On Dec. 23, 2023, South Korea became an "ultra-aged society." The proportion of the population aged 65 and older (10,244,550 people) in South Korea has exceeded 20%. The United Nations (UN) classifies a society as aging if the population aged 65 and older exceeds 7%, as aged if that population exceeds 14%, and as ultra-aged if that population exceeds 20%. Accordingly, ChosunBiz introduces overseas businesses targeting seniors and focuses on addressing social issues arising from ultra-aged societies, with Japan— which entered an ultra-aged society in 2004, 19 years earlier than South Korea— at the center of discussion. [Editor’s note]
It is common to buy and sell a pair of shoes of the same size. However, Tokutake Sangyo (徳武産業), referred to as Dukhmu Industry, sells a single shoe. They even sell mismatched shoes with different sizes for both feet. This business was started to help those who experience difficulties buying shoes that are only the same size, as the size of a person's feet may change with age or due to discomfort.
Dukhmu Industry is a small company in Sanuki City, Kagawa Prefecture, Japan, with 80 employees. However, its position in the industry is outstanding. After listening to the voices of customers, they developed and began selling the "Ayumi" shoes (歩み, meaning 'step') in 1995, which now holds the number one market share among 15 companies producing shoes for the elderly in Japan (55%, with the second place at about 22%). Ayumi shoes feature a design that prevents elderly individuals from falling and are lightweight.
Founded in 1957, Dukhmu Industry originally engaged in glove manufacturing. However, Sogo Takao, the son-in-law of the founder, changed the production focus to elderly shoes and achieved success. Sogo had not worked at Dukhmu Industry from the beginning. He originally worked at a bank before joining a different glove company managed by his uncle, where he served as factory manager in Masan, Gyeongsangnam-do, for four years starting in 1976. After returning to Japan, he worked at that glove company for another nine years. Following the death of the founder, Tokutake Shigeru, in 1984 at the age of 37, he took over the management of Dukhmu Industry.
In a video interview with ChosunBiz on the 6th, Sogo noted, "Korean lifestyles are slightly different from those in Japan, but I hope Korean seniors will also wear Ayumi shoes," adding, "Rather than the thought of making money, I want to repay the kindness I received for four years in Korea."
—Mr. Chairman, you created the "Ayumi" shoes. Is there a specific reason that Dukhmu Industry, which manufactured gloves, started making shoes?
“When I first became president, Dukhmu Industry was doing OEM (original equipment manufacturing) for children's school shoes, travel slippers, and indoor shoes. However, due to the customers' situation, our sales fluctuated, and the future looked uncertain. I wanted to create our brand rather than relying solely on OEM. One day, a friend who was a nursing home director asked me to create shoes that would prevent the elderly from falling, mentioning that they often fell despite changing the flooring. At that time, Dukhmu Industry had the technology to make slippers and indoor shoes but not for making shoes. Furthermore, we had never made shoes for the elderly in Japan, so there were no role models. But motivated by the desire to break free from OEM, I decided to take on the challenge.”
—I heard you conducted market research at elderly facilities. Did you do it yourself?
“Since other employees were busy, my wife, who was the executive director at the time, and I took charge of developing shoes for the elderly. We visited several facilities and heard many stories from people in wheelchairs and the elderly at the facilities. Over two years, we listened to 500 stories and conducted trial fittings.”
—What kind of shoes did those you met during market research request?
“Some individuals had mismatched left and right foot sizes or one foot more worn out due to frequent use, with many unable to afford buying two pairs of shoes in different sizes due to financial constraints. Instead, they bought larger shoes and stuffed socks or something else in the smaller foot area, which made walking very difficult and was a cause of falls. There were requests for shoes that could accommodate differences in sizes for the left and right feet.”
—So you sell a single shoe and also shoes with different sizes for both feet? Was there any opposition?
“Of course, there was opposition. Among the 12,000 Japanese shoe companies, there were none that sold only one shoe or mismatched sizes. Generally, selling only one shoe is considered unreasonable, and even our company employees opposed the idea due to its economic viability. However, I wanted to accommodate the customers' requests. So starting in 2001, we sell one shoe at half the price, whether it's the right or left foot. Because we are not making shoes for healthy individuals but for the elderly, I incorporated the desire to sell only one shoe into our sales system. Since 2001, we have also been selling mismatched shoes.”
—I heard you didn’t apply for a patent for the business model of selling only one shoe or mismatched size shoes.
“Thirty years ago, when I developed Ayumi shoes, there was a patent attorney who told me I could apply for a patent for a business model that sold only the right or left shoe or shoes of different sizes. However, I didn’t want to take away the convenience of customers of our competitors, who are also older. If I could, I wanted to create an industry for shoes for the elderly. So, I did not apply for a patent. Consequently, now competitors also sell single shoes or mismatched sizes. Four companies, including Dukhmu Industry, now account for 90-95% of the elderly shoe market. Selling single shoes and mismatched sizes has become common practice in Japan's elderly shoe industry.”
—Please tell me about the characteristics of the elderly shoes made by Dukhmu Industry.
“The first request from the director of a nursing facility friend was to prevent falls. The "Ayumi curve" design slightly lifts the toes to prevent tripping. Additionally, shoes that are light, bright in color, sturdy at the heel, yet inexpensive have been created according to requests. We produce shoes for various uses: facility shoes that are breathable and comfortable, outing shoes that wear well outdoors, indoor shoes for home use, hospital shoes, and shoes for those who wear mobility aids.”
—What is the best-selling product line?
“Facility shoes are the best-selling.”
—Is the business of making shoes specifically for the elderly viable? Were there difficulties in the early stages of sales?
“When we first started, it was very challenging. Initially, I wanted to conduct B2B transactions through wholesalers, but this did not materialize. I tried to sell directly to nursing homes, but the response rate was low and the production of catalogs and shipping expenses were high, so I gave up. After much deliberation, we began selling by telemarketing to facility personnel, explaining our products over the phone. Now, instead of selling directly to facilities due to shipping cost issues, we primarily sell through wholesalers. Online sales account for about 4-5% of the total. As domestic subcontracted production and production in China have increased, profitability has arisen.”
—What is the cumulative sales volume of Ayumi shoes?
“As of December last year, the cumulative sales volume was approximately 24 million pairs. In the last year alone, about 1.4 million pairs were sold. Sales volume has been steadily increasing.”
—What is the reason for including thank-you letters and surveys written by employees with the product shipment?
“During market research, I discovered that many elderly individuals were not only facing physical problems but also feeling very lonely. When I took the shoes and asked, 'What do you think of these shoes?' most people would say, 'If this shoe is sold, I would want to buy it' after talking for 3-5 minutes, and then proceed to talk about their families for 30-40 minutes. The elderly felt lonely. Therefore, alongside selling shoes, I wanted to meet the hearts of customers. To ease the loneliness of the elderly, we send a postcard written by our employees called "makoto" (真心). Customers who receive these postcards feel very happy, as if receiving a letter from a grandchild.”
—I heard you also include surveys.
“We also send surveys asking about satisfaction with design, functionality, color, price, etc. The response rate is about 2%, receiving 50 to 80 surveys a day, totaling around 30,000 a year. The surveys contain requests such as, 'It would be nice to have various colors,' 'Due to swelling in my legs, I cannot buy commercially available shoes, so please make shoes that fit this need,' and also comments like, 'I can wear it without using my hands, and it is too light,' and, 'It would be great if there was a place to write a name for my father’s shoes.’
Sogo spent a considerable amount of the interview showing and explaining customers' returned postcards. He went through a box of postcards and a catalog-like file, reading the contents one by one.
—Are there any postcards with special stories?
“Because customers write their names, addresses, and birth dates, we send birthday gifts two years after the purchase of the product. Most of them are overwhelmingly thank-you letters, but we also receive postcards indicating that their father or mother has passed away, stating that we can now stop sending gifts.”
—Are Dukhmu Industry shoes also sold in Korea?
“We have been selling Ayumi shoes in Korea for about 10 years. A Korean subsidiary of a Japanese wholesaler that sells caregiving-related supplies has been selling Ayumi shoes in Korea. However, awareness of elderly shoes is still lacking, so we plan to actively sell Ayumi shoes this year centering on elderly facilities across Korea.”