Page 31 - Forbes - Asia (July - August 2018)

FORBES ASIA
NEW BILLIONAIRE

IPO Exercise

Hopes for six-pack ab-to-abs pumps out billionaire at Japan’s MTG.

BY JAMES SIMMS
A singer Madonna, is a po-
quick ix with no pain
tential sales driver, and for
sounds like a dubious prop-
osition ofered by late-night
the current iscal year MTG
forecasts about a 30% jump
infomercials when it comes
to getting into shape ater
In a July report its un-
years of channel suring and six-packs (the in revenue and proit.
beer kind). But a million-plus shipments derwriter, Nomura Securi-
over the past three years of an abdominal- ties, wrote that the compa-
manipulation device and derivatives—ones ny has outpaced rivals in a
with a diference, the company says—have crowded health and beauty
helped Japan mint its latest billionaire. market through aggressive
Ater establishing its Sixpad electrical marketing and branding,
muscle-stimulation (EMS) machine with using science to back up its
TV ads starring soccer phenom Cristiano itness claims and develop
Ronaldo, MTG listed on the Tokyo Stock products, clamping down
Exchange’s Mothers section in July, making on knockofs and outsourc-
founder and president Tsuyoshi Matsushita’s ing all manufacturing.
72% stake worth about $1.8 billion. he IPO he brokerage reckoned
was Japan’s second largest in 2018 ater on- that revenue and operat-
line-market site Mercari’s a month earlier. ing proit will expand by
Matsushita, 47, who worked for half in the next two years to
auto-parts giant Denso straight out of $824 million and $106 mil-
high school, quit that job ater two years, lion, respectively, based Tsuyoshi Matsushita’s net worth has shaped up nicely in recent weeks.
worked for another company to save on MTG’s expanding sales
money and then opened a used-car deal- through e-commerce and electronics re- luxury-product and service giant LVMH
ership in 1994. In 1996 he moved on to tailers in Japan plus overseas markets like is inspiration for his brand management
beauty and itness products, setting up China and Korea. Brand extensions of its and marketing eforts.
MTG. Becoming an entrepreneur had two main lines, including a full-body Six- And while EMS has been touted for de-
been a dream since childhood. pad training device and nutritional sup- cades for the rehabilitation of injured mus-
In 2009 he scored his irst hit with the plements, and expansion of MDNA make- cles and in esthetic salons to slim faces
ReFa handheld roller massager, which up are also critical, it said. In Tokyo’s tony and bodies, more than a few experts have
sends out a weak electrical current to stim- Daikanyama area, MTG opened in July doubts over its eicacy. MTG, however,
ulate circulation, and he followed up with its irst itness club featuring the EMS suit, says its products are based on science and
Sixpad in 2015. Sixpad, which runs $230 to supposedly enable a full workout in 15 have research from Japan’s top schools, like
for the ab-only version, sends electrical minutes. A one-time visit will run about Kyoto University, to support their efective-
pulses to stimulate muscle movement. $70. It’s the irst in a plan for 500 gyms in ness. (And its ads are more polished than
Other models focus on the arms, legs and Japan and 4,500 overseas. the body-perfect infomercials of yore.)
KEVIN MAZUR/GETTY IMAGES FOR MDNA SKIN sions of the massager, some costing several events in Japan, the company has a strong subjects, is drily titled: “Efect of electrode
torso. Over the past decade, consumers
Helped by superstars like Ronaldo
One cited paper, which received a partial
and Madonna, who’ve done promotional
have bought 7 million of the diferent ver-
grant from MTG and had only seven test
brand image. (he two celebrities each
position of low intensity neuromuscular
hundred dollars.
hese two lines accounted for most of
electrical stimulation on the evoked force
have 324,000 MTG stock options, which at
in the quadriceps femoris muscle.”
an $8.26 strike price would be worth near-
the company’s $404 million in iscal-year
sales through September 2017. Luxury cos-
hough that does sound better than
ly $19 million apiece based on MTG’s July
“Turn of the TV and get of the couch.” F
10 closing price.) Matsushita has said that
metics brand MDNA Skin, developed with
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