We are driving the 2nd Mid-Term Business Plan forward, named “ZOOM 5.0” for which
the period ending December 2020 fiscal year. We have been steadily progressed with the respective processes, each of the 1st phase where we released our first own brand product as foundation period, the 2nd phase which was the period of overcoming crises after the bubble economy collapse, the 3rd phase which was the subsequent growth period, and the 4th phase which was the process up to stock listing. Currently we are in the 5th phase “ZOOM 5.0” where we establish the “Sustainable Brand” that will continue over 100 years based on the corner stone as that listed on the JASDAQ market in March 2017.
Specifically, as the goal in 2020, we are aiming to achieve consolidated sales of 100 million US$, consolidated operating profit of 7 million US$. In 2018, which was the first fiscal year, we achieved sales result as planned. On the other hand, due to the influences from the negative exchange rate tendency continued from the end of the previous year to the first quarter weighed on gross profit margin, also there was a delay in the procedure to acquire MOGAR and the cost associated with such a delay increased, and so on; we could not achieve operating profit. However, we do not change the target figures in 2020 and strive to execute strategies steadily, build a strong organization, and cultivate human resources with diversity, toward the achievement of the goals.
Our corporate identity during the 5th phase is “Integrity beyond Quality” and our engineers who truly love music will be putting efforts not only into the pursuit of high quality but also the development of products with integrity, in accordance with the “5 Codes of Product Development”. (Note 1) You may wonder what such products are. Truly unique and original product that are not an imitation of a hot-selling product, cutting-edge technology is applied so that users will find fresh surprising and inspiring when they get hold the product, and with potentially possible to change the world. These are the “Products with Integrity” that we pursuit, and creating such products is our desire that has not changed since the foundation of the company.
We would like to mention why integrity is so important nowadays. We consider that the era in which Japanese brand grew with high quality as a feature was already over. There is no longer a significant difference in quality from competitors no matter where products are produced, either in Japan or overseas. It is the same thing whether the consignment production from a fabless company like us, or production at own factory of the brand. In an age of oversupply of products where consumers are at a loss as to which to choose, the one that can be preferentially chosen and that motivates consumers is most likely the one that has integrity.
Furthermore, we believe that not only the products but also the company, employees, and brand should wear integrity. For example, compliance has become a social issue that is common to businesses, the sporting world, and even in the field of education. However, even by setting detailed rules, it may be difficult to fundamentally solve all issues because the standards, that rules are standing on, will change with the times go by. Under such circumstances, if each and every one involved ask themselves the question “Does my behavior have integrity?” it may be possible to solve all kinds of issues. Therefore, we, the employees and executives, will strive to cultivate integrity by practicing the “5 Codes of Conduct”. (Note1)
We believe that, developing products featured with integrity, by employees who wear with integrity, and continuing to launch them to the market, such a stance will receive sympathetic support from public. We will continue our efforts and would like to thank you for your support.
Note 1: “5 Codes of Product Development” and ”5 Codes of Conduct” are described in the 2nd Mid-Term Business Plan “ZOOM 5.0”.