Atsugi

Basic Information

Stock Code
3529
Industry
Textile Products
Category Detail
Apparel & Fashion Accessories
Prefecture
Kanagawa Prefecture
Establishment Year
December 1947
Listing Year
October 1961
Official Website
https://www.atsugi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tabio, Gunze, Wacoal Holdings, Unotetsu, Morio Electric, Sanko Sangyo, Naigai, MRK Holdings

Overview

Atsugi is a textile products manufacturer founded in 1947. It is the leading company in the pantyhose market, operating both domestically and internationally, with the women's brand ASTIGU as its mainstay, pursuing innovation and diversification.

Current Situation

Atsugi is a long-established textile products company with consolidated sales of approximately 16.2 billion yen (fiscal year ended March 2021), specializing in pantyhose, socks, and underwear as main products. Since 2011, it has positioned the women's stockings brand ASTIGU as its core axis and also offers products for men and children. In 2020, it made Renown Inks a subsidiary, strengthening its brand portfolio with brands such as Aquascutum. On the other hand, it has posted final losses since 2019, shifted to no dividend in 2021, and in 2022 abolished its domestic manufacturing bases, consolidating production in China amid a harsh business environment. By reorganizing domestic factories, it aims to improve efficiency and reduce costs. In 2023, its market segment changed from the Tokyo Stock Exchange Prime Market to the Standard Market, altering its capital market evaluation. In response to the COVID-19 pandemic, it is focusing on strengthening collaboration with Fukusuke and expanding the caregiving products business for diversification. Moving forward, while addressing challenges such as expanding product lines, promoting overseas development, and deepening brand strategies, it is working to establish a sustainable production system.

Trivia

Interesting Facts

  • Launched Japan's first seamless stockings in 1955
  • Has led the women's stockings market for many years
  • "Atsugi" company name derived from the fame of Atsugi Air Base
  • Owned one of Japan's largest stockings factories in Aomori
  • Renewed logo in 2023 for brand refresh
  • Established nationwide direct sales network since 1961 for market expansion
  • Featured many famous talents as CM models in the past
  • Supported young PR activities through Atsugi Image Girl program
  • Inherited the innerwear division of bankrupt Renown in 2020
  • Strengthened operational system after SNS campaign backlash experience

Hidden Connections

  • Atsugi Station is in Ebina City, company name influenced by adjacent Atsugi City
  • Company name origin related to local Atsugi Air Base influences corporate brand
  • Acquisition of Renown Inks strengthened ties with numerous fashion brands
  • Deepening collaboration with Fukusuke in socks and underwear market
  • Atsugi Tohoku's Mutsu plant in Aomori was Japan's largest stockings factory
  • Founder Horikichi Hori started with whaling ropes
  • After SNS backlash issue, resumed SNS operations managed by female staff
  • Toray is a major shareholder with deep ties in material procurement etc.

Future Outlook

Growth Drivers

  • Expansion of high-functional women's stockings market
  • Increasing demand for aging society in caregiving products market
  • New customer acquisition through brand diversification
  • Cost competitiveness from overseas production efficiency
  • Strengthening EC sales channels and expanding consumer touchpoints
  • Synergy effects from business alliances like with Fukusuke
  • Brand image improvement through sustainability efforts
  • Active OEM expansion in apparel and fashion sectors
  • Product differentiation strengthening with new materials and technologies
  • Sales channel expansion through digital marketing
  • Risk diversification effects from multi-segment strategy
  • Further efficiency in manufacturing bases through regional collaboration

Strategic Goals

  • Improve brand recognition and expand share domestically and internationally
  • Establish sustainable environmental response in production bases
  • Achieve market leadership in caregiving products sector
  • Improve direct sales ratio through digital sales channel development
  • Strengthen product development for reducing environmental impact
  • Further strengthen Renown and ASTIGU brands
  • Establish system to fulfill corporate social responsibility
  • Expand product portfolio to meet diverse customer needs
  • Achieve sustainable growth in global markets
  • Enhance employee satisfaction and promote diversity

Business Segments

OEM Manufacturing

Overview
Provides design and manufacturing of original products to diverse customers.
Competitiveness
Abundant production expertise and overseas production system
Customers
  • Apparel manufacturers
  • Drugstores
  • Mail-order operators
  • Domestic and international retailers
Products
  • Pantyhose
  • Socks
  • Underwear
  • Tights

Caregiving Products Supply

Overview
Stably supplies functional caregiving products to care sites.
Competitiveness
User-oriented development capabilities and quality control
Customers
  • Medical institutions
  • Care facilities
  • Home-visit nursing stations
Products
  • Support socks
  • Functional underwear
  • Care accessories

Real Estate Rental Management

Overview
Deploys efficient operation and management of company-owned real estate.
Competitiveness
Reliable rental services rooted in the local community
Customers
  • Corporate tenants
  • Individual investors
  • Small businesses
Products
  • Commercial rental properties
  • Office spaces
  • Residential rentals

Competitive Advantage

Strengths

  • Pioneer in the seamless stockings market
  • Extensive brand lineup
  • Cost competitiveness through overseas production
  • Diversified business portfolio
  • Established direct sales network and distribution channels
  • Brand diversification through Renown Inks acquisition
  • Long-standing trust and history in the industry
  • Functional product development capabilities
  • Strong support system and customer orientation
  • Experience in localized manufacturing deployment

Competitive Advantages

  • Japan's largest-scale stockings manufacturing technology and development capabilities
  • Diversified operations including caregiving products and real estate
  • Local production and sales network
  • Brand strategy specialized for women
  • Cost reduction through overseas manufacturing outsourcing
  • High market recognition of proprietary brand ASTIGU
  • Market expansion through inheritance of Renown brands
  • Thorough quality control and product development
  • Efficient direct sales system with high logistics efficiency
  • Rapid market response and product development capabilities

Threats

  • Production risks from reduction of domestic manufacturing bases
  • Intensified competition with rivals (Gunze, Wacoal, etc.)
  • Market contraction due to novel coronavirus
  • Risks from fluctuations in raw material and logistics costs
  • Rapid changes in consumer preferences
  • Impact on fundraising from delisting from Tokyo Stock Exchange Prime
  • Increased overseas production costs due to exchange rate fluctuations
  • Brand image damage from SNS backlash
  • Domestic consumption decline due to population decrease
  • Rising compliance costs from strengthened environmental regulations

Innovations

2023: End of domestic production and consolidation in China

Overview
Closed two domestic factories and consolidated production bases at local Chinese subsidiary.
Impact
Achieved production cost reduction and efficiency improvements.

2021: Renown Inks made a subsidiary

Overview
Acquired Renown's innerwear business to promote brand diversification.
Impact
Successfully expanded brand lineup.

2020: ASTIGU brand expansion

Overview
Enhanced functionality and design of women's stockings and underwear brand.
Impact
Improved brand recognition and market competitiveness.

2022: Collaboration with Fukusuke begins

Overview
Strengthened product and sales cooperation with Fukusuke as a measure against performance deterioration during the pandemic.
Impact
Increased synergy effects in sales channels and product development.

Sustainability

  • Energy efficiency improvements through shift to Chinese production system
  • Adoption of safe and environmentally friendly materials for caregiving products
  • Waste reduction and recycling promotion
  • Labor environment improvements through employee education
  • Environmental protection activities in collaboration with local communities
  • Utilization of sustainable materials in product development
  • Efforts to reduce CO2 emissions in manufacturing processes
  • Improved transparency in supply chain
  • In-house energy-saving promotion education
  • Local employment creation and economic support