Everyday Smiles, ELAN Style

Japan is well known for its demographic challenges: it has the world’s most rapidly aging society, with nearly 30% of the population now over the age of 65, and an average life expectancy approaching 85 years. This reality creates enormous pressures on the healthcare industry, including workforce shortages and rising costs. At the same time, it also presents new business opportunities. From your perspective, how does Japan’s aging society represent both challenges and growth opportunities for ELAN?

To begin, more than 70% of the people who use our CS Set service are elderly, typically those aged 70 and above. As this demographic continues to grow, we see this as a positive opportunity, because it means our services will become increasingly relevant and appreciated. On the other hand, Japan’s ongoing demographic shift also means the working-age population is shrinking, and this will inevitably create labor shortages. If we were to limit ourselves to only the Japanese market, there would eventually be constraints on growth. That is why we are actively considering expansion beyond CS Set alone—diversifying into new businesses and looking at global markets for future development.

Beyond CS Set, what other priorities guide your approach as the company grows?

What I value most, even as we incorporate technology, is maintaining a sense of human warmth. The people we serve are often in vulnerable positions, and it is essential they feel that our products and services carry a sense of care. For me, “handing over directly” is symbolic—it reflects the idea that our customers should always feel a personal connection. While we will continue to leverage technology to address labor shortages, we remain committed to ensuring that human contact is preserved where it matters most.

You mentioned the difficulty of securing talent. Inevitably, this will mean hiring more foreign workers. Given Japan’s unique cultural context, how do you ensure that overseas employees can successfully adapt and integrate into your company?

In fact, we already employ staff from Korea and Vietnam, particularly in sales roles, and they have integrated very well. We began this initiative four years ago, and although cultural adaptation is always a consideration, we have found that foreign employees often blend into our company culture quite smoothly—sometimes even more easily than some Japanese hires. Naturally, not everyone adapts quickly, regardless of nationality, but overall, our experience has been positive.

Another major theme in global business is sustainability. How is ELAN addressing ESG, diversity, and sustainability initiatives?

We have established an internal committee called the “Future Committee,” dedicated to advancing SDGs and sustainability. The committee identifies seven key areas where we focus our efforts, and we regularly bring employees together to discuss topics such as TCFD, human capital management, and diversity. Beyond frameworks, however, our vision is centered on increasing the total number of smiles. That includes not only the patients and families who use our services, but also our employees and all stakeholders. We want to create opportunities for people who face challenges—such as those with disabilities who may struggle to find work—to contribute meaningfully. By enabling such participation, we multiply happiness, and those smiles spread further. That is the kind of future we want to build.

CS Set Clothing and Daily Essentials Kit

Last year, ELAN became a consolidated subsidiary of M3 Inc. What benefits or synergies have you gained from joining the M3 Group?

Since our founding in 1995, we grew independently for 22 years, without outside capital. Partnering with M3 last year was the first time we accepted a significant external investment, and the collaboration has been very energizing. Employees have embraced it not with resistance, but with curiosity about what new opportunities it opens.

Broadly speaking, the benefits fall into two categories: short-term and mid-to-long-term. In the short term, with M3’s network of over 170 group companies, we are already realizing cost efficiencies through joint procurement. More importantly, M3 has business relationships with about 8,000 hospitals in Japan. Traditionally, our sales approach has been bottom-up, beginning with frontline staff and gradually building toward management. Thanks to M3, we now also have top-down access, which allows us to engage in what I call “sandwich sales”—approaching hospitals from both directions. This has already produced significant results.

For the mid-to-long term, we are working with M3 to explore new business areas such as home healthcare services. M3 is fundamentally a technology-driven company, and we see great potential in co-developing digital solutions to support our initiatives. Furthermore, M3 already operates in 17 countries, so global expansion and M&A collaboration are natural areas for synergy. They bring expertise we do not have, and we want to leverage that intelligence to accelerate our growth.

In terms of international expansion, which countries are you prioritizing?

At present, we have made investments in India and Vietnam. We chose these countries because their healthcare infrastructure is still developing. For example, India has 14 times Japan’s population but until a few years ago, it had roughly the same number of hospitals as Japan. Vietnam’s hospital capacity is roughly one-tenth that of Japan, despite having a comparable population. These gaps indicate immense opportunities for growth. Our objective is not simply to introduce CS Set, but to solve pressing healthcare challenges in these markets. Because Japan was the first country in the world to face large-scale aging, we believe we have unique services and know-how that can be applied internationally.

Japan has rich healthcare expertise that could benefit not only Southeast Asia but also Western countries. What specific services or products might you export globally?

As you know, Japan has entered a super-aged society ahead of the rest of the world. While declining birthrates and aging populations often carry a very negative connotation, Japanese companies have pooled their ingenuity to create numerous products and services to address these challenges. Our CS Set is one such example. I firmly believe Japan possesses many indispensable products and services that will be indispensable in the future faced by countries worldwide, and that these can surely transform the “troubles” of people around the globe into smiles.

ELAN is known for its “win-win-win” philosophy. Could you explain how this concept is applied in practice?

From the very beginning, when we launched CS Set 23 years ago, we committed ourselves to what we call an “invincible scheme”—a system where no one loses. When we introduce CS Set into a hospital, we deliberately collaborate with existing vendors and distributors so that they also benefit and grow. By ensuring hospitals, suppliers, and patients all gain, we avoid creating enemies and instead build allies. Over time, as more hospitals adopt our services, our network of partners expands. This philosophy has been core to our culture since day one. Ultimately, for our business to be sustainable, it must generate value for patients and families, partner companies, and hospitals alike. Only then can we continue to create smiles on a lasting basis.

Could you also explain what CS Set is, for readers unfamiliar with the service?

Certainly. Originally, our company began in futon sales, then shifted into futon refurbishment to help address Japan’s waste problem, as futons were the largest category of bulky waste at the time. By chance, one of our customers was a hospital director, who asked if we could handle hospital bedding. We looked into it, but found that entering the bedding market would require huge investment in factories and equipment, so we declined. That director then suggested something else: could we provide rental of personal items and consumables for patients—things like clothing, towels, and everyday necessities that were a burden for families to supply and wash?

That was the origin of CS Set. In essence, it is a rental service for inpatients, providing them with all necessary personal items—clothing, towels, consumables—complete with laundry service. The idea resonated immediately, because it addressed a real need for both patients and hospital staff.

Beyond CS Set, you have also launched new product lines such as lifte. Could you tell us more about this initiative?

Yes, lifte is a line of patient wear that we developed after hearing repeated complaints about the standard hospital garments—thin, uncomfortable, and demoralizing. Wearing them makes patients feel even more like “the sick.” We wanted to change that. Over three years, we designed and developed lifte, focusing on comfort, dignity, and style. The response has been overwhelmingly positive. Patients and families have shared feedback such as: “The design is comfortable, like the nightwear worn at home,” and “It's highly functional, and since it doesn't open in the front, it's easy for women to wear. That kind of feedback confirms we achieved our goal.

lifte product line

Do you see CS Set and related services expanding overseas?

Yes, but not in a simple, copy-paste way. Each country has different legal frameworks, healthcare systems, and patient needs, so we cannot just export CS Set as it exists in Japan. We are conducting market research now and will tailor our services to fit local contexts. For the moment, our overseas focus is on acquiring or partnering with linen companies that already serve hospitals. Once we establish strong relationships there, we will be able to introduce additional services, whether CS Set or entirely new offerings.

This year marks ELAN’s 30th anniversary—congratulations. If we return in five years for another interview, what goals or ambitions would you like to have achieved by then?

There are things I’d love to share, but some plans must remain confidential for now. What we can share is that we are launching new ventures both domestically and internationally to create new pillars that transcend the CS Set. And within the next five years, our collective goal is to evolve from “ELAN of the CS Set” to “When it comes to medical and health services, think ELAN.”

A final, simple but profound question: if you had to describe ELAN in just one phrase, what would it be?

I would say we are a company that understands the true value of a smile.

For more information, visit their website at: https://www.kkelan.com/en/