O of JEH and son of the founder Shokai Kaneko, came up with a plan: To expand his own manufacturing business, recruit experienced frame makers and designers, and train a new generation that could follow in their footsteps.  Kaneko, the man, today serves as the representative director and president of the company he founded. Today, Toru Akita leads the day-to-day operations as CEO. He took time to share the company’s story with Inside Retail during a recent trip to Hong Kong to open the territory’s second Kaneko store, a 79sqm flagship on the fourth floor of K11 Musea.  “Part of our plan was to save the artisan and workmanship of making frames,” said Akita. “It is a dying art.” After the aforementioned factory founders passed away, “they just let the factory die. Literally,” Akita reflected. Two years ago, JEH listed on the Tokyo Stock Exchange to raise funds for business expansion by acquiring factories. Now it owns five across Japan’s Sabae in Fukui Prefecture, a district often referred to as the “eyeglasses capital” of the country, where more than 90 per cent of the nation’s eyeglass frames originate. JEH’s factories employ approximately 200 craftspeople who handcraft frames sold exclusively through the company’s stores.  Passing the torch   The factory team ranges in age from 20 years old to experienced craftsmen in their 70s and 80s, who impart their skills to the younger generation to sustain the future of the business, Akita shared.  Kaneko, established in 1958 as a manufacturer wholesaling its products to retailers, only opened its first store in 2010. With supply assured and a reliable pipeline for production growth in place, JEH now boasts a network of 85 stores in Japan, three in Shanghai, two in Paris and one in Beijing. Spin-off brand Four Nines (also known as 999.9), which was absorbed into JEH in 2021, has a single store in Singapore. Thirty-five per cent of JEH’s sales now come from overseas customers.  “Other countries and markets like Taiwan and Singapore, and other Asian areas, will be our next step in location. We would like to be a global brand and expand our business across the world, including in Europe and North America.” Akita says the company’s direct-to-consumer model ensures it can deliver high-quality products and services to consumers. “We like to be a lifetime partner with our customers.” The eyewear on display at the Musea store – designed in a typically understated Japanese style – doesn’t come cheap. Standard lines start at HKD5000 (US$640) with the most expensive fetching about HKD68,000 ($8660). The average sale at the Central store is around HKD10,000 ($1270). But sales are brisk. The brand’s first Hong Kong store opened last November in Central, the territory’s business district, taking its place alongside luxury brand stores. At Musea, Akita aims to attract affluent visitors from the Philippines, Malaysia, Thailand and other regional markets. Monitoring where the Musea store’s customers hail from will help shape the company’s future market roll-out strategy.  “As a Japanese brand with global ambitions, it makes sense to introduce the product at Musea. We think stores are the most important means to introduce ourselves to customers,” Akita said. JEH’s market strategy is a vivid contrast to fellow Japanese eyewear retailer Owndays. Since launching in Tokyo in 1989, Owndays has built a network of stores throughout Asia, promising frames at competitive price points, free eye tests and fast delivery – in as little as 20 minutes for common lens prescriptions.  Kaneko is building its own legacy at the premium end of the market.  “Most of [Owndays’] eyewear is made outside Japan,” explained Akita. “We are providing high-quality, efficient, fashionable eyewear for our customers.” He describes Kaneoko’s range as “classic and handcrafted”.  “We are a manufacturer, not just a retailer. We are making frames ourselves and selling them ourselves. So it’s very different.”  If a Kaneko store has the lens in stock, it can deliver a pair within one day; however, if a unique lens is required, delivery may take seven to 10 days. The focus is on quality, not speed. Akita confesses to a weak point in JEH’s strategy: “Honestly, we are very bad at marketing. We craft the stores and deliver customer service and provide high-quality eye checks and repairs, and maintenance, and I hope someone who uses our [services] tells that to their friends or family or employees.”  Clearly, they are, because Akita shares that half the customers who walk into a Kaneka store were previously unaware of the brand. “As they walk past the store, they can see a lot of people inside the store, so they just step in and experience our service and brand history, and they purchase and spread that to their family and friends.” Now, as it tackles Mainland China – a market 25 times larger than Japan – the company realises it needs a different approach to engaging with new customers in such a large country to achieve strong growth. “That’s our challenging part for us to change our position from a Japanese brand to a global brand. We’re still learning and thinking,” Akita said. China’s discount culture Moving into Mainland China was challenging at first for a Japanese company with little experience of customers abroad, beyond those who shop during trips to Tokyo.  “It is a bit trying, but it’s also the culture and sometimes, especially in Shanghai, [customers] expect some discount. Basically, we never do any discounting. We are proud of our product, and we say it is a reasonable price. That’s challenging, not discounting,” Akita said. Despite this, JEH sees huge potential. “That’s our challenging part: to change our position from a Japanese brand to a global brand,” he added. “We’re still learning and thinking.” For Akita, it’s about more than vision – it’s about legacy. “Eyewear is kind of a commodity,” he said. “But people are looking for something special or unique. We like to be a destination for this kind of customer. Positioning the brand as luxury eyewear from Japan to the world is something very exciting.”