Four Employees in Charge of an Amenity Business for a 5 Star Hotel. “Rent is a Quarter of What it Used to be” - Why a 26-year-old CEO Quit Renting a Traditional Office Space

Ririo Bato inherited his skincare business from his grandmother, who founded the company in 2019. At the age of 22, he became the company’s representative and transformed the brand image, which lead to rapid growth and the development of an amenity business for clients such as a 5-star hotel.

We interviewed Ririo Bato, CEO of Barolo Inc. and brand manager of LIRIO, about the company's rebranding efforts, the difficulties of business succession, and how he uses a shared office space to support his business management.

Developing a 5-star hotel’s amenities with 4 employees

Please tell us about Barolo Inc.

Our business is divided into two main areas: total beauty including skin care, body care, hair care, and lifestyle under the brand “LIRIO,” and we also design and manufacture amenities and makeup collections for our clients. One of our biggest clients is a top resort hotel in Japan, and we are in charge of their amenities.

What do you think are Barolo’s biggest strengths as a company?

We have a total of five employees including myself, two of whom have design knowledge and experience. I myself studied design at a university in England. I believe that my company’s strength lies not only in its 30 years of experience in cosmetics manufacturing which has been passed down from my grandmother’s generation, but also in the wide range of work that can be entrusted to us, even creatively.

You have quite a wide range of businesses for only four employees

We currently have 13 projects going on at the same time, so it can be a challenge (laughs). The company only operates during weekdays, and there is no contact between employees on weekends. I try to keep a good work-life balance, but I am almost always working on weekends. To relax I enjoy playing soccer in my spare time.

You are currently 26 years old and became the company’s representative at 22. How did you take over the company at such a young age?

To be honest, it was because my grandmother’s business was facing financial difficulties. Simply, it was a situation where I had no choice but to take over. I was working at a major domestic skincare brand, but left to take over the business.

I always had a sense of independence and had the desire of creating my own brand. It was like the timing of that desire moved up. The company was in a difficult situation, but I was full of motivation and ready to give it my all.

What were the key areas of focus for your rebranding in 2021?

Since LIRIO was founded in 1996, our products have been made with eco-friendly ingredients. At a time when the terms “sustainability” and “organic” were not as well known, my grandmother had great foresight. In other words, there has never been any issue with the quality of our products.

What we needed was a drastic change in out design and marketing, which had not changed since the company was founded. We changed the overall design to be more modern, created a website that didn’t exist before, and started using Instagram. Most of our previous customers were around the same age as my grandmother, but with the rebranding, our customers are now mainly in their 30s to 50s.

Biggest difficulty of business succession is relationship with family

For you, what were the difficulties and advantages of business succession?

In terms of difficulty, I would say the relationship between family members. I have several colleagues who have inherited businesses and they all seem to have difficult relationships with their families.

It takes a lot of energy to start a business and continue it for decades. There is no doubt that we need to respect that, but to my grandparents, their grandchildren and children will always be their grandchildren and children. Telling them that they are not ready will cause them to rebel. This is even more so because they are family members.

An advantage to inheriting a business is that even at the young age of 26, I am able to offer a brand with a long history. It is completely different compared to starting from scratch by myself.

“I don’t need a private office” – Reasons for switching to a shared office space

You used to rent an office. What made you switch to a shared office?

When you rent an office, you need to clean and manage it. Since we were doing the cleaning ourselves, we preferred to spend that time working. I also get bored easily and don’t like working in the same place all the time. Overall, we decided that we didn’t need an office and that a shared office space would be more efficient.

In terms of cost, our old office was in Shirokandeai, Minato-ku, so fixed costs accounted for a large portion of our expenses. Since we started using a shared office space, we have been able to cut our rent by about a quarter.

Why did you choose Servcorp?

I considered several other companies and visited them to compare. I felt that each one had different kinds of users. I am the type to be concerned about my surrounding environment while working, so I wanted to work in an environment that is quiet and calm. I also have experience overseas so I like an international environment. Servcorp was the perfect fit for both of those reasons. I love the relaxing presence of both the users and staff, as well as the interior design. There are no distractions and I can concentrate on my work quite well.

What services do you use and how often do you use them?

My contract is with Servcorp’s “Virtual Office” and the five of us use the coworking space. All of us go to the office almost every day.

You mainly use the YANMAR TOKYO location, what do you like about it?

I would say it is the sense of openness. The ceilings are high, and the large windows overlook Tokyo Station. Being in an environment where I can switch seats whenever I want is truly freeing and leads to greater work efficiency and productivity.

The flexibility I have is incomparable to a regular rented office. It’s always clean even though you don’t have to clean it, and the staff can handle phone calls and visitors. The reason I wake up in the morning and want to go to work is because I can concentrate on my tasks without worrying about unnecessary things while being in a comfortable environment.

Do you ever feel inconvenienced by not having a private office?

When I have meetings, I can reserve a private room, so I don’t think there are any inconveniences. The only thing I would mention is that there is not a lot of room for storage. We have a lot of product samples, so it is difficult to find a place to put them. We actually just signed a contract for a new locker today.

Do you plan to expand your business overseas in the future?

Yes, I do. Our goal is to become a leading skincare brand in Japan, but we are also looking into expanding overseas. From now on, I will be traveling outside of Japan more and more. Considering this, I am very happy that I chose Servcorp.

Servcorp has offices in 150 locations worldwide, so you don’t have to search for a workspace every time you travel. The ability to work in a familiar environment wherever you go is a huge advantage.

Thank you very much.

(Take a look at Servcorp’s 150 locations worldwide)

Introduction to Servcorp’s YANMAR TOKYO location

YANMAR TOKYO, where Barolo's base is located, is a one-minute walk from the Yaesu exit of Tokyo Station. The location is directly connected to the station through underground pathway so you don’t have to worry about being affected by weather, and it is accessible by 14 train lines including JR, subways, Narita Express, and bullet trains.

Servcorp offers four types of office services to suit your needs: Serviced Offices, Coworking Spaces, Virtual Offices, and Meeting Rooms. These services are offered at the YANMAR TOKYO location at a lower price than some of the other locations in the area.

There are 30 prime locations in Tokyo, Osaka, Nagoya, Fukuoka, and Yokohama, and over 150 locations worldwide. If you are interested in using Servcorp’s services, please feel free to contact us.