Strengthening the ability to propose and develop high-value-added products

「In addition, to become a partner that works alongside customers to address and resolve their challenges, we are working to strengthen cross-functional product planning by using our skills in developing functional materials and decarbonised and circular materials, as well as our expertise in characters and intellectual property.」

「Specifically, we are strengthening product branding for major customers by enhancing the provision of distinctive product lines and advancing proposals that include consumer-facing promotional methods. We are also working to increase value added through the development and proposal of various functional materials suited to weather conditions, such as cooling-touch, moisture-wicking and quick-drying, and UV-protective materials, as well as sustainable materials, such as decarbonized and circular materials.」

「Specifically, we will seek to build a unique textile trading company by enhancing synergies between our core wholesale business and the distinctive businesses we have cultivated to date, including transactions with European and US luxury brands, the development of traceable and proprietary materials, and retail businesses, including e-commerce, led by our golfwear brand.」

「We have integrated the organization of our core wholesale business and advanced initiatives including strengthening total proposals combining individual items and developing materials and products with functionality and environmental considerations.」

「We have been developing a structure capable of making comprehensive proposals from product planning through design and production.」

「To accelerate these initiatives, we carried out an organizational restructuring effective 1 March, moving toward a structure that advances comprehensive planning and proposals across product categories, age groups and styles, while refreshing the management structure by bringing in younger directors and executive officers.」

「This fiscal year, the Company is pursuing four priority measures: “recovering the existing wholesale business,” “strengthening the retail business,” “planning and proposing distinctive product lines,” and “collaborating with companies in other industries.”」

「This fiscal year, we have identified four priority measures—“recovering the existing wholesale business,” “strengthening the retail business,” “planning and proposing distinctive product lines” and “collaboration with companies in other industries”—and are working to recover performance. Against this backdrop, businesses contributing to results include the launch of a new brand for families through collaboration with a major mass retailer, increased sales from expanding the brand lineup in the golfwear retail business, a recovery in fabric exports to European brands and the start of exclusive sales of the Italian natural cosmetics brand L'Erbolario」

「This fiscal year, the Company is pursuing four priority measures: “recovering the existing wholesale business,” “strengthening the retail business,” “planning and proposing distinctive product lines,” and “collaborating with companies in other industries.” Specifically, it is beginning to achieve results through a total casualwear initiative for ladies’ and men’s apparel with a major GMS, e-commerce sales of internally developed products, and coordination proposals using influencers with a major specialty-store chain, but believes that these initiatives must be strengthened further and that products capable of communicating its values need to be developed.」

「Specifically, first, together with a team of external specialists, we are undertaking a comprehensive reform of the sales process, including product planning that communicates distinctive features from the consumer's perspective, a renewed focus on the materials and patterns needed for that purpose, and diversification of sales promotion methods.」

「During the cumulative first quarter of the current fiscal year, the Company carried out an organizational restructuring at the beginning of the fiscal year and adopted an age-segmented structure for both its ladies’ and baby and kids’ apparel businesses, while reviewing the planning and proposal process and working to improve product-planning capabilities with the involvement of external specialists.」

「We expect the business environment to become extremely challenging as economic activity stagnates and personal consumption declines due to the spread of COVID-19, while retail stores in major cities close or reduce their opening hours in response to the declaration of a state of emergency. Under these conditions, to respond to market changes, we carried out an organizational restructuring effective 1 March of this year. In the women's apparel business, we reorganized the organization by individual product category, such as cut-and-sew garments, bottoms, knitwear and women's clothing, and will strengthen product planning that appeals to both younger and mature customer segments through total coordination, proposing silhouettes, colors and materials based on a consistent concept.」

「The Company has adopted “Back Home” (a return to its roots) as its company-wide theme and is working to improve its gross profit margin by securing appropriate profit margins for each customer, while expanding the planning of high-value-added product lines and strengthening proposals. By continuing these initiatives, it will devote every effort to recovering its earning power.」

「Against this backdrop, we established “Back Home (back to basics)” as a company-wide theme and, to achieve an early recovery in performance, once again started from the ground up on creating patterns in-house, while advancing the development of differentiated designs and materials and strengthening the planning and development of high-value-added product lines.」

「Against this backdrop, the Company adopted “Back Home” (a return to its roots) as its company-wide theme and, to restore performance quickly, has been strengthening proposals by reviewing and developing high-value-added product lines, while securing appropriate profit margins for each product and customer.」

「To this end, we will develop highly original materials, further enable our designers to demonstrate their capabilities and expand the planning of products combining fashion appeal and distinctive features. We will also strengthen product proposals based not only on the appeal of individual products but also on total coordination, combining colors, materials and silhouettes. In addition, we will once again start from the ground up on creating patterns in-house, pursuing differentiation through silhouettes and comfort in wear and fit.」

「Going forward, under the theme of “Back Home” (a return to our roots), we will work to strengthen our product-planning capabilities, secure appropriate profit margins for each product and customer, and stabilize quality through collaboration with production partner factories. At the same time, we will pursue the development of distinctive products using our original materials and through collaboration with external specialists, as well as examine new retail businesses, as medium- to long-term goals, and will make every effort to recover and raise our earning power in both the short and medium to long term.」

「Under the “Back Home” (back to basics) theme, we will continue to strengthen product planning capabilities, secure appropriate margins for each product and customer through collaboration with partner factories, and stabilize quality. We will also pursue, as medium- to long-term goals, the development of distinctive products using our original materials and through collaboration with external specialists, as well as the exploration of new retail businesses, while making every effort to recover and raise earnings capacity in the short term and over the medium to long term.」

「Going forward, under the theme of “Back Home” (a return to our roots), we will focus on recovering our earning power by developing trend-driven products, determining appropriate profitability for each product and customer, and stabilizing production processes and improving quality through collaboration with contract manufacturers.」

「We will work to provide trend-setting products with originality and fashion appeal.」

「Strengthening the ability to propose and develop high-value-added products」

「In particular, toward rebuilding the OEM and ODM businesses, we began reviewing operations from the planning and proposal stage, including materials, design, functionality and fashion appeal, but」

「Meanwhile, as a specialized textile trading company, we have made OEM (contract manufacturing under customers' brands) and ODM (contract manufacturing from the planning stage) for numerous customers a core strength. However, we believe that repeatedly pursuing trend-following planning caused the freshness of our designs to fade, and we were unable to sufficiently communicate the distinctive individuality and characteristics of our products to consumers.」

「The company's autumn/winter merchandise, which generates the highest sales and profit contribution throughout the year, struggled because it was unable to fully demonstrate the precision of its product planning in response to consumers' entrenched preference for saving and growing awareness of the balance between price and quality.」

「Strengthening the ability to propose and develop high-value-added products」

「Strengthening the ability to propose and develop high-value-added products」