Teddy Hug word-of-mouth growth and expansion of online and in-store sales channels

「Other (playground equipment, vehicles, childcare and other) 75,916 25,659 33.8」

「Other (childcare and furniture) 166,450 115,948 69.7」

「Other (childcare and furniture) 135,921 89,632 65.9」

「Other (childcare and furniture) 36,487 43,041 118.0」

「In childcare products, Racco Hug bath products continued to perform well in the first half, with the new Soft Apricot color also proving popular. Together with the Teddy Hug furniture series, they helped maintain a certain level of sales in the category.」

「Driven by the popularity of Racco Hug childcare bath products, this category was the only one in domestic sales to exceed the same period of the previous year.」

「Through social media-focused promotion and direct communications with parents of young children, products including Racco Hug were increasingly selected by name as maternity-preparation items, and sales progressed steadily throughout the year.」

「During the fiscal year, the Company launched Teddy Hug Mama Swing+, an open-price addition to the Teddy Hug series of chairs popular with mothers on social media, as well as the Bebe Pocket Plus baby carrier at ¥4,000.」

「In childcare products, following the launch of Teddy Hug Mama Swing+ at an open price in the first quarter, supply could not keep pace with the rapid expansion in demand for the Teddy Hug series, resulting in stockouts. The arrival of inventory in July cleared some outstanding orders, but products remain in short supply.」

「In the childcare series, the Company launched Teddy Hug Mama Swing+ (Plus), an open-price derivative of the Teddy Hug series popular on social media that recreates the rocking motion of being held by a mother that calms babies, as well as Bebe Pocket Plus, improved for easier use based on user feedback, at ¥4,000 before tax.」

「Among the childcare products developed over the medium term, the Company launched Teddy Hug Premium, using a cool fabric, as a derivative of the popular Teddy Hug, known as the “#chair that doesn't make them cry,” at an open price. It attracted more consumers than the previous year. BebePocket, a ¥3,800 pre-tax support carrier for use when dining out, launched in June, also contributed sales not seen in the previous year as the “side-by-side contact” childcare style spread through word of mouth among mothers.」

「The popularity of Teddy Hug, a trending childcare product known as the “#chair that doesn't make them cry,” remained strong. In April of the current fiscal year, the Company launched Teddy Hug Premium Air, made from a material less prone to heat and humidity in summer, at an open price approximately ¥2,000 higher than the existing product. Both products continued to perform well.」

「Teddy Hug, launched in November near the end of the previous 40th fiscal year at an open price, initially had no retail space and was discussed only online and on social media. Its popularity intensified month by month, and from May of the current 41st fiscal year, major retailers successively created retail space for it, contributing to higher sales for the fiscal year. Although it is a childcare product resembling infant furniture, its product value was also recognized by toy retailers in different sectors. It became a topic of discussion in both the childcare and toy distribution channels, not only among consumers, and the Company is preparing an active expansion strategy for the next, 42nd fiscal year.」

「Although sell-through of staple toy products whose prices were raised in the previous year showed signs of slowing in the toy segment, the higher-priced constituent toys in the Pythagoras and Rice series performed well, while infant furniture such as Teddy Hug, with an expected retail price of ¥12,000, continued to perform well in the second quarter.」

「During the quarter, the Teddy Hug, a floor-chair-style chair developed as a place for a baby who can hold their head up to sit in the living room instead of using a bouncer or similar product, had seen word-of-mouth spread through Instagram and other channels since its launch at the end of the previous fiscal year. Online advance orders expanded day by day. Shipments progressed smoothly as inventory arrived in the first quarter, contributing sales that had no equivalent in the previous year. Orders continue to be received based on purchaser comments such as “the chair that really stops them crying” and “the Hug-chan circle,” and in-store sales are scheduled to begin in the next quarter.」