ENVALITH
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Kitanotatsujin Corporation

2930・Prime Market・Chemicals

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株式会社北の達人コーポレーション logo
Kitanotatsujin Corporation2930

Business

Kitanotatsujin Corporation started out in 2000 selling Hokkaido specialty products via e-commerce, and since 2007 has operated as an in-house original brand manufacturer developing the "Kitano Kaiteki Koubou" brand specializing in health and beauty products. Its core "Kitano Kaiteki Koubou" brand sells cosmetics, health foods, and other products mainly through its own e-commerce site, with subscription customers accounting for approximately 70% of sales. Through its consolidated subsidiary SALONMOON Inc., the company also operates the "SALONMOON" beauty appliance brand, offering products such as hair irons. The main customer base is aged 40 and above (Kitano Kaiteki Koubou) and 20s to 40s (SALONMOON). Listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

For first-time purchases on the company's own e-commerce site, upfront advertising investment results in a net loss, but LTV is recovered through continued subscription purchases. Approximately 70% of sales come from repeat revenue from subscription customers, generating stable cash flow. Advertising investment efficiency is managed using the proprietary indicator "Advertising Investment Balance (ratio to maximum CPO)," ensuring new customer acquisition remains within profitable limits. The e-commerce mall channel, which involves one-time purchases of individual items, serves a complementary role by enabling immediate monetization.

Company Strengths

At Kitano Kaiteki Koubou, approximately 70% of sales are supported by recurring (subscription) customers, achieving a stable earnings structure. In FY2025 (ended February 2025), sales in the recurring and other category reached ¥7,385,403 thousand (approximately ¥7,385 million), functioning as the earnings foundation of the business.

Using proprietary management accounting metrics such as maximum CPO, advertising investment balance, and 1-year ROAS, the company thoroughly manages advertising investment within profitable limits. In FY2025 (ended February 2025), the operating margin remained at a high 14.2% (operating profit of ¥1,675 million on sales of ¥11,826 million), and profit increased 15.6% year on year even amid a phase of declining sales.

The hair iron series of consolidated subsidiary SALONMOON has surpassed cumulative shipments of 1.23 million units. In FY2025 (ended February 2025), sales of SALONMOON reached ¥936,621 thousand (approximately ¥937 million), up 16.8% year on year. In addition to e-commerce malls, the company has also established sales channels through nationwide home appliance retailers and discount stores.

ENVALITH's Perspective

The operating loss of ¥102 million in Q1 of FY2027 (ending February 2027) was mainly due to advance booking of advertising expenses accompanying the rapid expansion of new customer acquisition, and unrecognized sales from backorders (approximately ¥286 million) caused by supply shortages of certain products. The company had already factored in these impacts at the time of formulating its earnings forecast, and sales related to the backorders are expected to be recognized from the second quarter onward. On a reference basis assuming sufficient inventory, operating income would have been ¥29 million (in the black), indicating that this is not a structural deterioration in profitability but a temporary shift in recognition timing. The full-year earnings forecast (operating income of ¥1,059 million, up 5.9% year on year) remains unchanged, with profit expected to be concentrated in the second half.

Under the subscription-based model, growth in the number of new customers acquired serves as the source of future recurring sales, so while it temporarily weighs on profits, the rapid expansion of the customer base is an important leading indicator of medium- to long-term revenue growth. The accelerating expansion—six consecutive quarters of growth and a 44% increase quarter on quarter—can be evaluated as a tangible result of strengthened product development capabilities and improved advertising efficiency through the use of generative AI. On the other hand, the surge in demand severe enough to cause supply constraints (backorders) points to challenges in production management, and improving the precision of inventory and production planning will be key to stabilizing performance going forward.

Karacon Direct, which became a consolidated subsidiary in December 2025, recorded sales of ¥281 million in Q1, and initial effects of reduced advertising costs and improved profit margins have begun to appear at some major stores. Meanwhile, SALONMOON has a high ratio of overseas procurement and is affected by rising procurement costs due to the ongoing yen depreciation as an external factor; in the first quarter, the company prioritized maintaining profitability over expanding sales scale, resulting in sales of ¥211 million (down 0.2% year on year for the same quarter). Recovery in profitability across the group as a whole will require accelerating PMI at Karacon Direct and either an improvement in the foreign exchange environment or optimization of pricing strategy at SALONMOON.

Growth Strategy

A three-pillar growth strategy centered on accelerating new customer acquisition, expanding EC mall sales, and promoting post-M&A PMI

Through the combination of a product development framework based on quantitative survey evaluation (only 13.4% of 127 concepts commercialized) and a creative production framework leveraging generative AI, the number of new customers acquired increased for six consecutive quarters, reaching a record high level with a 44% increase quarter-on-quarter. Unreleased candidate concepts for commercialization are planned for sequential launch from Q2 onward.

Multiple dedicated personnel have been assigned to promote creative revisions, advertising optimization, and increased participation in sales events specialized for EC malls such as Amazon and Rakuten Ichiba. On Amazon, monthly sales in March 2026 reached a record high. EC mall sales revenue has maintained a high level, from ¥523 million (FY2026 4Q) to ¥523 million (FY2027 1Q).

PMI measures leveraging the Group's marketing know-how, LTV analysis, and operational improvement expertise are being promoted at Karacon Direct, which became a consolidated subsidiary in December 2025. Initial effects of advertising cost reductions and profit margin improvement have begun to appear at some key stores, and efforts are also underway to optimize logistics costs and improve shipping operation efficiency.

Last updated: July 17, 2026