Market Expansion Through Expanded Catalogs and Services

「Factors behind the increase included a ¥275 million rise in advertising and promotional expenses, resulting from the publication of a Chinese-language catalog for the first time in 4 years and the advance publication and recognition of the Comprehensive Catalog, which had previously been published and recorded in the third quarter each year.」

「Sales in this area increased 17.9% year on year in the third-quarter accounting period, partly because we updated the Comprehensive Catalogs in November and stimulated demand.」

「As part of our product expansion, we published 4 types of catalogs, including the Nabis Nursing and Medical Supplies Comprehensive Catalog and the Nabis Clinic and Medical Supplies Comprehensive Catalog, collectively referred to below as the “Nabis Catalogs.” We also published the Sunny Foods brochure supporting food hygiene and a rental brochure addressing demand related to the sharing economy.」

「In addition, in November 2019 we published the more-than-2,000-page “Nabis Nursing and Medical Supplies Comprehensive Catalog” and “Nabis Clinic and Medical Supplies Comprehensive Catalog” for medical institutions, featuring numerous new products. We distributed them to medical institutions nationwide and began promotional activities for the new products.」

「One factor behind the increase was a ¥125 million rise in catalog costs resulting from the publication of an updated Chinese-language catalog, the first such update in 2 years. As shown in the quarterly catalog-cost estimates below, annual catalog costs are expected to decline.」

「As part of our product expansion, we published 6 types of catalogs, including the Comprehensive Research Equipment Catalog and the Industrial Research Equipment Catalog, collectively referred to below as the “Comprehensive Catalogs,” and launched numerous new products, including private-label products. We also added pages for rental research equipment to the Comprehensive Catalogs and worked to strengthen our service business in response to the sharing economy.」

「In the research and industrial equipment divisions, we published a comprehensive research catalog in November 2018 and revamped it into a catalog with an unparalleled range of products, featuring more than 3,300 pages and approximately 75,000 listed items, approximately 1.5 times the previous level, including a large number of new products.」

「In the hospital and nursing care divisions, sales of consumables for medical procedures and surgery, as well as nursing care and rehabilitation products, increased, partly as a result of expanding the product range in the comprehensive medical catalog updated last November and in the catalog for nursing care facilities, which has been updated for 3 consecutive years. Overall, performance remained firm.」

「As part of its product rollout, the Company published 8 catalogs, including English- and Chinese-language editions, and launched numerous new products, including private-label products. In November 2017, it began expanding the "Navis" comprehensive catalog for medical institutions and proceeded to publish a 1,887-page edition, a 30% increase, making it the industry's largest catalog by page count.」

「In November 2017, the Company published "Navis Nursing and Medical Supplies Comprehensive Catalog No. 70000," a comprehensive catalog for medical institutions, to promote sales.」

「Higher advertising expenses resulting from updates to the English- and Chinese-language catalogs, the aforementioned "Navi-Suke" catalog and 3 other catalogs」

「Higher advertising expenses resulting from updating the Chinese- and English-language catalogs for the first time in 2 years」

「In sales activities, the Company published 6 catalogs, including the Research Equipment Comprehensive Catalog. In particular, for nursing care facilities, it promptly responded to the growing need for medical procedures at such facilities and newly published "Navi-Suke," a comprehensive nursing care and medical supplies catalog featuring a broad range of products, including not only daily necessities and nursing care supplies but also medical equipment, an area of strength for the Company.」

「The main factor was a ¥161 million increase in advertising expenses, as the Company updated the Research Equipment Comprehensive Catalog in the third quarter, whose page count and print run were nearly twice those of the major catalog updated in the same quarter of the previous year, the Navis Comprehensive Nursing and Medical Supplies Catalog, which is updated once every 2 years.」

「The Company published 2 catalogs in the second quarter of the current year, compared with 3 in the same quarter of the previous year, resulting in a ¥79 million decrease in advertising expenses.」

「In the same quarter of the previous year, the Company updated the "Research and Factory Consumables and Equipment Catalog 2015-2016 (Chinese-language catalog)" and published the "Research Materials, Supplies & Fluororesin Catalog," whereas in the first quarter of the current year it only updated the "Comprehensive Food Testing and Hygiene Management Catalog," among other factors, resulting in a ¥76 million decrease in advertising expenses.」

「The Company focused on proactive sales activities, including expanding the market through the publication of various catalogs and the enhancement of various services.」