Bleach,Inc.

Business Details

A business model that receives no upfront fees or consulting fees from client companies, instead receiving revenue-share amounts based on results such as new user acquisition. It primarily targets small and mid-sized enterprises in EC/mail-order sales of cosmetics, daily necessities, and foods with function claims, beauty salons, financial services, and similar sectors, providing end-to-end support from marketing strategy development to in-house ad production and operation. It manages ROAS, ad profit, and the number of core products as key KPIs, aiming to maximize profitability through rapid PDCA cycles and generative AI utilization.

Recent Overview

Fell into operating loss in Cumulative Q3 FY2026 (ending June 2026), mainly due to rising cost-of-sales ratio and increased SG&A expenses

In the cumulative nine-month period of Q3 FY2026 (ending June 2026) (July 2025 to March 2026), the Sharing-based Integrated Marketing Business recorded a segment loss of ¥178 million (compared with operating profit of ¥371 million on a consolidated company-wide basis in the same period of the prior year). Against revenue of ¥12,274 million, the cost-of-sales ratio rose (prior year: cost of sales ¥10,921 million / revenue ¥12,660 million = 86.3% → current period: ¥11,336 million / ¥12,597 million = 89.9%), while SG&A expenses also increased from ¥1,368 million to ¥1,458 million. Aggressive investment in new products and new genres, along with launch costs at consolidated subsidiary Aurum Tech, are weighing on profitability. The full-year earnings forecast remains undetermined.

Key Products

Growth Drivers

• Expansion of the internet advertising market (FY2025 ad spending of ¥4.5 trillion, up 10.8% year on year, accounting for 50.2% of total ad spending, exceeding half for the first time)
• Aggressive investment in new products and new genres (finance, online medical consultations, recruitment services, etc.) to increase the number of core products and shift the product portfolio
• Expansion of new advertising media and marketing methods, including SNS ads, video ads, and EC mall operations
• Strengthening of personnel recruitment and development through expanded new graduate hiring and enhanced marketer training programs
• Maximizing advertising effectiveness through utilization of ad operations data and AI-driven sophistication of ad production and operations processes
• Expansion of sales infrastructure development support and manufacturer support functions through collaboration with consolidated subsidiary Aurum Tech (established March 2025) (establishing direct sales structure and launching new products as general distributor of JOVS brand IPL beauty devices)

Risks

• Risk of revenue concentration in a specific customer (dependence on R Co., Ltd.: approx. 34.5% in Cumulative Q3 FY2026 (ending June 2026), approx. 37.3% in Cumulative Q3 FY2025 (ended June 2025))
• Business impact from amendments to advertising-related laws (Act against Unjustifiable Premiums and Misleading Representations, Pharmaceuticals and Medical Devices Act, etc.) and changes to advertising media rules
• Risk of fluctuations in ROAS and ad profit due to changes in internet advertising unit prices
• Risk that launching new products takes longer than expected (a factor behind the undetermined full-year earnings forecast for FY2026 (ending June 2026))
• Risk of declining sales of existing core products due to product lifecycle changes and shifting consumer trends
• Risk that recruitment and development of marketer talent constrains business expansion
• Risk of declining profitability due to a rising cost-of-sales ratio (approximately 3.6 percentage point deterioration year on year)
• Risk that launch costs for new businesses such as Aurum Tech will weigh on consolidated results in the short term