Koshidaka Holdings
Basic Information
- Stock Code
- 2157
- Industry
- Services
- Category Detail
- Leisure & Recreation Facilities
- Prefecture
- Tokyo
- Establishment Year
- June 1999
- Listing Year
- June 2007
- Official Website
- https://www.koshidakaholdings.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Tetsujin-ke Holdings, Round One, Curves HD, Daiichi Kosho
Overview
Koshidaka Holdings is a major services company established in 1999, with the Manekineko karaoke chain as its core business, boasting a top-class industry store network through low-price strategies domestically and internationally.
Current Situation
Koshidaka Holdings achieved consolidated sales of approximately 63.3 billion yen and operating profit of approximately 10.2 billion yen in the fiscal year ending August 2024, building a stable profit base. Its flagship business, the Manekineko karaoke chain, operates over 500 stores nationwide, maintaining the industry's second-largest number of stores through low-cost operations via shell store takeovers. Overseas, it is actively expanding stores centered on Southeast Asia, including South Korea, Singapore, Malaysia, and the Philippines. Since the 2010s, it has introduced its original karaoke machine 'E-bo' to strengthen competitiveness. Under a holding company structure, it has streamlined group management, and in 2023, it entered into a capital and business alliance with Tsukiji Gindaco to strengthen collaboration in the food and beverage sector. For environmental considerations, it has eliminated plastic straws at all stores nationwide and introduced a bonus system favoring non-smokers to promote employee health. Although there were some issues with shareholder meeting operations, improvement measures have been implemented. Moving forward, it aims for sales of 100 billion yen scale by strengthening store openings in western Japan and overseas.
Trivia
Interesting Facts
- Established industry-leading low-cost store openings through shell takeovers
- Implemented business separation using industry's first spin-off system
- Karaoke machine 'E-bo' contributes to improved user experience with proprietary technology
- Early introduction of health promotion system with bonus uplifts for non-smokers
- Actively advancing into Southeast Asian countries to expand overseas stores
- Capital and business alliance with Tsukiji Gindaco to develop new markets
- Membership system is common across all stores, usable with only initial enrollment fee
- Expansion not only in Japan but also in South Korea, Singapore, and Malaysia
- Approximately 5,600 employees (as of August 2024), large-scale operations
- Formerly had Curves fitness business under its umbrella
Hidden Connections
- Alliance with Tsukiji Gindaco to strengthen collaboration in amusement and dining sectors
- Past management relationship with Curves Japan contributed to knowledge in health sector
- Efficiency in customer management through introduction of Ran System automatic enrollment
- Possesses business deployment capabilities adapted to local conditions through overseas subsidiaries
- Operates head office functions in Shibuya-ku, Tokyo, and main store functions in Maebashi City, Gunma separately
- Growth company successfully listed on Tokyo Stock Exchange Prime Market
- Adopts JOYSOUND and DAM machines from karaoke equipment manufacturers for differentiation from competitors
- Installs smoking areas within stores to balance with comprehensive no-smoking measures
Future Outlook
Growth Drivers
- Customer base expansion through low-price strategy
- Aggressive expansion in Southeast Asian markets overseas
- Differentiation enhancement through original machines with new technologies
- Efficient store expansion via shell store takeovers
- Revenue diversification through collaboration with food and beverage business
- Improvement in social trust through environmental and health considerations
- Operational efficiency improvement through digitalization and IoT introduction
- Planning and provision of services for new customer segments
Strategic Goals
- Achieve over 100 billion yen in sales
- Expand overseas stores to over 20% of domestic store count
- Realize reduction in environmental impact across the entire business
- Promote market diversification through new brand deployments
- Revolutionize customer experience through digital technology utilization
- Improve employee satisfaction through health promotion measures
- Further strengthen community contribution activities
- Improve profit margins through operational efficiency
- Expand collaborations with diverse entertainment sectors
- Establish sustainable growth and ESG standard compliance
Business Segments
Karaoke Equipment Manufacturing and Sales
- Overview
- Develops in-house brand equipment and provides content, selling to related businesses.
- Competitiveness
- Enhances user experience with proprietary machines
- Customers
-
- Karaoke store operators
- Communication karaoke companies
- Equipment leasing companies
- Products
-
- Karaoke equipment 'E-bo'
- Karaoke content delivery
Store Operation Support and Management
- Overview
- Provides business support and management services for group stores.
- Competitiveness
- Efficient store operation know-how
- Customers
-
- Group stores
- Franchise stores
- Related businesses
- Products
-
- Store management system
- Outsourced business services
Food and Beverage Procurement and Logistics
- Overview
- Conducts centralized procurement within the group to optimize cost management.
- Competitiveness
- Cost reduction through bulk procurement
- Customers
-
- Karaoke stores
- Bath facilities
- Products
-
- Ingredients and beverages
Competitive Advantage
Strengths
- Low-cost strategy through shell store takeovers
- Abundant store count and regional deployment
- Development capabilities for original machines
- Advanced initiatives in overseas market expansion
- Diversified business expansion through group companies
Competitive Advantages
- Ease of use from second-largest domestic store count in the industry and low-price settings
- Rapid store rollout by suppressing initial investment through shell property utilization
- Differentiation via original karaoke machines and systems
- Aggressive expansion in Southeast Asian markets overseas and brand recognition growth
- Acquiring diverse customer segments through various brand deployments
Threats
- Decline in karaoke demand due to diversification of customer entertainment
- Usage restrictions from pandemic risks like COVID-19
- Intensifying price competition with major competitors
- Rising equipment investment costs
- Operational constraints and cost increases from strengthened regulations
- Local risks and intensifying competition accompanying overseas expansion
Innovations
2024: Release of original karaoke machine 'E-bo'
- Overview
- Launched in-house developed machine with advanced operability and service features.
- Impact
- Significantly improves customer satisfaction and store differentiation.
2024: Joint research with Onago Jikan Entertainment Co., Ltd.
- Overview
- Initiated research toward providing next-generation karaoke room experiences.
- Impact
- Expected to acquire new customer segments and expand demand.
2023: Capital and business alliance with Tsukiji Gindaco
- Overview
- Deepens collaboration through in-store sales of frozen takoyaki and mutual customer referrals.
- Impact
- Promotes store revenue and customer satisfaction improvement.
2020: Spin-off and independence of Curves business
- Overview
- Separated fitness business to improve management efficiency.
- Impact
- Contributes to business focus and capital efficiency improvement.
Sustainability
- Elimination of plastic straws at all stores nationwide
- Customer health considerations through store no-smoking policy and installation of smoking areas
- Introduction of bonus incentives for non-smokers
- Reduction of waste through free food and drink bring-in policy at karaoke stores
- Promotion of energy-saving designs in new machines to reduce environmental impact