IK Holdings

Basic Information

Stock Code
2722
Industry
Retail
Category Detail
Mail Order & Online Shopping
Prefecture
Aichi Prefecture
Establishment Year
May 1982
Listing Year
December 2001
Official Website
https://www.ai-kei.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
E-Support, Tabio, RIZAP Group, Miratap, TENTIAL, Tobu Juhan, Felissimo, yutori, Classicom, Scroll, Belle, Charle, Belluna

Overview

Ai Kei is a mail-order agency established in 1982, with catalog sales for consumer cooperatives as its mainstay, building a solid position in the retail industry.

Current Situation

For the fiscal year ended May 2022, consolidated net sales were approximately 16.3 billion yen, maintaining steady sales, but operating profit was a loss of 360 million yen. In its mainstay mail-order agency business for consumer cooperatives, it offers PB products such as food and sundries, steadily expanding its customer base. It strengthened collaboration with subsidiaries and transitioned to a holding company structure in 2022 to improve business efficiency. Recently, it acquired a web shopping business and is working to expand in the EC field. To differentiate from competitors, it utilizes both catalog sales and EC channels to meet diverse customer needs. Moving forward, it will focus on promoting DX in mail-order sales and expanding the consumer cooperative market, aiming for profit recovery and sustainable growth.

Trivia

Interesting Facts

  • Founded in 1982 as Ai Kei Merchant Co., Ltd.
  • Rare company with mail-order agency for co-ops as main business.
  • One of the major mail-order companies headquartered in Nagoya.
  • Has multiple specialized subsidiaries and is advancing business diversification.
  • Implemented transition to holding company structure in 2022.
  • Deploys many unique PB brands, improving market recognition.
  • Built sales channels integrating catalog mail-order and EC.
  • Continues expansion leveraging regional networks since establishment.
  • Rare structure holding listings on both Nagoya and Tokyo Stock Exchanges.
  • Acquired web shopping business in 2024 to strengthen EC.

Hidden Connections

  • Representative director's asset management company (AM Co., Ltd.) is a major shareholder closely involved in management.
  • Entered corporate communication services market through subsidiary AlphaCom.
  • Strong transaction relationships with co-ops built on long-term trust.
  • Rare case of dual listing on Nagoya Stock Exchange and Tokyo Stock Exchange.
  • Secured high recognition in the Tokai region as a regionally focused mail-order business.
  • Subsidiary Prime Direct has track record in TV shopping.
  • Actively shifting from early catalog channels to digital EC.
  • Characteristic that head office and headquarters are at different addresses.

Future Outlook

Growth Drivers

  • Ongoing transaction expansion in consumer cooperative market.
  • Sales growth through digital shift in EC business.
  • Brand competitiveness enhancement via PB product development.
  • Expansion of health-related products corresponding to aging society.
  • Revenue diversification through expansion of new subsidiary business areas.
  • Improved profit margins through logistics efficiency and cost reduction.
  • Enhanced customer satisfaction via UX improvement in mail-order sales.
  • Expansion of demand for environmentally friendly products.
  • Deepening sales in local and small-scale markets.
  • Promotion of group integrated strategy under holding company system.

Strategic Goals

  • Double mail-order sales to approximately 30 billion yen.
  • Establish structure with EC sales ratio over 50%.
  • Achieve 20 new PB product developments annually.
  • Expand sustainable business activities company-wide.
  • Strengthen partnerships with local communities.
  • Breakthrough 3 billion yen in sales in new business areas.
  • Improve business efficiency by 20% through DX promotion.
  • Establish employee engagement improvement programs.
  • Promote company-wide reduction in environmental impact and set CO2 reduction targets.
  • Continuously enhance corporate brand recognition.

Business Segments

Mail-Order Agency for Consumer Cooperatives

Overview
Primarily agencies sales of diverse products via catalogs and EC for consumer cooperatives.
Competitiveness
Secured unique sales channels through co-op networks
Customers
  • Co-op Members
  • Local Residents
  • Elderly
  • Health-Conscious
  • Child-Rearing Families
Products
  • Food PB Products
  • Household PB Products
  • Health Supplements
  • Cosmetics
  • Clothing

Own EC Site and Web Shopping Business

Overview
In addition to mail-order agency, expanding own EC business and customer base.
Competitiveness
Improved customer convenience through multi-channel integration
Customers
  • General Consumers
  • Health-Conscious
  • Mail-Order Users
  • Younger Generation
  • Women
Products
  • Health Foods
  • Cosmetics
  • Household Goods
  • Clothing
  • Beauty Products

Catalog Production and Product Planning

Overview
Provides total planning and production support essential for mail-order sales.
Competitiveness
Planning expertise and know-how specialized in mail order
Customers
  • Retailers
  • Co-ops
  • Manufacturers
  • Advertising Agencies
Products
  • Catalog Production
  • Product Planning Support
  • Marketing Research

Product Supply for Overseas Clients

Overview
Supports procurement and sales for overseas markets.
Competitiveness
Strengths in international logistics and agency services
Customers
  • Overseas Retailers
  • Exporters
Products
  • PB Food
  • Health Products
  • Household Goods

Mobile Services for Corporations

Overview
Provides corporate communication services through subsidiaries.
Competitiveness
Experience and support system for corporate services
Customers
  • Small and Medium Enterprises
  • Call Centers
  • Sales Agents
Products
  • Mobile Devices
  • Communication Services
  • Support Services

Competitive Advantage

Strengths

  • Strong sales network with consumer cooperatives
  • Diverse PB product development capabilities
  • Operation of both catalog mail-order and EC channels
  • Reliability and capital scale as a listed company
  • Business diversification utilizing subsidiaries
  • Geographical advantage based in Aichi Prefecture
  • Extensive product category lineup
  • Organizational efficiency improvement through transition to holding company structure
  • Stable management base backed by substantial assets
  • Approach to diverse customer segments
  • Trust gained from long-term business continuity
  • Regionally focused sales strategy
  • Establishment of specialized brands
  • Synergy effects with consolidated subsidiaries
  • Solid financial foundation

Competitive Advantages

  • Maintains a solid position in mail-order sales for co-ops
  • Expansion strategy through integration of catalog mail-order and EC
  • Focuses on PB product development to achieve differentiation from competitors
  • Multi-faceted business expansion through a wealth of subsidiaries
  • Transparent information disclosure to investors as a market-listed company
  • One-stop system from logistics and planning to sales
  • Sales expansion leveraging regional networks based in Nagoya
  • Improved organizational efficiency through optimal allocation of management resources
  • Proactive investment attitude in new web shopping business
  • Product lineup covering diverse customer segments
  • Enhanced market recognition through own brands
  • Service system pursuing high customer satisfaction
  • Strengthening business foundation through ongoing M&A
  • Niche market conquest unique to local companies
  • Stable business operations leveraging capital strength

Threats

  • Intensifying competition in the mail-order industry
  • Intensified price competition due to EC market expansion
  • Risk of contraction in consumer cooperative market
  • Decline in consumption due to prolonged economic stagnation
  • Rising logistics costs
  • Difficulty responding to diversifying customer needs
  • Supply chain disruptions due to natural disasters, etc.
  • Business constraints from strengthened regulations
  • Increase in new entrants
  • Competitive disadvantage from delays in digitalization response
  • Exchange rate fluctuation risks
  • Market fluctuations due to pandemics, etc.

Innovations

2022: Completed Transition to Holding Company Structure

Overview
Conducted stock split in conjunction with business reorganization and transitioned to holding company IK Holdings.
Impact
Contributes to business efficiency and group synergy enhancement.

2023: Acquired Web Shopping Business

Overview
Acquired the web shopping business of Flora House Co., Ltd. through Prime Direct Co., Ltd.
Impact
Strengthens EC business and acquires new customers.

2021: Entered Corporate Mobile Business via Subsidiary

Overview
AlphaCom Co., Ltd. absorbed and merged Communication Bridge Co., Ltd., expanding corporate communication services.
Impact
Develops new business areas and diversifies revenue.

2024: UI/UX Renewal of EC Site

Overview
Improved the user interface of own EC site, achieving enhanced customer convenience.
Impact
Contributes to increased EC sales.

2023: Enhanced Health Functionality Development of PB Products

Overview
Began ingredient improvements in health-oriented products and introduction of new supplements.
Impact
Strengthens market competitiveness.

Sustainability

  • Promoting use of environmentally friendly packaging materials
  • Optimizing sales plans to reduce food waste
  • Promoting employee health management and work-style reforms
  • Enhancing collaboration with local communities
  • Introducing energy-saving logistics systems
  • Expanding adoption of eco office supplies
  • Continuously implementing CSR activities
  • Developing products using sustainable materials