E-commerce Market Expansion and the Shift in Purchasing Behavior from Physical Stores to E-commerce

「Because of the reaction to a temporary surge in sales after the company’s product “鎬-Shinogi-Neo” was featured on a television program in the same period of the previous year, revenue across this sales channel fell below the previous year, totaling ¥307.459 million, down 5.3% from the same interim period of the previous year. Excluding the impact of this reaction, sales remained above the previous-year level.」

「Meanwhile, some core products fell below the previous year's results amid intensified market competition. Due to a combination of factors, including less media exposure than in the same period last year, net sales for the fiscal year were ¥545.725 million, down 23.3% year on year.」

「Some core products underperformed the previous year's results amid intensifying market competition, and product media exposure was lower than in the same period last year. As a result of these and other factors, net sales were ¥545,725 thousand, down 23.3% year on year.」

「Sales were driven by the rubber-coated peeling towel “Gomupon Tsuru-Tsuru,” rubber-coated bath brush “Gomupon Bath Brush,” cooling-fin cleaner for air conditioners “Air Conditioner Cleaner Ag Deodorizing Plus,” blower-fan cleaner for air conditioners “Kabisshu Trail,” and the Japan-made kitchen knife “Shinogi-shinogi-Neo,” a new product using the special “Shinogi” polishing method. However, due to a combination of factors, including less media exposure than in the same period last year, net sales were ¥324.666 million, down 21.8% from the same interim period of the previous year.」

「Sales were driven by the rubber-coated peeling towel “Gomupon Tsuru-Tsuru,” rubber-coated bath brush “Gomupon Bath Brush,” cooling-fin cleaner for air conditioners “Air Conditioner Cleaner Ag Deodorizing Plus,” and blower-fan cleaner for air conditioners “Kabisshu Trail.” Net sales for the fiscal year were ¥711.796 million, up 13.2% year on year.」

「During the interim accounting period, sales of the Kotsuban Seita Kashaan series, Gomupón series and air-conditioning-related products performed well, resulting in sales of ¥415.050 million, up 20.3% year on year. Going forward, the company will implement new marketing initiatives to raise product awareness and cultivate loyal customers.」

「Sales for the cumulative first quarter were ¥188.359 million, up 35.7% from the previous fiscal year.」

「Sales for the fiscal year were ¥628.791 million, down 13.9% year on year. In internet commerce, the company strengthened advertising for “Kotsuban Seita Kashaan,” a beauty and health product using a pulley, both within and outside the marketplaces and increased sales of the product. It is also working to increase sales by sourcing national-brand products through the crowdfunding business “Wakutan” to expand the number of products handled on each marketplace.」

「Sales for the cumulative third quarter were ¥489.255 million, down 17.8% year on year. In internet commerce, the company strengthened advertising for “Kotsuban Seita Kashaan” both within and outside the marketplaces and increased sales of the product. It is also working to increase sales by sourcing national-brand products through the crowdfunding business “Wakutan” to expand the number of products handled on each marketplace.」

「Sales for the cumulative second quarter were ¥344.942 million, down 19.4% year on year.」

「Sales for the cumulative first quarter were ¥138.807 million, down 30.5% from the previous fiscal year. In internet commerce, the company is producing landing pages for some products and running listing advertisements to attract visitors from outside the marketplaces, with the aim of increasing sales.」

「Products such as “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel, and “Spider Gel,” a mold remover that is liquid in the bottle but turns into a gel when sprayed, drove sales. However, as noted above, the impact of the situation in Ukraine on the global economy, including higher raw material costs and yen depreciation, delayed the planning and development of imported products, reducing the number of products featured in the media and diminishing the effect of the advertising-shower strategy. As a result, sales for the cumulative third quarter were ¥595.240 million.」

「Sales for the cumulative second quarter were ¥428.044 million. Sales were led mainly by products such as “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel; “Super Stone Barrier Knife,” a coated knife; and “Spider Gel,” a mold remover that is liquid in the bottle but turns into a gel when sprayed. However, as noted above, the impact of the situation in Ukraine on the global economy, including higher raw material costs and yen depreciation, delayed the planning and development of imported products, reducing the number of products featured in the media and diminishing the effect of the advertising-shower strategy.」

「Sales were ¥199.653 million due to the decline following the pullback in consumer purchasing behavior believed to have been related to stay-at-home consumption since the previous fiscal year.」

「Sales for the fiscal year were ¥988.576 million. Sales of products such as “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel; “Kotsuban Seita Kashaan,” a pulley-assisted pelvic belt; and “Super Stone Barrier Knife,” a coated knife, performed well. However, sales were affected by poor sales of seasonal products due to unsettled weather through the summer and the decline following the pullback in demand believed to have been related to stay-at-home consumption in the previous fiscal year.」

「Sales for the cumulative third quarter were ¥856.003 million, down 38.1% year on year. Sales of products such as “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel; “Kotsuban Seita Kashaan,” a pulley-assisted pelvic belt; and “Spider Gel,” a mold remover that is liquid in the bottle but turns into a gel when sprayed, performed well. However, the decline following the pullback in consumer purchasing behavior believed to have been related to stay-at-home consumption in the same period of the previous year, together with sluggish sales of seasonal products due to unsettled weather through the summer, continued to weigh on results.」

「Sales for the cumulative second quarter were ¥614.874 million, down 39.1% from the previous fiscal year. Sales were led mainly by products such as “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel; “Kotsuban Seita Kashaan,” a pulley-assisted pelvic belt; and “Super Stone Barrier Knife,” a coated knife. However, sales were affected by the decline following the pullback in consumer purchasing behavior believed to have been related to stay-at-home consumption in the same period of the previous year, as well as sluggish sales of popular summer products due to unusually cool weather and prolonged rain in the summer.」

「Sales for the cumulative first quarter were ¥342.894 million, down 33.2% year on year. Sales performed well, reflecting the pronounced impact of media coverage of products such as the beauty and health product “Kotsuban Seita Kashaan,” a pulley-assisted pelvic belt; the beauty and health product “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel; and the kitchen product “Super Stone Barrier Knife,” a coated knife. However, sales were affected by a decline following the pullback in consumer purchasing behavior believed to have been related to stay-at-home consumption in the same period of the previous year.」

「More recently, consumer behavior has changed significantly due to the spread of COVID-19, accelerating the shift in purchasing behavior from physical stores to the e-commerce market.」

「Sales for the cumulative third quarter were ¥1,382.072 million, up 39.0% year on year. Sales performed well, reflecting the pronounced impact of media coverage of products such as the beauty and health product “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel; the kitchen product “Super Stone Barrier Knife,” a coated knife; and the interior product “G Zero Cushion,” which distributes body pressure. Sales were also supported by consumer purchasing behavior believed to be related to stay-at-home consumption, as well as stronger product supply capacity, including through warehouse expansion, which helped avoid lost sales opportunities.」

「Sales for the cumulative second quarter were ¥1,010.185 million. Sales performed well, reflecting the pronounced impact of media coverage of products such as the beauty and health product “Gomupón Tsuru-Tsuru,” a rubber exfoliating towel; the interior product “G Zero Cushion,” which distributes body pressure; and the kitchen product “Super Stone Barrier Knife,” a coated knife. Sales were also supported by consumer purchasing behavior believed to be related to stay-at-home consumption, as well as stronger product supply capacity, including through warehouse expansion, which helped avoid lost sales opportunities.」

「Sales through this channel were ¥513.409 million. Sales performed well, reflecting the pronounced impact of media coverage of products such as the beauty and health product “Gomupon Tsuru-Tsuru,” a rubber exfoliating towel; the interior product “G Zero Cushion,” which distributes body pressure; and the beauty and health product “G Zero Insole,” an insole that absorbs shock and helps maintain the body’s center of gravity. Sales were also supported by consumer purchasing behavior believed to be related to stay-at-home consumption, as well as stronger product supply capacity, including through warehouse expansion, which helped avoid lost sales opportunities.」

「The expansion of the e-commerce market driven by the widespread use of the internet and smartphones has made purchasing outside physical stores commonplace. As consumers actively gather information about products, product selection has progressed, while influencers who affect consumer purchasing behavior through media such as social networking services and video-sharing sites have come to play a major role in purchasing decisions.」