NOVARESE Inc. An unforgettable graceful wedding

MANAGEMENT POLICY

  • Basic Management Policy

    「Our management philosophy is "Rock your life – We want to be a company that continuously provides vitality to the world". We aim to continuously improve ourselves, and continue creating new value in this fast-changing world. Our wish is for our staff to be excited about their work (in this age of "indifference"), and let all of our employees to be proud of themselves as well as of their work. We firmly believe that our lively working attitude will make our customers happy, which will in turn make us happy, creating a virtuous cycle.

  • Target benchmarks

    The underlying policy behind our revenue growth is the notion of the "expanding equilibrium". In order to generate stable and continuous revenues, we try to strike the right balance between i) capex spent on new store openings, and ii) improved efficiency by increasing the number of stores. Therefore, we focus on the following benchmarks;
    Growth : revenue growth rate
    Profitability : ordinary profit ratio
    Efficiency : ROE

  • Mid-long term management strategy

    Competition is expected to further intensify in the future, with hotels and wedding-specialized facilities renovating their facilities and entering the guest house wedding market, as well as new entrants into the bridal market from other sectors. In order to differentiate ourselves, we have set 1. new store opening strategy, and 2. human resource strategy as our mid-long term business strategies. We are aiming to open wedding & banquet facilities which meet the characteristics of each region, manage efficiently through economies of scale (a large number of stores), and maintain/improve our service quality by training our staff.

    New store opening strategy

    We will open new wedding & banquet facilities as well as dress shops while maintaining the balance between i) hiring and training talented staff, in order to open many stores and to maintain/improve our value adding services, and ii) financing.

    Human resource strategy

    We will aggressively pursue hiring and training talented staff, in order to improve our customer service levels. We will implement various measures to provide high value-adding services, such as i) planned hiring in relation to new store openings, ii) vitalizing our organization through job rotations, and iii) motivating our staff by setting targets to be achieved.

  • Potential challenges

    The current environment

    According to future population estimates, the number of people in the our target age zone is going to decline year by year, while the unmarried rate of the same segment is expected to rise. There are concerns that the overall bridal market which we operate in will shrink. Meanwhile, the "guest house wedding", a wedding style where people can demonstrate their individuality, is gaining wide support. This is thanks to the rise in awareness towards wedding information magazines, the increase in wedding information websites, as well as the diversification of consumer lifestyles. On the other hand, competition is intensifying, with hotels and wedding-specialized facilities renovating their facilities and entering the guest house wedding market, as well as new entrants into the bridal market from other sectors. In order to gain customer support under these circumstances, we have chosen the following as our focus areas, and are working on measures to achieve these goals;

    i) Strategic expansion of store network
    ii) Promotion strategies to raise awareness
    iii) Expanding our product lineup
    iv) Hiring and training staff
    v) Hygiene maintenance
    vi) Internal control, risk management and compliance

    Actual measures for each of the focus areas

    According to future population estimates, the number of people in the our target age zone is going to decline year by year, while the unmarried rate of the same segment is expected to rise. There are concerns that the overall bridal market which we operate in will shrink. Meanwhile, the "guest house wedding", a wedding style where people can demonstrate their individuality, is gaining wide support. This is thanks to the rise in awareness towards wedding information magazines, the increase in wedding information websites, as well as the diversification of consumer lifestyles. On the other hand, competition is intensifying, with hotels and wedding-specialized facilities renovating their facilities and entering the guest house wedding market, as well as new entrants into the bridal market from other sectors. In order to gain customer support under these circumstances, we have chosen the following as our focus areas, and are working on measures to achieve these goals;

    i) Strategic expansion of store network

    In deciding new wedding & banquet facility openings, we comprehensively consider the size of the market, regional characteristics and location, as well as the potential profitability. Of these criteria, we believe location is the most important, since it impacts the revenues and profits of the store. Our dedicated store development team will focus on expanding our sources of information for land acquisition opportunities, as well as responding quickly to aggressively expand our store network.

    ii) Promotion strategies to raise awareness

    We believe promotion strategies are important in raising awareness, and thereby improving the utilization rate of our wedding facilities. We will pursue various promotion strategies, including using the mass media such as bridal and dining information magazines, TV commercials focusing on certain regions, as well as bridal and dining information websites.

    iii) Expanding our product lineup

    We believe it is important to respond to the diversifying needs of customers, as well as making proposals which bring out potential customer needs. In order to achieve this, we will expand our product lineup, namely by having our in-house designers design and produce original dresses, as well as the development by our group companies of flower arrangement and video services.

    iv) Hiring and training staff

    In the bridal business, planning and proposals which meet the needs of the customer is required, as well as knowledge of the product and expertise, when producing wedding ceremonies & banquets, and when leasing/selling wedding dresses. Training our staff takes a certain amount of time, and we try to strike the right balance between training and the opening of new wedding & banquet facilities and dress shops, in order to maintain and improve our service level. Our HR policy is to hire staff flexibly and with agility throughout the year, conduct job rotations, stimulate our organization by conducting organizational changes without boundaries, and actively delegating responsibility to our employees, and thus raise motivation.

    v) Hygiene maintenance

    Based on the Food Sanitation Law, we obtain business permits from each local public health center, and we assign food-sanitation managers to all wedding ceremony & banquet facilities. We also have a food sanitation manual in order to prevent food poisoning etc., and rigorously manage sanitation and quality, through measures such as periodic stool examination and daily health management of our staff. Moreover, we will thoroughly control and manage hygiene through regular/irregular inspections by third party organizations.

    vi) Internal control, risk management and compliance

    We are actively working on establishing and implementing our internal control reporting system, which we have started operating from the 10th fiscal period, through hiring external consultants and setting up a task force. We are also periodically revising our operations regarding risk management and compliance in committees, and then communicating the results of our discussions to the entire staff.