From Salon to Support: How Haruka Holds It All Together

To begin, we’d like to talk about Japan’s position in the global beauty industry. Your company plays an important role in Japanese cosmetics, and compared to the bold trends of K-Beauty, Japanese brands are often recognized for their understated natural essence and precise formulations. What do you see as the key strengths of Japanese beauty companies and the industry as a whole, especially in terms of Japan’s position in the global market?

Korean beauty is far ahead of Japan when it comes to marketing. In fact, I would say their marketing capabilities are remarkable. They don’t just sell products—they sell emotions and experiences. From manufacturing to the finished product and overall consumer engagement, they offer a fully integrated experience.

When it comes to Japanese beauty and our strengths, I believe, as you mentioned, it lies in meticulous attention to detail. Japanese companies take great pride not only in their technical capabilities but also in the level of service they provide. Tools are also a key part of this equation. Take something as simple as a pair of salon scissors, each one is crafted with care and precision.

In Japan, services are deeply integrated. At a salon, for instance, it’s not just about getting a haircut. Stylists go out of their way to ensure the customer feels comfortable and that the time spent in the salon becomes a memorable experience. All of this reflects the spirit of Japanese craftsmanship.

You mentioned the contrast between Japan’s strength in detail and Korea’s strength in marketing. At the same time, Japan is attracting significant global attention, with over 50 million tourists expected in 2025 and projections reaching 60 million annually by 2040. We understand your services are primarily designed for working professionals, but do you also see this growing influx of tourists as an opportunity for your company?

Inbound tourists are part of our target market, particularly visitors from places like Hong Kong and Taiwan. Many of them do come to our stores. However, there’s still a significant language barrier, and I’ve heard that some tourists have difficulty using our website to make reservations. This also means we may not always be able to fully respond to their questions in-store. We’re currently working on creating a more foreigner-friendly environment, but for now, our main focus remains on the domestic market.

Industries across Japan are being affected by the country’s ongoing demographic challenges. Your company is clearly committed to meeting customer demand, but securing talent and resources can be difficult. We understand that you dispatch beauty artists to certain salons through your Creation by Atelier Haruka initiative. Could you tell us more about how your company is addressing Japan’s demographic issues, and what potential opportunities you see emerging from this situation?

The population decline poses a serious challenge to the beauty industry. Last year, Japan saw only 690,000 births, underscoring the severity of the demographic issue. During the COVID-19 pandemic, more students enrolled in beauty and hairdressing schools to earn certifications, likely viewing it as a practical skill for the future. However, that number has since fallen from 20,000 to 15,000. Of those, only about 60 percent go on to become hairdressers or barbers. The remaining 40 percent pursue other careers, often due to low wages. That’s why it’s essential to create a system that offers economic viability, making the profession more attractive.

At the same time, while the workforce is shrinking, the number of hair salons continues to grow. There are now around 270,000 salons across Japan, yet only 10,000 new graduates from specialized beauty schools each year. This has created intense competition among salons for a limited talent pool. Smaller salons, in particular, struggle to attract new graduates due to a lack of brand recognition.

In response, we are working to open new pathways for overseas talent to come to Japan. For example, we recently established a company in Vietnam, which we’re now using to recruit potential hairdressers and barbers. Through Japan’s special talent visa, we can help qualified individuals from Vietnam live and work here.

That said, there are two key regulations we must navigate. The first requires that anyone working in a salon must be a licensed beautician in Japan. The second mandates that all salons undergo inspections by local health authorities. These rules present obstacles given the current labor situation.

The regulatory framework for hair salons in Japan dates back around 80 years, to a time when traditional ways of living were more common. Hair lice, for example, were a concern linked to rice pots, prompting rules to separate eating and salon spaces. As a result, business models that combine cafés and salons—common overseas—don’t translate well in Japan. You might think the beauty industry has room for innovation, but these outdated regulations often prevent it.

On the positive side, once these regulatory hurdles are cleared, businesses can operate quite smoothly and reliably. This also explains why foreign companies often find it difficult to enter the Japanese market.

When it comes to addressing labor shortages, digital transformation (DX) presents significant opportunities for Japanese companies. The beauty industry is no exception, with DX enabling greater accessibility and personalization. How is your company using digital platforms like LINE to communicate with your customers?

The reason we've become number one in the beauty industry is because of our out-of-the-box marketing strategy. Most companies focus on how to attract customers, but we flipped that thinking and asked ourselves how we could bring the store closer to the customer. That’s why we placed our stores right next to station gates, in locations where bento box stands used to be.

My background is in research, so when I became president, I looked closely at why customers were choosing our stores. While customers want to look beautiful, 80 percent of those surveyed said they were too lazy to put on makeup themselves. Every morning, women apply makeup, so we thought, why not offer a full service in just 20 minutes? Through these surveys, we came to understand our core business more clearly: we remove the burden of beauty for our customers. That’s the role we play.

When developing our business model, I studied successful manufacturers like Toyota and Uniqlo because I enjoy learning from those who came before us. Toyota saw exponential growth with the success of the Prius. For Uniqlo, it was their Cool Tech and Heat Tech lines. What I realized is that in order to grow a company, you need a best-selling product. For us, that’s our hair makeup service. At the time of my research, about 60 percent of our revenue came from hair makeup. By turning a small store near the station into a kind of high-efficiency hair styling hub, I laid the foundation for our success.

It generally takes three years for a beautician to be able to perform haircuts, but our company trains personnel so that they can be active in the field immediately. We've structured the business to focus on high-demand services, delivered by well-trained staff, in premium, high-traffic locations.

If you look at convenience stores, they rarely advertise. Their strength lies in being in easily accessible, premium locations—hence the name "convenience." We’ve taken the same approach with Atelier Haruka. While we recommend making reservations, customers can walk up at any time and receive the service they need, quickly and smoothly. That’s what matters most to us: delivering quality services efficiently and conveniently.

You mentioned studying success stories in manufacturing and the importance of placing the right workforce in the right location. Your business model seems highly scalable; not just in Japan, but internationally. With that in mind, you recently opened a store in Singapore. Do you see this model working in other high-traffic cities like New York, London, or Paris?

Our business model targets women with high disposable incomes, such as office workers. Often, these women finish work around five or six in the evening, and before heading out for the night, they need to refresh their makeup. That’s where our service becomes valuable.

That’s why we focus on countries where women have higher disposable income, and where the environment offers safety and convenience. We look for locations with well-developed infrastructure, such as reliable train networks or high-traffic shopping malls. We want to avoid situations where a drop in weather—like rain—leads to a drop in customer numbers. For that reason, a location within an underground train network or underpass could be particularly attractive.

Another key factor is the geopolitical climate. The founder of Shiseido once said, “Beauty is the symbol of peace.” If a country doesn’t offer peace and guarantee basic human rights—especially the freedom for women to work and express themselves—we are not interested in entering that market. These are the criteria we use when deciding where to expand.

Here in Japan, you’re able to teach, train, and guide your staff to deliver the level of service that defines your brand. However, expanding into overseas markets may pose challenges due to cultural differences and language barriers. How are you ensuring that the same level of quality is maintained when delivering your services abroad?

We’re still relatively new to the overseas market, and we’re currently learning from international conglomerates about how they train and educate their staff. In Singapore, for example, we’ve hired individuals with experience working in department stores for international brands as makeup artists or hairdressers. This has helped us gain a better understanding of industry practices from a global perspective.

There are many factors Japanese companies must consider when entering overseas markets, particularly cultural and religious sensitivities. For instance, animal-based hairbrushes cannot be used in some regions, so we’ve switched entirely to nylon brushes. Paying close attention to the customs and expectations of each region is essential, and we’re still in the process of building that knowledge. Our goal is to create a standardized company manual that we can apply across all regions to ensure the highest level of service.

When it comes to technical training, we provide it at the same level as we do in Japan. We focus on hiring individuals who already have industry experience, and then we add our own technical instruction on top of that.

Are you also exploring global partnerships or collaborations to help you better understand each region and successfully enter new markets? If so, what qualities do you look for in an ideal partner?

Our founding philosophy is to internalize all business capabilities, so even when we expand overseas, we handle everything ourselves. Our operations are designed to be low-cost, and our store footprints are intentionally small. This allows us to run highly efficient operations, minimizing expenses and making our business model more economically viable.

I actually have a friend who opened a restaurant in Singapore with a local partner. The business performed extremely well in the first three months, even doubling the sales of the Japanese branch. However, after that initial success, the Singaporean partner took over the restaurant. When operating overseas, there’s always a risk of losing control of the business.

Today, we've focused on your business model of providing swift beauty services, but we also understand that you offer more premium options for customers seeking longer, more detailed treatments. Could you tell us more about these premium offerings and how you plan to grow this segment of your business?

There are four key elements that set our premium offerings apart and support the development of what we consider our luxury brand. First, many companies create different sub-brands to reflect the various levels of service they offer. This helps customers immediately associate each brand with a certain price point or quality of experience.

Second, as a company grows, staff members are eager to challenge themselves and improve their skills. For example, someone who provides a 10-minute makeup service might aspire to move up to more detailed 30-minute applications. By introducing premium and luxury services, we create clear paths for career progression within our organization.

Third, cosmetic manufacturers often reserve access to their high-end products for more upscale salons. In order to use these elevated cosmetic brands, it’s important for us to also maintain a higher-end brand image. Finally, we recognize the importance of diversifying our business. With that in mind, we’ve aimed to create a luxury experience that aligns with the standards and atmosphere of a department store setting.

When a customer walks through the doors of your salon, what is the main objective you aim to achieve in order to ensure their satisfaction?

I always remind our technicians that we are just a passing point in our customers' day. Their main objective isn't simply to receive a treatment or have their makeup done—there is always a reason behind it, whether it's going to work, meeting someone important, or going on a date. Understanding the true purpose behind a customer's visit is essential to how we operate. By focusing on the experience and supporting that deeper goal, we play a part in helping them feel confident and satisfied overall.

Let’s imagine we return in five years to do this interview again. What goals or dreams do you hope to have achieved by that time?

Right now, our business is centered on the beauty industry, but we’re looking to broaden our scope and evolve into a complete lifestyle brand. This mission is deeply connected to the spirit of Haruka. We’re particularly interested in expanding into the health sector, and we hope to host events in the future as part of that vision.

By holding events, we want people to enjoy themselves while also creating new opportunities to showcase our makeup and hairdressing services. Strengthening these areas of our business will help us grow as a company overall. We also run our own LINE loyalty program, which allows us to stay connected with customers and invite them to our events. At the same time, we're looking to address the issue of labor shortages by adopting labor-saving technologies such as AI. This is why we’ve partnered with a Singaporean IT company to develop an unmanned reception system. With this, customers can complete registration and payments independently, without needing to interact with staff.

Japan is still behind when it comes to AI integration, but in Singapore, almost every reception system uses some kind of touchpad technology. That’s why we chose to collaborate with a company there.

Another important social issue we’re working to address is female empowerment. We’re enhancing our services for women with disabilities and also establishing childcare centers to support working mothers. Society is changing, and it’s no longer sustainable for only one parent; typically the father to work. In households with children who have disabilities, it can be even more difficult for mothers to remain in the workforce. We hope our efforts will help more women participate fully in society.

For more information, please visit their website at: https://www.haruka.global/