Tear

Basic Information

Stock Code
2485
Industry
Services industry
Category Detail
Lifestyle Services
Prefecture
Aichi Prefecture
Establishment Year
July 1997
Listing Year
June 2006
Official Website
https://www.tear.co.jp/
TSE Information
TSE Information
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Heian Rei, Encourage, Technomasema, Kokoro Net, San Life Holdings, Nichiryoku, Hasegawa, San Holdings

Overview

Tear, founded in 1997 and centered in Aichi Prefecture, is a leading company in the funeral services industry, operating funeral halls and providing community-focused services through direct operations and franchises.

Current Situation

Tear operates directly managed halls centered in Nagoya City, Aichi Prefecture, with expansions into Osaka Prefecture and Saitama Prefecture, maintaining stable growth with consolidated sales of approximately ¥13.3 billion and operating profit of about ¥1 billion. Funeral contracting is its core business, and it expands its customer base through the 'Tear no Kai' membership organization, which requires no prepayments. In 2023, it acquired subsidiaries including Hachikoden Co., Ltd. and Tokai Tenrei Co., Ltd., focusing on strengthening its business foundation. Responding to post-COVID social conditions, it has established employee training facilities and emphasized human resource development. Taking body mix-up incidents seriously, it has implemented recurrence prevention measures while working to restore community-rooted trust. Moving forward, it plans mid- to long-term market expansion and franchise development to sustainably deliver high-quality funeral services.

Trivia

Interesting Facts

  • Operates over 175 directly managed and franchise funeral halls
  • No-prepayment membership 'Tear no Kai' contributes to customer growth
  • Founder and President Tomiyasu Tokuhisa personally appears in TV commercials to raise awareness
  • Employee training using mock funeral facilities is gaining industry attention
  • Involved in a social issue with cash theft from condolence envelopes
  • Major service error of body mix-up heightened industry-wide vigilance
  • Known as a Nagoya, Aichi-based local firm aiming for national expansion
  • Representative is a veteran executive with over 30 years in the funeral industry
  • Parent company Yumegen wields influence as major shareholder
  • Operates multiple franchise chains including Nankai Grief Support

Hidden Connections

  • Founder Tomiyasu Tokuhisa maintains strong ties with local financial institutions via community-focused management
  • Franchise expansion networks local small funeral operators to broaden market reach
  • Collaborates with local governments on public funerals and joint memorial services
  • Major shareholder Yumegen builds capital ties with other funeral firms, forming triangular alliances
  • Nankai Grief Support chain stores are operated by Nankai Electric Railway subsidiary
  • Tear Human Resource Center training facility pioneers specialized funeral industry HR development
  • Funeral industry M&A positioned as key industry reorganization driver
  • President's media appearances bolster direct brand awareness among consumers

Future Outlook

Growth Drivers

  • Stable funeral service demand growth from aging society
  • Regional market expansion via franchise development
  • Enhanced end-of-life support services for diversifying needs
  • Reliable service quality uplift through employee training
  • Business foundation and network expansion via M&A
  • IT-driven efficiency in reservations and customer services
  • Rising social demand for disaster-time funeral support
  • Sustainable memorial systems via community collaboration

Strategic Goals

  • Expand franchise stores to over 100 nationwide
  • Achieve over 90% customer satisfaction
  • Advance one-stop services for all funeral needs
  • Zero tolerance for service accidents like body mix-ups
  • Institutionalize and promote eco-friendly funeral plans

Business Segments

Funeral contracting and operational support

Overview
Services for operating funeral facilities and executing funerals.
Competitiveness
Regionally focused dominant strategy and diverse distribution channels
Customers
  • Individual customers
  • Local governments
  • Hospitals and welfare facilities
  • Funeral-related businesses
  • Real estate companies
Products
  • Funeral execution services
  • Venue operation support
  • Memorial goods sales
  • Memorial service support
  • Human resource training services

Franchise operation support

Overview
Operational support and compliance management for franchise expansion.
Competitiveness
Thorough training system and brand strength
Customers
  • Franchise franchisees
  • Operating companies
  • Local companies
  • Local governments
Products
  • Franchise affiliation approval
  • Marketing support
  • Operational training
  • Quality management
  • Legal advice

Training and human resource development services

Overview
Human resource development support via specialized funeral industry training.
Competitiveness
Training expertise using practical mock facilities
Customers
  • Employees
  • On-site staff
  • Managers
  • Partner companies
Products
  • Mock funeral training
  • Customer service training programs
  • Safety management training
  • Legal compliance training

Competitive Advantage

Strengths

  • Regionally integrated dominant strategy
  • Hybrid direct and franchise operations
  • Customer retention via no-prepayment membership organization
  • Human resource development through comprehensive training system
  • Business foundation strengthening via expanding subsidiaries
  • Wide range of memorial goods handling
  • Transparent accounting practices
  • High brand recognition
  • Diverse sales channel deployment
  • Strong dominance in local markets

Competitive Advantages

  • Powerful regional network centered in Aichi Prefecture
  • Revenue stability from diversified services
  • Thorough personnel education and operational standardization
  • Balanced operation of direct and franchise models
  • One-stop services from funerals to tombstones and memorial goods
  • Rich history and earned customer trust
  • Aggressive M&A for market expansion
  • Customer retention enhancement via industry-specific membership
  • Flexible response to customer needs
  • Direct hall operations across multiple regions

Threats

  • Social trust decline from incidents like condolence money theft
  • Service accident risks such as body mix-ups
  • Intensified competition and potential customer decline due to aging
  • Growth slowdown in regionally limited markets
  • Price competition intensification from rivals
  • Decline in funeral demand during economic downturns
  • Regional regulatory tightening
  • Pressure from funeral style changes due to infectious disease outbreaks
  • Operational instability from successor shortages
  • Challenges in overseeing franchise store management

Innovations

2024: Strengthened response to body mix-up incident

Overview
In response to the body mix-up incident revealed in March 2024, implemented stricter confirmation procedures.
Impact
Promotes industry safety standard enhancements and trust restoration efforts

2023: Business expansion through M&A

Overview
Expanded business area and customer base by acquiring Hachikoden Co., Ltd. and Tokai Tenrei Co., Ltd. as subsidiaries.
Impact
Improved regional market share and revenue foundation

2022: Employee training facility development

Overview
Built a training facility mimicking actual venues adjacent to headquarters to bolster human resource development.
Impact
Enhanced customer service quality and operational efficiency

Sustainability

  • Promoting recycling of funeral waste
  • Exploring introduction of eco-funeral plans
  • Local community environmental initiatives
  • Strengthening employee-friendly work environments
  • Long-term relationship building via customer satisfaction improvements