I.K Co.,Ltd.

Business Details

A retail business that sells daily necessities, food products, and cosmetics directly to end consumers through three channels: TV shopping, internet shopping (EC), and physical stores (Korean cosmetics shops). TV shopping has been narrowed down to focus on stock-type (subscription-based) products, with the expansion of Korean cosmetics brands positioned as the core strategy. Through group organizational restructuring, the stock-type business was transferred to a newly established subsidiary (Prime Direct Co., Ltd.) to concentrate management resources.

Recent Overview

Sales declines continued across all channels, with net sales down 29.7% year on year to ¥2,832 million

TV shopping declined sharply by 65.1% year on year, with the related web shopping channel also falling 12.1%. The Korean cosmetics shop also saw sales decline 23.8% as the number of stores decreased from four to three. On the other hand, operating income decreased only slightly to ¥44 million (down 2.1% year on year). Effective February 1, 2026, the company carried out an internal group organizational restructuring (absorption-type merger of Prime Direct into IK, and absorption-type company split transferring the stock-type business to a newly established subsidiary), advancing the restructuring of its business portfolio. The medium-term management plan "IK WAY to 2028" was withdrawn due to a divergence from the plan for Korean cosmetics expansion, and a policy was announced to establish a "Group Management Reform Committee" to fundamentally review the growth strategy.

Key Products

Growth Drivers

• Expansion of sales through the EC channel via the enhancement and expansion of Korean cosmetics (K-Beauty) brands
• Revenue stabilization through business model transition toward stock-type (subscription-based) products
• Transfer of the stock-type business to a dedicated subsidiary (Prime Direct Co., Ltd.) through group organizational restructuring, concentrating management resources
• Strengthening of EC marketing through utilization of the SNS advertising business (getpop business)
• Development of overseas sales channels (e.g., sales to Don Quijote's Southeast Asian stores)

Risks

• Structural contraction of TV shopping demand (a transitional period from retail to wholesale for one-time-sale daily goods)
• Continued sales decline due to a reduction in the number of Korean cosmetics shop stores (three stores at period-end)
• Profit margin pressure from intensifying EC competition and rising promotional expenses
• Weak personal consumption due to changing consumer preferences and price inflation
• Uncertainty over growth strategy and reorganization costs following withdrawal of the medium-term management plan
• Risk of operational integration costs and disruption associated with group organizational restructuring (absorption-type mergers and absorption-type company splits)