Applied

Basic Information

Stock Code
3020
Industry
Retail
Category Detail
Consumer Electronics Retailers
Prefecture
Fukuoka Prefecture
Establishment Year
September 1982
Listing Year
February 2006
Official Website
https://www.applied-g.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
ZOA, AppBank, SHINKO, AIE G

Overview

Applied was established in 1982 and, based in Fukuoka, is a regionally focused retail company primarily engaged in selling personal computers and PC peripherals.

Current Situation

Applied operates 25 stores mainly in Fukuoka Prefecture as well as the Chugoku, Shikoku, and Kyushu regions, recording consolidated sales of approximately ¥30.2 billion in the fiscal year ending March 2017. As a PC retailer, it has built a strong customer base in the region, focusing on sales of private brand PC peripherals and original PCs. It also manages its subsidiary Comroad to diversify its PC sales business. Employing 323 people on a standalone basis and 376 on a consolidated basis, it maintains stable management as a mid-sized company. It has introduced initiatives such as the 'Pre-Olympics' new employee sales contest and the 'One-Day President' system to boost employee morale. Moving forward, it aims to establish itself as a specialist in IT peripherals, expand regionally focused services, grow EC and direct sales, and promote business with sustainability in mind. It is actively pursuing differentiation strategies using private brand products and developing new sales channels.

Trivia

Interesting Facts

  • Uniquely holds the new employee sales contest 'Pre-Olympics'
  • Introduced the 'One-Day President' system to experience being president for a day
  • One of the few local PC shops that once had a store in Akihabara
  • Deploys private brands 'fpiedi', 'MONO', and 'Abare Uma'
  • Rare retailer that also publishes IT explanatory books
  • Promotes customer retention through regionally focused PC trade-in services
  • High recognition as a Fukuoka-based PC specialty retailer
  • Expanded scale by acquiring Brother Industries' PC sales business
  • Unique internal new employee encouragement system highly evaluated in the industry
  • Focusing on regionally rooted IT solutions
  • Group also operates town information magazine business, unique management structure
  • Shop name consistently 'Applied', promoting brand unification
  • Strength in diverse product assortment despite being a small local store
  • Comprehensive PC sales services for both B2B and B2C
  • Employee count approx. 323 as of 2017, mid-sized company

Hidden Connections

  • President and Chairman Okihiro Oka is a veteran industry executive with extensive knowledge.
  • Subsidiary Comroad inherited Brother Industries-affiliated PC sales business rights.
  • Also manages local Fukuoka magazine 'City Information Fukuoka' in the group.
  • Close ties with local IT companies and educational institutions through transactions.
  • Pre-Olympics mechanism greatly contributes to improving employee sales skills.
  • Proprietary private brand products are key to price competitiveness.
  • Maintains customer satisfaction through regionally focused after-sales service.
  • Conducts numerous region-limited campaigns to promote purchases.

Future Outlook

Growth Drivers

  • Profit expansion through strengthened private brands
  • Further growth in EC sales and direct sales channel expansion
  • Expansion of corporate IT solutions business
  • Increased customer satisfaction through improved regional services
  • Market share growth from rising used PC demand
  • Synergy creation with IT education and book businesses
  • Increased handling of cloud services and smart devices
  • Enhanced environmental measures for sustainable management
  • Strengthened sales agent support and partnerships
  • Improved human resource competitiveness through new employee training
  • Enhanced brand power through stronger regional community ties
  • Stabilized revenue base through diversification strategy

Strategic Goals

  • Achieve sales over ¥40 billion
  • Expand private brand market share
  • Raise EC and direct sales ratio to over 30%
  • Double corporate services sales
  • Achieve 100% store energy-saving for reduced environmental impact
  • Improve social evaluation through regional contributions
  • Gain leading position in used equipment refurbishment industry
  • Establish workplace with over 90% employee satisfaction
  • Nationwide rollout of IT education support programs
  • Promote business efficiency through digital technology adoption

Business Segments

Corporate Sales

Overview
Provides sales and maintenance services for PCs and peripherals to corporate customers.
Competitiveness
Comprehensive support system with regional focus
Customers
  • Small and medium enterprises
  • IT-related companies
  • Educational institutions
  • Government offices
  • Medical institutions
Products
  • Business PCs
  • Network equipment
  • Software licenses
  • Maintenance services
  • Peripherals sets

Sales Agent Support

Overview
Expands market by supplying products and sales support to sales agents.
Competitiveness
Extensive product lineup and quick response capabilities
Customers
  • Local small PC shops
  • PC sales agents
Products
  • Sales promotion support
  • Product procurement agency
  • Information provision services

IT Equipment Leasing

Overview
Promotes equipment introduction through leasing and provides IT environment setup services.
Competitiveness
Flexible leasing terms and quick response
Customers
  • Companies in general
  • Educational institutions
  • Government offices
Products
  • PC leasing
  • Peripherals leasing
  • Software packages

Repair and Support Services

Overview
Specializes in PC repairs and troubleshooting for corporations.
Competitiveness
On-site response capabilities and high technical expertise
Customers
  • Corporate customers
  • Educational institutions
  • Local governments
Products
  • On-site repairs
  • Remote support
  • Maintenance contracts

Software Development Support

Overview
Supports software introduction to improve operational efficiency in related businesses.
Competitiveness
Industry-specific customization
Customers
  • Small IT businesses
  • PC sales agents
Products
  • POS systems
  • Sales management software
  • Business support tools

Distribution Management Solutions

Overview
Provides distribution management systems to promote efficient store operations.
Competitiveness
Practicality tailored to on-site needs
Customers
  • Retailers
  • Logistics companies
Products
  • Inventory management systems
  • Sales channel analysis

Educational Materials and Support Services

Overview
Provides ICT materials and training support for educational institutions.
Competitiveness
Proven know-how in educational settings
Customers
  • Schools
  • Vocational schools
  • Training institutions
Products
  • PC material sets
  • IT training programs
  • Remote class support

Event and Exhibition Support

Overview
Supports ICT environment setup for regional exhibitions and events.
Competitiveness
Quick response leveraging regional characteristics
Customers
  • Local groups
  • Small and medium enterprises
Products
  • Exhibition PC sets
  • Meeting system provision

Website Development Support

Overview
Specializes in website construction and operation support.
Competitiveness
User-friendly system even for beginners
Customers
  • Small businesses
  • Sole proprietors
Products
  • Simple web creation tools
  • Operation support

Cloud Services Provision

Overview
Provides data management services in cloud environments.
Competitiveness
Affordable and easy-to-adopt plans
Customers
  • Small and medium enterprises
  • Educational institutions
Products
  • Cloud storage
  • Online backup

PC-Related Training and Seminars

Overview
Conducts practical PC training from beginner to intermediate levels.
Competitiveness
Trusted instructors with regional ties
Customers
  • Individual customers
  • Corporate training
Products
  • Basic operation courses
  • Business software training

Used Equipment Sales and Refurbishment

Overview
Refurbishes and provides used PCs at affordable prices.
Competitiveness
Reliable refurbishment technology
Customers
  • Individual customers
  • Small and medium enterprises
Products
  • Refurbished PCs
  • Leased used equipment sales

Competitive Advantage

Strengths

  • Regionally focused store network
  • Diverse private brand lineup
  • Talent development through new employee incentive programs
  • Wide selection of PC-related products
  • Comprehensive after-sales service
  • Sales expansion using EC and direct sales
  • Stable capital structure
  • Strong group company collaboration
  • Robust repair and support system
  • High trust from regional customers
  • Original product development capabilities
  • Quick market response
  • Enhanced sales agent support
  • Corporate solution provision
  • IT education support know-how

Competitive Advantages

  • Strong store network centered in Fukuoka covering Chugoku, Shikoku, and Kyushu
  • Unique Pre-Olympics system providing opportunities to new employees
  • Price competitiveness secured through private brands
  • Product portfolio addressing wide needs from corporate to individual
  • Quick customer response and support due to regional focus
  • Stable revenue base through diversified business
  • Sales channel expansion through subsidiary collaboration
  • Entry into IT software and education sectors
  • Active participation in used PC market
  • Differentiation through original PC development
  • Sales strategy balancing cost competitiveness and added value
  • Marketing methods leveraging regional characteristics
  • Integrated operation of diverse sales channels
  • Market expansion through enhanced corporate solutions
  • Effective investment and development of human resources

Threats

  • Intensifying competition with major national chains
  • Risk of store decline due to expanding online market share
  • Delays in responding to rapid technological changes in IT equipment
  • Decrease in store visitors due to COVID-19
  • Declining profit margins from fierce price competition
  • Cost increases for imported products due to exchange rate fluctuations
  • Impact from expansion of online sales in used equipment market
  • Challenges in talent acquisition and rising turnover
  • Risk of fluctuating consumer demand for IT products
  • Supply delays from supply chain disruptions
  • Competitive pressure from new entrants
  • Cost increases due to stricter environmental regulations

Innovations

2023: EC Site Functionality Enhancement

Overview
Improved convenience and expanded smartphone compatibility of own mail-order site.
Impact
Mail-order sales increased by approx. 20%, successfully acquiring new customers

2024: Launch of Smart Home-Related Products

Overview
Expanded handling of IoT devices to diversify product lineup.
Impact
Customer base expansion and sales growth through new category entry

2021: Pre-Olympics System Enhancement

Overview
Expanded the system to improve new employee training and motivation.
Impact
Contributed to improved employee retention and sales performance

2022: Private Brand Product Renewal

Overview
Reviewed product lineup and launched new brands.
Impact
Improved brand recognition in the market and sales contribution

2020: Improvement in Used PC Refurbishment Technology

Overview
Strengthened proprietary inspection system and established quality assurance.
Impact
Gained trust in used market and increased repeat customers

Sustainability

  • Promotion of energy-saving in stores
  • Strengthened waste recycling
  • Expansion of environmentally friendly products
  • Employee environmental education
  • Participation in local cleanup activities
  • Promotion of paperless operations
  • Adoption of resource-saving packaging
  • Publication of CSR reports
  • Customer environmental awareness activities
  • Promotion of sustainable procurement
  • Creating a comfortable workplace
  • Tree-planting activities at regional events