Lifestyle Division Strategies and Initiatives
Industry Environment and Fiscal 2008 Results
The division took steps to bolster its earnings base in the first half of fiscal 2008, the fiscal year ended March 31, 2009, most notably in the Japanese market, despite an environment characterized by rising fuel, raw material and personnel costs worldwide due to elevated resource prices. Largely underpinning these efforts were two division strengths—planning, proposal and product development capabilities that anticipate consumer trends, as well as the production efficiency and cost competitiveness of the division’s overseas bases, particularly in China.
Conditions in the second half of the year, however, contrasted starkly with the first, as the financial crisis emanating from the U.S. sparked global financial uncertainty and an economic recession. These factors, in turn, caused consumer behavior to cool dramatically within and outside of Japan. These conditions notwithstanding, the division for the full fiscal year has enhanced its earning bases, with business performance supported by product development and a sales structure both well attuned to domestic consumer trends.
Concerning new projects, we successfully bolstered our business base in Japan with investment in a company involved in import, wholesale and retail of furniture, household goods and kitchen supplies, the introduction of U.S.-based brands and the development of new kimono collections. We also focused attention on high-performance materials such as carbon fiber, fire-proof fiber and aramid fibers to strengthen the division’s earnings bases for the next generation.
Initiatives in Fiscal 2009
The current global economic recession is expected to continue in fiscal 2009, with the prospects for a rebound in consumption unlikely within or outside of Japan for the short term. Despite this outlook, and with sights set on a post-recovery climate, we are promoting several initiatives in the apparel and lifestyle goods sector, covering casual apparel, sportswear, uniforms, footwear, and household goods. These initiatives are as follows:
• Further enhance the efficiency of our OEM (Original Equipment Manufacturing) production framework in China and Southeast Asia and establish new production sites in places such as India and Bangladesh
• Reinforce our structure for developing products that anticipate consumer trends
• Strengthen coordination capabilities that completely encompass planning, proposals and development for a wide range of product lines
• Focus on sale of new functional and high-performance materials
• Promote measures to enhance and expand uniform sales and rental operations targeting the corporate sector
Furthermore, we will promote three initiatives specific to rubber-related businesses, including tires and conveyer belts, and to the general merchandise sector, specifically office and fitness equipment. Our three measures in these sectors are:
• Encourage investment overseas in the tire and conveyor belt sales businesses
• Put a structure in place for exporting office equipment
• Conduct new transactions with prominent fitness-related products from Europe and the United States
