Shinnihon Seiyaku

Basic Information

Stock Code: 4931
Industry: Chemicals
Category Detail: Mail Order & Online Shopping
Prefecture: Fukuoka Prefecture
Establishment Year: March 1992
Listing Year: June 2019
Official Website: https://corporate.shinnihonseiyaku.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Ai Robotics, Premium Water Holdings, Hokuo no Tatsujin Corporation, J Frontier, Tea Life, Oisix La Grande, Four Seasons HD, System Lisa, Almaad, Axia, Wahoo, DM Solu, Harumeku Holdings

Overview

Shinnihon Seiyaku is a chemical industry company founded in 1992, boasting a high market share as a leading company in mail-order and store sales of cosmetics, health foods, and pharmaceuticals.

Current Situation

Shinnihon Seiyaku recorded consolidated net sales of approximately 40 billion yen, operating profit of approximately 4.1 billion yen, and net profit of approximately 2.8 billion yen for the fiscal year ending September 2024, establishing stable growth. Its flagship cosmetics brand 'Perfect One' has strong brand power through mail-order and directly operated stores, securing the top share in Japan's all-in-one gel market. The health foods and pharmaceuticals business is also diversifying, building a broad customer base centered on mail-order channels. In recent years, the company has focused on digitalizing mail-order operations and optimizing its logistics center to achieve efficient operations. With its headquarters and logistics base in Fukuoka Prefecture, it is also advancing a capital region strategy utilizing its Tokyo office. As part of CSR, it engages in regional sports support and educational assistance activities, earning recognition as a community-contributing company. Moving forward, it will strengthen sustainability efforts, placing product development responsive to customer needs and sales channel expansion at the center of its strategy. Intensifying competition in the mail-order market is a challenge, but it aims to maintain its position as a market leader and achieve growth by leveraging its proprietary brands and direct sales capabilities.

Trivia

Interesting Facts

The Perfect One series has exceeded 50 million cumulative units sold
Largest mail-order centered cosmetics company headquartered in Kyushu
Diversified into health foods and pharmaceuticals
Sponsor of local sports teams such as Fukuoka SoftBank Hawks
Directly operated stores expanded nationwide beyond Kyushu, but many closed in 2023
Mail-order business started in 1994, with early entry as a strength
Manufactures and sells proprietary Kampo-based pharmaceuticals
Representative Director Takahiro Goto has extensive management experience in the cosmetics industry
Operates a logistics center in Fukuoka to optimize mail-order logistics
Consistent corporate management with corporate number in the 229000 range in the mail-order industry
Actively incorporates digital marketing in the mail-order market
Offers a diverse range of health foods beyond cosmetics, well-received via mail-order
Emphasizes collaboration with local communities as a company
CSR activities include long-term promotion of drunk driving eradication
Classified under Nikkei industry code 107 for mail order

Hidden Connections

Has business partnerships or competitive relationships with Axia (stock code 4936) in the mail-order sector
As a regionally rooted company based in Fukuoka, actively sponsors local sports and cultural events
Overlaps in customer base with pharmaceutical companies like Zeria Pharmaceutical in the health food sector
Strong in logistics solutions as a mail-order company, also providing logistics services to other firms
The Perfect One brand boasts high brand recognition and repeat purchase rate in the cosmetics mail-order industry
Continuously supports establishment of local elementary schools and conducts education-related volunteering
Maintains independence with proprietary planning and manufacturing systems in pharmaceuticals and cosmetics
In addition to Nikkei company code basic data, forms networks with national wholesale and mail-order industries

Future Outlook

Growth Drivers

Expansion of the all-in-one gel market
Increased demand for health foods due to rising health-conscious consumers
Acquisition of new customers through digitalization of mail-order
Increase in sustainability-compliant products and improved social evaluation
Enhanced brand value through strengthened community-focused CSR
Product development and services tailored to aging society
Improved sales efficiency through strengthened direct sales and EC channels
Product innovation incorporating domestic and international beauty trends
Cost reduction and customer convenience improvement via logistics optimization
Accelerated growth through new market development and diversified business expansion
Improved marketing precision through customer data analysis
Promotion of repeat purchases and loyalty among existing customers

Strategic Goals

Expand mail-order sales to over 50 billion yen
Introduce sustainable packaging 100%
Digital integration and efficiency of domestic directly operated stores
Strengthen new product lines in health foods and pharmaceuticals business
Enhance collaboration with local communities and expand CSR activities
Introduce cutting-edge digital marketing technologies
Achieve industry-top-class evaluation in employee satisfaction surveys
Raise ratio of environmentally considerate products to over 70%
Expand new customer acquisition by over 10% annually
Promote continuous innovation for sustainable growth

Business Segments

Wholesale

Overview

Provides stable supply and sales support to retailers and specialty stores through wholesale.

Competitiveness

Sales promotion support leveraging mail-order expertise

Customers

Drugstores
Specialty Stores
Department Stores
Retail Chains
Beauty Clinics
Esthetic Salons
Health Food Retailers
Salon-Focused Distributors

Products

Cosmetics
Health Foods
Pharmaceuticals
Sample Products
Limited Edition Cosmetics

OEM and Contract Manufacturing

Overview

Utilizes in-house manufacturing facilities and planning capabilities to provide OEM and contract manufacturing services.

Competitiveness

Short delivery times and quality control systems

Customers

Other Cosmetics Manufacturers
Health Food Development Companies
Pharmaceutical Manufacturers
Beauty Salons
Mail-Order Operators

Products

Cosmetics OEM
Health Food OEM
Pharmaceutical Contract Manufacturing
Product Planning Support

Logistics and Delivery Services

Overview

Efficient delivery services utilizing the Fukuoka-based logistics center.

Competitiveness

Logistics expertise specialized in mail-order

Customers

Own Mail-Order Business
Other Mail-Order Operators

Products

Warehouse Storage
Product Picking and Shipping
Inventory Management System Provision

Marketing Support

Overview

Marketing services to enhance mail-order sales promotion and customer analysis.

Competitiveness

Digital marketing specialized in mail-order

Customers

Own Company
Partner Companies
Sales Agents

Products

Mail-Order Ad Planning
Data Analysis
Customer Management Support

Competitive Advantage

Strengths

Strong mail-order channels
High brand recognition
Diverse product lineup
Nationwide directly operated store network
Efficient logistics system
Stable financial base
Years of health food development experience
Diversified business operations
Regionally rooted business activities
Continuous R&D capabilities
Reliable customer service
Corporate culture of legal compliance
Thorough product quality control
Diverse payment and sales methods
Advanced utilization of customer data

Competitive Advantages

Overwhelming share in the cosmetics all-in-one market
Solid customer base in mail-order sector
Enhanced sales power through directly operated stores and EC integration
Strong lineup of supplements and Kampo medicines
Improved corporate image through community-focused CSR activities
Efficient delivery via proprietary logistics center
Superior manufacturing system for quality control
Product development tailored to aging society
Active use of digital marketing
Reliability and transparency as a listed company

Threats

Intensifying competition in mail-order market
Diversification and changes in consumer needs
Risk of rising raw material prices
Impacts from changes in laws and regulations
Logistics disruption risks from natural disasters
Competition from new entrants
Uncertainty in social conditions such as pandemics
Cost increases due to exchange rate fluctuations
Risk of customer personal information leaks
Strengthened regulations on internet advertising
Social pressure on product safety
Maintenance costs for aging store network

Innovations

2023: Enhanced Promotion of DX in Mail-Order Operations

Overview: Introduced AI-based customer profiling analysis and marketing automation to improve efficiency.
Impact: Increased mail-order sales and improved customer satisfaction

2022: Launch of New Product 'Perfect One Super Moisture Gel'

Overview: Strengthened sensitive skin compatibility with a high-moisturizing all-in-one gel, aiming to expand existing market share.
Impact: Contributed to sales growth of the main brand

2021: Introduction of Automated Equipment at Logistics Center

Overview: Implemented robot technology in picking and sorting operations to improve work efficiency and accuracy.
Impact: 20% improvement in delivery speed, reduction in errors

2020: Development of New Health Food 'Loco Attack EX'

Overview: Developed and launched a supplement with joint support functionality.
Impact: Successfully diversified the health food category

2024: Strengthening Sustainability Management

Overview: Promoting environmentally considerate product development and CSR activities to enhance corporate value.
Impact: Improved evaluation from customers and investors

Sustainability

Reducing environmental impact of packaging and promoting recycling
Participation in local Fukuoka environmental conservation activities
Increasing utilization rate of renewable energy
Creating a workplace environment prioritizing employee health and work-life balance
Ongoing support for regional sports activities and education
Active promotion of campaigns to eradicate drunk driving
Strengthening environmental and social responsibility in the supply chain
Supporting regional revitalization through sponsorship of local events
Regular issuance and disclosure of CSR reports
Expansion of product safety and quality assurance systems
R&D promotion for reducing hazardous substances
Implementation of SDGs education programs for employees