Ceaseless evolution with integrity for a prosperous coexistence with all stakeholders
Applying our management philosophy to develop stimulating shops
Our management philosophy is “We would like our company to be honest, existing according to the laws of the universe.” This philosophy was conceived by my predecessor Hideo Ida (second generation), based on the worldview of Buddhism. This has been our consistent approach since the era of Kohachiro Ida, the founder of the company.
Immediately after World War II, IDA Ryogokudo was supported by the kindness of many makers, such as those that brought products to us first at a time when supplies were still short, or signed general agent contracts with us. Supported by kindness like this, IDA Ryogokudo always sold products at their regular prices for the sake of the customer, even when quantities were limited. Because the founder insisted on integrity, the number of business transactions increased and served as a growth driver after the war. My predecessor, Hideo, witnessed this close up and created the management philosophy referred to above, and I, the third-generation, maintain this aspiration for our transactions.
To sustain this aspiration, a rich portfolio is imperative. IDA Ryogokudo has specialized in cosmetics for more than 40 years and amassed expertise as a wholesaler. For example, we set the minimum unit for procurement as “one unit” and built a warehouse inventory management system accordingly. We clearly divide the hot-selling product group that accounts for over 90% of sales from the long-tail product group and flexibly metabolize the latter. Today, we boast a lineup of approximately 23,000 items and continue to actively seek new business transactions with makers. By creating the most advanced portfolio, we provide makers with opportunities to have their products discovered by consumers and stores with proposals for highly stimulating shops.
Continuing to provide mediation value beyond simply wholesaling
To enhance our shop proposals, we launched Cross Merchandising Promotion in 2008. This consists of cross merchandising for beauty solutions including “by lifestyle” or “by occasion,” with a salesperson customizing this for the store’s concept and customer demographic. These shops deliver shopping experiences such as “I was able to resolve my dilemma” or “It triggered me to change my lifestyle” to customers who visit the store. We consider this to be as asset of IDA Ryogokudo.
In total, we prepare 8,000 to 9,000 proposals a month. I check all proposals, and am gratified to see that these are continually evolving year after year. When we first implemented Cross Merchandising Promotion, we went through a lot of trial and error. However, our salespeople applied their full knowledge to propose shop development and all executions were shared internally. Good examples were immediately deployed horizontally. We also emphasize in new employee training the substance of Cross Merchandising Promotion, which is “to sell solutions, not things.” Through this steady effort, we have accumulated expertise that cannot be easily imitated by other companies. Some of our sales employees have handled 200 Cross Merchandising Promotion matters in a month, brushing up their proposal capability. I am confident that combined with our structure for flexible metabolism of product, our company is capable of providing mediation value to both makers and stores that goes beyond simply wholesaling.
We will also focus ahead on the fusion of online and real stores. One future concept example is “click & collect” at our directly-operated stores. This is a system for customers to buy the product online and then pick it up at a real store in their local area. While repeating trial and error, we amass expertise that fits the times. We will continue to provide optimum proposals to makers and stores. For customers, we will provide a shopping experience where they can indulge in the fun of shopping for cosmetics, as it should be. As for our employees, I want them to have lives full of purpose, attaining personal growth along with the company. IDA Ryogokudo will engage with all stakeholders with integrity while ceaselessly evolving with the aim of prosperous coexistence.