aderans group consolidated results for the first quarter...
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Aderans GroupConsolidated Results for the First Quarterof the Fiscal Year ending February 28, 2017
(March 1, 2016 to May 31, 2016)
This handout contains forward-looking statements that are based on management’s estimates, assumptions and projections at the time of presentation and include risks and uncertainties. A number of factors could cause actual results to differ materially from expectations.
Amounts less than a full unit are omitted, and percentages are rounded to one decimal place. Totals may not reflect the sum of component amounts.
July 15, 2016
2
The Aderans Group Ideal
Management PhilosophyOur corporate mission, as the Aderans Group, is to utilize our hair-related
businesses to help as many people as possible acquire the physical and
emotional qualities that underpin the realization of dreams and promote a good
impression, and in doing so, bring smiles to faces and support happy lives.
“Product excellence” “Technological excellence” “Heartfelt omotenashi”
Management VisionRealizing “good company” standard
Establish management structure which is highly transparent and trusted from
inside and outside the company
Servant Leadership Management Leadership to support clients and employees
Pattern of executive behavior that motivates employees, encourages them to
persevere and allows their talents to blossom
Management
Philosophy
Servant
Leadership
Management
Management
Vision
Sampo yoshi
Management
To offer hair-related products and services that people need and be trusted by clients and society around the world
Establish ECSR
management
ES
CS
CSR
Sampo yoshi —literally, “three-way good”—Management
Employee Satisfaction
Customer Satisfaction
Corporate Social Responsibility
Global Business Portfolio
Japan
United States
Europe
Asia
Fiscal 2017
From change
to marked progress
Fiscal 2018
From marked progress
to stabilization
Fiscal 2019
From stabilization
to sustainable growth
Focusing on solutions to hair-related concerns, offer total beauty and organic haircare products and establish higher profile
in medical services market with hair transplantation and androgenetic alopecia (AGA) treatments
Develop new services using strength of current doctor-facilitated medical business and promote in other countries,
enhance healthy hair-growth services, and improve response to demand from black people for wigs and hair-volumizing products and
services as well as after-sale services.
Boost customer retention for custom-made wigs, accelerate entry into regions where presence has not yet been established,
and attain No.1 share in each market by securing an overwhelming advantage
Pursue business providing solutions to hair-related concerns, accelerate business growth in China,
and set up locations in ASEAN region
Expand shares in global markets and maintain stable profits
3
JapanMature market , heightened competition
Moderate but definite growth
・Capture attention of anyone who uses wigs,
beyond customer base, through after-sale
services
• Expand business domain
AsiaMarket growth/expansion
Shift from introduction to growth
• Establish firm footing for businesses providing
solutions to hair-related concerns
EuropeMarket growth/expansion
Evolution from stability to growth
by leaps and bounds
• Enter regions where presence
not yet established
• Enhance marketing efforts for
custom-made products and
reinforce after-sale services
United StatesMarket growth/expansion
Evolution from stability to growth by leaps and bounds
• HC (USA) to open more locations and reinforce
presence in women’s market
• Bosley to pursue globalization and expand
medical business
• Aderans Hair Goods to widen access routes
Consolidated Results for the First Quarter of Fiscal 2017
(March 1, 2016 to May 31, 2016)
Fiscal 2017: First Quarter Consolidated Summary
(Millions of yen)
First
quarter of
Fiscal 2017
First
quarter of
Fiscal 2016
YOY change Comment
Net sales 19,131 19,708(576)
-2.9%
• Both the Aderans Business and the Fontaine Business delivered lower sales, down
¥179 million year-on-year (2.6%) and ¥128 million (6.0%), respectively.
• The Bosley Business achieved a ¥155 million (5.0%) decrease in sales, also lower sales
on a local-currency basis.
• The Overseas Wig Business showed a ¥61 million (0.9%) decrease in sales. However,
in United States, and Europe, we enjoyed an increase in sales on a local-currency
basis.
SG&A
expenses15,514 15,964
(449)
-2.8%
• Domestic operations posted a ¥39 million year-on-year decrease (4.9%), mainly due to
decrease in advertising and sales promotion expenditures.
• HC’s consolidated goodwill amortization amounted to US$932 thousand (about ¥100
million).
• Depreciation expenses, mainly HC’s tangible/intangible fixed assets, reached
US$5,304 thousand (about ¥610 million).
Operating
loss(402) (339) (62)
• Quarterly operating loss before amortization of goodwill posted ¥275 million, down
¥223 million year-on-year.
Net income (loss)
attributable to owners
of the parent company
(870) 54 (925) Booked foreign exchange losses of ¥460 million, from foreign exchange gains of
¥460 million at the previous first quarter.
EBITDA 714 829(114)
-13.8%
5
EBITDA = Operating income + Depreciation expenses + Depreciation of intangible fixed assets + Amortization of goodwill
1,250
1,382
10.6%
132
16/2 1Q 17/2 1Q
Operating income
(Millions of yen)
Men’s Market
Conducted sales promotions for patented hair growth, generating an increase in inquiries (up 135.9% year on year)
Enhanced website content and added chat function, generating an increase in website-based inquiries (up 145.0% year on year)
Financial Highlights: Aderans Business
330 309
2,237
-20 126 -388 103
2,363
1,413 1,025
2,998 3,102
16/2 1Q 男性新規 男性リピート 女性新規 女性リピート 17/2 1Q
Net Sales (Millions of yen)
Male +4.1% Female -6.5%
6,980 6,801-179 (-2.6%)
First Quarter Results
Vital EX launched
March 1, 2016
Wig maintenance commercial
aired from May 1, 2016
Men’s Market
Enhance efficiency of website-driven consultations
Step up customer loyalty promotion activities
Use campaigns to encourage salon visits
Women’s Market
New sales down due to entry of other companies offering women’s wigs into the industry and onslaught from other companies in the same industry
Wig maintenance commercials designed to attract wig users away from other companies generated some inquiries, but translation to actual sales expected to take time
We achieved slight increase of inquiry by launching “Hair-up Program” , which is featured patented hair-growth technique. However, these efforts had limited effect, and sales of the women’s segment decreased year on year.
Sales down due to lower customer attraction power at try-on events held in department stores
1,330
1,506
13.3%
176
16/2 1Q 17/2 1Q
EBITDA (Millions of yen)
Women’s Market
Attract more customers through wig-maintenance and trade-in promotions targeting other wig-
brand users
Enhance efficiency of website-driven consultations
Step up marketing of hair-growth products (secure “wig reserve force” of women in 40s and 50s)
Improve ROI of exhibitions/try-on events; use small-scale events to attract new customers
Women’s hair-growth promotion
commercial aired from June 30, 2016
Fiscal 2017 initiatives
6
男性新規 男性リピート 女性新規 女性リピート■ New Male ■ Repeat Male ■New Female ■Repeat Female
New Repeat New RepeatMale Male Female Female
Financial Highlights: Fontaine Business (Ready-made wigs)
7
2155 2,026
-128 (-6.0%)
-148 -5 24
16/2 1Q 百貨店 直営店 GMS 17/2 1Q
Net Sales (Millions of yen)
122
56
-53.9%
-66
16/2 1Q 17/2 1Q
Operating income
(Millions of yen)
164
95
-42.1%
-69
16/2 1Q 17/2 1Q
EBITDA (Millions of yen)
Step up sales promotions, including campaigns and special events, linked to new product launches and in-salon sales
Capture users of other-brand wigs through follow-ups; prompt them to switch brands; strengthen up-selling efforts to bolster purchases
Strengthen connectivity between own on-line site and omni-channel strategy
百貨店…
直営店 100.3%
GMS 111.7%
全体 92.1%
80
100
120
140
3月 4月 5月 累計
% Number of Customer Interactions (YoY % Change)
First Quarter Results
Fiscal 2017 initiatives
Department stores
Decline in shop customer interactions due to entry of other companies offering women’s wigs into the industry and onslaught from other companies in the same industry
Decline of in-salon customer attraction power
Directly operated salons
Decrease in sales at existing salons but decline minimal owing to new salon openings
GMS
Increase in sales thanks to new salon openings; repeat sales also firmly up
Department Directly GMSstores operated
salons
GMS (value) 111.7%
Directly operated salons (value) 100.3%
Overall (value) 92.1%
Department stores (value) 86.5%Mar. Apr. May Accumulated
Financial Highlights: Bosley Business
8
Problems with call center system (which went into operation in June 2015) were resolved in December 2015, but the issue affected the number of inquiries
through February 2016
Recruited physicians and assistants in line with full-scale introduction of Follicular Unit Extraction (FUE, hair-transplant method that doesn’t use scalpel), where
needs are growing
Successfully test-marketed FDA-approved CoolSculpting treatment (partial slimming through fat-cooling)
3,105 2,950
-155 (-5.0%)
-64 -90
16/2 1Q 売上純減 為替(円高)の影響 17/2 1Q
Net Sales (Millions of yen)
146
-7
-154
16/2 1Q 17/2 1Q
Operating income (loss)
(Millions of yen) 195
39
-79.7%
-155
16/2 1Q 17/2 1Q
EBITDA (Millions of yen)
0
2
4
6
8
10
12
2008 2010 2012 2014
(10,000s) No. of Hair Transplants by Type
合計 FUE FUT
Source: ISHRS
Boost number of consultations through website renewal and effective
commercials
Increase number of FUE procedures by recruiting physicians and assistants and
training in FUE treatment method
Increase one-stop services by providing non-transplant-related medical treatment
FUT method FUE method
CoolSculptingEyebrow
transplantationTheradome
(laser hair growth)Hair Transplantation
($26.0m) ($25.4m)
FUT
88.6%
FUE
11.3%Bosley
Fiscal 2016
No. of Hair Transplantation
FUT
81.4%
FUE
18.5%Bosley
1Q of Fiscal 2017
No. of Hair Transplantation
First Quarter Results
Fiscal 2017 initiatives
Exchange Rates: Fiscal 2016 First Quarter US$1 = ¥119.23, Fiscal 2017 First Quarter US$1 = ¥115.72, Presumed rate for fiscal 2017 at start of year: US$1 = ¥113.00
Net decrease Effect of yenin sales appreciation
■Total ■FUE ■FUT
Financial Highlights: Overseas Wig Business
9
North America (wigs)
HC: New salon openings: February 2016 (Pickering, Ontario, Canada);
May 2016 (Baton Rouge, Louisiana, USA)
Increased sales of women’s products and hair-volumizing products
AHG: Problems and returned products at mass retailers (main
wholesale clients)
5,455
($45.7m)
5,406
($46.7m)
1,211
(€9.1m)
-49 -10 -3 1,201
(€9.3m)
186 183
16/2 1Q 米国ウィッグ 欧州ウィッグ アジアウィッグ 17/2 1Q
Net Sales (Millions of yen)
6,852 6,790-61 (-0.9%)
North America (wigs)
HC: Increase new clients via commercials for hair-volumizing products, and
products aimed at women and Hispanics
Effective new salon openings continuously
AHG: Step up sales of Cyberhair (artificial hair developed in-house)
Introduce new products on a regular basis, and strengthen marketing capability
-451
-386 65
16/2 1Q 17/2 1Q
Operating loss
(Millions of yen)
459 420
-8.6%-39
16/2 1Q 17/2 1Q
EBITDA
(Millions of yen)
Europe (wigs)
Expand network based on medical needs (also consider growth through
acquisitions)
Asia (wigs)
China: Translate success of department store try-on events to new-salon
openings
Europe (wigs)
Solid performance driven by in-hospital salons and retail salons acquired in previous year
Acquired Dutch sales agency of wholesale client “Ellen Wille” expanded geographical
sales coverage
Asia (wigs)
China: Steady outcomes from try-on events at department stores
Taiwan: Opened Taiwan flagship salon to address rising demand for wigs
North America Europe Asia excluding Japan
Increase in local currency sales
North America (wigs) +2.2%
Europe (wigs) +2.2%
First Quarter Results
Fiscal 2017 initiatives
Exchange Rates: Fiscal 2016 First Quarter: US$1 = ¥119.23, €1=¥132.61, Chinese yuan 1 =¥19.09
Fiscal 2017 First Quarter: US$1 = ¥115.72, €1=¥127.99, Chinese yuan 1 =¥17.67
Presumed rate for fiscal 2017 at start of year: US$1 = ¥113.00 , €1=¥124.00, Chinese yuan 1 =¥17.35
North Europe AsiaAmerica excluding
Japan
Financial Highlights: Other Business
10
403343
126 -59 19 -8 -3
145
38 30
4644
16/2 1Q 美材ルート 病院内サロン 通信販売 その他 17/2 1Q
Net Sales (Millions of yen)
613 562-51 (-8.3%)
-203
-244
-40
16/2 1Q 17/2 1Q
Operating loss
(Millions of yen)
-199
-239
-39
16/2 1Q 17/2 1Q
EBITDA (Millions of yen)
Beauty supplies
Step sales with both wholesalers and dealers; implement independent sales promotion activities
Promote wig workshops and monitor sales in preparation for busy season in second half of year
Medical business (Salon inside hospitals)
Reinforce staff training at in-hospital salons; build trust-based relationships between hospitals
and our hospital patrol staff
Online sales
Concentrated on catalog sales of items returned from business partners (March
2016)
Increased number of new customers thanks to wig sales via Aderans on-line
site (up 35.7% year on year)
Launched Beauty Stage brand offering total beauty solutions based on leading-
edge technologies (also handled in Aderans salons)
Online sales
Launch new product (Feel Fine wig) on July 1, 2016
Promote omni-channel strategy with salons nationwide
(free advice on wig attaching and after-sales maintenance
by salon staff)
Beauty supplies Salon inside hospitals Online sales Others
First Quarter Results
Fiscal 2017 initiatives
Beauty Salon Online sales OthersSupplies inside
hospitals
Beauty supplies
Sales of new products (Lift Up hair-volumizing wigs) below
expectations (inadequate name recognition)
Increase in try-in events for custom-made wigs at hair beauty salons
Medical business (Salon inside hospitals)
Increase in telephone inquiries thanks to stepped-up pamphlet
distributions in hospitals
New in-hospital salon opened: Suita Tokushukai Hospital (May 2016)
Fiscal 2017: First Quarter Consolidated Sales
11
19,708
19,131
105
-284
-128
-64 138
-297
-44
Fiscal 2016
First Quarter
Fiscal 2017
First Quarter
(Millions of yen)
Others
Bosley: -¥90 million
North America (wigs)
Hair Club: -¥146 million
AHG (wigs, wholesale): -¥17 million
Europe (wigs): -¥42 million
North America (wigs)
Hair Club: +¥224 million
AHG (wigs, wholesales): -¥117 million
Europe (wigs): ¥32 million
Women’s
salons
Aderans Business
(Custom-made wigs)
Men’s
salons
Fontaine Business
(Ready-made wigs
for women)
Bosley Business, excluding
foreign exchange difference
Overseas Wig Business (North
America and Europe),
excluding foreign exchange difference
Difference
effect
of yen
appreciation
Fiscal 2017: First Quarter Consolidated Operating Income
12
-339 -402
-442 396
-133235 -214
96
(Millions of yen)
Fiscal 2016
First Quarter
Fiscal 2017
First Quarter
Domestic Overseas(Bosley, Overseas Wig Business)
Decrease in
gross profit
OtherDecrease in
SG&A
expenses
due to the ffect
of yen
appreciationIncrease in SG&A
expenses excluding
foreign exchange
difference
Decrease in
gross profit
Decrease in
SG&A
expenses
Change in Quarterly Consolidated Performance
13
19,131 20,869
0
5,000
10,000
15,000
20,000
25,000
1Q 2Q 3Q 4Q
2015年2月期 2016年2月期 2017年2月期
(Millions of yen)
602
-1,000
-500
0
500
1,000
1,500
2,000
1Q 2Q 3Q 4Q
2015年2月期 2016年2月期 2017年2月期
(Millions of yen)
Consolidated Net Sales Consolidated Operating Income (Loss)
-402
0
500
1,000
1,500
2,000
2,500
3,000
1Q 2Q 3Q 4Q
2015年2月期 2016年2月期 2017年2月期
(Millions of yen)
714
Consolidated EBITDA
■Fiscal 2015 ■Fiscal 2016 ■Fiscal 2017 ■Fiscal 2015 ■Fiscal 2016 ■Fiscal 2017
■Fiscal 2015 ■Fiscal 2016 ■Fiscal 2017
Fiscal 2017 Consolidated Business Forecast
14
Fiscal 2016 (Actual) Fiscal 2017 (Forecast) YOY Change
First HalfSecond
HalfFull Year First Half
Second
HalfFull Year Amount %
Net sales 39,842 39,310 79,153 40,000 41,300 81,300 2,147 2.7%
Operating
income (loss)
459 -584 -125 200 450 650 775 -
Ordinary
income (loss)
821 -1,370 -548 190 450 640 1,188 -
Net income (loss) attributable to owners of the parent company
349 -2,209 -1,860 30 70 100 1,960 -
(Millions of yen)
Fiscal 2016 (Actual) Fiscal 2017 (Forecast) YOY Change
At end of first
halfYear-end Total
At end of first
halfYear-end Total Amount
Dividend 0 15 15 0 15 15 0
(Yen)
• There is no change to the forecast announced on April 14, 2016.
Supplementary Data
Consolidated Results for First Quarter of Fiscal 2017
16
Fiscal 2016
First Quarter
Fiscal 2017
First Quarter
YOY change
(¥)YOY change (%)
Net sales 19,708 19,131 -576 -2.9%
Cost of sales 4,083 4,019 -64 -1.6%
Cost of sales ratio 20.7% 21.0% 0.3p -
Gross profit 15,624 15,112 -512 -3.3%
SG&A expenses 15,964 15,514 -449 -2.8%
Operating loss -339 -402 -62 -
Operating income ratio - - - -
Ordinary income (loss) 315 -883 -1,198 -
Extraordinary income 0 0 0 -72.3%
Extraordinary loss 215 29 -185 -86.0%
Income before taxes 99 -913 -1,012 -
Net income (loss) attributable to owners of the parent company 54 -870 -925 -
Capital expenditures 1,187 947 -240 -20.2%
Depreciation/Amortization 1,169 1,117 -51 -4.4%
EBITDA 829 714 -114 -13.8%
Cash balance 12,232 11,098 -1,133 -9.3%
(Millions of yen)
Summary of Consolidated Balance Sheets
17
As of February 29, 2016 As of May 31, 2016YOY
(Millions of yen)Amount
(Millions of yen)
Composition
(%)
Amount
(Millions of yen)
Composition
(%)
Current assets 27,992 41.5 26,722 41.2 -1,269
(Cash and deposits) 11,979 17.8 11,098 17.1 -880
Fixed assets 39,495 58.5 38,122 58.8 -1,373
(Tangible fixed assets) 14,189 21.0 14,482 22.3 292
(Intangible fixed assets) 19,188 28.4 17,409 26.8 -1,778
Total assets 67,487 100.0 64,844 100.0 -2,642
Current liabilities 12,018 17.8 12,509 19.3 490
Fixed liabilities 19,158 28.4 18,510 28.5 -648
Total liabilities 31,177 46.2 31,020 47.8 -157
Total net assets 36,309 53.8 33,824 52.2 -2,485
Total liabilities and
net assets67,487 100.0 64,844 100.0 -2,642
(Millions of yen)
Consolidated Net Income, ROE, and Equity Ratio
21
1
6.9
-150
-125
-100
-75
-50
-25
0
25
50
75
-250
-200
-150
-100
-50
0
50
100
150
Consolidated Net Income(Hundred millions of yen)
Equity RatioROE(%)
30
60
90
-30
-60
-90
*Estimates
Net Income ROE Equity Ratio
Change in Consolidated Net Sales and Operating Income
18
-100
-50
0
50
100
150
200
250
0
100
200
300
400
500
600
700
800
900
85.2 86.2 87.2 88.2 89.2 90.2 91.2 92.2 93.2 94.2 95.2 96.2 97.2 98.2 99.2 00.2 01.2 02.2 03.2 04.2 05.2 06.2 07.2 08.2 09.2 10.2 11.2 12.2 13.2 14.2 15.2 16.2 17.2
Aderans Holdings integrates
Aderans Co and Fontaine Co.(September 2010)
Fontaine Co made into its subsidiary(August 1985)Started expanding into women’s marketStock registered with Japan Securities Dealers Association(September 1985)
Listed on SecondSection of Tokyo Stock Exchange
January1987)
Listed on First Section of Tokyo Stock Exchange
(August 1997)
Made Bosley into its subsidiary
(August 2001)
Made HC (USA) Inc.
into its subsidiary
(April 2013)
Made Le Nouvel Espace Beauté SA
into its subsidiary(September 2012)
Aderans Lao Co., Ltd. established(May 2014)
Aderans Europe BVestablished
(January 1992)
Aderans Thailand established(Factory) (October 1986)
Aderans Philippine established(Factory) (January 2002)
Consolidated Sales (Hundred millions of yen)
Operating Income (Hundred million yen)Consolidated
Net SalesConsolidatedOperating Income
Consolidated EBITDA, Depreciation/Amortization, Capital Expenditures
20
54 67
82
0
10
20
30
40
50
60
70
80
90
-100
-50
0
50
100
150
200
250
New opening of Aderans salons
New openings and relocation of directly operated salons
and shops at deparment stores
Acquisition of the Company’s building
Relocation of Aderans salons due to
its deterioration
New openings and relocation of Aderans salons, and construction of
company dormitory and training center.
Capital spending on information system for the Y2K issue
Consolidated EBITDA
Depreciation/Amortization
Capital Expenditures
Consolidated EBITDA(Hundred millions of yen)
Depreciation/AmortizationCapital expenditures
(Hundred millions of yen)
*Estimates
Change in Net Sales for Each Segment
19
813
739 706
727 735 750
705
574
482 474 511
678
767 792
910
0
100
200
300
400
500
600
700
800
900
1,000
(Hundred millions of yen)
Ov
ersea
s
Aderans, Male
Aderans, Female
Fontaine
Bosley
Overseas wig
Male
13.0%
Female
22.3%North
America
28.0%
Europe
6.1%
Asia
1.0%
Aderans
Business
35.3%
Fontaine
Business
10.9%Bosley
Business
15.7%
Overseas Wig
Business
35.1%
Other
3.0%
First Quarter
of Fiscal 2016
Consolidated
Nat Sales
¥19,708 million
Male
13.9%
Female
21.5%
North
America
28.5%
Europe
6.3%
Asia
1.0%
Aderans
Business
35.4%
Fontaine
Business
10.6%Bosley
Business
15.4%
Overseas
Wig
Business
35.8%
Other
2.9%
First Quarter
of Fiscal 2017
Consolidated
Nat Sales
¥19,131 million
Overse
as
Do
mestic
Dom
estic
■Aderans (Male) ■Aderans (Female) ■Fontaine Business
■Bosley Business ■Overseas Wig Business ■Other Operations
-Fontaine Business included beauty supply route until the end of fiscal 2010, ended February 28, 2010
-Other Operations includes beauty supply route, medical-related businesses and e-commerce retail
*Estimates
Changes in Domestic Salon Network
22
8 7 7 7 7 716 13 13 16 20 19
118 119 127 135 136 137
151 148 148150 156 157
28 32 3033
37 382
13
3447 53
6 1417
22
25 26
0
50
100
150
200
250
300
350
400
450
2012年2月末 2013年2月末 2014年2月末 2015年2月末 2016年2月末 2016年5月末
335355
397
428
327
437
(Number of salons)
Feb. 29, 2012 Feb. 28, 2013 Feb. 28, 2014 Feb. 28, 2015 Feb. 29, 2016 May 31, 2016
■Men’s salons ■Women’s salons ■Salons for men and women ■Department stores ■Directly operated salons ■GMS ■In-hospital salons
Changes in Overseas Salon Network
23
24 23 23 25 25
71 81 86 8869
7581
90 93
18
22
36
41 38
111
191
221
242 244
0
50
100
150
200
250
2012年12月末 2013年12月末 2014年12月末 2015年12月末 2016年3月末
(Number of salons)
■Bosley (Surgical offices) ■Hair Club (Directly operated salons) ■Europe ■Asia
Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Mar. 31, 2016
Domestic Market Environment—Hair Business
21
Men’s Market
Heightened competition from adjacent hair-related markets,
such as formulas that promote growth and make hair
healthier, as well as haircare products, has in the past few
years sustained an uphill battle for sales. But many people do
not feel that such products are generating the desired effect,
prompting an increase in sales of wigs and hair-volumizing
products to new male clients.
Women’s Market
More women are falling into the 50-70 age group that is our
primary target and more seniors are remaining active as they
age. These factors should spur demand for wigs and hair-
volumizing products.
Sales at wig shops with reasonably priced items and sales at
try-on events are rising, especially through a higher profile at
general merchandise stores, leading to intense competition.
Wigs are becoming accepted as a fashion item, and
companies from other business sectors are entering the
market. Wigs in the low-price range are being sold through
home shopping channels, e-commerce and catalog-based
direct marketing methods. This situation is affecting the
ability to capture the interest of new clients.
700 683 689 694 695 696 697 698 699
630 677 699 707 713 719 725 731 737
1,330 1,360
1,388 1,401 1,408 1,415 1,422 1,429 1,436
0
500
1,000
(Hundred millions of yen)
Changes in Size of Men’s and Women’s Markets
in the Domestic Hair Business男性 女性■Male ■Female
2011 2012 2013 2014 2015 2016 2017 2018 2019(Forecast) (Forecast) (Forecast) (Forecast) (Forecast)
Source: Hair Care Industry Market Report Overview by Yano Research Institute Ltd.
Domestic Hair Care Market Share
Aderans
16.1%
Company A
33.8%
Company B
8.9%
Company C
5.8%
Company D
4.3%
Other companies
31.1%
Share of Domestic Hair Care Market (Men)
Men’s hair care market
in Japan valued at
¥69,400 million
in 2014
Aderans
42.7%
Company A
24.1%
Company B
6.6%
Company C
3.7%
Company D
3.4%
Company E
3.4%
Other companies
16.1%
Share of Domestic Hair Care Market (Women)
Women’s hair care market
in Japan valued at
¥70,700 million
in 2014
Source: Hair Care Market Report Overview, Yano Research Institute
Outside-industry providers of low-
priced ready-made wigs
• Pharmaceuticals maker
• Cosmetics makers
• Beauty salons
• Small-scale wig maker
22
No major change in share status among key players
since 2012.
Wigmakers and companies from outside the industry that
offer low-priced wigs are expanding respective shares in the
market through their own sales channels.