「In the beauty and apparel-related industries, where most merchants using our BtoC services operate, we believe that e-commerce consumption temporarily eased in 2021 following the sharp increase in e-commerce consumption in 2020 caused by the impact of COVID-19.」
It indicates that e-commerce consumption in the beauty and apparel-related sectors temporarily eased in 2021 as a post-2020 correction following the expansion of e-commerce consumption.