Komehyo Holdings

Basic Information

Stock Code
2780
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Aichi Prefecture
Establishment Year
May 1979
Listing Year
September 2003
Official Website
https://komehyohds.com/
TSE Information
TSE Information
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Overview

Komehyo Holdings is a major retail company established in 1979, operating one of Japan's largest chains of recycle shops, with its core business centered on the sale and purchase of pre-owned goods such as branded products.

Current Situation

Komehyo Holdings has achieved stable growth with consolidated sales of approximately 158.9 billion yen and operating profit of about 6.1 billion yen. It operates numerous large stores nationwide, with strong brand power centered in urban areas. In recent years, it has optimized its store network in response to fluctuations in inbound consumption while accelerating overseas expansion centered on Southeast Asia. It is also promoting digital initiatives through strengthened authentication of branded goods and operation of the flea market app 'KANTE.' Additionally, it has strengthened its organization through the transition to a holding company structure in 2020 and the acquisition of multiple subsidiaries to diversify its business. On the sustainability front, it advances initiatives contributing to a circular society through reuse, while positioning overseas market expansion and enhancement of high-value-added products as key pillars of its growth strategy.

Trivia

Interesting Facts

  • Founded as a used clothing store in 1947.
  • The company name 'Komehyo' derives from the old store name 'Yonehyo,' with no relation to the U.S. military.
  • Headquartered in Nagoya, Aichi Prefecture, with overwhelming recognition in the Chubu region.
  • Has promoted the catchphrase 'Sell unwanted items to Komehyo!' since the 1970s.
  • Developed and operates Japan's first recycle shop flea market app domestically and internationally.
  • Early entry into Southeast Asia and actively advancing overseas expansion.
  • Authentication services for buying and selling highly rated in the industry.
  • Flea market app introduces buyback guarantee system for unsold items.
  • Affiliates with multiple related companies to meet wide reuse industry needs.
  • Over 70 years of history since founding, known as an established brand.
  • Has featured famous actors and directors in TV commercials.
  • Operates large flagship stores in Osaka, Nagoya, and Tokyo.
  • Pre-owned brand quality control standards are top-level in Japan.
  • Supports Rakuten Super Points to enhance customer convenience.
  • Rare holding company structure in the recycle shop industry.

Hidden Connections

  • Original 'Yonehyo' was the name of a rice shop, beloved regionally as an old store name.
  • Jewelry subsidiary Selby is a key player in Japan's pre-owned brand jewelry market.
  • Flea market app KANTE was the industry's first with authenticity guarantee by Komehyo appraisers.
  • Brand purchase business synergizes with flea market app operations and B2B market.
  • Since 2019, multiple M&As have incorporated tire and IT-related businesses into the group.
  • Overseas subsidiaries established in Hong Kong, Shanghai, and Bangkok, focusing on Asian markets.
  • Changed from 'Yonehyo' to katakana 'Komehyo' to avoid overseas misunderstandings.
  • Contributes to regional economies through entry into local pre-owned luxury markets.

Future Outlook

Growth Drivers

  • Stable expansion of domestic pre-owned luxury brand market
  • Strengthening integration of digital channels and physical stores
  • Expected sales expansion post-inbound demand recovery
  • Growth potential in Asian markets centered on Thailand
  • Increasing reuse demand from expansion of sustainable consumption
  • Customer base expansion from increased flea market app and EC usage
  • High value-added enhancement of authentication and quality control technologies
  • Business diversification through group M&A
  • Efficiency improvements from digitalization of logistics and inventory management
  • Advancement of differentiation strategies in reuse industry

Strategic Goals

  • Maintain top share in sustainable reuse market
  • Achieve over 30% overseas sales ratio
  • Build No.1 trusted brand for pre-owned luxury goods
  • Optimize digital and physical sales channels
  • Establish business model contributing to environmental load reduction

Business Segments

Pre-owned Luxury Brand Supply to Retailers

Overview
Stable supply of high-quality pre-owned luxury brands to retailers including SMEs.
Competitiveness
Strict authentication and quality control systems
Customers
  • Recycle shops
  • Department store pre-owned sections
  • Online pre-owned sellers
  • Pawnshops
  • Flea market app operators
Products
  • Brand bags
  • Watches
  • Jewelry
  • Fashion accessories

Brand Authentication & Appraisal Services

Overview
Gains customer trust through high-precision brand appraisal technology.
Competitiveness
Years of experience and specialized appraisal know-how
Customers
  • Flea market app operators
  • Online auction companies
  • Pawnshops
  • Brand specialty stores
  • Pre-owned wholesalers
Products
  • Authentication by appraisers
  • Brand consulting
  • Market value assessment
  • Appraisal skills training

Auction Operations & Brokerage

Overview
Operates diverse brand auctions targeting domestic and international markets.
Competitiveness
Large customer base and reliable trading environment
Customers
  • Pre-owned brand sellers
  • Collectors
  • Reuse shops
  • Corporate customers
  • Overseas buyers
Products
  • Brand goods auctions
  • Watch auctions
  • Jewelry auctions
  • Online auction platform

Tire & Wheel Business

Overview
Provides sales of automotive tires and wheels along with related services.
Competitiveness
Japan's largest pre-owned car goods sales network
Customers
  • Car dealerships
  • Repair shops
  • Car accessory stores
  • Individual customers
  • Logistics companies
Products
  • New car tires
  • Pre-owned tires & wheels
  • Tire replacement & maintenance services
  • Vehicle custom parts

IT Solutions & Logistics Support

Overview
Provides industry-specific IT and logistics services to support business efficiency.
Competitiveness
Optimal solutions based on industry experience
Customers
  • Reuse shops
  • E-commerce companies
  • Distribution companies
  • Logistics providers
  • Retail companies
Products
  • Inventory management systems
  • AI-supported authentication
  • Logistics optimization services
  • Digital platform development

Reuse-Related Education & Training

Overview
Promotes skill enhancement and knowledge education for reuse shop staff.
Competitiveness
Practical curriculum and abundant instructors
Customers
  • Recycle shop employees
  • Appraisers
  • Retail company managers
  • Industry associations
  • Educational institutions
Products
  • Brand appraisal training
  • Customer service training
  • Store operations seminars
  • Sustainability education

Competitive Advantage

Strengths

  • Japan's largest scale in pre-owned luxury brand purchase and sales
  • Advanced authentication technology and training of specialized appraisers
  • Numerous large stores in major cities nationwide
  • Diversified B2B services and online expansion
  • Marketing strength contributing to brand value enhancement
  • Strong customer base and high repeat rate
  • Efficiency in group management through holding company structure
  • Active overseas market expansion and local subsidiary establishment
  • Full-fledged flea market app operations opening new channels
  • Stable financial base and continuous profit growth

Competitive Advantages

  • Exclusive market hold on high expertise and reliability in authentication
  • Regional closeness as a long-established brand originating from the Chubu region
  • Enhanced customer convenience through integration of physical stores and digital sales
  • Corresponds to wide customer needs by handling diverse product categories
  • Advanced group-wide logistics and inventory management systems
  • Early entry into growing overseas markets achieving brand recognition expansion
  • Realizes reliable secure transactions through brand authenticity guarantees
  • Maximizes trading efficiency by linking flea market app and store purchases
  • Expanding business scope through collaboration with diverse affiliates
  • Accumulated management know-how based on long market track record

Threats

  • Emergence of rival companies in pre-owned market and price competition
  • Risk of performance instability due to inbound consumption fluctuations
  • Counterfeit brand goods circulation requiring risk management
  • Changes in consumer behavior due to COVID-19 pandemic impact
  • Decline in physical store sales from expansion of online pre-owned trading
  • Long-term risk of shrinking consumption market from domestic population decline
  • Currency fluctuations and local regulations from overseas expansion
  • Increased costs for pre-owned goods management and sales from stricter regulations
  • Profit margin pressure from fluctuating purchase prices
  • Decline in competitiveness if unable to keep up with digital technology advances

Innovations

2020: Transition to Holding Company Structure

Overview
Transferred brand and fashion business to Komehyo Co., Ltd. and adopted holding company structure.
Impact
Achieved efficiency in group management and strengthened strategic business development.

2022: Subsidiary Formation of Pre-owned Jewelry Business

Overview
Acquired Selby Co., Ltd. to strengthen pre-owned jewelry sales and purchase business.
Impact
Contributes to market share expansion in jewelry category.

2024: EC Strengthening and Subsidiary M&A

Overview
Acquired RECLO Co., Ltd. for pre-owned brand EC and RKE Enterprise as subsidiary to enhance online sales capabilities.
Impact
Increases sales in digital channels and expands customer base.

2024: Subsidiary Formation of Rs-JAPAN for Pre-owned Brand Wholesale

Overview
Made company centered on wholesale of pre-owned brands a subsidiary to diversify distribution channels.
Impact
Improves distribution efficiency and expands sales channels.

2021: Launch of Flea Market App 'KANTE'

Overview
Released brand-specialized flea market app with authentication by appraisers.
Impact
Creates new sales channels and builds digital customer base.

Sustainability

  • Contribution to circular economy through recycling business
  • Promotion of packaging material review to reduce environmental impact
  • Management policy aiming for sustainable business model realization
  • Provision of safety and security through proper authentication and quality control of pre-owned goods
  • Initiatives for social contribution activities aiming for coexistence with local communities