Desiring a Skilled Profession

During my job-hunting period, I came across an advertisement from Aderans that was seeking hair designers. My father was a calligrapher, which spurred my interest in arts and design. I was also keen on acquiring a tangible skill, so I found the job posting intriguing and decided to apply. Aderans was already a well-known company, and at that time, it was possible to obtain a cosmetology license through correspondence courses. I believed that joining the company would allow me to hone my skills as a technician.

However, I was somewhat clumsy and struggled with tasks like perm winding and cutting during technical training, often ending up in the group that had to stay late. I was among the five who failed the technical exam out of 88 technicians who joined the company with me. I would approach people on the street, asking if I could cut their hair for free as a model and bring them to the training room. It was frustrating, and I practiced desperately for a month.

Eventually, I managed to pass and started working at the stores later than my peers. This experience taught me the importance of technical skills. Thus, I set a goal to win the company’s internal technical competition and achieved this goal during my time as the manager of the Machida store.

Discovering the Excitement of Management

I never consciously decided that I wanted to take the helm of this company. However, when I became a division chief at the headquarters and was tasked with renewing our “Hair Support” hair growth business, the department head at the time told me, “I’m leaving it all up to you.” When I managed to make it a success in about six months, with sales nearing 10 billion yen, I found the management aspect truly fascinating.

Of course, managing a company is not without its challenges. As some of you may know, Aderans went through a period of change due to the entry of a foreign investment fund. In the fiscal year ending February 2003, the company was performing extremely well, with sales of 77.1 billion yen and operating profits of 12.9 billion yen, marking a peak since its founding. The company was financially healthy with substantial internal reserves, making it very attractive. However, increased competition at the time led to undervalued stock prices, which resulted in a foreign fund acquiring about 30% of our shares before we realized it.

In the 2009 annual shareholders’ meeting, the fund proposed a shareholder motion to appoint a majority of the board members. A proxy fight ensued, and Aderans lost, leading to management professionals from the fund joining the company. I was appointed as an executive officer at that time. Under the new management team, we faced significant difficulties. Subsequently, the company experienced its first-ever deficit.

Committed to Excellence in Technology

Aderans primarily operates through face-to-face sales. The COVID-19 pandemic severely restricted in-person interactions, which was challenging. However, I believed it was crucial to adhere more than ever to the company’s management philosophy of providing “the best products,” “the highest level of technology and knowledge,” and “heartfelt hospitality.” Creating high-quality products is meaningless if we don’t understand what makes them exceptional. This understanding is essentially knowledge, or perhaps it could be termed as the rationale. The ability to impress our customers with our technology is also essential, as is hospitality that considers the customer’s perspective. I am convinced that our products will sell if we can achieve these three things.

Aderans is utterly committed to its technology. While other companies also manufacture synthetic hair, Aderans invests heavily in research and development at our own laboratories and produces our synthetic hair. We are unique in Japan and internationally in developing the materials for our wigs in-house. Moreover, we mass-produce these materials in our own factories in the Philippines and Thailand.

Collaboration and Prosperity with Beauty and Health-Related Companies

As of May 1, 2023, we have obtained 262 patents related to wigs and hair products, both domestically and internationally. There are not many companies holding so many patents, and we are proud to say that we have the most advanced technology globally. For example, our patent created “CYBER X,” a hair material that is very strong, reduces static electricity, and adds volume. Of course, obtaining patents means that the technology is publicized. However, since a specialized manufacturing process and know-how are required, we are not worried that others could easily replicate our products. Rather, we aim to expand our business by offering our patents to business partners.

Our collaboration with Sharp Corporation on a hairdryer is an excellent example. Despite being a high-priced product, the dryer, infused with our professional knowledge and technology, exceeded initial sales expectations significantly. Unlike the hair business, which requires specialized skills and knowledge, the beauty and healthcare sectors are said to have a market size of about 9 trillion yen, making it a highly competitive red ocean. However, we believe that by innovating, we can turn this field into a blue ocean.

The Aderans Group has grown significantly, focusing on the hair business both domestically and internationally. However, we naturally questioned whether we could continue to grow further solely through BtoC business. The direct customer-facing business market in Japan is estimated at 140 billion yen, not very large. Considering further growth domestically, we believed it was essential to venture into BtoB and DtoC businesses. Thus, in 2018, celebrating our 50th anniversary and looking towards the next century, we started the beauty and health businesses, which are peripheral areas. Since 2022, we have revitalized our business by partnering with large companies, small and medium enterprises, including BEAUTY GARAGE Inc., which handles beauty materials exclusively for professionals. I consider “mutual prosperity” to be an important business keyword. Until now, we have operated 100% our way in our direct stores. However, it’s no longer a time to compete against rivals. Instead, we should focus on our technology and form partnerships with various companies to grow together.

Listening to Employees’ Ideas

We also listen to our employees’ voices in developing new products. The “BeauStage Eyebrow Salon” is a business made possible from an employee’s suggestion. Due to the COVID-19 pandemic, our salon visits decreased by about 20% around 2020 compared to the previous year. Our salons require one-on-one conversations with customers in private booths to understand their hair concerns. Therefore, a decrease in customer visits directly impacts our revenue. It was a challenging time. During this period, the idea for an eyebrow salon emerged from our employees. Fortunately, our facilities already had private booths and were located near stations, which allowed us to leverage our years of experience in addressing hair concerns. We welcomed a new demographic of customers in their 20s and 30s, both women and men, who had not previously been part of our customer base. The number of users reached about 33,000 in the first year and exceeded 100,000 in two years. Now, we also have middle-aged and older customers visiting us.

Since salon visits are entirely by appointment, we launched a dedicated app, leading to repeat customers. Additionally, selling retail products through the app and our “BeauStage Online Shop” has contributed to increased sales. It was a challenge that I’m glad we undertook. While top-down leadership is important, I believe it’s also crucial to let employees pursue their interests. If middle management ignores the ideas of new employees, they will only do as they’re told. Sometimes, allowing them the freedom to explore leads to great work. Without giving them a chance, nothing new can emerge. Even if it takes time, I believe it’s worth letting them try. In baseball terms, not every swing has to be a home run; batting average of .300 is an excellent outcome.

However, as the Aderans Group, professionals in hair, we must aim to be the number one in the hair industry. Our hairdryers must also stand out from other manufacturers. We want to create with dedication, whether it’s in skincare or healthcare. Our goal is to be the best. This year, marking our 55th anniversary, we moved our headquarters to Shinagawa to consolidate our dispersed headquarters functions, thereby strengthening our management and sales capabilities. Our new headquarters spans three floors and covers 1200 tsubo (approximately 3960 square meters), including a studio for product and video shoots. This will enable us to directly communicate with our customers and the industry. I hope you look forward to what we can offer.

June 2023, Aderans Headquarters　

Editing: DK Sugiyama | Writer: Kyoko Ayukawa | Photography: Atsushi Arakane