Concluded a business and capital alliance with a major beauty publishing company, Josei Mode Strengthening the vertical SaaS business specializing in the beauty industry

Beauty Economy Newspaper Co., Ltd.
Concluded a business and capital alliance with a major beauty publishing company, Josei Mode Strengthening the vertical SaaS business specializing in the beauty industry
Aiming to become a platform used by about 270,000 stores in Japan
Beauty Keizai Shimbun Co., Ltd. (headquartered in Minato-ku, Tokyo, CEO: Tetsutaro Hanakami), which publishes and operates beauty-related B2B media, is also a major beauty publisher, Jojo Mode Co., Ltd. (headquartered in Minato-ku, Tokyo, CEO President: Tatsuhiko Abe) and signed a business and capital alliance.
Beauty B2B media value creation
 Beauty Economic Newspaper publishes industry magazines for beauty salons and operates a business news site for the beauty industry. We have continued to increase our sales for the past 12 years since entering this business, but we have been searching for business expansion into the general beauty salon market in order to aim for further growth.
Founded in 1960, Feminine Mode Co., Ltd. is a major publishing company in the industry that publishes monthly magazines for hair salons, books specializing in beauty, and e-book business using dedicated apps.
We plan to create business synergies for both companies by leveraging the sales and planning know-how of Biei Keizai Shimbun, the highly specialized editing know-how of Josei Mode, and each other’s readership and customer base. Through a capital tie-up, we aim to become the largest media group in the beauty B2B market.
A platform dedicated to the beauty industry with great latent needs In parallel with the conventional media business, Beauty Keizai Shimbun has launched a matching platform business called “Esthetic Tsushin Online (Stsu Online: https ://esthe.media)” was launched in March 2022.
Through Estsu Online, beauty salons can collect information about new products 24 hours a day, 365 days a year, and at the same time obtain information about education and training such as seminars. In addition, beauty product manufacturers can operate one-stop from product PR (sales promotion) to attracting customers (reservation management) for seminars.
During the trial period, about 2,000 beauty salons in Japan (about 10% penetration rate*1) and about 350 manufacturers of beauty products for beauty salons (about 35% penetration rate*1) have already started using it. In addition, 152 companies have booked to participate in the business briefing webinar for beauty product manufacturers held in November last year. Approximately 80% of the participants indicated that they would like to use the service, demonstrating that it is a highly market-fit service.
Based on these achievements, we implemented a large-scale update at the end of November last year and launched the alpha version. *1: There are about 20,000 beauty salons in Japan, and about 1,000 commercial beauty manufacturers (estimated by each company). [Image 1d46762-30-89c6088a0d97eaf54c78-0.jpg&s3=46762-30-618d0a9127afe16e681e3ddac5fdd5fa-1706x593.jpg
300 billion yen S2C (specialist to consumer) market
Channels for purchasing beauty products can be broadly classified into 1. retail market such as department stores and drug stores (B2C market), 2. mail-order market such as internet and TV (D2C market), 3. beauty salons, beauty salons, aesthetic medicine, etc. specialty facility market. Biei Keizai Shimbun defines this third channel as “a business format in which engineers provide services”, positions it as the S2C (Specialist to consumer) market, and promotes business focused on this area.
 Currently, the total market size of hair salons and beauty salons is estimated to be approximately 2.4 trillion yen (*2). Of this, the market for business-to-business transactions (between
manufacturers/dealers and stores) is estimated to be around 300 billion yen (our estimate), and Beauty Keizai Shimbun was aiming to expand its portfolio in this market.
Women’s mode is also working to create new businesses and expand its online business.In the process, we have shifted from industrial media, which has been specialized in each industry, to “industrial media” that integrates adjacent fields and has comprehensive power. We reached this business and capital alliance based on the judgment that it is important to expand the scale and secure investment capacity for the development and strengthening of the competitiveness of the online business. The expansion of the portfolios of both companies will enable sellers (advertisers, etc.) to directly enjoy the benefits of developing sales channels (e.g., esthetic salons with sales power handling high-end shampoos).
*2 Calculated based on Yano Research Institute research materials (2022, 2021) The role that beauty B2B media should play
 From now on, both companies will use their mutual knowledge to review and strengthen their products, and in particular strengthen their support business related to the creation of business opportunities for manufacturers and dealers. The penetration rate of IT services in the beauty industry has been low until now, but with the spread of smartphones and tablets, it is expected that there will be a lot of room for growth in the future. The industry’s only online service provided by our company promotes the development of new business partners for sellers and enables the reduction and enhancement of operating costs.
In the long term, we aim to contribute to the expansion of the beauty salon market. While many beauty salons currently only provide “beauty services,” we support initiatives for “health care services,” which are expected to grow. With the aging society, the main customer base of beauty salons will decrease. Therefore, we will support the introduction of health-related products and services such as inner beauty, which has been growing in recent years, and aim to build a sustainable value chain that supports the long-term management of beauty salons.
Management aiming for a world where “sustainable development of the industry” is possible
With the corporate philosophy of “increase beauty”, we aim to expand the beauty market by promoting the transparency of business
transactions and the legalization of advertising activities, and are working on the business of publishing and operating industry magazines. Established in 1999 by modern table with system development industry as its origin. In 2006, the business of an IT comparison site was sold to a listed major publisher group. In 2009, we acquired the trade magazine business for beauty salons and pivoted to the beauty B2B media business. Currently, we estimate that the market share of the media business for beauty salons is over 65%.
 On this occasion, the Company acquired 100% of the voting rights of the shares issued by Women’s Mode, and Tetsutaro Hanakami,
Representative Director of the Company, was appointed Chairman of the Board of Directors of Women’s Mode.
The business overview of the two companies combined is 44 full-time employees and sales of 580 million yen (total for the most recent financial results).
 From now on, we will aim for group sales of 1.5 billion yen in three years by increasing sales in the online business, and aim for the overwhelming top share in the “Beauty Vertical Media & Platform Business”.
We would also like to inform you that we have moved our head office from Roppongi, Minato-ku to Toranomon, Minato-ku from January 5, 2018 in order to expand our business.
[Image 2d46762-30-40553231144015615373-1.jpg&s3=46762-30-991262267de95494fe70151d991cf284-128x89.jpg
◆ Profile of Beauty Economy Newspaper
Company name: Beauty Economy Newspaper Co., Ltd.
Representative: Representative Director Tetsutaro Hanagami
Established: August 1999
Capital: 15 million yen
Location: Wework Shiroyama Trust Tower 22F, 4-3-1 Toranomon, Minato-ku, Tokyo     ※The head office will be relocated in January 2023
Details about this release:
https://prtimes.jp/main/html/rd/p/000000030.000046762.html

MAIL:cr@prtimes.co.jp

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