Business Strategies

FY3/2019 Main STRATEGIES
~Main STRATEGIES OF CORE BUSINESS, BUSINESS WEAR BUSINESS~

KEY STRATEGIES

1.Corporate strategy

Expand corporate partnership sales(Sales to employees of partner companies)

<Main initiatives>
  1. Expand the number of corporate partnerships by increasing officers in charge of regional companies and enhancing corporate marketing system.
  2. Send more customers to stores through meticulous and regular marketing activities and stronger sales promotions.
  3. Increase sales events at partner companies.

Full-fledged Entry into Uniform Business

<Main initiatives>
  1. Continue to participate actively in bidding for major uniform customers centering on large companies.
  2. Strengthen acquisition of demand for uniforms from officers in charge of regional companies and stores, and enhance working wear proposals through catalogues.
  3. Expand sales of student uniforms by increasing the number of uniform-handling stores and enhance recognition by beefing up sales promotions.

2.Digital Strategy

Outline of Digital Strategy

Objective: Marketing automation that envisions the use of AI

  1. Digitalize sales promotion.
  2. Strengthen collaboration between EC and stores (Promote Digi labo store).
  3. Digitalize customer service (Develop customer service assistance terminals).

3.Womenswear strategy

<Main initiatives>

  1. Expand sales of formal wear and career women’s wear which have large room for growth.
    • ①Formal wear: Strengthen product lineup for married women and enhance recognition by using various sales promotion tools.
    • ②Career: Strengthen the QR system centering on TSC to respond to additional order placement and fashion trends.
  2. Promote CRM of women by issuing new cards for women. (Refer to the next page for details)
  3. Enhance education for sales staff by assigning education managers for womenswear.

new membership card for women: Blue Rose Card
(Started ACCEPTING APPLICATIONS from June 1, 2018)

Objective: Strengthen CRM for female customers and promote reciprocal customer sending within the Group
Expand benefits within the Aoyama Group: Add benefits from TSC, Eagle Retailing, Minit, etc. to improve usability.
Issuance target: 1 million people in 3 years (credit cards 300,000 + point cards 700,000)

『BLUE ROSE POINTCARD』

By taking advantage of the strength of the Aoyama Group, we added attractive benefits for women beyond the boundary with TSC and commonizing points. We will be working on sales promotions for nurturing and maintaining core female customers and promoting CRM using apps.

『BLUE ROSE CARD (VISA & Mastercard)』

Target in the initial year 100,000 members (300,000 in 3 years)
Concept: The symbolism of the blue rose is “make the impossible possible.” We want to offer dream cards for all working women.

4.Others

Sharing items, New items, New function items

Measures

Results in FY3/2018

Initiatives in FY3/2019

Sharing

In addition to rental morning, added rental tuxedo
(Sales of about ¥200 million)

Expand range of items
(Men’s party suits, etc.)

New items

Expanded items centering on maintenance items Hangers, shoe keepers, detergents, arranging bars (picture on right)
(Sales of about ¥1.3 billion)

Paper glasses (picture below)
・・・Thin reading glasses with thickness of 2 mm that are easy to carry around

New functional items

  • Developed mainly shoes and dress shirts, etc.
  • Waterproof and stretch suits, etc. Link with advertisements

Try to expand “NON IRON MAX” and “Coldblack®” series

Content

Started sales of “NON IRON MAX pure cotton ties” as washable items made of 100% cotton.

Started sales of women’s suits using “Coldblack®,” a heat shield material

Sharing economy

New items

orders

Measures

Results in FY3/2018

Initiatives in FY3/2019

Content

There are currently three outlets for custom order shop UL Measure’s (nine outlets of existing TSC linked shops.)
Performed favorably thanks to an increase in existing repeaters and new customers through word of mouth and store’s website.

Flagship store on Ginza’s Namiki-dori Street

Revise order receipt system to shorten time for customer service and product delivery.

Make the fabric lineup more attractive by adding new colors and patterns to the current 2,000 types of fabric.
Enhance staff education to attract new segment of customers at TSC custom-order-handling stores (nine outlets).

main initiatives by group business

Segments

 

Main initiatives in the current FY

Credit Card Business

Acquire new customers by increasing female customers through issuance of new credit cards for women, and promote reciprocal customer sending among Group stores.

Printing and Media Business

  1. ① Reduce manufacturing costs by using AI to save time and personnel.
  2. ② Expand orders with digital sales promotions.

Sundry Sales Business

  1. ① Slash sales opportunity losses by introducing automatic replenish/order placement system.
  2. ② Renew furniture/signboard, etc.

Other

(Restaurant Business)

Plans to open four stores (one in the first half and three in the second half of the fiscal year)
The issue is how to secure personnel.

(WTW)

  1. ① Strengthen product lineup in accordance with store characteristics and improve presentations on sales floors with seasonality.
  2. ② Expand sales through bridal gifts and housing planning.

(Reuse Business)

  1. ① Increase handling of clothes and accessories of reinforcing brands.
  2. ② Create new customers by handling items for kids and household goods.

casual wear business: EAGLE RETAILING CORPORATION

Issue

Results in FY3/2018

Initiatives in FY3/2019

Optimize inventory

Achieve reduction of inventory by about 30% at the end of fiscal year.

Maintain thorough optimal inventory management.

Review cost

Reduce sales cost and royalty, etc.
(decrease by 800 million yen from the previous year).

Focus on efficient use of funds until the business becomes profitable.

MD

Constantly deliberating with the U.S. company AEO.

Continue with negotiations with the U.S.

From the latter half of the previous fiscal year, the Company strove to reduce cost and lower royalty rate under the new management structure, and as a result, it was able to reduce its deficit by 700 million yen while sales declined. In this fiscal year, we expect net sales to increase by 400 million yen, with existing stores to grow by 2.8% year on year in addition to an increase of EC sales, and projects that operating loss will be reduced by 500 million yen through improvement of gross profit margin. We will make this fiscal year a year to cement the base to achieve steady execution of the new medium-term management plan.

total repair service business: MINIT ASIA PACIFI

<Main initiatives>

  1. Increase services and shift the store model to service convenience stores.
  2. Reform domestic store management model from direct management stores to franchise stores.
  3. Expand store network (Japan: 20 stores, Oceania: 14 stores, ASEAN: 18 stores).

Due to a slowdown in growth in Oceania, we revised our initial operating income target of FY3/2019 from +200 million yen to -100 million yen. Business in Japan is still positioned to be in the investment phase, but the period after FY3/2020 will be positioned as a profit phase and we will make a shift to expanding sales and profit.