Establishing infant childcare products as a new business pillar

「Following the first wave, “1 curiosity,” launched in 2025, the Company launched the new baby toy brand “Baby curiosity” as the second wave during the interim accounting period. The Baby curiosity series was commercialised based on insights into the curiosity-driven behaviour of infants aged 0, accumulated through the “People Baby Research Institute,” a project that shares the Company’s perspective from more than 40 years of observing children. The project revisited the question of what toys are needed for infants aged 0. The Company launched 14 redesigned existing products in April, followed by 8 new products in July, bringing the series to a total of 22 products.」

「In the next period, we will launch 14 products as the second wave of “Baby curiosity.” The series is designed to make its value easy for purchasers to understand, and we expect it to drive steady sales growth.」

「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.」

「Through social-media-focused campaigns, the Company reached a broad customer base from pregnancy through the postpartum period, increasing sales of childcare products, led by Racco Hug. The products also received many positive consumer reviews.」

「The Company promotes awareness of the series by using social-media-focused campaigns to reach a broad customer base from pregnancy through the postpartum period. In July, Teddy Hug, which had become popular on social media as the “#No-Cry Chair,” was redesigned based on research into current living environments and launched as “Teddy Hug Petit” and “Teddy Hug Grand Swing+” (both open price), with a cute and convenient design suitable even for a simple living room.」

「In childcare products, the Company focused on bathing, an area of concern for many new mothers and fathers, and launched “Racco Hug” (¥3,980), whose shape was designed to help babies remain comfortable in the bath. In addition to its popularity among consumers on social media, stores carrying the product actively featured it on the sales floor as a recommended item, and it attracted attention as a popular baby bath product.」

「In the childcare and furniture category, “Racco Hug,” a baby bath product launched on a preferential basis through major corporate customers from June (¥3,980), attracted attention as a popular baby bath product. In addition to its popularity on social media, stores carrying the product showed strong interest and actively featured it on the sales floor as a recommended item.」

「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.」

「In childcare products, “Bebe Pocket” (¥3,800 before tax), launched in June, became a hit after receiving a stronger-than-expected response and went out of stock. Its arrival in October of the third quarter contributed to sales. In September, the Company launched “Teddy Hug Cushion” (¥5,800 before tax), an industry-first initiative designed to support new mothers with breastfeeding and childcare for the first time, featuring a cute, specially designed Hug-chan pillow.」

「In childcare products, the Company launched “Teddy Hug Premium” (open price), a baby chair popular as the “#No-Cry Chair,” using a cooler fabric, and attracted more consumers than in the previous year. It also launched “BebePocket” (¥3,800 before tax) in June, a new support baby carrier for use when dining out, proposing a newly designed childcare style called “side-close carrying.”」

「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.」

「The Company will develop products to establish a unique position in infant childcare products, a business that became firmly established during the consolidated fiscal year.」