Axxzia

Basic Information

Stock Code
4936
Industry
Chemicals
Category Detail
Daily Necessities & Household Products
Prefecture
Tokyo
Establishment Year
December 2011
Listing Year
February 2021
Official Website
https://axxzia.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Overview

Axxzia is a cosmetics manufacturer established in 2011, a growing company primarily targeting the premium market in China.

Current Situation

Axxzia has recently strengthened eye care, centered on China, and as of 2023, consolidated sales are estimated to have grown to around ¥15 billion. It deploys its flagship skincare brand on major Chinese e-commerce platforms such as Tmall, Douyin, and JD.com, establishing a solid position in the high-value-added cosmetics market. It also operates directly owned stores in Ginza, Haneda, and Osaka to enhance domestic brand recognition. By acquiring its subsidiary Yuit Laboratories, it has strengthened its R&D structure and is advancing sophisticated product development. It is focusing on research into sustainable cosmetics and strengthening its in-house manufacturing system to build a foundation for growth. Moving forward, it plans to drive expansion in the Chinese market and Japanese store rollout in tandem, while also pursuing entry into Europe and Asia. Through R&D investments for differentiation from industry competitors and enhanced digital marketing, it aims for double-digit growth by 2025. It is concentrating on expanding its customer base via new product launches and an integrated online-offline strategy.

Trivia

Interesting Facts

  • Young company founded in 2011, yet rapidly growing in the Chinese market.
  • Gained popularity as a top store on Chinese EC platforms.
  • Eye area care specialized product line is highly acclaimed.
  • Specialized in esthetic salons from its early founding days.
  • Provides unique customer experiences at directly operated stores.
  • Strengthening R&D through subsidiary utilization.
  • Strong ties with influential sales agents across China.
  • Introduced latest digital marketing techniques.
  • Headquarters located in a skyscraper in Nishi-Shinjuku, Tokyo.
  • Eye area care brand name is 'AXXZIA Beauty Eyes'.
  • Promotional activities in collaboration with multiple famous Chinese influencers.
  • Focuses on developing high-function cosmetics based on ingredient research.
  • Sales in China account for over 80% of total revenue.
  • Rapid brand building following company name change.
  • Hosted multiple sales promotion events in China in 2023.

Hidden Connections

  • Success on China's major EC platforms is influencing domestic leading brands.
  • Yuit Laboratories' technology is supplied via OEM to other cosmetics manufacturers.
  • Information sharing advanced through ties with domestic and international beauty industry groups.
  • Mobile video platform strategy in mainland China serves as a benchmark for other companies' entry.
  • Develops products sharing aesthetic sensibilities with Japanese luxury brands.
  • US-China political tensions demand flexibility in local market strategies.
  • Multiple prominent cosmetics-related companies are clustered in Shinjuku Sumitomo Building.
  • Attention surged through collaborations with Chinese beauty influencers.

Future Outlook

Growth Drivers

  • Growth in high-income segments in China and Asian emerging markets.
  • Expansion of online and mobile platforms.
  • Ongoing growth in the anti-aging care market.
  • Advancement and optimization of digital marketing.
  • Expansion of sustainability-oriented consumers.
  • Product innovation through R&D on new ingredients and technologies.
  • Expansion of domestic directly operated stores and enhanced customer experience.
  • Acceleration of global expansion and multi-regional rollout.
  • Revenue base strengthening via expanded OEM contract manufacturing.
  • Deepening of multi-channel integrated sales strategy.
  • Data-driven customer management and service delivery.
  • Flexible response to changes in consumer lifestyles.

Strategic Goals

  • Achieve over 90% overseas sales ratio including China.
  • Enter top 3 in premium cosmetics brands.
  • 50% of overall product lineup to be sustainable products.
  • Expand to 15+ directly operated stores in major domestic cities.
  • Shorten product development time by 40% using AI.
  • Achieve over ¥30 billion in sales with stabilized earnings.
  • Obtain sustainability certifications for all products.
  • Expand global partnerships.
  • Promote innovation through workforce diversity initiatives.
  • Develop hybrid cosmetics and health supplement products.

Business Segments

Esthetic Salon Products

Overview
Provides professional-grade premium skincare products to meet professional customer needs.
Competitiveness
Product lines customizable for salons
Customers
  • Nationwide esthetic salons
  • Beauty clinics
  • Spa facilities
  • Beauty schools
Products
  • Le Ciel de L’aube series
  • THE B PRO series
  • Salon-exclusive serum
  • Professional cleanser

OEM & Contract Manufacturing

Overview
Conducts OEM contract manufacturing and development support for cosmetics and supplements.
Competitiveness
High technological expertise and flexible small-lot production
Customers
  • Cosmetics brands
  • Health food companies
  • Beauty device manufacturers
Products
  • Cosmetics contract manufacturing
  • Supplement manufacturing
  • New product development support

Overseas Distribution Support

Overview
Provides distribution and sales support services to bolster overseas expansion centered on China.
Competitiveness
Market responsiveness leveraging on-site expertise
Customers
  • Chinese local subsidiaries
  • Cross-border EC operators
  • Local distributors
Products
  • Products for Chinese market
  • Cross-border EC support
  • Logistics & sales support

Competitive Advantage

Strengths

  • High brand recognition in China's premium market
  • Strong sales infrastructure on EC and mobile platforms
  • Customer experience via directly operated stores
  • Enhanced R&D capabilities through subsidiary
  • Specialization in esthetic salon products
  • High-quality product development capabilities
  • Diverse product lineup
  • Flexible OEM responsiveness
  • Domestic and international distribution networks
  • Trust and track record in the beauty industry
  • Financial stability from ample capital
  • Business focused on overseas markets
  • Utilization of digital marketing
  • Proprietary eye area care technology
  • Multi-channel sales strategy

Competitive Advantages

  • Early entry into China's major EC platforms securing competitive edge
  • Establishes unique customer touchpoints with domestic stores alongside overseas channels
  • Builds strong brand power through integrated operations from development to sales
  • Provides specialized product lineup tailored for esthetic salon market
  • Promotes technological innovation via subsidiary Yuit Laboratories
  • Develops total care products integrating beauty and health
  • Flexible and rapid market response capabilities
  • Digital promotion and customer management using IT/AI
  • Strong OEM order capacity for revenue diversification
  • Marketing attuned to Chinese consumer needs
  • Sales channel strategy fusing online and offline
  • Aggressive investments and R&D bolstered by capital strength
  • Fan-building strategy on Chinese mobile platforms
  • Efficient expansion through collaboration between Japan HQ and Chinese subsidiaries
  • High standards in quality control and safety assurance

Threats

  • Sales barriers from intensified regulations in Chinese EC market
  • Expanded entry into China by major competing cosmetics firms
  • Risks from international situation and currency fluctuations
  • Volatility in global raw material prices and supply instability
  • Risks from regulatory or certification changes in Japan and China
  • Fee increases by online platforms
  • Rapid shifts in consumer preferences and delayed trend response
  • Supply chain constraints and logistics delays
  • Erosion of differentiation from technology/patent imitation
  • Offensive from emerging cosmetics brands
  • Market uncertainty from pandemics
  • Risk of market contraction from Chinese policy changes

Innovations

2023: Full subsidiarization of Yuit Laboratories

Overview
Made the cosmetics development specialist company a consolidated subsidiary to strengthen R&D.
Impact
Accelerated product development speed and new technology creation

2021: Flagship stores on major Chinese EC platforms

Overview
Opened flagship stores on Tmall, Douyin, JD.com, and Kuaishou to expand sales.
Impact
Contributed to significant increases in sales and brand awareness

2022: Enhanced directly operated store rollout

Overview
Opened third stores in Ginza, Haneda, and Osaka to expand customer touchpoints.
Impact
Increased brand experience opportunities and fan acquisition

2024: Introduction of AI-powered product development platform

Overview
Began utilizing AI technology for customer data analysis and ingredient development.
Impact
Improved product precision and market adaptability

2023: Launch of sustainable ingredient-blended products

Overview
Released environmentally considerate cosmetics emphasizing natural-derived ingredients.
Impact
Gained support from environmentally conscious customer segments

Sustainability

  • Promoting recycling of packaging materials to reduce environmental impact
  • Active adoption of natural-derived ingredients
  • Energy-saving measures in manufacturing processes
  • Community support activities domestically and internationally
  • Promoting workforce diversity and creating a supportive work environment
  • Strengthening ethical procurement in the supply chain
  • Redesigning products to reduce waste
  • Implementing in-house environmental education programs
  • Consumer awareness campaigns for sustainable beauty
  • Enhancing transparency through publication of CSR reports