In September 2010, the Dr. Ci:Labo Group announced the launch of its 3rd Medium-Term Management Plan, which commenced from the 13th fiscal year starting in August 2010 and will conclude with the end of the 15th fiscal year in July 2013. Under the Medium-Term Management Plan, the Dr. Ci:Labo Group has established a target to achieve 47 billion yen in consolidated net sales and 12.4 billion yen in ordinary income for the 15th fiscal year.

At present, the demarcation between sales channels, such as retail stores and mail order sales, has eased, while the passive consumer behavior of blindly following the mass media and one-sided company marketing continues to decline, with trends pointing to a shift to more active consumer behavior where consumers think, choose and act independently. Given this trend, we foresee that the size of Japan’s domestic cosmetics market will remain largely unchanged going forward. On the other hand, however, we think more non-core providers will enter the market in the future, which will lead to more severe competition. Accordingly, we believe a company that has products and services with the added convenience and flexibility to attract consumers will ultimately come out on top. Based on this understanding, in the 3rd Medium-Term Management Plan, we have developed the basic policies of (1) aiming to meet the increasingly sophisticated needs and values of our customers, and (2) following a growth strategy that focuses on improving service offerings and expanding sales and marketing approaches to new customers, under the belief that the customer will represent the key criteria that will determine corporate activities.

Dr. Ci:Labo will continue to bring products to market that leverage its wide-ranging expertise in medicated products, not limited to just skin or beauty care, and will aim to be the company of choice for consumers by consistently placing its corporate activities from the viewpoint of customers. Although the size of Japan’s overall cosmetics market looks to remain largely flat, the size of the medicated cosmetics market continues to grow annually together with its visibility among consumers. We firmly believe that our Group will be able to use this as a tailwind to further accelerate the pace of growth going forward. 

Tomomi Ishihara, President COO

 Presentation Material  (756kb)

Quantitative targets for each year between fiscal 2011 and fiscal 2013 (inclusive).

Aim to meet the increasingly sophisticated needs and values of our customers
~ Follow a growth strategy that focuses on improving service offerings and expanding sales and marketing approaches to new customers ~

1. Develop medicated products that are predominantly differentiated from competitors in the cosmetics and health foods markets
2. Enhance the responsiveness of each sales channel and increase customer use by optimally utilizing multiple sales channels
3. Establish a foundation for sustainable long-term growth by capturing new markets and customers

Mail order sales

Aim for net sales increase by 9,000 million yen

Realize the fastest correspondence speed for customers in the mail order cosmetic market
↓
Strengthen ties with customers
~ Subdivide, improve and optimize the quality of services ~
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Enhance repeat customers for our products and services

Wholesale

Aim for net sales increase by 3,800 million yen

Enforce collaboration with domestic key distributors and organizational strength
↓
Accelerate sales method with multi-channels

Counseling type sales

Aim for net sales increase by 1,300 million yen

• Enhance the sales force by improving training for beauty counseling
• Increase the brand visibility through face-to-face sales

Overseas business and other

Aim for net sales by 1,000 million yen by enhancing existing regions.
Enter to new markets

Existing regions
Expand market focused on Asian countries
  Taiwan : TV mail order channel as a secondary sales source
  Hong Kong : Increase brand visibility in mainland China (open 5 new stores per year on average)

New market
Entry to the market in China

• Aim to complete all legal procedures, e.g. applications, etc., during the 13th fiscal year
• Select alliance partners during the 13th fiscal year