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Utilizing Stakeholder Dialogues*
in Corporate Management

At POLA ORBIS HOLDINGS, we actively promote dialogue with external stakeholders to confirm that our corporate activities are in line with the expectations and requirements that society places upon the POLA ORBIS Group and to identify the products and services that society wants from our group of companies.

* Stakeholder dialogues: These are opportunities to talk with stakeholders.people whose corporate interests are grounded in different perspectives.and confirm positions that match the corporate stance and understand those that do not and the associated background factors, and then find common ground wherever possible. From a corporate standpoint, such common ground provides a basis for actions that reflect stakeholders' opinions in the business activities of Group companies and promotes development of the Group as well as society.

11th stakeholders' dialogue, held on July 5, 2016
Six POLA customers gathered for an interactive dialogue with executives, including the president.
Most of the discussion revolved around POLA's appeal as a brand and issues that require furtherattention.

Comments from Stakeholders

POLA Issue ❶ Communication

  1. I'd like to know about store events as soon as possible.
  2. The closing days of the shop I go to don't follow a regular schedule, so there have been times when I would have liked to make an appointment for an esthetic treatment but couldn't.
  3. How about creating a showroom in a place that draws crowds of young people and promoting products not only in the high-price range but also the low-price range?
  4. Why not put POLA products in the changing facilities for joggers who run around the Imperial Palace?

POLA Issue ❷ Communication

  1. POLA has emphasized B.A so much that younger women, in particular, may hesitate to go for a skin check. Skin analysis doesn't cost the customer anything, so that fact should be highlighted a bit more.
  2. APEX skin analysis is completely different from similar services offered by other companies. The feedback is more in-depth, with frequent follow-up. It might be a good idea to highlight these points more, as well.
  3. POLA should be more aggressive in introducing skin analysis at large stores, such as POLA THE BEAUTY.

POLA Issue ❸ Communication

  1. Containers should remain usable when products are updated.
  2. Offer refills for more products.

POLA Issue ❹ Communication

  1. I'd like to see more items in the makeup category.
  2. I'd like to see travel kits become standard items in the lineup.
  3. It would be great if products distributed in the past as gift items.not for sale.could be sold at a later date.
  4. I've been going to a POLA store for nearly 10 years. I think it's time for some interior and exterior maintenance.

POLA' s Response

Talking directly with loyal customers and getting candid comments was tremendously valuable. We received many compliments, such as ?gThe Beauty Director assigned to me is just terrific?h and ?gI can't do without POLA cosmetics,?h which reaffirmed our belief that the corporate value we seek to convey has been eloquently delivered to customers through wonderful partners.our Beauty Directors.
These comments were made only because customers think well of POLA, and so we take them firmly to heart. With regard to the lack of a schedule for a shop's closings, which one customer touched on, we will remedy the situation and enhance customer convenience by setting up an esthetics appointment system on our website. We will also collaborate with other companies and reinforce measures to raise the POLA profile among women in the target group. We hope these efforts will find favor with customers.

Past Efforts

Stakeholder comments

Recently, recruiting human resources with excellent capabilities has become more difficult. One big reason is that the appeal of working as a Beauty Director and the system of Beauty Directors' work are not readily understood by the average person. I think POLA needs to take a radical approach to recruiting, including getting better support from headquarters.

What actions did POLA take?

We changed the content of training for Beauty Directors and pursued other strategies to raise the quality of our services. We also made capable women in their 20s and 30s the focus of our recruitment drive and ran recruiting forums, with headquarters' support, to highlight the appeal of working as a Beauty Director. We will continue these approaches, taking forums to the suburbs as well, to attract women in the target age range and develop their skills.

Representing POLA: Yoshikazu Yokote (Representative Director and President); Miki Takenaga (Director in charge of Direct Sales); Akira Gogo (Director in charge of Marketing); Tomoko Kamiya (Corporate Officer in charge of Direct Sales Planning)

Note: The titles of participants reflect positions as of the date the dialogue occurred.

12th stakeholders' dialogue, held on September 14, 2016
Since 2012, ORBIS has been working on brand-restructuring to achieve a higher degree of sustainable growth and corporate social responsibility. In the fourth year of this effort, we asked experts what kind of brand communication was needed to realize a great leap forward.

Comments from Stakeholders

Takashi Okutani

Corporate Officer and Manager, General Marketing Division/Chief Omni-channel Officer, Oisix Inc.

ORBIS is expanding both online sales and its presence in physical stores. With online sales, though, customers cannot try a product before buying it. Because of that, ORBIS really has to work on conveying the quality of the brand. Today, the quality of a mail-order brand is known only at the delivery address. It stops there unless someone talks about it to someone else.
At Oisix, we are eager to visualize brand quality with social media and owned media like your company website or blog. I believe brand communication requires different gears. Pursue customers but also make them smile. Also, do you somehow project a “point of sales” image?
Instead, create fun.a “place to browse”.and maintain that atmosphere even in cyberspace. This is sure to improve brand value and differentiate ORBIS from other companies.

Yumiko Aboshi

Manager, FRUGRA Division, Marketing Group, Calbee, Inc.

Actual interaction with customers in stores is extremely important. More than 20 years ago, my company had a team of more than 200 people who would do what we called “zone sales”.
going around to stores and checking on the sales status of Frugra (fruit granola) from various angles. What caused sales to fluctuate? The way sales space is created. A member of the team built a contraption with simple materials, but the setup showcased innovative thought and in-store experience and was well-matched to the characteristics of customers in that area. This “legendary wagon,” as it was called, produced good sales. ORBIS too has stores all over the country, and the age range and distinctive characteristics of its customer base vary with the location. Taking a different approach at each store might prove effective.

ORBIS' Response

This time, the comments from our two guests highlighted the multi-faceted aspects of ORBIS and drove home the importance of matching customer-oriented approaches to the times if we are to achieve a great leap forward.
In 2017, we will celebrate our 30th anniversary. Going forward, we will work even harder to create brand value as we seek to make ORBIS a one-and-only brand.a brand that most customers always choose.
With online sales, the tendency is to market with explanations, that is, to present honest, easy-tounderstand descriptions of product claims. We have not yet reached a point where we are creating tactics to steer customers in a particular purchasing direction. We will work on approaches that entice customers on a more emotional level.
For physical stores, we once emphasized aspects that made each store different. But now, to ensure a consistent brand image, promotions are essentially the same everywhere, while each store deals with the different needs of each customer on an individual basis.
However, the “just a point of sales” element of our stores is strong, so we are aiming to shift toward a “place to try out the brand,” drawing on the advantages of a physical store to let customers experience ORBIS products firsthand.

Representing ORBIS: Yoshifumi Abe (Representative Director and President); Sosuke Matsueda (Manager, cosmetics planning team, product planning division); Emi Nishino (Manager, new media planning team, mail order and online sales division); Tomoko Sasaki (Manager, sales and planning team, store sales division)

Note: The titles of participants reflect positions as of the date the dialogue occurred.

ESG Information
Corporate Report2020