Expanding business plan of ARTE salons in the future
ARTE plans to increase the number of middle size "Ash" and "NYNY" salons that we can expect very high profitable results and new "SD" will mainly be opened as small to middle sized salons. We will set up a number of "Ash" and "NYNY"; including our directly-managed salons; approximately 200 to 250 in the next 7 years. The number will be doubled from the present.The targeted areas are around major train lines with our dominant strategy business plans. As the ARTE group, including luxury and fashionable salons for men, we will reach about 500 salons; which are mainly "ARTE-sharing franchising" and "ARTE membership franchising approval system" salons; to be opened in the next 7 years (by 2015 ), and about 1,000 salons in the next 14 years (by 2022).
We think growing rate of total number of salons will gradually be less in the future. Because we expect our business extension may not have many areas left for our business to extend which we haven't touched yet. Though there are undeveloped areas in our business which still have the potential for extension especially those nearby major commuter stations. However, we can represent more profitable plans for existing salons, so we will maintain 15% business growth in the ARTE group.
