The Rise of SILK THE RICH: A New Era in Luxury Haircare Investment

In a remarkable step in the beauty industry, THE RICH, a company based in Shibuya, Tokyo, has successfully secured a large-scale investment from HIU Investment led by entrepreneur Takafumi Horie. This funding marks a significant milestone for THE RICH and is seen as a turning point in the luxury haircare market, aiming to share the beauty of silk with the world through their flagship product, SILK THE RICH.

Background of the Funding

The recent investment is rooted in a shared vision between Yuta Miura, CEO of THE RICH, and Takafumi Horie, renowned investor. While SILK THE RICH is positioned as a hair care brand, it transcends ordinary offerings by merging traditional Japanese silk with a D2C (Direct to Consumer) model, making it a strong contender in the global market. Horie's commitment to the project, which represents the largest investment in a startup under HIU Investment's history, emphasizes the brand’s unique potential and scalability.

Horie articulates, "In this era of digital transformation and AI, people are increasingly valuing authenticity and real experiences." SILK THE RICH embodies this ethos by not only delivering measurable benefits for hair and scalp but also infusing products with rich Japanese heritage, tradition, and storytelling—elevating them beyond mere hair care products to full experiences.

With this investment, THE RICH anticipates a boost in morale among its employees and elevated trust from partners and consumers alike. The company highlights impressive metrics like a subscription continuation rate of over 97%, expansion to nearly 10,000 retail locations nationwide, and plans to enter 18 countries in the near future, indicating robust growth.

The capital partnership represents the confluence of a strong belief between the two parties: to introduce authentic Japanese values to the global consumer goods market, taking steps beyond mere unicorn status to establish itself as a worldwide luxury brand.

Allocation of Funds and Future Developments

The structure of the investment is designed not just as isolated pockets of funding but to create a broad base for growth across three major themes: global expansion, strengthening the D2C subscription model, and enhancing brand recognition through advertising.

1. Accelerating Global Expansion

The funds will facilitate exporting efforts targeting 18 countries, including Thailand, Indonesia, UAE, and the United States. This includes establishing a localized approach, tailored marketing strategies, and building a robust export framework.

2. Enhancing the D2C Subscription Model

Improvements will focus on logistics, inventory management, and CRM systems to increase customer lifetime value (LTV), alongside necessary product and user interface (UI/UX) upgrades.

3. Expanding Brand Recognition and Advertising Investment

The marketing strategy will include a comprehensive campaign featuring TV commercials starring Horie, supplemented by social media initiatives, public transport advertising, and real-world engagement techniques, positioning SILK THE RICH as a prominent Japanese brand on both domestic and international stages.

Takafumi Horie will not merely act as an investor; he will actively engage in management, marketing, and PR, contributing to the strategic design of the brand's global expansion plan. This partnership symbolizes a shared mission of promoting valuable, authentic products around the world.

New CM Featuring Takafumi Horie

Starting July 28, a new TV/Web commercial will be launched featuring Takafumi Horie riding a unicorn to promote the benefits of SILK THE RICH. The ad is designed to grab attention through its distinctive and impactful storytelling approach, with initial broadcasts scheduled to commence in Fukuoka and broaden nationwide thereafter.

Horie’s Insights

Horie has commented on the brand, stating, "Japan should have more D2C brands that resonate globally. SILK THE RICH holds immense potential in its materials, product strength, and overall brand vision. I believe there’s a path to not just becoming a 'unicorn' but aiming for a 'decacorn.' My support stems from a commitment to directly facilitate the maximization of this brand’s value through management, branding, and collaboration."

What is SILK THE RICH?

SILK THE RICH is a premium haircare brand infused with silk's restorative properties. Utilizing three types of silk ingredients, its products cleanse hair, nourish the scalp, and deliver a unique shine. With fragrance retention that lasts overnight, customers are promised a salon-like experience with high repair and moisturizing efficacy designed to promote silky hair.

Product Information:

- SILK THE RICH - Moist & Repair (Golden Pear and Freesia fragrance): 250mL shampoo and treatment for 1,980 JPY (tax included).
- SILK THE RICH - Scalp & Repair (Mood Night Musk fragrance): 250mL shampoo and treatment for 1,980 JPY (tax included).