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Management Strategies
Management Strategies: Current Situation and Future Outlook
The Group has adopted an “expanding equilibrium” policy to expand revenue while maintaining a balance between capital investment for new store openings and improvement of management efficiency through the expansion of its store network, with the aim of securing continuous and stable revenue.
As competition in the industry is expected to intensify further, the Group aims to differentiate itself from other companies by opening unique wedding & banquet facilities that meet the characteristics of each region, managing efficiently by leveraging economies of scale through the expansion of its store network, and maintaining and improving services for weddings and receptions through human resource development.
As competition in the industry is expected to intensify further, the Group aims to differentiate itself from other companies by opening unique wedding & banquet facilities that meet the characteristics of each region, managing efficiently by leveraging economies of scale through the expansion of its store network, and maintaining and improving services for weddings and receptions through human resource development.
Business Environment and Business and Financial Issues to Be Addressed as a Priority
In the short term, the current business environment has been affected by the impact of the COVID-19 pandemic, especially the decrease in the number of guests. By reviewing our operations in catering to weddings and banquets with small numbers of people, we have built a system that can cater to various needs. In the medium to long term, according to future population estimates, the number of people in our target age zone (late 20s to 30s) is going to decline year by year, while the unmarried rate of the same segment is expected to rise. There are concerns that the overall bridal market—in which the Group operates—will shrink. However, the “guest house wedding,” a wedding style where people can demonstrate their individuality, is gaining widespread support thanks to the rise in general customer awareness towards wedding information magazines, the increase and enhancement of web-based wedding information sites, and the diversification of consumer lifestyles. On the other hand, competition, including price competition, in the industry is intensifying, with hotels and specialized ceremony halls renovating their existing facilities and entering the guest house wedding market, and with the wedding style advocating low prices expanding its market. To gain customer support under these conditions, we have identified the following as our key focus areas, and are working on measures to achieve these goals.
i) Strategic expansion of our store network
ii) Promotion strategies to raise awareness
iii) Diversifying our business operations
iv) Securing and developing human resources
v) Hygiene management
vi) Risk management and compliance
vii) Strengthening the financial base
Measures for each focus area
i) Strategic expansion of our store network
In deciding new store locations, we comprehensively consider location-related conditions such as size of market area, regional characteristics and location, as well as store profitability. Of these criteria, we place the greatest emphasis on location, since it impacts the revenues and profits of the store. We will strategically expand our store network by expanding our sources of information for land acquisition opportunities and responding quickly as necessary. We will also continue to engage in projects to revitalize historical buildings into wedding & banquet facilities, which we have been working on for some time.
ii) Promotion strategies to raise awareness
The Group considers promotional strategies to enhance brand awareness an important issue in order to increase the utilization rate of its facilities. To address this issue, in addition to promotional activities through mass media, such as bridal and gourmet information magazines, regionally targeted television commercials, and Internet-based wedding and restaurant information websites, the Group will promote a wide range of promotional activities, including events for the general public, with the aim of discovering new customers by further enhancing awareness of its brands among potential customers.
iii) Diversifying our business operations
We believe it is important to respond to the diversifying needs of customers, as well as making proposals which help to identify and trigger potential customer needs. In order to address this area, in addition to BtoB business operations at our subsidiary TIMELESS Inc., from January 2019 we launched operations at an additional three companies—BROTH DINING Inc., which specializes in restaurant management; ANDYOU Inc., whose main business is the rental service of women’s party dresses; and DO Inc., whose main business is advertising agency operations. In December 2019, we entered the resort wedding business by acquiring a US-based company that develops wedding-related businesses in Hawaii. Going forward, we will work to further advance the diversification of business operations throughout the Group.
iv) Securing and developing human resources
Securing human resources is essential to the businesses operated by the Group, including the production of wedding ceremonies and receptions, rental and sales of wedding dresses, and restaurant operations. In addition, the staff engaged in these businesses are required to have the ability to develop plans and make proposals that accurately address customer needs, which in turn requires extensive product knowledge and advanced skills. Accordingly, the Group considers securing and developing human resources to be an important management issue.
To address these issues, the Group is strengthening its recruitment of new graduates to secure human resources. For employee development, in addition to establishing a specialized department, the Education and Training Division, the Group provides on-the-job training (OJT) to help employees acquire the necessary knowledge and enhance their skills. Since a certain period of training is required to develop staff, the Group strives to maintain and improve the quality of its services while balancing business expansion with the recruitment and development of human resources.
Furthermore, in order to create an environment in which all staff members can work with peace of mind and find greater satisfaction in their work, regardless of gender or nationality, the Group has implemented various measures, including a flextime system, a policy requiring employees to take 100% of their paid leave, and a personnel system that allows employees to engage in certain types of side jobs. The Group will continue to promote a wide range of initiatives to further enhance its working environment.
To address these issues, the Group is strengthening its recruitment of new graduates to secure human resources. For employee development, in addition to establishing a specialized department, the Education and Training Division, the Group provides on-the-job training (OJT) to help employees acquire the necessary knowledge and enhance their skills. Since a certain period of training is required to develop staff, the Group strives to maintain and improve the quality of its services while balancing business expansion with the recruitment and development of human resources.
Furthermore, in order to create an environment in which all staff members can work with peace of mind and find greater satisfaction in their work, regardless of gender or nationality, the Group has implemented various measures, including a flextime system, a policy requiring employees to take 100% of their paid leave, and a personnel system that allows employees to engage in certain types of side jobs. The Group will continue to promote a wide range of initiatives to further enhance its working environment.
v) Hygiene management
The Group believes that hygiene management is a key focus area to prevent the occurrence of food poisoning and other such incidents. To address this issue, we obtain business permits from local public health centers based on the Food Sanitation Act, and assign food-sanitation managers to all wedding & banquet facilities. We also manage quality based on a food sanitation manual, formulated to prevent food poisoning and other such incidents, and rigorously manage employee hygiene through measures such as regular stool sample examinations and health checkups. We are also renovating facilities as appropriate to improve store operations and the state of hygiene management at each store. In addition, we ensure thorough hygiene management by conducting regular and irregular hygiene inspections through a third-party organization.
vi) Risk management and compliance
The Group considers enhancing corporate governance and strengthening its compliance system to be important issues in order to remain a company trusted by all stakeholders surrounding the Group, including shareholders, customers, business partners, and employees, as well as by society as a whole.
With regard to risk management and compliance, the Group regularly reviews its systems and business operations through committees and other means, and works to ensure that these policies and procedures are thoroughly communicated and implemented throughout the Group.
In addition, when a staff member identifies a compliance-related issue, the Group has established a system under which the matter is promptly reported to the relevant department or through the internal reporting hotline. Depending on the severity of the issue, measures to prevent recurrence are determined and a system is in place to ensure that such measures are thoroughly communicated and implemented throughout the Group.
With regard to risk management and compliance, the Group regularly reviews its systems and business operations through committees and other means, and works to ensure that these policies and procedures are thoroughly communicated and implemented throughout the Group.
In addition, when a staff member identifies a compliance-related issue, the Group has established a system under which the matter is promptly reported to the relevant department or through the internal reporting hotline. Depending on the severity of the issue, measures to prevent recurrence are determined and a system is in place to ensure that such measures are thoroughly communicated and implemented throughout the Group.
vii) Strengthening the financial base
The Group believes that securing stable funds is a key focus area because there will be demand for funds such as increases and decreases in working capital due to seasonal fluctuations in sales revenue, and capital investments associated with the opening of new stores. In order to address this area, we believe it is important to expand internal reserves and build good business relationships with financial institutions in order to raise funds, including through borrowing.
