Founded five decades ago, Nature’s Way remains one of Japan’s earliest plant-based cosmetics companies, built at a time when botanical skincare did not yet exist as a mainstream category. President and Owner Yoshiaki Hagiwara has spent his career resisting an industry pattern built on rapid growth and marketing-led sustainability claims, choosing instead to root the business in conviction, transparency and long-term value.
Hagiwara’s approach has been shaped less by industry trends than by family history: watching two generations build businesses out of scarcity, and learning that leadership sometimes demands restraint rather than acceleration.
In this exclusive interview with Global Leaders Today, Hagiwara reflects on the legacy that shaped him, why sustainability must be measurable rather than declared, how COVID-19 reshaped Japan’s cosmetics industry, and why conviction, not velocity, defines businesses built to last.
Nature’s Way marks five decades this year. How would you describe the company’s journey across its three distinct eras?
Our journey over five decades can be divided into three main parts. The first stage was one of relative obscurity. It is only in the last 10 years that natural organic cosmetics have been recognised as a mainstream commercial product in shops across Japan and Asia. Until then, there were no competitors and no large markets. Customers made a purchase decision only after we carefully explained our products. The last decade was a period of significant market growth. Competitors increased sharply, and the market expanded as cosmetics firms jostled to acquire as many shelves as possible. It was a good time to spend money on advertising, and the more companies invested, the more they grew.
The market changed fundamentally after COVID-19 began in 2020. Customers stopped visiting shops, and in-store promotional material became meaningless. Cosmetics companies were forced to invest in social networking to appeal directly to customers.
You carried forward a family legacy that began long before cosmetics. What shaped your understanding of business before you ever ran one?
After the war, when Japan was still politically and economically unstable, my grandfather started his business by bringing food from the countryside into Tokyo. Initially, he simply delivered food to hungry people amid shortages. Over time, his keen eye for quality led him to carefully select vegetables and fruits, and the business evolved into a fruit shop and eventually one of Japan’s earliest supermarkets.
From childhood, I grew up listening to his stories about surviving the harsh post-war market. From him, I learned the genuine joy of turning zero into one. My father later ran Japan’s first organic cosmetics company. He never gave specific instructions on product development, but he was clear that selling products and profit were not the ultimate goal. From my father, I learned that the foundation of business is putting smiles on the faces of customers and stakeholders alike.
Globally, very few companies can call themselves authentic plant-based cosmetics makers. What separates Nature’s Way from brands that use sustainability as a marketing message?
Globally, there are fewer than 10 companies that can honestly recognise each other as genuine plant-based cosmetics companies. That is how difficult it is to continue making botanical cosmetics authentically. Sustainability is not something we do for advertising; it is something we genuinely strive for as part of living within nature. Some companies emphasise a single eco-friendly activity to present themselves favourably. We are different. Our reason for existing is to make both skin and the Earth better.
How do you ensure sustainability remains operational rather than symbolic?
Our defining features include owning forests to absorb carbon dioxide and nitrogen, maintaining farms that cultivate organically grown herbs, and operating our own factories. We measure the emissions generated by our business activities every year and evaluate how much can be offset by our forests and farms. We have also obtained B-CORP and SBT certifications. Through initiatives such as container recycling and clean energy utilisation, we aim to make both skin and the planet healthier through our very existence.
Your leadership philosophy centres on transparency. How does that principle actually function inside the company day to day?
Decision-making at Nature’s Way is completely transparent. The minutes of our management meetings, along with the opinions I have expressed there, are clearly written and shared with all employees, so there is total clarity about my thinking on any given project. The difficulty arises when past decisions turn out wrong. Because staff can see them, I am always expected to make the right calls. I do not hesitate to admit errors in judgement and take a new decision, sharing it openly with everyone. An organisation cannot grow if its leadership cannot admit faulty decision-making.
I also strive to build a good working environment, because employees are ultimately responsible for implementing every project. I interview each staff member every six months to hear their honest opinion of the company and their colleagues.
With over 200 staff, how do you maintain that closeness without informal favouritism creeping in?
As owner and president, I hold responsibility toward all employees and stakeholders, but I cannot communicate with over two hundred staff members daily. We operate through departments, and daily instructions are handled by department heads. To avoid misunderstandings, I hold 20-minute one-on-one meetings with every staff member twice a year. We also conduct annual 360-degree evaluations to prevent authority from becoming excessive and identify outstanding talent. I avoid informal interactions that could undermine organisational fairness. I believe accepting solitude is part of the role of top management.
Tradition and innovation are often framed as opposites. How do you reconcile the two at Nature’s Way?
I do not believe tradition and innovation are mutually exclusive at all. Tradition is not something consciously created; it is simply a word we use when looking back at outcomes. The future must never be constrained by the past. In business, innovation should always take precedence. From an ingredient perspective, natural materials are a constant stream of new discoveries. Even within the same plant species, herbs harvested in different regions exhibit different properties due to climate and environment. I never think of natural ingredients as old or stable.
COVID-19 changed consumer behaviour across most industries. How did it specifically reshape Japan’s cosmetics sector?
Previously, direct contact between manufacturers and customers was not welcomed. Retailers and department stores interacted with customers, while manufacturers focused on negotiations with wholesalers. During the pandemic, wholesalers struggled to attract customers and began requesting manufacturers to promote products through social media instead. Manufacturers strengthened their social media departments and began communicating product value directly to customers for the first time. This shift altered how manufacturers thought about communication and responsibility toward consumers.
You’ve said profit and purpose must be one and the same. Can you explain what that means in practice?
I believe the purpose of running a company and its profits should be one and the same thing. If they are not aligned, sustainable motivation becomes very difficult to maintain. Many companies use profits to fund eco-friendly activities, which is positive. However, I believe eco-activities must be integrated into business operations. If sustainability depends on profitability alone, it contradicts the idea of being a positive force for the Earth, the soil and the people who depend on both.
Where does e-commerce fit into the next phase of Nature’s Way’s growth?
We believe e-commerce should become our next growth engine. We aim to enhance content across social media and other platforms to help customers understand the deeper appeal of plant-based cosmetics. A business model based solely on price appeal is unsustainable for a small company like ours. We do not need to appeal to everyone. Instead, we want to resonate deeply with a smaller group of customers and strengthen our e-commerce presence through that connection. Depth of understanding matters more than volume of reach.
Which international markets excite you most as Nature’s Way looks beyond Japan?
There are not many companies globally that can mutually recognise each other as authentic plant-based cosmetics companies. I do not wish to make this company larger than necessary, but I do want it to remain special and educational. The Middle East and Southeast Asia are particularly important markets, given their economic and population growth. I would welcome collaboration with companies strong in sales that genuinely share our values.
After decades in leadership, what legacy do you hope to leave for the next generation of business leaders?
Cosmetics represent hope and the future. People choose them with excitement and anticipation. Through cosmetics, I want to deliver not only benefits for the skin, but also hope for what comes next. As for legacy, I hope to pass on a way of thinking: staying grounded during good times, improving during difficult ones, focusing on what can be changed, and approaching others with humility and gratitude. Business must be sustainable to truly benefit many people. If there is one message I wish to leave, it is that long-term value is built through patience, responsibility and respect.
