AXXZIA（4936 TSE Growth）
＋English Summary on This Page
Cosmetic Company Focusing on EC Sales in China
AXXZIA is engaged in planning, manufacturing and sales of supplements and cosmetics centering on skincare products. Led by its president, who is from China and has long business experience in Japan, the company’s greatest feature is that it developed a business model that focuses on sales through Chinese e-commerce.
The company discloses net sales by region and by sales channel. In China, which accounted for 86.0% of net sales in the fiscal year ended July 2020, sales were mainly from its e-commerce channel, but sales from its salon channel are also rapidly expanding. On the other hand, in Japan, net sales has decreased with the impact of the COVID-19 pandemic and its sales composition in the fiscal year ended July 2020 has decreased from 31.2% in the previous fiscal year to 10.8%.
The company’s products are developed with the Chinese market in mind, and the product lineups are tailored to sales channels. For salons, the company has “Le Ciel de L’aube,” a high price range brand with an average unit price of over 10,000 yen, and has the cosmetic lineup centering on skincare products. For sales through e-commerce and retail stores, it has set mid to high price range brands with an average unit price of over 5,000 yen.
The company is a fabless manufacturer and it outsources manufacturing of cosmetics as well as supplements to multiple manufacturers in Japan. Among them, the largest outsourcee is CS Labo (Toshima Ward, Tokyo) and 75.6% of the company’s outsourcing expenses are for CS Labo.