LIPPS CO.,LTD
373A・Growth Market・Chemicals
LIPPS CO.,LTD
373A・Growth Market・Chemicals
Business
Lipps Inc. operates two businesses: the Products Business, which plans and sells men's cosmetics (hair wax, hair care, skincare, makeup) under the "LIPPS" brand, and the franchise headquarters business (Salon Franchise Business) for the men's hair salon "LIPPS hair." The founder opened a hair salon in Harajuku in 1999, incorporated the company in 2008, and listed on the Tokyo Stock Exchange Growth Market in June 2025. The company's main customers are young men with high beauty awareness, with drugstores, e-commerce (Amazon, Rakuten, ZOZOTOWN), and hair salons serving as the primary sales channels. It leverages its franchise network of 28 stores and 155 stylists, centered in the Kanto region, as a source of insight for product development.
Business Model
The Products Business operates on a fabless model that outsources manufacturing to external partners (main contractor: FC Chuo Yakuri Kenkyusho), generating revenue through two channels: distribution to drugstores via wholesalers and direct-to-consumer EC sales. In FY2025 (ending August 2025), the Products Business posted sales of ¥3,969 million with an operating margin before head office cost allocation of 28.5%, reflecting a highly profitable structure. The Salon Franchise Business recorded stable sales of ¥441 million and operating profit of ¥163 million through royalties and related income, while also functioning as a source of insight by feeding salon-floor needs back into product development.
Company Strengths
The company collects on-site feedback from stylists affiliated with "LIPPS hair" on topics such as "hair setting," "rinsing," and "rough hands," and reflects this in product development. The Hair Wax Series, renewed in 2021, received the Good Design Award in FY2023. In 2019, the company launched the men's skincare and makeup line "LIPPS BOY" ahead of domestic manufacturers, demonstrating its trend-anticipating capabilities through a proven track record.
In the Products Business for the fiscal year ended August 2025, sales promotion and advertising expenses totaled ¥412 million (10.4% of net sales), down 1.7% year on year, while the operating margin before allocation of head office expenses improved to 28.5% (versus 26.3% in the previous fiscal year). Through optimization of advertising investment with an emphasis on cost effectiveness, the company has simultaneously achieved sales growth and improved profitability.
Three companies—wholesale to drugstores (via Oyama Corporation: 39.0% of net sales, ¥1,718 million), Amazon (23.5%, ¥1,038 million), and Chuo Bussan (12.0%, ¥529 million)—together account for 74.5% of net sales. The company completed store openings on Rakuten Ichiba in September 2024 and ZOZOTOWN in April 2025, and is also progressing with diversification of its e-commerce channels.
ENVALITH's Perspective
Performance Trend
Full-year FY2025 (ended August 2025) results marked a record high, with net sales of ¥4,410 million, operating profit of ¥949 million, and net income of ¥652 million. However, cumulative results for the third quarter of FY2026 (ending August 2026) (nine months) showed a significant profit decline: net sales of ¥3,399 million (up 1.5% year on year), operating profit of ¥522 million (down 31.6% year on year), and quarterly net income of ¥359 million (down 27.3% year on year). Revenue growth slowed due to the maturation of expanded distribution for the Hair Wax Series, a leveling-off of shampoo sales through EC channels, and a decline in royalty income. On the profit side, the main factor was a ¥261 million year-on-year increase in SG&A expenses driven by higher advertising expenses and personnel costs. The full-year forecast remains unchanged, projecting net sales of ¥4,748 million (up 7.7% year on year) and operating profit of ¥705 million (down 25.7% year on year). Financially, the company maintained soundness with total assets of ¥4,371 million and an equity ratio of 91.0%.
Growth Strategy
Expanding market share in the men's cosmetics market through product lineup expansion, sales channel diversification, and brand strength enhancement
Began sales of "Face Styling Wash (Foam Cleanser)" and "Face Styling Toner (Skin Lotion)" via EC and salons from October 2025, and at retail stores such as Loft from November 2025. Aims to diversify revenue by establishing a second product pillar following hair care.
Continuing to expand the wholesale channel for hair care products, leveraging the strength of a salon-originated brand. The number of retail stores carrying the products has surpassed 12,000, and further expansion of the store network is planned.
Opened an official LIPPS shop on Yahoo! Shopping in September 2025, aiming to acquire new customers and enhance brand awareness while reducing dependence on Amazon. Expanding reach through multiple EC platforms.
Implementing advertising campaigns featuring prominent influencers and IP collaboration projects. Actively investing in advertising expenses to expand sales of new and existing products and to enhance overall brand recognition. While this is a factor that compresses short-term profit, the aim is to expand the customer base over the medium to long term.
Newly developed online video learning materials on cutting techniques aimed at enabling stylists to make an early debut and become immediately productive, provided to franchise store employees. Focused on improving education quality and strengthening customer acquisition capabilities as a response to workforce fluidity driven by the spread of share salons and the increase in freelance stylists.
Last updated: July 17, 2026