For the past year, MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM) has released several excellent key performance indicators (KPIs). The KPIs, which were updated for May 2021, provided insight into the company’s business foundations and success.
From May 2020 to May 2021, the number of salons at MEDIROM increased. The number of salons in the company has grown from 289 to 313, with 24 additional salons added. The acquisition of another brand accounted for the majority of the expansion.
During this time, the company’s total number of consumers increased dramatically. In May 2021, MEDIROM served 66,604 consumers, up from 19,451 in May 2020.
This rise was related to the company’s recovery from the COVID-19 impact.
Sales per customer increased somewhat over the review period, rising to 6,370 yen ($57.62) in May 2021 from 6,244 yen ($56.47) in May 2020.
According to MEDIROM, the increase from the previous month was attributable to the advertising of optional value-added services.
“In May 2021, our repeat ratio (a measure of returning clients) was 80.6 percent, down from 84.5 percent in May 2020. Because there were fewer new clients during the COVID-19 state of emergency, the repeat ratio in May 2020 was greater. Our operation ratio recovered from the COVID-19 impact to 48.7% in May 2021, up from 29.0% in the previous year “The company noted in a statement that the period was “a year ago.”
Breakdown of KPIs
* Total Customers Served: The number of customers served at all salons for which comparative financial and customer data is available * Number of Salons: Directly run salons and franchisees’ salons (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 in-service time for all salons for which comparative financial and customer data is available *
Expansion
MEDIROM stated in May that it had signed a Master Manufacturing Agreement with Sanei Electronics Co., Ltd. (6230: Tokyo), Tokyo, Japan (“Sanei”) to develop the company’s MOTHER Tracker(R), an activity tracker, and that manufacturing and shipment had begun.
Sanei is subcontracting part of the manufacture to Canon Electronics Co., Ltd. (7739: Tokyo), Chichibu, Japan (“Canon Electronics”).
MOTHER Tracker(R) is the first smart bracelet with patented thermoelectric energy technology in the world. The device’s thermoelectric energy technology allows it to be charged and propelled semi-permanently by the wearer’s body heat, without the need for separate charging.
This breakthrough solves the long-standing problem of wearable devices with short battery life. The MOTHER Tracker(R) 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 it for separate charging. It was launched by the company in 2020 at CES(R) (Consumer Electronics Show) in the United States.
MEDIROM Healthcare Technologies Inc. is a company that specializes in healthcare technology.
MEDIROM operates 313 relaxation salons around Japan (as of May 31, 2021), with Re.Ra.Ku(TM) as its leading brand. It also offers medical services. MEDIROM entered the health-tech industry in 2015, launching new healthcare programs with the use of an on-demand training software called “Lav(TM),” which the company created. The company’s headquarters are in Tokyo, Japan.
MEDIROM intends to broaden its business scope to include data analysis, based on the information gathered since the company’s inception.
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