MARUMITSU CO.,LTD. (E02695) Stock Price

Prorute Maruko is a diversified company with wholesale distribution as its core business, while expanding into entertainment and healthcare sectors. The company's main operations include wholesale distribution of various clothing, bedding and interior products, and fashion accessories. It also plans and manufactures concert merchandise, provides artist branding support, and develops and manufactures medical devices.

The company's revenue structure consists of three pillars: its traditional wholesale business, entertainment business positioned as a growth area, and medical business. In wholesale, the company supplies products to retail stores and mass retailers. In entertainment, its primary customers are artists and music industry players. In medical, its customers are medical institutions and health checkup centers.

The business is divided into four segments: the wholesale business operated by the parent company, the entertainment business handled by subsidiary Sanko Advance, the medical business through Microblood Science, and other operations including the "Miraiiro Pharmacy" zero-markup pharmacy and café business. Through this diversification strategy, the company group reduces dependence on any single market while expanding growth opportunities.

Proruto Maruko is currently facing serious management challenges and significant doubts about its ability to continue as a going concern. The company is undertaking fundamental business restructuring while prioritizing profitability. It has set operating profit margin as a key performance indicator and is focusing on organizational reform centered on its core wholesale apparel business and strengthened revenue management.

In the wholesale business, the company is pursuing a differentiation strategy centered on digital transformation. Through expansion of "Proruto Mall," a platform matching suppliers with customers, it aims to increase its e-commerce ratio and establish competitive advantage by digitizing traditional wholesale functions. Additionally, the company is developing high-value proprietary products through its private brand "Coil Nine" and the new "Masless" brand featuring actress Akimoto Sho, focusing on acquiring new sales primarily in women's apparel.

For new market development, the company has positioned its Beauty & Healthcare business and D2C business as growth pillars. It is expanding domestic market share through promotional campaigns for the "Makarizo" and "HADATOIRO" brands, influencer marketing for the gel nail brand "Lisdore," and collaborative magazine campaigns for men's care cosmetics "GBc." The company is also pursuing diversification strategies beyond traditional wholesale, including the "Mirairo Pharmacy" unit pharmacy business and experience store development for the high-end facial device "Medusa."

Regarding technological innovation, the company is expanding its lifestyle e-commerce site "&est" centered on original products and increasing its presence on major e-commerce platforms through partnerships with subsidiary Ausdee. Alongside digital advancement, the company is undertaking fundamental improvements to its revenue structure, including strengthened expansion into overseas markets centered on Taiwan, markdown reduction through inventory optimization, and parallel implementation of existing contract reviews and fixed cost reduction.