MEDIROM's May 2021 KPIs Show Impressive Growth

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

MEDIROM Healthcare Technologies Inc. MRM has released impressive key performance indicators (KPIs) for the past year. The KPIs provided an insight into the business fundamentals and progress of the company, updated for May 2021.

From May 2020 to May 2021, MEDIROM witnessed an increase in its number of salons. The company increased its salons from 289 to 313 — an addition of 24 new salons. The growth was primarily because of the acquisition of another brand.

The total number of customers served by the company also saw a massive jump during the period. MEDIROM served 66,604 customers in May 2021 compared to 19,451 in May 2020.

The company attributed this increase to recovery from the COVID-19 impact.

During the review period, sales per customer also witnessed a slight increase to 6,370 yen (about $57.62) in May 2021, up from 6,244 yen ($56.47) in May 2020.

The increase from the previous month, MEDIROM explained, was due to the promotion of optional value-added services.

“Our repeat ratio — a measure of repeat customers —, was 80.6% in May 2021, down from 84.5% in May 2020. The repeat ratio in May 2020 was higher due to fewer new customers during the COVID-19 state of emergency. Our operation ratio recovered from the COVID-19 impact to 48.7% in May 2021, increasing from 29.0% in the year-ago period,” the company said in a statement.

KPIs breakdown

* Number of Salons: Directly-operated salons and franchisees’ salons

* Total Customers Served: The number of customers served at all salons for which comparative financial and customer data is available (excludes certain salons for which comparative data is not available)

* Sales per Customer: The ratio of total salon sales to the number of treated customers at all salons for which comparative financial and customer data is available

* Repeat Ratio: The ratio of repeat customer visits to total customer visits in the applicable month for all salons for which comparative financial and customer data is available

* Operation Ratio: The ratio of therapists’ in-service time to total therapists’ working hours (including stand-by time) for the applicable month for all salons for which comparative financial and customer data is available

Expansion

In May this year, MEDIROM announced that it entered into a Master Manufacturing Agreement with Sanei Electronics Co., Ltd. (6230: Tokyo), Tokyo, Japan ("Sanei"), to produce the company's MOTHER TrackerⓇ, an activity tracker and has begun preparations for production and shipment. 

Sanei is subcontracting with Canon Electronics Co., Ltd. (7739: Tokyo), Chichibu, Japan ("Canon Electronics") for part of the production.

MOTHER TrackerⓇ is the world's first smart bracelet equipped with the patented thermoelectric energy technology. The thermoelectric energy technology allows the device to be powered and driven semi-permanently by the body heat of its wearer, eliminating the need for separate charging. 

This innovation overcomes the longstanding challenge of wearable devices with limited charge duration. Launched by the company in 2020 at CES® (Consumer Electronics Show) in the United States, the MOTHER TrackerⓇ is currently the only activity tracker designed to measure heart rate, body temperature, activity, sleep and calories burned 24 hours a day, 365 days a year, without the need to remove for separate charging.

About MEDIROM Healthcare Technologies Inc.

MEDIROM operates 313 (as of May 31, 2021) relaxation salons across Japan, with Re.Ra.Ku™ as its leading brand. It also provides healthcare services. In 2015, MEDIROM entered the health tech business and launched new healthcare programs using an on-demand training app called "Lav™," which the company developed. Its corporate headquarters is located in Tokyo, Japan.

MEDIROM plans to expand its business scope to include data analysis using the data it has collected since the formation of the company.

For more information, visit its website here.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.