Opening Flagship Stores in Tokyo and the Three Neighboring Prefectures
In order to win new customers and further expand market share,we opened new flagship stores in urban areas by focusing on store structure and product line-up that differ from those of conventional suburban stores.

We opened the Yofuku-no-Aoyama Ginza Honten Store in the Ginza district of Tokyo,which boasts the highest status in Japan,in October 2010 and the Shibuya Ekimae So-honten Store in Center Gai of Shibuya,a town for the youth and a base from which fashion information is dispatched,in November 2010 as flagship urban stores. These two stores use the new Yofuku-no-Aoyama logo and visuals linked to television commercials,among other things,in creating stores that differ from conventional suburban stores.At the same time,these stores also focus on the product line-up through such initiatives as increasing womenswear products and high-value-added suits as well as trend suits for young people.
Moreover,utilizing the Chiba Center,a new distribution center which opened last year,these stores secured maximum selling space while minimizing the stockroom space,which conventionally occupied up to about 82.5 square meters.
On the opening day of the Ginza Honten Store, Tomokazu Miura, Saki Aibu,Panzetta Girolamo,and Junpei Mizobata,who all serve as spokespersons,came to the store and made the opening event a lively one.
Also,actress Nozomi Sasaki, who is the new spokesperson of the womenswear,attended the tape cutting of the opening ceremony of the Shibuya Ekimae So-honten Store and wore our popular brand suit for young women when she welcomed customers.
Beside these two stores,in the year under review we opened the Tenjin So-honten Store (Fukuoka Prefecture),the Sendai Chuo-dori Store (Miyagi Prefecture),and the Sakae Honten Store(Aichi Prefecture) as core stores of cities designated by government ordinance.
Through such initiatives,we further expanded market share.

Implementing New Sales Promotion Strategy
In an effort to win a new customer base, we commenced a sales promotion strategy that differ from the conventional promotion for “Yofuku-no-Aoyama” by taking such initiatives as implementing the “Take Blue” campaign mainly in the Tokyo metropolitan area and featuring Nozomi Sasaki as the new spokesperson.

From October 2010 we created a new logo for Yofuku-no-Aoyama and the catchphrase “Take Blue — suit, It suits you.” with a view to making consumers widely recognize the design and high quality of suits in the Tokyo metropolitan area in which many businessmen work. Along with this, we broadcast the television program “Otokotachi-no-Credo”(Credo per Signori) which focuses on the appeal of suit fashion and importance of appearance,as well as aired new television commercials and took other initiatives in commencing a new sales promotion strategy on the occasion of the opening of the flagship stores.

We newly featured actress Nozomi Sasaki as the spokesperson of womenswear from February 2011.
Nozomi Sasaki,who is very popular among young people in their 20s as a fashion icon,is engaged in a wide range of activities as a television personality, such as commercials and variety programs.At the same time,she appears in the popular Tokyo Girls Collection event as a model.We featured her as a spokesperson because she is suitable for achieving our objective of reinforcing the young womenswear category.
The television commercial featuring Nozomi Sasaki has elicited the response of a wide range of customers,mainly women,and sales of womenswear were strong.

Enhancing the Line-up of Functional Products
We bolstered the line-up of high-value-added products in terms of quality,functionality,fashion and eco-friendliness.

We launched the “Active Model” suit as a result of our thorough pursuit of stretchability to enable easy movement while riding on a bicycle.
We used stretchable materials for the outer material and lining,and also utilized the“Power Net” stretch function lining for the back lining of the jacket and the upper arm portion of the lining of the sleeve.This significantly broadened the range of arm movement compared with normal suits. Furthermore, we used a mesh kneepad in the lining of the knee area of the trousers to make it easy to raise the knees,and incorporated other ideas to achieve stretchability in various areas.
In recent years,commuting by bicycle has attracted much attention due to mounting environment consciousness,energy-saving consciousness, and health consciousness.
Prompted by this trend,demand for suits that allow easy movement has been rising.The “Active Model” suit is a product that responds to such customer demand.

In recent years, washable suits that can be washed at home have been drawing much attention because of mounting saving consciousness among consumers.
We,too,offer a suit called “Aqua Wash Suit” that can not only be washed at home but also be easily washed by using a shower and other means.Furthermore,this suit has enhanced functionality as a result of anti-wrinkle stretching function added to the materials used,mainly wool.
In the future,we will further enhance the Aqua Wash Suit and start offering washable suit for women in February 2011.Through these initiatives,we will augment sales of washable suits.