Aigan

Basic Information

Stock Code
9854
Industry
Retail
Category Detail
Apparel & Fashion Retailers
Prefecture
Osaka Prefecture
Establishment Year
January 1961
Listing Year
November 1989
Official Website
https://www.aigan.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Intermestic, JINS Holdings, Japan Eyewear Holdings, Car Mate, Paris Miki HD, Redax

Overview

Aigan is a leading chain in the eyeglasses and contact lens specialty retail industry, established in 1961, operating directly managed and franchise stores nationwide, and has expanded into the Chinese market.

Current Situation

Aigan recorded sales of approximately ¥16.3 billion in FY2023, maintaining its position as the 4th largest in the eyeglasses and contact lens retail sector. Primarily based in the Kinki region, it operates 293 directly managed stores and 26 franchise stores, along with 8 stores in China, while strengthening community-oriented services. In recent years, it has diversified store brands and boosted brand recognition through CM characters. It has also attracted attention with unique promotional activities certified by Guinness World Records. On sustainability, it promotes environmentally considerate store operations and aims for coexistence with local communities. Its long-term strategy focuses on improving customer satisfaction, expanding digital sales channels, and further growth in the Chinese market. To differentiate from competitors, it emphasizes developing unique products and providing high-quality services to build a sustainable growth foundation.

Trivia

Interesting Facts

  • Achieved two Guinness World Records certifications in 2011.
  • Founded in 1941, with over 80 years of history as an established company.
  • Famous for the sound logo 'Megane no ~ Ai Gan'.
  • Operates a network of approximately 320 stores in the Kinki region.
  • Operates 8 stores in China, focusing on localized management.
  • Multi-brand eyeglasses frames catering to wide demographics.
  • Total eye care company also handling hearing aids.
  • Brand produced by Natsuki Kato.
  • History of campaigns featuring AKB48 members.
  • Strengthening EC sales beyond stores for channel diversification.
  • Balances functionality and fashion in eyeglasses.
  • Community-based management founded by Sa Sa Ei.
  • Features both directly managed and franchise store operations.
  • Holds 4th largest share in the domestic eyeglasses industry.
  • Raised nationwide awareness through eyeglasses events.

Hidden Connections

  • Past ties to Fukuoka's Tenjin Aigan Group, leading to some store confusion.
  • Strengthens brand through product collaborations with actresses and celebrities.
  • Distinctive marketing strategy using voice ads and sound logos.
  • Active in social activities centered on regional contributions from Osaka base.
  • Maintains close relationships with local partners from China expansion.
  • History of joint campaigns with industry competitors.
  • Reputation for franchise operation expertise within the industry.
  • Strengthens local ties as sponsor of radio and TV programs.

Future Outlook

Growth Drivers

  • Increasing demand for eyeglasses and hearing aids amid aging society
  • Store expansion and brand penetration in overseas markets like China
  • Enhanced customer experience through digital technology
  • Integration and efficiency of diverse sales channels
  • Product development balancing fashion and functionality
  • Elevated corporate evaluation through strengthened sustainability efforts
  • Marketing optimization via customer data analysis
  • Growing demand for high-value-added products domestically and abroad
  • Franchise business expansion and new affiliate acquisition
  • Improved customer loyalty through community-based service enhancement
  • Total eye care proposals responding to rising health awareness
  • Brand strengthening via advanced CM and advertising strategies

Strategic Goals

  • Expand stores to over 500 domestically and internationally
  • Achieve ¥20 billion in sales and maintain profit margin over 10%
  • Full-scale introduction of new services leveraging digital technology
  • Introduce sustainability certifications to all stores
  • Increase proprietary brand ratio for eyeglasses frames to over 50%
  • Expand hearing aid sales and build specialized services
  • Gain market share in China and establish local production
  • Realize employee skill development and diversity promotion
  • Standardize environmental load reduction and CSR activities internally
  • Maintain industry-leading customer satisfaction survey results

Business Segments

Product Supply to Retail Stores

Overview
Provides product supply and logistics services to chain stores and mass retailers.
Competitiveness
Stable supply system via nationwide network
Customers
  • Eyeglasses specialty stores
  • Mass retailers
  • Drugstores
  • Department stores
  • Franchise affiliates
Products
  • Eyeglasses frames
  • Contact lenses
  • Hearing aids
  • Related accessories

Vision Support for Corporate Clients

Overview
Conducts visual care promotions and equipment sales for corporate clients.
Competitiveness
Customized responses tailored to customer needs
Customers
  • Corporate welfare groups
  • Medical institutions
  • Welfare facilities
  • Educational corporations
Products
  • Vision testing equipment
  • Custom eyeglasses services
  • Hearing aid sales

Overseas Market Operations

Overview
Business division focused on local store expansion and product exports, centered in China.
Competitiveness
Local market penetration capabilities
Customers
  • Local Chinese retailers
  • Export partners
Products
  • Eyeglasses products
  • Brand licensing

Competitive Advantage

Strengths

  • Community-based multi-store network
  • Diverse brand portfolio
  • Long-built customer trust
  • Proven expansion into China
  • Strong in promotions
  • Experienced management team
  • Varied sales channels
  • Guinness World Records holder
  • Robust supply chain
  • High product development capabilities
  • Store staff service excellence
  • Efficiency gains from IT adoption
  • Stable capital base
  • Over 80 years of history since founding
  • Inspection services by specialist technicians

Competitive Advantages

  • Expands directly managed and FC stores nationwide centered on Kinki region, accurately capturing local needs.
  • Addresses broad customer segments with diverse brand strategies, differentiating from competitors.
  • Brand awareness enhancement via CMs and celebrity endorsements serves as a powerful draw.
  • Store expansion in China establishes foundation for overseas growth.
  • Creates added value through proprietary eyewear development, maintaining market competitiveness.
  • Focuses on improving employee customer service skills, achieving high satisfaction.
  • Enables stable product supply leveraging nationwide distribution network.
  • Strong customer base and trust from historic brand.
  • Diverse sales channels enhance consumer accessibility.
  • Advancing sustainability initiatives.
  • Rapid product introduction and rollout provides competitive edge.
  • Strong appeal to trend-sensitive youth, succeeding in new customer acquisition.
  • Improved marketing precision through customer data utilization.
  • Meets health-related market needs with specialty store technical expertise.
  • Implements differentiated pricing strategies against major competitors.

Threats

  • Intensifying competition from major mass retailers and e-commerce
  • Market fragmentation from diverse new entrants
  • Risk of margin decline from heightened consumer price sensitivity
  • Decline in store visits due to social disruptions like COVID-19
  • Cost pressures from rising raw material prices
  • Increased operational costs from stricter regulations
  • Shrinking domestic market from population decline
  • Uncertainty in China's political and economic environment
  • Competitive disadvantage from delayed digitalization
  • Supply chain disruption risks
  • Intensified product competition from technological innovations
  • Shifting market needs from changing consumer health awareness

Innovations

2024: Digital Fitting Introduction

Overview
Launched eyeglasses fitting service using 3D facial recognition technology in stores.
Impact
Contributes to improved customer satisfaction and sales efficiency.

2023: Expansion of EC Platform for Chinese Market

Overview
Strengthened sales channels for China via cross-border EC.
Impact
Supports active overseas sales expansion.

2022: Promotion of Environmentally Friendly Store Operations

Overview
Introduced energy-saving equipment and waste reduction measures in domestic stores.
Impact
Reduces environmental impact and enhances corporate image.

2021: New Product Launch for Proprietary Brand 'bit babe'

Overview
Released eyeglasses frames combining fashion and functionality.
Impact
Successfully expanded female customer base.

Sustainability

  • Energy-saving promotion via LED lighting in stores
  • Enhanced recycling of waste plastics
  • Adoption of eco-friendly packaging
  • Promotion of remote inspection services
  • Employee environmental education and awareness programs