PHILOSOPHY
The Birth of Earthcare Asia
- "Clearing the three paths".
Earthcare Asia follows these words as it grows.
Here's the story behind it... - Before I founded Earthcare Asia in the year 2000, I worked at a cosmetic company working with agencies, basically business with OEM. After making up my mind, I changed course and made Earthcare Asia into a company which develops, produces, and sells.
- First, I needed a factory and a laboratory that would sign a contract with me. I was just 26years old then, so nobody took me seriously. The minimum number of the products had to be 10,000. Even if they had the patience to listen to my ideas, our conversations ended with an "Only that much? you must be kidding me.".
- But being the stubborn guy I was, I ran around Japan, believing that there would be at least one factory that would sign with me as a partner. That went on for more than an year. But it paid off, and now I'm partners with a really good factory, and I have connections with people all around Japan, even if they're not in the cosmetic industry. I can't help but be grateful to the people who was kind to me and befriended me.
- After an year of shaping up skincare cosmetics, I finally created the "AQUCRIO series", skincare concentrating on moistruization.
- However, my hardships were far from over.
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P H I L O S O P H Y01
"Out of all decisions, the Internet?" Yes, the Internet
First, I couldn't decide how to sell the Aqucrio series. I have already decided to go without the retail system, and to "find my own customers and sell directly".
However, it was the days when "cosmetics" were things to be bought at department stores or drugstores. I did not have the connections to sell there.
Now what do we do. After thinking for a while, I chose the "Internet".
Now, it is common to shop for things online, but the early 2000s weren't exactly as updated as now. A lot of leading enterprises tried business online, only to fail. This lead to people believing, "The Internet isn't really the best place to sell things.", and other major companies were retreating from online business.
This was true more for cosmetics, which are products you try out at the stores first before actually buying them. Ways other than department stores varied from MLM(multilevel marketing) to door-to-door sales, but they were always leading brands or sells based on face-to-face contact.
Selling cosmetics on the Internet was "unbelievable".
However, since I had no other option, I decided to try the Internet option. Once decided, I just needed to push through.
Purchasing a PC, a book, and making websites on my own
First things first, I bought a cheap PC with what little money I had. I remember placing it on a cardboard boc, since I couldn't afford a desk.
Next, I started figuring out how to make websites. My company didn't exactly have a "job" then, so I had plenty of time. I went to the bookstore and bought this fat and perplexing book, and fought with it, one sentence at a time.
Reading the book, trying it, redoing it... After a long time, I finally finished my very first website. Looking back, it's such a messy website though.
But a website doesn't directly contribute to sales. Nobody actually bought anything. Days just went by. In the end...
Insomnia and part-time jobs
Day after day came the same situation, and one day, I developed insomnia. I could sleep for only 2~3hours at a time, and only once in 2~3days. I didn't know that the inability to sleep was this frustrating.
What got to me worst was the sense of loss I had when I was awake at night. I felt so alone. I felt as if there was only me and myself, and nobody by my side.
I used to think of myself as a tough man, but insomnia taught me how weak a person I was.
Days without sleep went by, and nothing changed but for the worst, so I went to the doctor. After a quick check, I had some sleeping pills prescripted. But pills did nothing. I went to the doctor again and changed pills, but the result was the same. It seemed to be that my nerves were hypersensitive, and sleeping pills didn't work for me.
My situation got worse and worse, and I was just about to go crazy when I decided that I was going to get rid of insomnia on my own.
First, I analyzed insomnia as best as I could. What troubled me most wasn't the fact that I couldn't sleep. It was the fact that I felt lonely and empty. If that's the case, I just needed to keep myself busy during sleping hours. I also didn't have money, so what about going out for a part-time job? This is how I started working night shifts as a parit-time worker at the age of 30.
On the right track to bankruptcy
Although my title was "CEO", my life didn't differ from one of a job-hopper, even less than that. Working from 9a.m.-7p.m. at the company, 8p.m.-3a.m. as a chef at a hotel. I didn't own a car of course, and I commuted on bike or on foot. My income? Only as a chef, my company had no profit.
Working all hours doesn't mean that your business will succeed. My salaries from part-time jobs just evaporated in to thin air.
Nobody bought anything on my website, and money just kept disappearing, with only 3months to spare. I readied myself for a bankruptcy with a debt of 20~30 million yen (200,000~300,000 SGD).
That was when I met an old acquaintance of mine from my old workplace. He was the CEO of a courier business, and he dropped by when he came to Osaka. This encounter changed my whole business.
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P H I L O S O P H Y02
An unexpected call from a CEO whom I barely knew
Looking back, I don't know why he decided to drop by, since we've only met several times. But since it was a good opportunity, we talked a lot about ourselves, getting to know eachother. There, I talked about my situation truthfully.
"It won't be more than 3months till my company will begone." That said, the CEO asked me, "Huh, is that so. That's tough I guess. By the way, how much do you need to get your company back on foot?"
This was an unexpected question. I couldn't read what he was on to, so I replied, "Well, I mean, the more I get, the better it is...". The CEO pressed on, "How much more? Like 10 million yen (100,000 SGD)? Would that be enough to keep going for the meantime?"
I didn't think much, and said, "Yes...? 10 million yen would be enough to kind of keep the company going for a while, yeah.". His reply surprised me. "Got it, 10 million right? Make me a cosmetic for 10 million." Of course all I could say was "Huuuuuuhh????"
"Your company is a courier company, cosmetics? Oh I get it, it's a joke, right?" I thought he was just playing around, drunk.
But it wasn't a joke. At all. The next day, he called me asking for my bank account, and actually transfered me 10 million. I was dumbfounded by this, but it was a chance the CEO granted me. I decided to work on that cosmetic.
An encounter with "somebody to look up to"
To this day, I have no idea why the CEO granted me this opportunity. I did ask him, "Why would you do this for me?" to which he laughed off, "Oh come on, my company is going well, 10 million isn't that much."
But this turned out to be not true. I had a chance to meet the CEO's wife, and I talked about this encounter with him. "It really helped me out you know. All of my good days now is because of what he did for me that day."
"Ah, so that's why he was requesting early withdrawals from his fixed deposits...", his wife said to herself.
"Wait what???????" The CEO actually transfered the 10millon from his own money. He went as far as to close his fixed deposits.
I was more confused after hearing that. I only met him several times, didn't have any real connections with him, why would he do this for me? I even thought that this might be some kind of scam LOL.
The CEO's actions were unbelievable to me. That next year, I saw the CEO again, and I asked him about it again, but he scratched his head saying "Ehh, did I do such a thing? I completely forget. Well, the past is the past, hehe."
Did he actually forget or did he just pretend...? I didn't just feel grateful, I felt this overwhelming wave of deep emotion and respect.
In this world, there are people out there who have "depth" to this extent that I can't even imagine. I strongly felt that I wanted to be that person to. I guess that this was the first actual time that I met "somebody to look up to".
My core memory
That wasn't it. This CEO spent 2hours just to come to Osaka every week to take me out for a drink. He kept encouraging me in my hardships of saving a skinking company.
There's something he've told me over and over in this time. "It's gonna be OK! You're just not on the right wave yet. Once you get a grip, it's going to sail like magic. Oh come on don't worry about the present, all we be good!"
With no reason at all, he said this so lightly, as if he's cracking a joke, but with a certainty that made me somehow beleive it. How much had these word saved me, I have no idea.
This was how Earthcare Asia got over its hardships, and set sail.
And you know what? It wasn't only the CEO who saved me.
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P H I L O S O P H Y03
The customers who saved Earthcare Asia
During those hardships, Earthcare Asia didn't sell products enough to become profitable, but thankfully, there were some customers who bought the AQUCRIO series.
At the time, I also sent out e-newsletters to the customers, and in the letters, I talked about the company's situation truthfully.
"There isn't much money in our bank account anymore, we might have to end this company."
"We will fight to the last second."Normally, you wouldn't buy products from a company saying that they are going to go bankrupt. But this wasn't the case for Earthcare Asia. The reactions of the customers were not as expected.
It started from one e-mail saying "I know it must be hard, keep going!" After that, dozens of e-mails rooting us on came coming, some even gave us a call on the phone.
"I'm cheering you on, go Earthcare Asia!"
"Your products are amazing, be confident!"
"Whining won't change Anything! I'm on your side so go on!"
I remember being surprised by these voices.One time, a customer bought 10 products at once. I asked the customer why she would need 10. "I bought them to give them out to my neighbors. They will like it. I'm on your side. You do you." The customer actually used their own money to purchase and introduce our products. I was about to cry.
A product from a company tipping over? Why would you introduce, or even purchase such a product? You stop buying them, and thats the end. I mean, I would do that. But the number of customers who cheered us on and introduced products to their friends increased.
There were also hand-written letters and books sent to us too. "Read this and propel on!"
I was so surprised. I couldn't believe that there were people out there who would do such things for a nameless company and a young CEO.
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P H I L O S O P H Y04
Finding out what I've been misundurstanding all along
These experiences changed how I looked at things.
Come to think of it, all I've ever done was "do what I want to do and only what I want to do". This itself isn't a bad thig, it's actually something that keeps you going.
However, doing only what I want to do, won't end good. It's because there aren't any thoughts for the customers or staff, or any other person who is working with me in it.
Thinking only about myself did result in the recovery of my problems with skin, so I misunderstood the whole concept, and went on with "only doing what I want to do" for the customers.
Well that was a big mistake, but once I realized that, I said to myself, "If it's going to end with a bankruptcy sooner or later, why not try everything possible for the customers!"
I had absolute confidence in my products. But all the other factors were all based on my personal thoughts. I said good bye to my old plans, and started making a system from scratch, only thinking about the customers.
"Services of the customers, for the customers"
First, I phone-called or e-mailed the customers and asked for their "genuine opinions". When I used to work with the retail system, there were "stores" and "agencies", and there was the concept of asking their opinions. But these opinions were just on how to sell more easily, not opinions based on the customer's interests.
For example, Earthcare Asia's products have minimum packaging. The instructions are on slips of thin paper, made by amateurs. This is a result of my personal opinion and the voices of customers merged together. "We're going to throw the packages away anyway." "It's not like the quality of the product is going to rise with color-print copies of pictures and images." The non-necessities are set simple.
Also, Earthcare Asia's "subscription service" doesn't have regulations such as "please purchase at least 3 times before ending the subscription". You can stop the subscription anytime you want to.
For a person with sensitive skin like me, being told to "use the product at least 3times" is a risk. There are also the concerns from customers saying, "subscriptions are scary, they tend to be impossible to break off" "when you think of the consequences, the bar for subscriptions are set quite high"
We also don't advertise "images" of our products on TV or in magazines. We don't increase the variety of our products either. (See here for our reasons for not advertising big "A Nameless Company")
Just like this, we created how Earthcare Asia should be, through our customers voices.
The true meaning of "customer comes first"
When we say we "do whatever is needed for our customers", we don't mean that we listen to every single request they have. Even if it's the customer's request, if it's not going to benefit the customers, we won't do it.
For example, there were requests to make both "bigger sized bottles" and "smaller portions" for a certain product. However, we politely declined, and didn't make changes in portions. Making various sizes for a product will result in the increase in stock, increase in the cost of management and human resources, leading to an increase in price. Now, the customers wouldn't want that, would they?
We didn't "listen to every single request they say" "for the customer's sake", as if that is actually going to help them out. We did what is for the customers in the true meaning. My experiences said above lead to this type of "customers come first".
True wealth
Working on the customers interest lead to the realization that some of the things I did for the customers, actually had no value for the customers at all. I was spending money and time on something that didn't benefit the customers, all on my opinion.
While improving things one by one, the number of customers increased one by one too. Of course, the numbers are very little compared to big leading companies. But to me, the number of customers were more than enough, more than I deserved.
Like this, being taught a lot from the customers, and changing things for the better, I could survive the hardships, and avoid going bankrupt. It was a really close call though. At one point, the company's bank account really went down to 50,000 yen (500 SGD).
After that and to this day, on managing Earthcare Asia, I keep distributing "customers come first".
What will make the people around me happy, starting with the customers?
What will brighten them up?
I keep asking myself 24/7.This led to me being blessed with customers and staff, and a happy work-life. My life is more than happy. Of course, there are some troubles and tough times here and there, but my happiness makes up for all those times.
Thinking only about myself will lead to nothingness. But if we act on the happiness of others, one day, your own wish will come true too. I think that this is the policy of this world.
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P H I L O S O P H Y05
”Clearing the three paths”
There's a certain way of thinking that merchants in Shiga prefecture -my hometown- do, which is "clearing the three paths".
"The path of sellers" "The path of purchasers" "The path of society", these three paths are to be cleared. A good business is a business where both sellers and purchasers are satisfied, and is a business which contributes socially.
I learned this in school, and even as a child, these words stuck to heart. This way of thinking is something that Earthcare Asia contributes to.
Products made from a factory we contract with on trust,
sent to customers via courier companies,
and bringing happiness to the customers.Nothing will make me happier than this cycle going on, making our customers happy, growing as a company together.
We'll keep thinking of our customers interests, hoping that our happy days will go on for as long as it should.
Of course, if you are to come join our steps to happiness, that would be a great honor.Earthcare Asia
Tatsuya Inoue