Hiraki

Basic Information

Stock Code
3059
Industry
Retail
Category Detail
Mail Order & Online Shopping
Prefecture
Hyogo Prefecture
Establishment Year
April 1978
Listing Year
November 2006
Official Website
https://company.hiraki.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yoji Katsudo Ken, Palemo HD, RIZAP Group, Miratap, TENTIAL, Felissimo, Fujix, yutori, Classicom, Scroll, Sen Shūkai, Sharle, Belluna

Overview

Hiraki is a mail-order centered retail company founded in 1978 and based in Hyogo Prefecture. Centering on low-priced shoes, it develops a variety of private brand products and maintains market competitiveness through its unique cost reduction strategies.

Current Situation

In the fiscal year ended March 2024, Hiraki recorded consolidated sales of approximately 13.3 billion yen but posted an operating loss of 46 million yen, a slight deterioration. In addition to its mainstay mail-order business, it continues to expand physical stores, particularly operating specialty shoe stores and discount general stores to broaden its customer base. By planning products in-house and producing them in partner factories in remote areas of China, it has succeeded in maintaining quality while keeping prices low. The 180-yen sneakers launched in 2001 were a massive hit in the industry, enhancing brand power. In recent years, it has focused on strengthening its e-commerce business and expanding suburban family-oriented stores. Since 2022, it has launched Candy Halls to diversify its stores. Competitors include mail-order and retail companies such as Belluna and Scroll. To differentiate, it is improving logistics efficiency and enriching private brands. Going forward, it aims for stable growth based on continued low-price strategies and broad product offerings, with maintaining cost competitiveness in the industry being key to growth.

Trivia

Interesting Facts

  • 180-yen sneakers were a massive hit with unprecedented pricing in the industry.
  • Significant labor cost reductions by locating production bases in remote China.
  • Founder originally expanded from shoe parts manufacturing.
  • Implements efficient inventory management with unique labor-intensive logistics.
  • Candy Hall stocks about 600 candy items in a specialty section.
  • Achieves broad customer base by balancing mail order and physical stores.
  • Number of employees in FY2024/3: 575 (including temporaries).
  • Known in the industry for price-disruptive product development.
  • Maintains integrated in-house system from manufacturing to sales.
  • Strengthening IT systems alongside EC business expansion.

Hidden Connections

  • Expanding market area in adjacent regions through support from families with young children.
  • Built a supply chain specialized in manufacturing costs to differentiate from peers.
  • Entering the candy market with shoes to pursue cross-industry expansion.
  • Long-term trusted relationships with remote China partner factories are a strength.
  • Many community-based stores provide a stable local customer base.
  • Strong collaboration between product planning and production due to focus on in-house brands.
  • History since founding builds trust in the local community.
  • Efficient labor-intensive logistics tactics are rare in the industry.

Future Outlook

Growth Drivers

  • Continued growth in mail-order and EC markets
  • Private brand strengthening centered on low-price quality maintenance
  • Family segment expansion via suburban store rollout
  • Revenue stabilization through product diversification
  • Further promotion of logistics system efficiency
  • Labor cost suppression at China manufacturing bases
  • Sales channel optimization via IT utilization
  • Brand trust expansion through strengthened community collaboration
  • Improved needs responsiveness via new product development
  • New business area expansion centered on Candy Halls
  • Sustainability promotion such as green logistics
  • Strengthened response system for diverse customer needs

Strategic Goals

  • Mail-order/EC sales ratio exceeding 70%
  • Private brand sales expansion and quality improvement
  • 20% increase in total sales through store diversification
  • Achieve 50%+ eco-friendly packaging ratio
  • Establish sustainable operations at overseas production bases
  • Strengthen digital marketing framework
  • Improve retention through higher employee satisfaction
  • 10% increase in market share via new customer acquisition
  • 10%+ reduction in logistics costs
  • Rapid market response through shortened product life cycles

Business Segments

Partner Factory Management

Overview
Supports management of factories in China and logistics efficiency, contributing to reduced production costs.
Competitiveness
Unique logistics built through labor-intensive tactics
Customers
  • Remote China Partner Factories
  • Logistics Partners
Products
  • Shoe Production Management
  • Quality Control Support
  • Logistics Efficiency Systems

Store Sales Support

Overview
Provides comprehensive support for store operations and sales promotion.
Competitiveness
Know-how in community-based store expansion
Customers
  • Directly Operated Stores
  • Wholesale Retailers
Products
  • Store Operation Support
  • Product Displays
  • Promotion Planning

IT and Mail-Order Business

Overview
Handles mail-order system operations and customer management, maintaining high customer satisfaction.
Competitiveness
Sales strategies leveraging extensive PB product data
Customers
  • EC Site Operations
  • Mail-Order Customers
Products
  • EC Platform Management
  • Order Management Systems

Product Planning and Development

Overview
Conducts integrated planning and development from product planning to production instructions.
Competitiveness
Know-how in balancing cost reduction and quality maintenance
Customers
  • Marketing Department
  • Manufacturing Team
Products
  • Product Design
  • Market Research
  • New Planning

Competitive Advantage

Strengths

  • Manufacturing system that maintains low prices and quality
  • Cost competitiveness from unique labor-intensive logistics
  • Diverse sales channels of mail order and physical stores
  • Abundant private brands from in-house planning
  • Community-based store expansion strategy
  • Long-standing stable network of partner factories in China
  • Brand recognition for low-priced products
  • Extensive product lineup and rollout capabilities
  • New customer acquisition through EC strengthening
  • Strong relationships with local communities
  • Efficient integration of manufacturing and logistics
  • Diversified product category expansion
  • Robust cost control system
  • In-house integrated system from planning to sales
  • Rapid response capabilities in product development

Competitive Advantages

  • Low-cost manufacturing based in remote China
  • Brand power from 180-yen sneakers that shocked the market
  • Cost reductions via unique labor-intensive logistics specialization
  • Robust sales channels centered on mail order
  • Technological capabilities to maintain quality despite low-price focus
  • Accumulated know-how in private brand product development
  • Customer responsiveness from balanced EC and physical store operations
  • Flexibility to expand customer segments through product diversification
  • Market penetration via stores tailored to regional characteristics
  • Cost structure focused on overseas partner factories rather than domestic outsourcing
  • Scale advantages from annual shoe production exceeding several million pairs
  • Niche market development through innovative sales strategies
  • Responsiveness to customer needs via proactive product expansion
  • Rapid business rollout from integrated manufacturing-retail system
  • Repeat customer acquisition through community-integrated store operations

Threats

  • Impact of rising labor costs in China
  • Intensifying price competition from rivals
  • Risk of stricter regulations in mail-order market
  • Logistics delays from infectious diseases like COVID-19
  • Decline in store revenue due to shift in consumer buying to online
  • Rising import costs from yen depreciation
  • Increase in imitation products of private brand goods
  • Global surge in raw material prices
  • Rising logistics costs and strained transport networks
  • Changes in shoe and apparel consumption due to aging population
  • Increased production costs from stricter environmental regulations
  • Profit pressure from intensifying EC market competition

Innovations

2023: New Candy Hall and Store Renovations

Overview
Introduced candy sections at Iwaoka main store and Himeji store to promote product diversification.
Impact
Contributed to acquiring new customer segments and increasing sales.

2022: EC Strengthening and Mail-Order Expansion

Overview
Focused on improving online convenience and expanding product lineup.
Impact
Achieved stable growth in mail-order sales.

2021: Manufacturing Process Optimization for Cost Reduction

Overview
Introduced labor-intensive logistics efficiency measures at remote China factories.
Impact
Successfully reduced manufacturing costs by 15%.

2020: Strengthened Private Brand Product Development

Overview
Enhanced development system balancing new product planning and low pricing.
Impact
Expanded PB product sales ratio to about 70%.

Sustainability

  • Strengthened labor environment management at overseas factories
  • CO2 emissions reduction through logistics route review
  • Expanded adoption of packaging materials that reduce waste plastic
  • Participation in environmental conservation activities in coordination with local communities
  • Initiated development of products using recycled materials