Mask Production at Government Request During COVID-19
Continued Popularity in the Endemic Era... Expansion into New Businesses
Japanese company Sharp, known in Korea for its electronic devices such as electronic dictionaries, is gaining attention locally by leading a 'mask' craze. The business, which started at the government's request during the COVID-19 pandemic, unexpectedly became a blockbuster product. Although Japan has lifted COVID-19 mask mandates, masks remain popular due to pollen allergies and other reasons, and products are still distributed through applications and lotteries.
On the 11th, Sharp Japan announced that it held its 157th mask lottery sale the previous day. Sharp conducts mask lotteries every Wednesday. The masks sold through the lottery come in two types of non-woven fabric masks: antibacterial and standard, each available in two sizes, with 50 masks per box. Due to a large number of domestic users, overseas shipping or access is not possible.
Although the COVID-19 situation has eased and mask supply issues have been resolved, Sharp masks remain popular. A Japanese online media outlet quoted a Sharp PR representative saying, "Because there are consistently people purchasing through the lottery sales, we continue to sell," and added, "As of this month, the number of applications still overwhelmingly exceeds the supply of masks."
Why did Sharp suddenly enter the mask business? During the pandemic, Sharp accepted the Japanese government's request to produce masks and received subsidies to start mask production in the cleanroom of its Mie Prefecture factory, which normally manufactures LCD panels. At the time, low-quality 'Abe masks' were controversial, so the fact that masks were produced in a cleanroom of a large company known for precise electronic devices seemed to appeal to anxious consumers.
Starting in April 2020, Sharp began lottery sales of masks. When the Abe masks became controversial, the first lottery attracted 4.7 million applicants for 40,000 masks, resulting in a competition ratio of 100 to 1. Even afterward, the sales website was overwhelmed with visitors, causing the Sharp homepage server to crash and resulting in an error where Internet of Things (IoT) devices operating on Sharp servers simultaneously stopped. It is known that over 300 million masks have been sold to date.
Sharp plans to continue mask production in the future. However, it declined to comment on how much profit the masks generate. In a written interview with the Japanese IT media 'ITmedia,' a Sharp representative said, "Sharp produces masks under the recognition of corporate social responsibility," and added, "We refrain from commenting on profitability."
Starting from a government-requested business, Sharp has expanded into various business fields beyond masks. In March last year, following masks, Sharp also entered the cosmetics business with the slogan "Let's solve skin concerns in daily life with masks."
Sharp believes that entering unrelated new businesses actually helps secure customers. Madoka Mori from Sharp's Solution Development Department said in an interview with Sharp subsidiary Cocoro Life, "We want to think about products that are close to consumers, not just limited to home appliances," and added, "In large companies' new businesses, it is not always necessary to consider synergy with the original industry. Forcing connections may fail to understand customer needs. Providing new value may be necessary."
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