GK spoke with Hiroshi Takeuchi, President of Cleanup Corporation Co., Ltd., about the future of VR in home design and the company’s push into global markets.
In terms of kitchen, bathroom, and home systems, how do you see the evolution of VR and AR technology expanding in the future?
Before Covid, the standard model was that the consumers would invite the clients to our showroom to look at the products, thus leading to purchase. But due to COVID-19, we had to close the showroom and think about another way to show our products to clients. Essentially, we set up a new environment, a virtual online showcase, to demonstrate our product to our consumers and clients and tried to connect with them as much as possible. We also provided online services such as color simulation or virtual layouts for clients to choose the colors or designs on the website.
Thanks to digitalization, we could set up the total environment and now, we can move to the next stage of providing both services online and offline to ensure the clients can check the online showroom first and select their preferences for the color or layout, and then visit the showroom to decide the products to purchase. That’s the format we set up since the first stage of the pandemic in October.
Given that your company is involved in a wide range of commercial activities, which segment are you currently experiencing the most growth in?
One goal is to move on to high-end kitchen-wear that targets the luxurious population in Japan. Outside our brand, we partnered with the top Italian manufacturer to introduce their products in Japan as part of sales licensing. We imported their products to sell in the Japanese market, but we are also set in line on acquiring the manufacturing licensing in Japan on their behalf. We have already started production and are ready to introduce this to other markets soon. To cater to the luxurious market when it comes to the kitchen, we need to expand this part of our business. The new kitchen system combines the dining table with the kitchen system, Hiroma, one of our production lines.
Initially, we thought we could sell these products only through the online eCommerce channel. But now we are considering expanding these products to the broader market, through the usual logistics through the agency. We have a collaboration with Hida Sangyo, one of the traditional craftsmanship located in Takayama in Gifu, combining their traditional skills with our existing kitchenware technology, where we’ll produce new types of products.
As part of that vision for the future, what are Cleanup’s plans for international expansion?
As a part of the corporation’s goal, we are expanding to the global market, and particularly into Asia. The majority of sales come from the Taiwan market, and as we advance, we are trying to internationalize, to grow our businesses and expand our businesses to China or other countries. So far, we only export our original brands to those countries, but from now on, we would have to enhance manufacturing to introduce authentic regional products to meet local requirements of their culture or lifestyle. Setting an eye on Southeast Asia, we are trying to establish production facilities to produce locally-sought products. Through MNA’s and other collaborations, we are trying to ensure that our original products will be produced locally.
