Top Message Sustainability

What is value that can be left to the future through business?

The fashion industry faces many social challenges, including climate change and its impact on ecosystems, waste from resources through mass production and disposal, as well as human rights and fair procurement in supply chains. We at Goldwin have also faced reality head-on and truthfully examined the impact of our business. Why do we continue this business? What kind of value will we leave for the future? With all these questions we asked ourselves, the purpose we adopted in 2024 as an answer was “Envision new possibilities for humanity in nature.” This purpose does not aim to grow the numbers of our business, but instead represents our determination and hope to be able to regenerate the global environment and pass on a beautiful nature to the next-generation.

Nature is always changing. By engaging with nature, humans can also become aware of their own changes. I am always telling employees I want them to be curious and try new things, and part of the reason for this is the idea that change is what makes people to grow. We will also be able to achieve new growth by creating moments where customers surpass their own limits and opportunities to connect with nature through our products and services. This is the essence of our purpose, and it is also connected to Goldwin’s raison d’etre.

Essential challenges for change and growth

Both humans and nature are continually changing. Based on this premise, we have created value not limited by conventions. I will never forget the moment when one founder of The North Face, Kenneth Hap Kropp, told me in the US during 1985 to “Don’t imitate. Think for yourself.” While many people are bound by precedent, I believed what he said and continued asking myself what values are really important.

For example, it was common sense that mountain rainwear should be brightly colored to make it easier to spot people in an emergency. But then we proposed black rainwear with the idea that it could be worn not just in the field but in the city as well. Many people rejected the idea and said black would not sell, but stocking it in directly managed stores led to black being the number one seller. This proved that many people desired black, and eventually black outerwear grew into a mainstay product for the brand. Transcending industry conventions and meeting the latent needs of customers reaffirmed the importance of “boundless imagination,” and is one memory that has left a lasting impression with me.

Another idea of importance to us is “dedication to detail.” Our quest for perfection from seam allowance, part placement, comfort, and durability over mere visual appearance stems from the mindset of our founder, Tosaku Nishida, who emphasized “Everyone pays attention to what is right before their eyes. What sets a manufacturer apart is giving painstaking attention to what is not readily visible.” Throughout the manufacturing process, employees engage in daily discussions about what can be improved further through repeated trial and error.

“Boundless imagination” and “dedication to detail” synergize with each other to create new value, and a prime example of this is the structural protein material Brewed Protein™. Learning from spider silk, this is the world’s first, unprecedented attempt to create a protein material through microbial fermentation. We are committed to sustainable manufacturing that does not rely on materials derived from petroleum or animals, and are engaged in countless trial and verifications. What drives the creation of future materials is the dedication and passion of those on the front lines who confront environmental challenges while pursuing user comfort with no compromises.

Solid confidence becomes the driving force towards the future

In the fiscal year ended March 2025, the first year of the current Medium-term Management Plan, sales fell a little short of the plan, but we were able to steadily strengthen the foundation for the company’s overall growth. We received great confidence from the Goldwin500 project, which saw major growth for Goldwin Inc. with sales reaching 4.4 billion yen (3.2 billion yen for the fiscal year ended March 2024). Our products are highly rated in both domestic and overseas markets for their high functionality and elegance and designs that are built to last, and our goal of achieving 10 billion yen in sales by the fiscal year ended March 2027 has come well within reach.

The North Face remains a pillar of our growth and profit, bolstered by the expansion of flagship stores in urban areas and demand from inbound tourists. On the other hand, during the fall and winter shopping season, demand was significantly pushed back due to the warm winter, and we truly felt the difficulty of adapting to market changes. I believe it is necessary to further strengthen our ability to respond and make quick frontline decisions for this, and further refine our in-store digestion-based product supply business model that enables swift responses to market shifts. No matter how impressive a plan may be, it is meaningless if it cannot be brought about on the frontline. We will listen closely to real customer feedback and steadily build a system where every employee can think and act independently.

Bringing new creativity to both products and stores

For the fiscal year ended March 2026, we set a sales target of 140.5 billion yen and will enter the full-scale action phase toward our long-term vision PLAY EARTH 2030. We are accelerating our overseas business expansions, focusing on China, South Korea, and Europe. Working with local partners, we will deliver our brand value more directly through store spaces, visual merchandising (VMD), and customer service. Strengthening operations and promotions according to regional characteristics, and realizing the domestically-cultivated in-store digestion-based product supply business model overseas, are key issues for advancing to the next stage.

For domestic business, while focusing on brand experiences centered around The North Face and value propositions for everyday life, we will strive to increase the proportion of products such as accessories, backpacks, shoes which are less affected by seasonal fluctuations to stabilize earnings. The VECTIV shoe series and our women and kids lines are future growth areas. Kids products, in particular, need to have the brand be pushed to parents, and we will be opening large stores nationwide to increase events and hands-on stores that appeal to both parents and kids.

Based on this strategy, we plan to open 15 stores in Japan and overseas during the fiscal year ended March 2026, primarily under Goldwin. I believe stores are places where a company can express its views most clearly, and increasing our store count leads to creating more opportunities for customers to experience our worldview and values. While accelerating our new store openings, I myself have visited stores in China, South Korea, and Europe, and talked many times with the local employees and customers. I have come to realize that the value of Goldwin as a premium sports brand is steadily spreading even among trend-conscious urban customers.

At Goldwin Kyoto, our first flagship store in the Kansai region which opened in May 2025, our expert sales staff thoroughly convey the stories behind our products. The moment customers pick up an item, they can feel the passion and worldview behind it. This feeling is the greatest joy for us as creators. Currently, we operate 160 directly managed and franchise stores nationwide (as of the end of March 2025). Moving forward, we remain committed to this direct management and franchise model, and will carefully foster a culture where every employee can embody the brand’s philosophy. To achieve this, the expression of our stores, such as its design, will be crucial, and we will continue to challenge ourselves in designing new stores which heavily focus on the brand’s worldview.

Creating nature for the future

The GOLDWIN PLAY EARTH PARK Business Concept being advanced in Nanto City, Toyama Prefecture is something that could never have emerged from the conventional wisdom of an apparel company. The project will cultivate approximately 40 hectares of land into a place where people can learn while playing and co-create the future. The theme of PLAY EARTH PARK NATURING FOREST, scheduled to begin in 2027, is not about protecting the nature that is being lost, but about creating a nature of the future. It is precisely because nature is constantly changing that we would like to work on it together with children.

This kind of experiential business field which we call “encounter-based business projects” will go into full-scale operation in the fiscal year ended March 2026. In April 2025, we welcomed into our Group the Alpine Tour Service Co., Ltd., a company with a proven track record in nature tours through means such as mountain climbing and trekking, marking our entry into the adventure tourism area. Moving forward, we are considering a framework which allows customers to book experiential services when purchasing gear at The North Face stores, as well as a program where our employees serve as guides. Business in the experiential domain also holds significant potential for B2B expansion, such as corporate training and environmental education. Furthermore, building on the National Park Official Partnership we entered into with the Ministry of the Environment, we will design experiential programs starting with national parks across Japan, providing visitors with opportunities to experience nature.

These are the challenges we are taking on as a company mainly operating in the apparel business in order to realize our purpose to “envision new possibilities for humanity in nature.” I am confident that expanding the experience business field will serve as a key driver in our growth strategy and further enhance our value.

Value co-creation with all stakeholders

We often picture economic success when thinking about “abundance,” but humans are not driven solely by economic indicators. True fulfillment comes from understanding others and feeling that our existence is beneficial to someone. I sense that more people, especially among the younger generation, find value not only in self-realization but also in bringing joy to others and contributing to society. This belief continues to strengthen as I grow older myself.

Our business is not merely about manufacturing and selling products. We value thoughtful simplicity and universal elegance that harmonizes with nature rather than fixating solely on functionality and efficiency, and fulfill our responsibility to society through manufacturing. We support our customers, partners, and employees in the challenges they take, striving to improve the relationship between nature and people. These ideas drive initiatives like Goldwin 500 and encounter-based business projects.

The major issues in society and the environment cannot be solved by us alone. I believe that by joining hands with like-minded partners and being sincere in our choices and actions, we can create new value in society and nature. Moving forward, we will continue to face each action with the determination to “envision new possibilities for humanity in nature.”