Medium-Term Management Plan
Basic Policy
Based on our Group’s management philosophy of “firstly, for our customers and their future, secondly, for our associates and their future, and thirdly, for the company and its future,” we have defined a purpose, vision, and values as what we are aiming for in the future. Our Group’s purpose is to enriching each and every one of our customers with “tokimeki*” and “anshin**”, and in November 2021, we formulated a medium- to long-term business strategy aiming to “become a global hospitality brand by 2030” as our vision to realize that purpose. As the first phase of this strategy, we have established an action plan and numerical targets for the fiscal year ending March 31, 2025 under our medium-term management plan “PARIS MIKI NOUVEAU -New PARIS MIKI- FY2022–2024,” and we are working to achieve these targets.
* excitement in Japanese
** peace of mind in Japanese
The latest medium-term management plan can be viewed below.
Overview of Medium-Term Management Goals
On April 1, 2022, the Company changed its name in Japanese from MIKI HOLDINGS Inc. to PARIS MIKI HOLDINGS Inc. We will continue our efforts to promote awareness of the PARIS MIKI brand and interest in Company stock by matching the name of the stores used by customers with the trade name displayed as the listed stock name.
In the eyewear business, our current main business, we will strive to further improve customer satisfaction, which is the starting point of our Group, by enhancing the customer experience, improving profitability as the Group’s core business.
At the same time, we will leverage the knowledge and experience we have cultivated through the management of eyewear stores to meet the needs of our customers, and continue to take on challenges in new fields, such as medical-related businesses in Japan and overseas.
Management Environment
Market Environment and Customer Trends
In Japan, the decline in working population due to the aging population and declining birthrate has become a long-term and constant challenge, and while many people want to live a healthy, enjoyable, and prosperous life in an aging and long-lived society, they are also likely to feel uneasy with regard to medical care, long-term care, the social security system, and a decline of mental and physical functions. We understand how important it is to think about what we can do to alleviate these concerns, and to build a trusting relationship in which others feel as though they can easily consult with vision and hearing professionals.
As more consideration is given to issues regarding the natural environment, we are gradually shifting from an era of mass consumption to one of giving careful thought to what is truly necessary. We have developed and continue to refine a consistent group system that not only provides quality products that can be used for a long time, but also provides reliable hospitality, including after-sales and maintenance. We believe that it is our mission to continue educating our customers so that they can align themselves with our efforts.
What Sets Us Apart From Others in the Same Industry
We recognize that our strengths lie not in simply being a company that sells eyewear and hearing aids, but in being a company where customers feel as though they are free to consult with us regarding any problems they may have related to their eyes and ears, and in having a high level of technical ability with experienced employees who can make suggestions to solve those problems. In April 2022, Japan launched the “※Skilled Professionals of Spectacle Manufacturing (※ tentative name in English)” system, which became a national qualification, and in November of the same year, Japan handed out its first qualification. Since then, 994 people in our Group have passed the qualification, the largest number in the eyewear retail industry. We will continue to enhance our internal education and training environment and increase the number of qualified employees, so that we can further develop personnel who can respond to our customers’ needs for assurance. We also have stores across Japan that handle hearing aids and highly skilled employees, with more than 500 stores having hearing measurement rooms (soundproof rooms) installed. While all five senses are important, seeing and hearing are especially so. They can be supplemented to some extent using equipment, but answering questions such as what to use, to what extent, and in what situation requires high-level proposal and technical abilities, and our stores all over the country are equipped to respond to said questions.
In addition, lifestyles and tastes are not universal, and so we are developing a variety of store types with particular store designs, products, and measurement methods. Through the opening, renovation of stores as well as relocation or consolidation which includes closing, we are working to clarify concepts tailored to each region and distinguish ourselves from other companies that are more standardized and uniform, transforming our stores into locations that combine our unique blend of “excitement and peace of mind”.
Management and Business Strategies
Store Strategy
Aiming to “create glasses stores that don’t seem like glasses stores”
In urban areas with a large number of fashion-sensitive customers, we have opened stores themed around 1950s American diners and music, stores based on the concept of the good old days of the late 1800s and early 1900s, when Paris, France, was at its brightest in line with our company name of “PARIS MIKI,” and more. In addition, in the suburbs, traditional stores have faded over time, so in opening new stores we wanted to do so with fresh concepts, such as creating a log house-style lodge store using wood. By installing café corners where customers can relax and slides where children can play, we have been able to attract more young families in addition to our traditional middle-aged and older customers. As these results show, the opening of “glasses stores that don’t seem like glasses stores” received a greater response than expected and garnered the support of many customers.
For future store development, we will continue to review and consolidate unprofitable stores and strengthen our structure so that each store can build a deeper relationship with its customers. We are also continuing our efforts to create stores that give people a sense of excitement and renovating stores based on store segments by changing their product lineups and sales methods to suit the region and customer base. We plan to systematically invest in independent suburban stores that we will retain in the future.
For existing stores, we will promote the creation of locations that are highly convenient for customers by gradually closing and consolidating stores as well as relocating stores in commercial areas where the environment has changed. We plan to maintain the current level of the number of locations until the fiscal year ending March 31, 2025 by opening new stores at a pace of around 30 stores per year while simultaneously consolidating and closing aging stores and those in which the local environment has significantly changed.
Product Strategy
Enhancing Audio Life Care
In Japan, there are many people who experience difficulty in hearing but do not wear hearing aids. One reason may be the high cost of purchasing hearing aids. In response to this, we have taken the initiative ahead of other companies and introduced a fixed-rate lending service that can be used for up to three years at a fixed monthly rate. This service allows customers to easily try a product out without requiring a large, sudden purchase. It is used by a large number of customers and that number is increasing year by year.
Another reason many people don’t wear hearing aids is that they may associate them with a negative image of feeling old or being uncool. We want to dispel this negative image, and are actively promoting proposals that will help people wear hearing aids in a more positive light. In recent years, hearing aids with smart designs, such as earphones for music, have also emerged, and new technology has enabled users to enjoy music and videos by linking them with their smartphones. Many people in their late 70s, who are the main age group for hearing aids, experienced the audio boom of the 1960s and 70s, as well as the sound of analog records, and are very particular about sound. We believe that the market for hearing aids has the potential to expand exponentially in the future by offering hearing aids that allow people to enjoy sound in a more casual and positive way, rather than simply assisting with conversation. We intend to actively create a new market for hearing aids that allow people to enjoy sound.
Regarding eyewear frames, we will continue to focus on the expansion of Made in Japan private label brands with excellent functionality and design in cooperation with Create three Co., Ltd., a group subsidiary that produces eyewear frames. In cooperation with O.P.T make FUKUI Co., Ltd., a specialist in the repair and processing of eyewear, we hope to respond to the needs of those who want to use their favorite products for a long time and contribute to protecting the environment by moving away from mass consumption.
In this way, we will continue to strengthen our system to consistently perform product planning, development, and maintenance throughout the Group and strive to improve customer satisfaction.
In the field of eyewear lenses, we will continue to develop and offer products that provide different functions for different purposes and superior products that take eye health into consideration. In addition, through a business alliance with the Israeli company SHAMIR, which has a lens factory in Japan, we are working to improve quality and service, and to develop new markets in order to meet a diverse range of needs. For example, we are the first company in Japan to offer bifocal lenses that can be delivered in as little as 24 hours, instead of the conventional delivery time of about a week.
Overseas Strategy
With regard to overseas subsidiaries, we plan to make new investments where there is potential. In particular, we are working to expand into new markets such as Southeast Asia, with a view to medium- to long-term growth, such as through collaborations with the medical (ophthalmology) business. Based on the know-how we have built in Vietnam, we will promote the integration of eye care and eyewear stores in Cambodia, China, Thailand, the Philippines, Malaysia, and more, arranging services tailored to each region.
Moving forward, we will continue to reorganize existing stores in regions where the market is difficult, while also closing down unprofitable stores. We plan to return to profit in the total revenue of overseas subsidiaries in near future.
Financial Goals
Since our founding, the Group’s motto has been to accommodate each and every customer. Rather than selling a large number of uniform products in uniform stores, we aim to make suggestions tailored to each customer’s lifestyle so that they feel they enjoyed coming to the store and that purchasing the product increased their enjoyment even more.
We believe that, as a result, there will be an increased number of customers and that the same customers will visit us over and over again, which will be reflected in sales and sales volumes. In addition, for stores where the market has changed and the number of customers visiting the store is decreasing, even if the number of stores decreases as a result of closing and consolidation, we believe that profitability and sales per store can be increased by improving the quality of service. Our immediate goal is to generate stable operating income.