Basic Policy on Sustainability

The business model of offering services that are dedicated to haircuts, which has remained unchanged since our inception, uses no chemicals and provides no shampooing service, thus having a benefit of eliminating the use of excess water and electricity. For customers, it is beneficial as they can spend their days without damaging their hair. For workers, it relieves them from worrying about rough hands caused by chemicals and from back pain caused by shampooing and performing other tasks in a semi-crouching position. As a result, it creates a workplace where people can work into the long term with peace of mind. We have also developed a unique haircut technique that incorporates trimmer techniques which minimizes the burden on the hands and arms, such as tendonitis, to the greatest extent possible, and we actively pass this expertise on, making it a shared asset for all of our stylists.

LogiTh, our in-house cutting school that started in Tokyo in September 2012, has seen expansion. We now have the Sendai school, the Tokyo school (with a satellite school in Yokohama), the Nagoya school, the Osaka school, the Hiroshima school, the Fukuoka school, the Hong Kong school, and the Taiwan school. Employees have felt a sense of appeal in relation to the peace of mind with working eight hours in a day in a concentrated environment with trainers nearby, as well as in terms of the sense of satisfaction that comes with being able to be taught haircut techniques in a logical manner. As such, the number of employees who joined our company via LogiTh in the fiscal year ended June 2023 was 73 in Japan (146% over the previous year) and 95 overseas (271% over the previous year), with 39.8% of the stylists working for us in Japan being LogiTh graduates. At the end of January 2024, the cumulative number of graduates to date exceeded 650. This is the only in-house cutting school in the industry, where we can continuously accumulate expertise in teaching techniques by actively hiring people with no haircutting experience.

We rank first in the number of outlets in Japan among haircut specialty shops, with 534 stores. This is twice the market share of the second largest brand, which has 261 outlets. In contrast to other companies in the same industry, which have many franchised outlets, QB Group operates mainly through directly-managed salons in order to facilitate the thorough training of talent and ensure uniformity of the services we provide. In addition to new graduates with no haircutting experience at all, LogiTh also supports professional independence for qualified barbers and hairdressers who have been out of the industry due to childbirth or childcare for a while, who are called “dormant barbers and hairdressers,” and people who join us after having worked in other industries. Another advantage of operating many directly-managed salons is that we are able to differentiate ourselves from competitors.

Interpersonal relationships are one of the top three reasons why barbers and hairdressers end up leaving their jobs. To maintain good interpersonal relationships, the QB Group has a company culture characterized by mutual recognition. For example, there is no age-based discrimination. There are people from 20 years to nearly 80 years of age who are actively working. The younger employees learn skills from the veterans, and the veterans realize the beginner’s spirit and gain sources of vitality from the younger employees. Thus, we have established a group where everyone involved are treated to win-win relationships.

For existing stylists, we provide hairstyle-based technical training as well as training specific to job functions, such as manager training, area manager training, training for trainers, and so on. Thus, all employees are fairly and equally given the right to take on challenges. In addition, we have a system in place where raises and promotions are achieved by passing examinations held on the final date of a training program. In our culture, hard workers are rewarded, and raises and promotions are achieved in a self-directed manner. By building such career paths, we have created an environment in which everyone can perform their duties with a high level of awareness, regardless of their position.

Since June 2022, the QB Group has partnered with a farm which supports the independence of people with disabilities who wish to work, while encouraging them to find joy and satisfaction in their work. The partnership involves initiatives wherein people with disabilities who are employed by us hydroponically grow vegetables, such as mesclun greens and mini tomatoes, without using agricultural chemicals. Furthermore, harvested vegetables are wholesaled as pesticide-free vegetables to restaurants near the farm. The vegetables are appreciated for their quality, cleanliness, and beauty. We would like to continue to employ those who wish to work and provide them with a place where they can lead stable, independent, vibrant and shining lives.

Believing that reducing employee turnover is the most important factor in stably improving the quality of services, we have worked to improve our working environments while shifting the employment system from use of outsourcing to direct employment. As a result, we were able to reduce our turnover rate from 30% in FYE June 30, 2010 to 6.6% in FYE June 30, 2020. Although the turnover rate temporarily increased at the end of FYE June 30, 2023 due to a forgoing of a base wage increase and provision of year-end benefits as a result of the decrease in customers experienced during the pandemic, the turnover rate decreased again following an average 9.8% improvement in salary and benefits during the period from August to October 2023. We will continue to improve working conditions, aiming to improve our turnover rate to the 7% level during FYE June 30, 2024.

Most overseas QB outlets are in countries that do not have a national certification system like in Japan. In such countries, Japanese trainers are stationed to provide an environment where employees can thoroughly learn about techniques of the same quality as in Japan and fully support the acquisition of skills by local talent. In Asian countries, we particularly want to contribute to the improvement of the social status and independence of young people and women.

For the barbering and hairdressing industry, which cannot rely on machines for haircuts, securing talent is a top priority. In addition to general applications, QB Group has a dedicated contact point on its recruiting page to lower the hurdles for applicants, such as those with no haircutting experience, former QB Group employees (alumni hiring), and those who apply through employee referrals (referral hiring). The website won the Grand Prix at the Owned Media Recruiting Award 2021 hosted by IndeedJapan. In addition, we are taking every possible measure to secure talent, such as by providing classes at barbering and hairdressing schools and making contacts through various social networking services.

People called dormant barbers and hairdressers who have finished raising their children or who have moved to other industries, would give up applying for jobs in the barbering and hairdressing industry because of their thinking that it will take too much time to regain the feeling of holding scissors or that there is no chance at getting hired as someone who cannot perform a haircut. We see LogiTh as an advantage in recruiting as it caters to such people. On the other hand, there are those who readily apply because they believe the hurdles to hiring are low due to service fees. The overall average hiring rate, including for part-time employees, is about 30%. People are everything in the barbering and hairdressing industry. We hire people with a strong focus on their character and consider people with a strong sense of humanity who also have strong technical and customer service skills to be excellent human resources.

Japan is one of only a few countries in the world that require national certification to work in the barbering and hairdressing industry. Only those who have graduated from a high school with a specialized course in barbering and hairdressing or from a two-year vocational school for barbering and hairdressing after graduating from high school, and who have passed the national examination, are allowed to work in a barbering and hairdressing establishment. In addition, the QB Group does not employ any child labor and hire talent only after confirming the original certificate of qualification of a barber or hairdresser with their date of birth. Furthermore, we do not have a mandatory retirement age because we would like to see our employees to be active for as long as they have the physical strength to do so. The target number of employees to be hired for FYE June 30, 2024 is 222, a 121% increase over the previous fiscal year.

Original unit furniture that is produced in a way that gives the top priority to reducing as much burden on hair stylists as possible. On top of this, by simplifying the structure to the limit, we make it easy to remake and reuse the furniture.
We used to give the combs we used to the customer. However, since May 2021, we have shifted to a method of cleaning and disinfecting them for reuse. Moreover, we reduce waste volumes by resharpening hair clipper blades.
Furthermore, in an effort to reduce waste from wigs (mannequin heads) for practicing, we are given wigs by hairdressing schools, free of charge, and use them for trainees to improve their skills.

As part of our efforts to engage with local communities, we also try to familiarize people with the barbering and hairdressing business through events such as the “Hands-on Haircut Experience” and lectures on “Haircuts for Children in the Home.”