LIPPS CO,.LTD (373A) Stock Price

Lipps operates primarily through the planning and sales of men's cosmetics and the operation of hair salon franchises. The company offers a product lineup centered on styling agents and hair care products, including its flagship hair wax and shampoo, and launched "LIPPS BOY," a men's skincare and makeup series, in 2019.

Sales channels include wholesale to retail stores such as drugstores, direct sales through e-commerce sites, and sales to franchise salons operated by the company and general beauty salons. The company's revenue is driven primarily by product sales and royalties and management support fees based on franchise agreements. Its franchise network, centered in the Kanto region with approximately 28 locations and 155 stylists, contributes significantly to revenue.

The business consists of two pillars: a product business and a salon franchise business. The company develops products as a fabless manufacturer, starting from challenges and needs identified at salon locations, with manufacturing conducted jointly with partner manufacturers. In the franchise business, the company operates no directly-owned stores but provides management guidance and technical training to affiliated stylists, store expansion through independent ventures, and various support contracts.

The company aims to establish itself as the standard brand in men's beauty. The core of its growth strategy is expanding its product business, with three key performance indicators: product business sales, the ratio of promotional and advertising expenses to sales, and operating profit margin in the product business. The men's cosmetics market is projected to reach approximately 163.6 billion yen in 2024 (compared to approximately 3.2 trillion yen for the overall cosmetics market), representing roughly 1.3x growth from 2015 to 2024. Against this backdrop, the company plans to enhance brand strength, secure talent, and strengthen its organization through its listing, while pursuing increased product sales and market share gains.

The company is making strategic investments leveraging its core strengths. Specifically, it invests in product planning and development centered on hair care and styling products such as hair wax and shampoo, and has expanded its product lineup with offerings like "LIPPS BOY," a men's skincare and makeup series launched in 2019. Its competitive advantage stems from direct customer contact at franchise salons and a network of 28 stores and 155 stylists primarily in the Kanto region, enabling rapid incorporation of frontline feedback. By outsourcing manufacturing, the company minimizes capital expenditure while prioritizing quality control and product improvement.

The company is actively expanding its sales channels and entering new markets. Current sales channels span franchise salons with in-store sales, retail wholesale through drugstores, and direct e-commerce sales. The company is leveraging these existing channels to explore expansion into non-men's cosmetics and unisex product categories. Key initiatives include launching new products through the franchise network as a testing ground, strengthening promotional activities in drugstores, and increasing the direct sales ratio in e-commerce. These efforts aim to expand brand awareness and diversify the sales base.

The company is also strengthening its technological innovation and product development capabilities. By continuing product design based on frontline customer needs and joint development with external manufacturing partners, it seeks to shorten development cycles and improve quality. While controlling logistics costs and other selling, general, and administrative expenses, the company is directing resources toward investment in product planning and development capabilities, stylist education support, and talent development to enhance long-term competitive strength.