M.H. Group

Basic Information

Stock Code
9439
Industry
Service Industry
Category Detail
Lifestyle Services
Prefecture
Tokyo
Establishment Year
April 1990
Listing Year
December 1999
Official Website
https://mhgroup.co.jp/
TSE Information
TSE Information
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Nomura Sys, Taya, QB Net Holdings, Convano, Art Nature, Kawase Comp, AB&Company, Daiun

Overview

M.H. Group is a holding company in the beauty industry founded in 1990, operating beauty salons under the 'MOD'S HAIR' brand and developing professional hair care products business as a leading company.

Current Situation

M.H. Group has consolidated sales of approximately 1.8 billion yen, with beauty salon operations and hair care product sales as its main pillars. It expands the brand domestically and internationally through MOD'S HAIR licensing and is promoting franchise development. Financially, it has faced profitability challenges in recent years, recording losses, but maintains market competitiveness backed by brand strength. While addressing intensifying competition in the beauty industry, it is advancing product development and sales channel expansion for professional hair care products. Under its business holding structure, it is promoting integration and efficiency of related companies. In sustainability, development of environmentally considerate products is attracting attention, with plans to strengthen internal initiatives. Toward the late 2020s, it positions domestic and international salon expansion and new brand development as the core of its management strategy.

Trivia

Interesting Facts

  • MOD'S HAIR is a licensed deployment of a French-origin brand.
  • Focuses on hairdresser training and has produced many excellent technicians.
  • Founder is known as a racehorse owner.
  • Acquired by Kengou Group, introducing Chinese capital.
  • Expanding market scale through multi-store beauty salon operations.
  • Develops proprietary hair care products for linked salon sales.
  • One of the largest beauty salon franchise operators in Japan.
  • Acquired new customers through online service introduction.
  • Boasts high staff retention rate in the industry.
  • Operates multiple directly managed stores centered in urban areas.
  • Stable revenue from sales of professional hair care products.
  • Capable of quick response to beauty industry trends.
  • High customer satisfaction with diverse hairstyle proposals.
  • Pioneering in sustainable product development.
  • Also provides hair makeup support services for events.

Hidden Connections

  • Founder Yoichi Aoyama also engages in racehorse ownership.
  • Strengthened ties with Chinese market through capital participation by Kengou Group Co., Ltd.
  • Collaborating with Unilever Japan to expand hair care product sales channels.
  • Exists a unique subsidiary related to IT systems supporting beauty salon operations.
  • Contributing to regional economic revitalization through local beauty salon franchise expansion.
  • Connections in the horse racing industry utilized in marketing for beauty events.
  • High CSR evaluation in the industry due to development of environmentally considerate products.
  • Diversity of major shareholders lays groundwork for future business diversification.

Future Outlook

Growth Drivers

  • Product development responding to premiumization and diversification of the beauty market
  • Improvement of customer experience through digitalization
  • Nationwide expansion of franchise deployment
  • Increasing demand for professional products in the beauty industry
  • Expansion of demand for environmentally and health-conscious beauty care
  • Overseas brand deployment and Asian market development
  • Strengthening fusion of online services and physical stores
  • Continuous improvement of proprietary hair care technologies
  • Improvement in talent development and staff retention rate
  • Profit improvement through operational efficiency
  • Investment and collaboration promotion in new business areas
  • Customer base expansion through strengthened community-based services

Strategic Goals

  • Maintain top share of domestic beauty salon brands
  • Achieve over 50% sales ratio of sustainable products
  • Plan to multiply overseas franchise stores
  • Full introduction of digital reservation and customer service
  • Diversify revenue through expansion of new hair care product lineup
  • Systematization and strengthening of talent development programs
  • Enhance brand value through collaboration with local communities
  • Establish as innovation leader in the industry
  • Improve employee work-life balance and retention rate
  • Aggressive growth strategy aiming for 30% sales increase

Business Segments

Beauty Salon Operation Support

Overview
Supports store operations and staff training to maintain brand consistency.
Competitiveness
Strong brand management and franchise operation capabilities
Customers
  • Hair salon owners
  • Franchise加盟 stores
Products
  • Store operation management
  • Staff training
  • Brand license provision

Professional Hair Care Product Supply

Overview
Provides high-quality products specialized for professional hairdressers, contributing to improved customer satisfaction at salons.
Competitiveness
Product development tailored to the needs of beauty professionals
Customers
  • Beauty salons
  • Hair and beauty businesses
Products
  • Shampoo & Treatment
  • Hair color agents
  • Styling agents

Hair Makeup Management

Overview
Deploys specialized hair makeup services in video and event fields.
Competitiveness
Human resource management capabilities linked with diverse industries
Customers
  • TV & film production companies
  • Event planning companies
  • Fashion industry
Products
  • Hair makeup artist dispatch
  • Beauty consulting

Product Development & Research

Overview
Focuses on research and development of salon products and related goods.
Competitiveness
Product planning leveraging brand characteristics
Customers
  • Related companies
  • Partner beauty product manufacturers
Products
  • Hair care cosmetics development
  • New material research

Competitive Advantage

Strengths

  • Strong brand power 'MOD'S HAIR'
  • Extensive franchise network
  • Development and sales capabilities for professional products
  • Accumulated expertise in the beauty industry
  • Customer attraction centered in the Tokyo metropolitan area
  • Stable structure through diverse business holding system
  • Long years of industry experience
  • Ability to serve diverse customer segments
  • Multi-channel sales deployment
  • Excellent staff training programs
  • Close collaboration with related companies
  • Provision of distinctive special hair services
  • Overseas expansion base for the brand
  • High-quality hair care product lineup
  • Community-based service system

Competitive Advantages

  • MOD'S HAIR's one of the largest beauty salon networks in Japan
  • Achieves low-cost operations through franchise model
  • High customer satisfaction with professional hair care products
  • Product development and sales strategies specialized for hairdressers
  • Multi-faceted business development through business holding company structure
  • Flexible store expansion strategy responding to customer needs
  • Synergy between integrated salon operations and product supply
  • Utilization of abundant industry human network
  • Promotion of proactive overseas brand expansion plans
  • Specialized hair makeup business and media collaboration
  • Solid financial management and stable funding capabilities
  • High repeat rate through community-based approach
  • Thorough education system to maintain brand value
  • Quick response to beauty trends
  • Building of long-term customer relationships

Threats

  • Intensifying competition in the domestic beauty market
  • Diversification of consumer beauty preferences
  • Increase in new entrants
  • Decrease in consumer spending due to economic fluctuations
  • Risk of raw material price fluctuations
  • Possibility of store operation restrictions due to new infectious diseases
  • Entry of overseas brands into Japan
  • Lag in technological innovation in the beauty industry
  • Challenges in talent acquisition and training
  • Risk of strengthened regulations
  • Changes in consumer preference for eco-friendly products
  • Delays in digital marketing

Innovations

2023: Launch of New Series of Professional Hair Care Products

Overview
Launched a new series specialized in hair quality improvement under the MOD'S HAIR brand.
Impact
Contributes to improved repeat rate of salon customers

2022: Enhanced Digital Reservation Management System

Overview
Promoted IT-ization of reservation management for franchise salons to support efficiency.
Impact
Achieved 20% improvement in operational efficiency

2021: Sustainable Product Development Project Launched

Overview
Developing hair care products using organic materials to reduce environmental impact.
Impact
Expanded lineup of environmentally friendly products

2020: Online Hair Makeup Service Launched

Overview
Introduced online consultation and treatment services tailored to the remote era.
Impact
Contributes to acquiring new customer segments

Sustainability

  • Development of eco-friendly organic hair care products
  • Promotion of salon waste recycling
  • Promotion of energy-saving salon equipment introduction
  • Implementation of sustainability education for employees
  • Participation in local cleanup activities and greening projects
  • Active efforts to reduce plastic usage
  • Formulation of sustainable raw material procurement policies
  • Adoption of resource-saving packaging
  • Transparency in CSR activity reporting
  • Promotion of work-life balance for employees
  • Strengthening collaboration with local communities
  • Expansion of renewable energy use