End of the line: Pola Orbis axes Amplitude and ITRIM in bid to improve profitability

By Amanda Lim

- Last updated on GMT

Pola Orbis Group will discontinue Amplitude and ITRIM this year. [ITRIM]
Pola Orbis Group will discontinue Amplitude and ITRIM this year. [ITRIM]

Related tags pola orbis Skin care Makeup Business

Pola Orbis Group will discontinue Amplitude and ITRIM this year as part of plans to enhance its brand portfolio and improve the firm’s overall profitability.

The Japanese cosmetic company announced the termination on March 6, citing the need to reform its brand portfolio and the brands’ poor performances as the reason for sending both brands to the chopping block.

“While we focus on business portfolio expansion as a new pillar of our strategy, we will work to reform our brand portfolio in the existing cosmetics business, aiming to further improve our profitability. As part of this plan, we have decided to terminate the Amplitude and ITRIM brands.

“The business environment of these brands has been harsh, and their performance fell short of our plans. We have implemented several measures to achieve growth but have determined that it will be difficult to find benefits in continuing these businesses in the future.”

Both brands were under Pola Orbis’ brands under development portfolio, consisting of brands such as THREE, Decencia, and Fujimi.

This news follows the group’s fiscal 2022 annual results, which recorded a 6.9% decrease in net sales, and a 25.5% decrease in operating income.

According to the firm, revenue declined across brands under the development portfolio as a whole, noting that “even greater urgency is required in ameliorating losses” ​in this business.

The company aimed to increase net sales of this portfolio by 13% for the 2023 fiscal year on the back of THREE and Decencia.

The company was banking on THREE to return to a growth trajectory with the launch of new products in 2023, especially in department stores, where it expects to see recovery.

On the other hand, Decencia would focus on increasing the lifetime value to encourage higher repeat purchases rather than “simply chasing numbers,”​ said the group.

“The repeat rate has been increasing since the launch of the new main series of products in FY2022, and the company aims to convert to a highly profitable model.”

Amplitude and ITRIM are prestige brands established in 2018 and available mainly in Japanese department stores.

The department store channel has faced several headwinds over the past three years due to the impact of COVID-19 on the brick-and-mortar retail environment.

The company said it will gradually shutter stores and end e-commerce sales, adding that it planned to complete the termination procedures this year.

2029 goals

The discontinuation of Amplitude and ITRIM would also allow the company to focus on its long-term management plan, VISION 2029.

To achieve its 2029 goals, the company had outlined three major strategies: “develop the cosmetics business globally; reform and enhance the brand portfolio, create new value and expand business domains, and strengthen research and technical strategy.”

Pola Orbis president Yoshikazu Yokote said: “Under the long-term management plan, we will upgrade and expand our business portfolio to incorporate a wider concept that comprises physical and mental well-being, happiness, and harmony with society, in addition to the provision of values centring on cosmetics, with the aim to grow our business in a sustainable manner in and outside Japan.”

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