Enhancing manufacturing capabilities under
“D-Summit 2023”, the new Mid-term Management Plan, while focusing on solving material issues
With the spread of the novel coronavirus (COVID-19), FY2020 was a year that had an enormous impact on people around the world, and I would like to take this opportunity to offer my sincere condolences to those who lost their lives in this pandemic. Putting the safety of our employees, suppliers and other stakeholders first, the DESCENTE Group has responded appropriately to requests from the government and
other municipal bodies, as we engage in efforts to achieve a sustainable society and to realize our corporate philosophy.
While it may be natural to take a negative view in the current environment, personally the past year has re-awakened me to the positive power inherent in sports. My hope is that, as quickly as possible, we are able to return to a time when everyone can feel secure in experiencing the enjoyment of sports.
Identifying, and Working to Solve, Four Material Issues
Looking beyond the current COVID-19 pandemic, climate change, human rights and other social issues are no longer someone else’s problem. As a corporate citizen, the DESCENTE Group is determined to protect an environment for enjoying sports by strengthening its efforts to achieve a sustainable society.
As the first step in that effort, we have identified four material issues in accordance with the Company’s Sustainability Policy. Previously, in 2002 we formulated our own Basic Environmental Policy and have since worked to contribute to the environment. Those efforts to address social issues have continued, including with our participation in the United Nations Global Compact in 2015.
Beginning in FY2021, we will focus on solving the material issues we have identified, starting with breaking away from overproduction in an effort to achieve business growth while at the same time resolving social issues.
From Sportswear to “MoveWear”
The Company’s manufacturing capabilities are a strength essential to solving our material issues and achieving sustainability. Our unrivaled pattern technology and the high-quality sportswear manufactured in our own factories have gained a strong reputation overseas as well as in Japan, and we are much loved by customers, particularly in South Korea and China, as a premium sports-apparel brand. We continue to create sportswear for top athletes, of course, but we are also utilizing the technology we have developed to date to define a new category of apparel, not limited to sports, which we call “MoveWear,” the sportswear to “move the body and move the spirit.”
Under the "MoveWear" label, we will create clothing that feels great while you are “moving”, and also excites you. And to ensure customers can fully recognize that value, we will be expanding our direct touchpoints with the customer through our directly managed stores and e-commerce site.
Advancing “D-Summit 2023,” the New Mid-term Management Plan
The global spread of COVID-19 in FY2020 dramatically altered the business environment and required companies to make bold changes in order to survive. At the DESCENTE Group, we sold off shares in and liquidated subsidiaries in the Americas, where losses had persisted, allowing us to complete our concentration of management resources in Asia (Japan, South Korea and China), as set out in “D-Summit 2021”, the mid-term management plan announced in August 2019. In our business in Japan, we are also working quickly to transform our existing business structure, determining structural reform policies and shifting to the execution stage.
In May 2021, we moved the end of “D-Summit 2021” forward by a year, and at the same time announced “D-Summit 2023”, the new mid-term management plan covering the period through the fiscal year ending in March 2024. “D-Summit 2023” is focused on achieving an earnings structure well-balanced between Japan, South Korea and China, and on solving material issues based on our Sustainability Policy. Going forward, we will break through the past to deliver new value, and respond to the expectations of all of our stakeholders while continuing our efforts to achieve a sustainable society.