On Dec. 23, 2023, South Korea became a 'super-aged society.' The proportion of the population over 65 years old (10,244,550 people) surpassed 20%. The United Nations (UN) classifies a society as aging when the population over 65 accounts for more than 7% of the total, as aged when it exceeds 14%, and as super-aged when it exceeds 20%. In this regard, ChosunBiz introduces overseas businesses focused on seniors and the social issues arising from a super-aged society, centered on Japan, which entered this stage 19 years earlier in 2004. [Editor's note]
It is common to buy and sell a pair of shoes with the same size for both left and right. However, Tokutake Sangyo (徳武産業), also known as Deungmu Industries, sells one shoe. They even sell mismatched shoes with different sizes for each foot. The company started this business to help those who experience the difficulty of having to buy shoes that are only the same size when their feet may have different sizes due to aging or physical disabilities.
Deungmu Industries is a small company located in Sanuki, Kagawa Prefecture, employing 80 staff members. However, its position within the industry is unique. After listening closely to customer feedback, the company developed the 'Ayumi' shoes and began selling them in 1995. Ayumi holds a 55% market share among 15 companies manufacturing shoes for the elderly in Japan (the second place holds around 22%). The design of Ayumi shoes features measures to prevent falls among the elderly and is lightweight.
Founded in 1957, Deungmu Industries initially engaged in glove manufacturing. However, the chairman, Sogo Takao (十河孝男), the son-in-law of the founder, shifted the production line to shoes for the elderly and found success. Sogo did not work at Deungmu Industries from the start. He worked at a bank before joining a different glove company managed by his uncle, where he served as the factory manager in Masan, Gyeongsangnam-do, for four years starting in 1976. He returned to Japan and worked at that glove company for nine years. After the passing of the founder, Tokutake Shigeru (徳武重利), Sogo, at the age of 37 in 1984, took over management of Deungmu Industries.
In a video interview with ChosunBiz on the 6th, Sogo stated, "Korea's lifestyle is slightly different from Japan's, but I would like elderly people in Korea to wear Ayumi shoes," and noted, "Rather than the thought of making money, I want to repay the favor after being indebted to Korea for four years."
–Chairman, you made 'Ayumi' shoes. Is there a reason why Deungmu Industries, which used to manufacture gloves, turned to shoe production?
Sogo replied, "When I first became president, Deungmu Industries was producing children's school shoes, travel slippers, and indoor shoes through OEM (original equipment manufacturing). However, due to the fluctuations in sales caused by customer circumstances, I felt insecure about the future and wanted to create a brand of our own instead of relying on OEM. During that time, a friend, who was the director of a nursing facility, asked me to create shoes to prevent elderly residents from frequently falling, even after changing the flooring. At that time, Deungmu Industries had the technology to make slippers and indoor shoes, but not shoes. Moreover, we had never made elderly shoes in Japan, so we had no models to refer to. Nevertheless, I challenged myself with the desire to break free from OEM."
–I heard you conducted market research by visiting nursing homes. Did you do it yourself?
Sogo said, "Since the other employees were busy, my wife, who was then the director, and I took charge of developing shoes for the elderly and visited various facilities. We spoke extensively with people in wheelchairs and elderly residents. Over two years, we listened to 500 individuals’ stories and conducted wear trials."
–What were the requests from those you met during the market research about the kind of shoes they wanted?
Sogo responded, "Some individuals had mismatched foot sizes, or one foot was used much more, leading to worn shoes on that side while the other side was almost new. Due to economic circumstances, some could not buy two pairs of shoes of different sizes and ended up buying larger shoes, using socks on the smaller foot or putting something in the toe area. They found it very difficult to walk, which was a cause of falls. There were requests for shoes with different sizes for the right and left feet."
–So you sell one shoe and even shoes with different sizes for both feet. Was there none against it?
Sogo admitted, "Of course, there was opposition. Among the 12,000 Japanese shoe companies, there was not a single one that sold only one shoe or shoes with different sizes for both feet. Selling only one shoe is generally considered unreasonable and unprofitable, so even company employees opposed it. However, I wanted to meet customer requests at all costs. Starting in 2001, we sell one shoe at half the price, whether it is the right or left. Since we are making shoes for the elderly, not for healthy individuals, I decided to incorporate the desire to sell only one side into the sales system. Since 2001, we have also been selling shoes with different sizes for each foot."
–I heard you did not apply for a patent for the business model of selling only one shoe or shoes with different sizes for both feet.
Sogo explained, "Thirty years ago, when I developed Ayumi shoes, a patent attorney advised that I could patent the business model of selling only one side or shoes with different sizes. However, I didn't want to take away the convenience of older customers from my competitors since they are also aging. If possible, I wanted to create a market for shoes specifically for the elderly. Therefore, I did not apply for the patent. Now, competitors also sell single shoes or shoes with different sizes for both feet. Four companies, including Deungmu Industries, account for 90-95% of the elderly shoe market. It has now become common sense in Japan's elderly shoe market to sell single shoes or shoes with different sizes for both sides."
–Could you tell us the characteristics of the elderly shoes made by Deungmu Industries?
Sogo replied, "The first request from my friend, the nursing facility director, was to prevent falls. We designed the 'Ayumi Curve' to slightly raise the toe area to avoid tripping and prevent falls. Additionally, we made the shoes light, bright-colored, with sturdy heels and affordable prices to match the requests. We create shoes that are well-ventilated and comfortable for facilities, outdoor use where the sole does not wear out easily, home-use shoes, and assistance shoes for those who need support while hospitalized."
–Which product line sells the most?
Sogo stated, "Facility shoes are the best-selling product line."
–Is the production of elderly shoes economically viable? Did you encounter difficulties in initial sales?
Sogo shared, "When I first started, it was very challenging. Initially, I wanted to conduct B2B transactions through wholesalers, but that did not happen. I tried selling directly to nursing homes, but the response rate was low, and the expenses for catalog production and shipping were high, leading me to abandon that. After a long contemplation, I began telemarketing, directly calling facility managers to explain the products, which kickstarted our sales. Currently, instead of directly selling to facilities due to shipping costs, we mainly sell through wholesalers. Online sales account for about 4-5% of total sales. As domestic subcontracting and production in China increased, we also found profitability."
–What is the accumulated sales volume of Ayumi shoes?
Sogo replied, "As of December last year, the accumulated sales volume is around 24 million pairs. Last year alone, we sold about 1.4 million pairs. Sales have been steadily increasing."
–What is the reason for including thank you letters and surveys written by employees when shipping products?
Sogo explained, "Through market research, I found that many elderly people were not only facing physical problems but also feeling very lonely. When I went to give them the shoes and asked, 'How do you like these shoes?' most people would say, 'If these shoes were for sale, I would want to buy them,' and would spend 3-5 minutes, while they spent 30-40 minutes talking about family. I realized they felt lonely. Thus, while selling shoes, I wanted to fulfill customers' hearts, so we send 'makokoro' postcards written by our employees to comfort the elderly's loneliness. Clients who receive the postcards feel very happy as if they received a letter from their grandchildren."
–I heard you also include surveys.
Sogo continued, "We also send surveys asking about satisfaction with design, functionality, colors, and prices. The return rate is about 2%, and we receive 50-80 responses daily, totaling about 30,000 a year. The surveys include requests like 'It would be nice to have various colors' and 'I cannot buy commercially available shoes as my legs are swollen; please make shoes suitable for this,' as well as comments like 'It fits easily without using my hands and is very light' and 'It would be good to have a spot to write the name for those who wear them.'"
Sogo spent a significant amount of the interview showing and explaining the postcards that customers had responded to. He flipped through a box containing the postcards and a catalog-style file, reading the contents one page at a time.
–Are there any special stories behind the postcards?
Sogo responded, "Because the customer's name, address, and date of birth are written, we send birthday gifts for two years after the product purchase. Most of the responses are overwhelmingly thank-you letters, but some postcards come saying that their father or mother has passed away, so they no longer want to receive gifts."
–Is Deungmu Industries selling shoes in Korea as well?
Sogo stated, "We have been selling Ayumi shoes in Korea for about 10 years. A Korean subsidiary of a Japanese wholesaler that sells caregiving products is currently selling Ayumi shoes in Korea. Because awareness about shoes for the elderly is still insufficient, we plan to start selling Ayumi shoes in earnest this year, focusing on senior facilities throughout Korea."