Waqoo

Basic Information

Stock Code
4937
Industry
Chemicals
Category Detail
Mail Order & Online Shopping
Prefecture
Tokyo
Establishment Year
December 2005
Listing Year
June 2021
Official Website
https://waqoo.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hammock, Ai Robotics, Premium Water Holdings, Kita no Tatsujin Corporation, J Front Retailing, Tea Life, Oisix La Grande, Four Seasons HD, Shin Nihon Seiyaku, Almaad, Harumeku Holdings, AIPF, Pro HD

Overview

Waqoo is an innovative EC-based mail-order company founded in 2005 with a foundation in the chemical field, primarily developing its own brand cosmetics through mail-order sales.

Current Situation

In fiscal 2023, Waqoo steadily grew sales in the cosmetics mail-order market, mainly through its own EC site. Since its listing in 2021, it has focused on strengthening brand power and expanding mail-order expertise to differentiate from competitors. With mail-order sales (food, health products, cosmetics) as its mainstay, it has also entered the household goods wholesale sector and is exploring new entries into daily necessities. It actively introduces the latest digital marketing and CRM technologies to improve customer repeat rates. It is working on eco-friendly packaging and enhanced product ingredient safety to promote sustainable management. In the medium to long term, it prioritizes deepening the D2C model and new product development, aiming for sales growth through multi-channel expansion. It leverages synergies with capital-affiliated and related companies and actively invests in innovation. Moving forward, it plans to accelerate business expansion backed by recovery in personal consumption and rising beauty demand.

Trivia

Interesting Facts

  • Company name is a coined term from 'Water' and 'Quality'
  • Exceeded industry average growth rate through own EC expansion
  • Achieved Tokyo Stock Exchange Mothers listing 15 years after founding
  • One of the pioneering brands in additive-free cosmetics
  • Supported mainly by female users nationwide
  • Holds patents on ingredients with proprietary formulations
  • High customer satisfaction despite being mail-order specialist
  • Attracting attention for innovative management by young female executive
  • Plans underway for entry into health food sector
  • All products inspected to standards exceeding domestic safety criteria
  • Expanding multi-channel presence including some door-to-door sales
  • EC sales ratio top-class in the industry
  • Increasing new products through joint development with related companies
  • Numerous influencer contracts with own brands
  • Limited releases of products utilizing local ingredients

Hidden Connections

  • Collaborating with peer companies for joint promotions in specific channels
  • Partnered with IT company through related investment firm
  • Obtained EC-exclusive license for specific products overseas
  • Receives ingredient supply for some products from major chemical manufacturer
  • Capital-participating company provides logistics efficiency technology
  • Joint development series with famous beauty expert receiving acclaim
  • Door-to-door sales staff have strong local community ties
  • Actively participating in industry association research projects

Future Outlook

Growth Drivers

  • Further growth of EC platforms
  • Rising beauty and health consciousness
  • Customer segment expansion via multi-brand strategy
  • Strengthening fusion of door-to-door and digital
  • Increasing consumer interest in sustainability
  • D2C business expansion in domestic and overseas markets
  • Product development leveraging new technologies
  • Maximizing synergies with partner companies
  • Expansion into beauty device sector
  • Ongoing repeat rate improvement measures
  • Enhanced cost competitiveness through logistics efficiency
  • Securing customer trust via strengthened personal data protection

Strategic Goals

  • Achieve sales over 10 billion yen
  • Obtain eco-friendly certifications for all products
  • Maintain EC sales ratio over 80%
  • Address market segmentation through multi-branding
  • Expand new door-to-door customers
  • Build sustainable, low-cost production system
  • Aggressively enter overseas D2C markets
  • Differentiation via next-gen beauty devices
  • Become industry leader in sustainability activities
  • Achieve 100% digital marketing automation

Business Segments

Cosmetics OEM / Manufacturing Outsourcing

Overview
Segment handling planning and manufacturing of cosmetics for brands on an outsourced basis.
Competitiveness
High-quality manufacturing technology and short delivery times
Customers
  • Cosmetics Brands
  • Drugstore Chains
  • Specialty Store Operators
  • Overseas Sales Agents
Products
  • Makeup Remover OEM Products
  • Skincare Creams
  • Haircare Products
  • Body Lotions

Logistics and Distribution Services

Overview
Provides logistics and delivery services supporting mail-order channels.
Competitiveness
Efficient logistics system integrated with IT
Customers
  • Mail-Order Businesses
  • Retail Chains
  • EC Platform Operators
Products
  • Logistics Management
  • Order Processing Systems
  • Delivery Agency Services

Digital Marketing Support

Overview
Provides IT-utilizing marketing support for mail-order companies.
Competitiveness
Customer data utilization and AI analysis technology
Customers
  • Mail-Order Companies
  • Brand Marketers
  • Advertising Agencies
Products
  • Customer Analysis Tools
  • CRM Systems
  • Promotion Planning

Raw Material Procurement / Quality Control

Overview
Establishes raw material procurement and inspection systems for product quality assurance.
Competitiveness
Strength in selecting safe and reliable raw materials
Customers
  • Manufacturing Division
  • R&D Division
  • External Suppliers
Products
  • Natural Plant Extracts
  • Functional Ingredients
  • Quality Inspection Services

Product Development / Research Services

Overview
Provides research services supporting new product development and technology improvements.
Competitiveness
Proprietary cosmetics functionality technology
Customers
  • Own Product Development Division
  • External Partner Companies
  • Research Institutions
Products
  • Formulation Technology
  • Safety Testing
  • New Raw Material Exploration

Door-to-Door Sales Business

Overview
Possesses door-to-door sales channels beyond mail order.
Competitiveness
Customer-close sales capabilities
Customers
  • Elderly Demographic
  • Specific Customers
  • Small-Scale Sales Agents
Products
  • Beauty Products
  • Health Supplements
  • Household Goods

Competitive Advantage

Strengths

  • Mail-order expertise centered on own EC
  • Cosmetics OEM manufacturing technology
  • Strong customer loyalty
  • Multi-brand deployment capability
  • Rapid product development ability
  • Advanced digital marketing
  • Safe, high-quality product design
  • Stable logistics and delivery system
  • Multi-channel sales strategy
  • Solid financial foundation
  • Proactive investment stance
  • Excellent R&D system
  • Customer data analysis capability
  • Flexible promotion planning
  • Position in the growing mail-order market

Competitive Advantages

  • High market responsiveness with speedy product launches via EC focus
  • High recognition and quality evaluation of own brands
  • Potential for sales channel expansion through capital ties with related companies
  • Broad customer coverage with diverse product segments
  • Low-cost operations via mail-order specialized logistics system
  • Multi-brand strategy responding to customer needs
  • Differentiation through proprietary cosmetics ingredient development
  • Active adoption of latest digital tools
  • Enhanced online advertising for new customer acquisition
  • Numerous growth opportunities from B2B synergies
  • Strength in hybrid door-to-door and EC deployment
  • System adaptable to diverse sales channels
  • Leveraging tailwinds from health trends and beauty demand
  • Broad customer base from young to middle-aged and elderly
  • High internal standards for product safety

Threats

  • Intense competition with major cosmetics brands
  • Risk of cost increases from raw material price fluctuations
  • Potential for stricter mail-order market regulations
  • Product obsolescence from changing consumer needs
  • Stricter health and beauty-related laws and regulations
  • Risk of logistics disruptions from natural disasters
  • Intensifying competition from increasing new entrants
  • Forex fluctuation impacts (related to cost procurement)
  • High dependency on EC platforms
  • Risk of brand image damage
  • Customer trust decline from personal data leaks
  • Supply chain disruption risks

Innovations

2022: Development of New Sensitive Skin Series

Overview
Launched new skincare products centered on additive-free, low-irritation ingredients.
Impact
Successfully opened new customer segments, increasing sales by 15%

2023: Introduction of EC Logistics Automation System

Overview
Achieved automation in order processing and warehouse delivery for efficiency gains.
Impact
Reduced logistics costs and significantly decreased delivery delays

2021: Digital Marketing Enhancement

Overview
Developed and introduced in-house AI-based customer analysis tool.
Impact
Improved customer targeting accuracy and promotion effectiveness

2024: Adoption of Eco-Friendly Packaging Materials

Overview
Actively introduced biomass-derived packaging materials.
Impact
Achieved 30% reduction in plastic usage

2023: R&D of New Ingredient Serum

Overview
Successfully developed products incorporating proprietary moisturizing and antioxidant ingredients.
Impact
Contributed to product differentiation and brand value enhancement

2022: Customer Engagement Strengthening via Mobile App

Overview
Developed purchase history-linked smartphone app and promoted usage.
Impact
10% increase in repeat rate and improved customer satisfaction

Sustainability

  • Promoting use of recycled resources to reduce environmental impact
  • Introducing energy-saving equipment in factories
  • Strict policy against animal testing for products
  • Environmental conservation activities in collaboration with local communities
  • Establishing standards for sustainable raw material procurement
  • Improving waste recycling rate
  • Active use of fair-trade raw materials
  • Implementing environmental education programs for employees
  • Measures to reduce CO2 emissions in manufacturing processes
  • Strengthening sustainable product lineup for customers
  • Promoting online meetings to reduce transportation
  • Proper management and reduction of chemical substances