iSTYLE

Basic Information

Stock Code
3660
Industry
Information and Communications
Category Detail
Internet Site Operations
Prefecture
Tokyo
Establishment Year
July 1999
Listing Year
March 2012
Official Website
https://www.istyle.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Infomart, ZOZO, Hamee, Market E, Golf Digest Online, BEENOS, Jade Group, CELSYS, Enigmo, Mercari, Rakuten Group, C Channel

Overview

iSTYLE is a leader in the information and communications industry founded in 1999, spearheading the sector with @cosme at its core—a review platform for cosmetics and related cross-border EC business.

Current Situation

iSTYLE recorded net sales of 56,085 million yen and operating profit of 1,940 million yen for the fiscal year ended June 2024. Leveraging the strong community base of its review site @cosme, it is expanding business domestically and internationally. The core @cosme business boasts a high market share as a review portal specialized in cosmetics and beauty products. In addition to cross-border EC and @cosme STORE expansion, it is driving multifaceted growth through capital and business alliances with Amazon and Mitsui & Co. It differentiates from competitors via aggressive digital marketing and customer data utilization, while emphasizing sustainability and local community contributions. Looking ahead, it positions globalization strategies and deepened digital technologies as growth drivers, aiming to expand into new areas like beauty supplements and store acquisitions. With a strengthened financial base, it focuses on sustainable growth and shareholder value enhancement.

Trivia

Interesting Facts

  • Review beauty site founded in 1999 is one of Japan's largest.
  • @cosme has over 16 million annual users as a beauty information platform.
  • Accelerating EC enhancement through capital-business alliance with Amazon.
  • Diversified business including beauty supplements and cross-border EC.
  • Company name is a coined term meaning cutting-edge information transmission style.
  • Expanded cosmetics retail store network via Tokyo Komachi acquisition.
  • Also offers data analysis services specialized in cosmetics industry.
  • Strength in cross-border EC not only domestically but in China market.
  • Introduces AI technology to improve review reliability.
  • Representative Director Tetsuro Yoshimatsu is former Accenture employee.
  • @cosme STORE features aggregated displays of many prestigious brands.
  • Provides talent referral services beyond beauty industry.
  • Gains support from younger demographics via digital marketing.
  • Actively hosts beauty events for brand support.
  • Has received numerous awards including Good Design Award.

Hidden Connections

  • Amazon as largest shareholder enables strengthened logistics and sales collaboration.
  • @cosme review data is referenced by numerous beauty manufacturers for product development.
  • Cross-border EC business partners with many major companies centered on China market.
  • Provides comprehensive beauty-related talent services and marketing through multiple subsidiaries.
  • President Yoshimatsu leverages Accenture experience to maintain strong IT and consulting industry network.
  • Beauty supplements and original cosmetics expanding distribution to major drugstores.
  • Building new O2O model fusing review platform and store sales.
  • Influences economic policy as vice representative director member of Nikkei/Keizai Doyukai.

Future Outlook

Growth Drivers

  • Expanding domestic and international cosmetics cross-border EC market
  • Advancement and普及 of digital marketing technologies
  • Precision promotions through customer data utilization
  • Product development capabilities adapting to diversifying beauty trends
  • Hybrid strategy of physical stores and online
  • Synergy enhancement with major EC like Amazon
  • Expansion in beauty supplements and healthcare fields
  • Review analysis and customer satisfaction improvement via AI
  • Building global brands through multinational expansion
  • Response to sustainability and ethical consumption

Strategic Goals

  • Expand cross-border EC sales to over 40% of total
  • Increase @cosme members to 20 million
  • Achieve sustainable management with reduced environmental impact
  • Expand store network to 100 locations in major cities nationwide
  • Achieve 15 billion yen in sales from beauty supplements and new businesses

Business Segments

Marketing Services for Cosmetics Brands

Overview
Provides marketing services supporting cosmetics brand promotions.
Competitiveness
Utilization of Japan's largest review data and community
Customers
  • Cosmetics manufacturers
  • Beauty brands
  • Advertising agencies
  • Distributors
Products
  • Digital advertising
  • Review utilization
  • Customer analysis
  • Promotion planning
  • SNS marketing

Cross-Border EC Support Services

Overview
Supports cross-border EC for cosmetics in overseas markets like China.
Competitiveness
Sales and logistics network specialized in cross-border
Customers
  • Overseas consumers
  • Domestic cosmetics manufacturers
  • Logistics companies
  • Payment providers
Products
  • Cross-border EC platform
  • Logistics support
  • Multilingual support
  • Payment services

Real Store Operation Support

Overview
Provides total support for cosmetics specialty store operations and sales.
Competitiveness
Integrated real and digital operation capabilities
Customers
  • @cosme STORE locations
  • Specialty store chains
  • Commercial facility operators
Products
  • Store operation know-how
  • Customer data utilization
  • Sales support
  • Staff training

Beauty Industry Talent Services

Overview
Specialized talent referral and development services for the beauty industry.
Competitiveness
Extensive industry-specific network
Customers
  • Beauty salons
  • Cosmetics companies
  • Recruitment advertising agencies
Products
  • Talent referral
  • Recruitment support
  • Career support
  • Training planning

Data Analysis and Research Services

Overview
Analyzes cosmetics market trends and consumer needs.
Competitiveness
Proprietary review database
Customers
  • Cosmetics brands
  • Marketing companies
  • Research firms
Products
  • Market research
  • Consumer analysis
  • Customer trend analysis
  • Report creation

Digital Content Development

Overview
Plans and produces digital content related to cosmetics.
Competitiveness
Specialized expertise in beauty domain
Customers
  • Beauty brands
  • Advertising agencies
  • EC operators
Products
  • Video production
  • Article distribution
  • SNS management
  • Content marketing

Consulting Services

Overview
Provides strategic consulting in beauty and cosmetics fields.
Competitiveness
Broad industry network and expertise
Customers
  • Cosmetics companies
  • New entrants
  • Investors
Products
  • Business strategy formulation
  • Market entry support
  • Brand building support

OEM and Product Planning Support

Overview
Supports OEM production and product planning for cosmetics.
Competitiveness
Development aligned with market needs
Customers
  • Emerging brands
  • Small manufacturers
  • Drugstores
Products
  • Manufacturing outsourcing
  • Product production
  • Quality control support

International Logistics Services

Overview
Handles logistics network construction and operations for cross-border EC.
Competitiveness
Overseas and domestic distribution network
Customers
  • Cross-border EC sellers
  • Domestic manufacturers
  • Overseas wholesalers
Products
  • Export/import logistics
  • Inventory management
  • Delivery services

Advertising Effectiveness Measurement Services

Overview
Provides visualization and analysis of advertising effectiveness.
Competitiveness
High-precision analysis using proprietary data and technology
Customers
  • Advertisers
  • Marketing agencies
  • Research firms
Products
  • Ad appeal analysis
  • Customer response analysis
  • ROI evaluation

CRM System Provision

Overview
Provides IT services supporting customer relationship management.
Competitiveness
Beauty-specific feature enhancements
Customers
  • Cosmetics companies
  • Retailers
Products
  • Customer management system
  • Email marketing
  • Loyalty programs

Beauty-Related App Development

Overview
Planning and development of beauty-specialized smartphone apps.
Competitiveness
UX design integrated with user base
Customers
  • Brands
  • Consumers
Products
  • Review sharing app
  • Cosmetics management app
  • Beauty SNS

Competitive Advantage

Strengths

  • Operation of Japan's largest cosmetics review platform
  • Strong customer community and member base
  • Physical store operations with diverse sales channels
  • Strategic capital alliances with Amazon and Mitsui & Co.
  • International expansion strength in cross-border EC
  • Marketing expertise specialized in beauty industry
  • Robust digital data analysis capabilities
  • Diverse service lineup linked with subsidiaries
  • Strong leadership by Representative Director Tetsuro Yoshimatsu
  • Operation of cosmetics specialist talent services
  • Rich beauty-related content production capabilities
  • Proactive sustainability initiatives
  • Flexible real store expansion strategy
  • Customer experience through fusion of digital and physical
  • Long-term brand value building

Competitive Advantages

  • High customer trust and brand recognition based on review information
  • Market expansion and revenue diversification via multinational EC
  • Strengthened funding and distribution through business-capital alliances with major EC players
  • High-precision marketing strategies utilizing proprietary platform review data
  • One-stop provision of various BtoB services specialized in cosmetics
  • Strengthened customer touchpoints through fusion of physical stores and digital content
  • New service development and rapid market entry via intra- and inter-company subsidiary collaboration
  • Industry network expansion through strengthened beauty talent services
  • Customer trust gained via product planning considerate of sustainability
  • Product diversity based on extensive brand partnerships
  • Cross-border EC operations focused on multilingual support and localization
  • Data-driven marketing backed by high technological capabilities
  • Acquisition of non-public information and tech assets through capital alliances
  • Proprietary know-how in community operations fostering high customer loyalty
  • Efficient operations leveraging advanced digital tools

Threats

  • Expansion of competitors' review and EC platforms
  • Demand fluctuations from rapid changes in consumer beauty trends
  • Potential tightening of cross-border EC regulations or import barriers
  • Operational restrictions from stricter personal data protection regulations
  • Store sales declines due to external factors like COVID-19
  • Customer outflow from similar services by major EC companies
  • Declining profit margins from intensifying price competition in cosmetics
  • Overseas business revenue instability from exchange rate fluctuations
  • Rising pressure on digital advertising costs
  • Risks of quality issues or image damage in beauty products
  • Reliability issues in influencer marketing
  • System investment risks accompanying technological evolution

Innovations

2022: Business-Capital Alliance with Amazon

Overview
Issued new stock warrants to Amazon to strengthen capital ties.
Impact
Amazon becomes top shareholder, reinforcing sales and logistics

2022: Acquisition of Cosmetics Specialty Store 'Tokyo Komachi'

Overview
Acquired cosmetics specialty stores from major drugstore Mizu, strengthening Tokyo-area bases.
Impact
Achieved store network expansion and enhanced customer touchpoints

2023: Expansion of Beauty Supplement Business

Overview
Expanded beauty supplement sales leveraging @cosme member base.
Impact
Diversifies revenue through new business

2021: Joint Marketing Support Development with Hakuhodo

Overview
Advanced marketing solutions provided through collaboration with Hakuhodo.
Impact
Improved brand ad efficiency and effectiveness measurement

2020: Introduction of AI-Powered Review Analysis Tool

Overview
Introduced AI for review analysis to enhance visibility of consumer trends.
Impact
Contributes to higher precision in marketing initiatives

2024: @cosme STORE Sapporo Directly Operated Store Opening

Overview
Opened first directly operated store in Hokkaido at Sapporo Stella Place.
Impact
Enhances brand recognition in regional cities

2023: Launch of New Beauty Brand

Overview
Launched proprietary original cosmetics line into the market.
Impact
Successfully secured new revenue sources alongside existing businesses

2021: Enhancement of Global Cross-Border EC Functions

Overview
Enhanced multilingual and payment functions to support overseas sales expansion.
Impact
Contributed to significant increase in overseas sales

2020: Smartphone App Feature Overhaul

Overview
Completely revised @cosme app to improve UX.
Impact
Improved user convenience and increased posts

2022: Digitalization of Store Customer Service Systems

Overview
Introduced digital customer management tools for store staff.
Impact
Enhanced service efficiency and customer satisfaction

Sustainability

  • Store operations and logistics optimization aimed at reducing environmental impact
  • Packaging improvements to reduce waste plastic
  • Social contribution programs strengthened through regional community collaboration
  • Initiatives to improve employee work-life balance and promote diversity
  • Promotion and dissemination of ethical cosmetics information
  • Promotion of renewable energy use and CO2 reduction
  • Deployment of product recycling programs
  • Provision of sustainable beauty education programs
  • Ensuring supply chain transparency and ethical sourcing
  • Product development policies prioritizing health and safety
  • Internal environment improvements to promote women's active roles
  • Participation and support in local nature conservation activities