RIZAP GROUP,Inc. (2928) Stock Price

RIZAP Group operates as a pure holding company, conducting healthcare and beauty, lifestyle, and investment businesses through 68 consolidated subsidiaries. The company's core offerings focus on services and products related to individual health and beauty, ranging from affordable self-service gyms to personal training, body-shaping undergarments and cosmetics, and individual lessons in English conversation and golf.

The company's primary customers are individual consumers, including gym members and purchasers of cosmetics and undergarments. However, corporate health training programs and corporate contracts also represent significant revenue streams. Revenue is generated through membership fees, lesson fees, product sales (via directly operated stores and e-commerce), and sales from facilities operated by subsidiaries and wholesale operations.

The business is divided into three main segments: healthcare and beauty, lifestyle, and investment, each with distinct products and distribution channels. The healthcare and beauty segment operates gyms and sells beauty and health products; the lifestyle segment operates home décor goods, apparel, resale, and retail businesses; and the investment segment supports overall group revenue through operations in childcare, elderly care, and watch wholesale.

The company is pursuing sustainable growth centered on its medium-term management plan (revised to cover 2023–2027), using revenue and operating profit as key performance indicators. Numerical targets are reviewed aggressively on an annual basis, with the approach from fiscal 2025 onward being to "maintain the growth goal while flexibly adjusting the plan as needed." As a pure holding company overseeing 68 subsidiaries, the group is concentrating investment on chocoZAP, which achieved profitability in a short timeframe, as a growth pillar to stabilize its revenue base and drive renewed expansion.

Priority investment focuses on store expansion centered on chocoZAP within the healthcare and beauty sector, along with horizontal expansion of products and services. The company differentiates itself in the market by offering its proprietary method—delivering results in as little as five minutes daily—at low prices. It has also introduced lifestyle support features including karaoke, laundry, and massage machines in stores. Additionally, all members receive body composition scales and health tracking devices, with data collected and analyzed through a dedicated app to enable personalized support for each individual.

Plans for new market development and business expansion include further store expansion of chocoZAP domestically, alongside strengthened partnerships with corporate services and the insurance and long-term care sectors. A capital and business alliance with SOMPO Holdings concluded in June 2024 aims to enhance member value through synergies with insurance and care operations, with plans to develop new revenue models including corporate health training programs and data-sharing initiatives. The group is advancing internal business integration and leveraging subsidiary capabilities to increase customer retention.

On the technology front, the company is investing in both data and talent. It has operationalized apps utilizing life log data and AI-driven personalized support, and will prioritize securing digital talent such as engineers to strengthen its system infrastructure. While reinforcing information security and compliance frameworks in response to data protection concerns, the company is also investing in digital analytics to improve advertising return on investment and in mechanisms to encourage customer repeat usage, including call follow-ups and member site enhancements. Through these efforts, the company aims to become "the corporate group that contributes most to human health."