Tokyo Lifestyle is a retailer and wholesaler of Japanese consumer products, focusing on beauty, cosmetics, and luxury goods. The company sells items such as skincare, OTC drugs, luxury watches, electronics, and collectibles to customers primarily in Hong Kong, Japan, and North America. Tokyo Lifestyle operates through three channels: a wholesale and franchise network, directly-operated physical stores, and online marketplaces. The wholesale and franchise business is the company's primary revenue driver. This asset-light model allows the company to scale operations with less capital investment than physical retail. Tokyo Lifestyle generates revenue by purchasing products from Japanese brands like Shiseido and Kao and luxury watchmakers like Patek Philippe and reselling them at a markup. Tokyo Lifestyle recently shifted its product mix toward luxury goods, which carry lower margins than beauty products. The company's growth strategy focuses on adding wholesale customers and expanding its international retail footprint by opening new stores in the U.S., Canada, and Australia. The business maintains a high concentration of revenue in the Hong Kong market and relies on short-term bank borrowings to fund its accounts receivable.