Heian Ray Service

Basic Information

Stock Code: 2344
Industry: Services
Category Detail: Lifestyle Services
Prefecture: Kanagawa Prefecture
Establishment Year: September 1969
Listing Year: December 2002
Official Website: https://heian-group.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Tia, Sanko Techno, Mitsuchi, Kokoro Net, Sun Life H, Nichiryoku, Hasegawa, San Holdings

Overview

Heian Ray Service is a Kanagawa-based wedding and funeral service company founded in 1969, with strengths in franchising its funeral business.

Current Situation

Heian Ray Service recorded consolidated sales of approximately 9.5 billion yen and operating profit of approximately 1.8 billion yen in fiscal 2023, maintaining a stable revenue base. Its main businesses include operating funeral halls and wedding services, with a strong regional foundation centered in Kanagawa Prefecture. It differentiates itself from competitors through its franchise model for funeral services and has expanded into neighboring areas such as Machida City in Tokyo. In recent years, it has focused on improving service quality and customer satisfaction, strengthening community-based service delivery. It is also working on digitalization for efficiency and introducing customer management systems. The company is advancing business operations with consideration for social responsibility and sustainability, aiming for further regional expansion and new service development in the future. It plans to focus on service innovation and customer base expansion to strengthen competitiveness while ensuring stable revenue going forward.

Trivia

Interesting Facts

Founded in 1969, with approximately 55 years of history as an established company.
Regional expansion centered in Kanagawa Prefecture is a strength.
Top class in the prefecture for funeral business franchising.
Rare as a community-based company handling both weddings and funerals.
President Soma Hideyuki has contributed to the local community for many years.
Many employees hold funeral-related qualifications.
Actively participates in local events and activities.
Cooperative in local cultural property preservation activities.
Maintains family management tradition from predecessors.
Widely known as a local company in Hiratsuka City.
Early adopter of IT systems in the funeral industry.
Regular contributions to local newspapers.
Accommodates wide customer segments with diverse service plans.
Continuously implements community-oriented CSR activities.
Focuses on enhancing hospitality skills in employee training.

Hidden Connections

Collaborates with local government to hold funeral etiquette training.
Collaborates with peer companies for joint exhibits at regional events.
Has long-term procurement contracts with local florists.
Collaborates with local banks to offer financial services to customers.
Part of the wedding services division has business alliances with other companies.
Encourages employee participation in local volunteer activities.
Introduced online consultations ahead of competitors.
Company services featured in books related to weddings and funerals.

Future Outlook

Growth Drivers

Expansion of funeral business franchising
Operational efficiency through digitalization
Capturing demand for diversified wedding services
Increasing funeral demand due to regional aging
Increasing repeat customers through improved satisfaction
Promotion of new services and products
Advanced customer management using IT
Strengthening collaborations with administration and local groups
Spread of environmentally friendly services
Flexible response to diverse customer needs
Service quality improvement through employee education
Capturing part of inbound demand

Strategic Goals

Double the number of franchise stores from current levels
Improve operational efficiency by 20% through digital shift
Achieve annual revenue exceeding 10 billion yen from wedding and funeral services
Reduce CO2 emissions by 30% and strengthen environmental considerations
Continuous participation in community contribution activities
Expand beyond the Tokyo metropolitan area as a stepping stone to nationwide rollout
Achieve and maintain customer satisfaction above 90%

Business Segments

Funeral Hall Operations

Overview

Provides funeral venue operations and hall rental services.

Competitiveness

Community-based management and high customer support rate

Customers

地域自治体
葬祭業者
介護施設
医療機関

Products

式場貸出
葬儀プラン提案
会場装飾
セレモニー運営

Wedding Services Business

Overview

Planning and operation of wedding business and provision of related services.

Competitiveness

Wide range of attire brands and diverse plans

Customers

新郎新婦
結婚式場
衣装レンタル店舗
写真館

Products

結婚式企画
衣装提供
写真撮影
記念品販売

Funeral-related Franchise Business

Overview

Provides franchise expansion support to funeral business operators.

Competitiveness

Extensive operational know-how and support system

Customers

加盟葬祭店
地域事業者

Products

フランチャイズ支援
研修サービス
資材供給

Product and Service Planning and Development

Overview

Promotes development of new products and systems for weddings and funerals.

Competitiveness

Product planning capability responsive to customer needs

Customers

顧客企業
ホール運営者

Products

新プラン開発
ITソリューション
カスタマーサポート

Competitive Advantage

Strengths

Community-based wedding and funeral service expansion
Franchise expansion capability in funeral business
Abundant local customer base and brand power
Stable revenue structure and solid management
Experienced staff and high service quality
Diverse service plans and flexible responsiveness
Trust backed by long history
Stable transaction relationships with corporate customers
Established customer management system
Cross-selling effects with wedding services
Strengths in regional events and administrative collaborations
Efficient operations through IT utilization
Clear brand positioning
Active measures to improve customer satisfaction
Comprehensive employee training and education

Competitive Advantages

Strong sales base centered in Kanagawa Prefecture
Leadership in funeral franchising
Flexible response with wide range of funeral services
Business diversification with wedding services enhances competitiveness
Building long-term trust with local residents
Improved customer satisfaction through detailed customer management system
Superiority in customer acquisition through collaborations with administration and local groups
High-quality service provision through employee specialist training
Ensuring capital and managerial stability
Comprehensive support system for franchise stores
Customer convenience through integrated wedding and funeral services
Service planning suited to regional characteristics
Flexible management structure adaptable to external changes
Enhanced customer support by specialist staff
Stable revenue from large number of repeat customers

Threats

Market shrinkage risk due to declining birthrate and aging population
New entrants and price competition from rival funeral businesses
Impact on customer attraction from social changes like new infectious diseases
Rising operational costs due to strengthened regulations
Decreased customer spending due to regional economic downturn
Decline in competitiveness from delayed digitalization response
Potential difficulty in responding to diversifying customer needs
Business interruption risk from disasters and other sudden events
Difficulty maintaining service quality due to labor shortages
Quality management challenges for franchise stores
Decreased market share due to intensified inter-regional competition
Increasing IT security risks

Innovations

2023: Introduction of Digital Customer Management System

Overview: Achieves comprehensive customer data management and service optimization.
Impact: Improved customer satisfaction and operational efficiency

2022: Launch of Online Consultation Service

Overview: Enables remote consultations for funerals and weddings.
Impact: Significant improvement in customer convenience and acquisition of new customers

2021: Development of Environmentally Friendly Funeral Plans

Overview: Introduced eco-friendly materials and biodegradable products.
Impact: Expanded customer base among environmentally conscious segments

2020: Launch of Enhanced Franchise Support Program

Overview: Strengthened support and education systems for franchisees.
Impact: Improved service quality and revenue for franchise stores

Sustainability

Expanding introduction of environmentally friendly funeral materials
Participation in local senior support programs
Promoting use of renewable energy
Improving employee work environment to boost retention
Regular implementation of community cleanup activities
Promoting paperless operations
Supporting preservation of local culture and traditions
Setting and achieving CO2 emission reduction targets
Disaster awareness activities for local residents
Promoting waste recycling