Stream

Basic Information

Stock Code
3071
Industry
Retail
Category Detail
Internet Site Operations
Prefecture
Tokyo
Establishment Year
July 1999
Listing Year
February 2007
Official Website
https://www.stream-jp.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Shinto HD, Palemo HD, ZOZO, Hamee, Market Enterprise, BEENOS, Jade Group, iSTYLE, Enigmo, Mercari, Rakuten Group, C Channel, Asian S

Overview

Stream is a retail company founded in 1999 with its headquarters in Minato-ku, Tokyo, specializing in internet mail-order sales as its main business. It has a strong sales foundation in the home appliance sector centered on the EC Current brand and is characterized by a solid franchise relationship with Yamada Denki.

Current Situation

As of 2022, Stream has consolidated sales exceeding 22.4 billion yen and maintains a modest profit in operating income. Its mainstay EC Current specializes in home appliance mail-order sales, boasting a robust supply chain where nearly 95% of products are sourced from Yamada Denki. In addition to internet shopping, it is expanding its customer base through diverse sales channels. In recent years, while benefiting from integration effects with Yamada Holdings, it is focusing on business expansion and profit improvement. The management team has overcome scandals from the 2010s and aims for highly transparent governance. To respond to intensifying competition in the online retail market, it is working on optimizing logistics efficiency and strengthening product lineups. Furthermore, it is pursuing revenue diversification through strategic investments in non-home appliance sectors such as new brand hotel operations. With sustainable management in mind, it is also promoting regional social contributions and customer satisfaction improvements.

Trivia

Interesting Facts

  • Founder Liu Haitao is Chinese-origin and started business with PC sales to China
  • EC Current is a franchise store of Best Denki and Yamada Denki
  • Relies on Yamada Denki for about 95% of procurement, maintaining stable supply
  • Overcame 2016 management scandal through management renewal and is recovering
  • Headquarters located in Shiba, Minato-ku, Tokyo, with excellent access
  • Specializes in internet mail-order with no physical stores retail model
  • Subsidiary X-One is a former Daiei Group company
  • Engages not only in home appliances but also new brand hotel management
  • Annual sales approximately 22.4 billion yen consolidated, positioned as mid-tier online retailer
  • President Tetsuya Yuda appointed since 2019, focusing on management stabilization
  • Management trends covered in Nikkei News and multiple media
  • Competitors include major online firms like Rakuten, Mercari, ZOZO
  • One of the growing companies attracting attention in mail-order sales
  • Succeeds in gaining customer trust despite being online-only
  • Stabilizes revenue through diversified product offerings

Hidden Connections

  • Enables low-cost procurement through collaboration with Best Denki and Yamada Denki
  • Roots in PC sales to China, with business foundation in Asia
  • Founder and Hong Kong-related parties linked to stock manipulation incident by stock manipulators
  • Subsidiary X-One, former Daiei Group, shares retail expertise
  • Achieved business alliance with Tokyu Group in new brand hotel business
  • Nikkei company report designates it as a key stock in internet mail-order sector
  • Deploys strategy linking EC sales strengths with IT solutions business
  • Headquarters located in Sumitomo Realty Building in Shiba, Minato-ku, leveraging surrounding industrial networks

Future Outlook

Growth Drivers

  • Sustained growth in EC mail-order market
  • Superiority through strengthened collaboration with Yamada Denki
  • Expansion of IoT and smart appliance markets
  • Advancement of logistics efficiency and AI utilization
  • Full-scale growth of new brand hotel business
  • Expansion of corporate wholesale business
  • Increased repeat rates through improved customer experience
  • Rising market demand for environmentally friendly products
  • Expanded utilization of diverse sales channels
  • Customer acquisition in overseas markets, especially Asia

Strategic Goals

  • Achieve top-tier profitability in mail-order business
  • Diversification strategy to reduce procurement dependency below 80%
  • 30% increase in proprietary brand appliance sales
  • Set environmental load reduction targets with 50% CO2 emission cut
  • 50% business efficiency improvement through IT and AI utilization
  • Expand non-home appliance businesses to 20%+ of sales in diversified operations
  • Maintain customer satisfaction above 90%
  • Strengthen co-creation projects with local communities
  • Achieve over 15% sales ratio from overseas markets
  • Further strengthening of governance systems

Business Segments

Corporate Home Appliance Wholesale

Overview
Engages in wholesale sales of diverse business and commercial home appliances to corporate customers.
Competitiveness
Strong transaction network with Yamada Denki
Customers
  • Appliance Retailers
  • Retail Chains
  • Hotel Operators
  • Corporate Offices
  • Public Organizations
  • Educational Institutions
  • Medical Institutions
  • Leasing Companies
  • Logistics Centers
  • Event Companies
Products
  • Business Televisions
  • Business Refrigerators
  • Commercial Air Conditioners
  • Office PCs
  • Network Equipment
  • Surveillance Cameras
  • Home Security Devices
  • IoT Devices
  • Digital Signage
  • Charging Stations

Supply Chain Management

Overview
Provides services specialized in efficient logistics operations and inventory management.
Competitiveness
Optimization through advanced logistics technology
Customers
  • Logistics Companies
  • Product Delivery Services
  • Retail Logistics Departments
  • EC Operators
  • Manufacturers
Products
  • Inventory Management Systems
  • Product Collection and Delivery Services
  • Delivery Tracking
  • Warehouse Operation Support
  • Returns Management Services

IT Solutions Provision

Overview
Plans and provides IT systems for mail-order and store operations.
Competitiveness
Industry-specific IT expertise
Customers
  • Small and Medium Enterprises
  • Retailers
  • Franchise Stores
  • Mail-Order Operators
Products
  • EC Site Development Services
  • Payment Processing Systems
  • Customer Management Systems
  • Mobile App Development
  • Data Analysis Services

Marketing Support

Overview
Supports various marketing initiatives for customer acquisition.
Competitiveness
Strong advertising strategies in the EC mail-order market
Customers
  • Retail Companies
  • Brand Owners
  • Advertising Agencies
  • EC Operators
Products
  • Digital Advertising Campaigns
  • Market Research
  • SNS Promotions
  • User Experience Optimization
  • Creative Production Support

After-Sales Service and Support

Overview
Offers various support services to improve post-purchase satisfaction.
Competitiveness
Rapid response capability and collaboration with Yamada Denki
Customers
  • End Users
  • Retail Stores
  • Sales Partners
  • Corporate Customers
Products
  • Product Warranty Services
  • Repair Reception Centers
  • Technical Support
  • Replacement Parts Supply
  • Customer Service Call Centers

Competitive Advantage

Strengths

  • Strong procurement and sales relationship with Yamada Denki
  • Mail-order expertise specialized in EC sales
  • Handling of diverse home appliance products
  • Stable financial base with consolidated sales over 22 billion yen
  • Conveniently located headquarters in Minato-ku, Tokyo
  • Diversified business including corporate wholesale
  • High repeat customer rate from existing base
  • High brand recognition and customer trust
  • Business complementation by subsidiary X-One
  • Governance strengthening by experienced management
  • Direct sales via self-operated EC sites
  • Diversification of services and IT solutions
  • Logistics efficiency improvement initiatives
  • Stable customer base and franchise membership
  • Sales strength from extensive product lineup

Competitive Advantages

  • Achieves low prices through high-volume procurement from Yamada Denki
  • Customer acquisition power from EC mail-order market expertise
  • Specialized home appliance assortment and rapid supply system
  • Expands sales channels via internet without physical stores
  • Stronger franchise network than competitors
  • Revenue diversification through diverse products to corporate customers
  • Supports mail-order business with IT-related services
  • Integrated operations of logistics and customer support
  • Investor confidence recovery through improved management transparency
  • Competitive edge in new brand hotel business entry
  • Growth investments backed by stable finances
  • Credit based on track record of regional collaborations
  • Service expansion through collaboration with consolidated subsidiaries
  • Convenience from integrated provision of diverse product categories
  • Rapid market response capability by management

Threats

  • Intense price competition in online retail
  • High dependence on Yamada Denki for procurement
  • Maturing home appliance market and stagnating demand
  • Increased competitive pressure from new entrants
  • Rising logistics costs and delivery delay risks
  • Consumption decline due to economic fluctuations
  • System adaptation burden from IT technology evolution
  • Business impacts from regulatory changes
  • Changes in consumer behavior post-COVID-19
  • Risks from changes in franchise contract terms
  • Cybersecurity threats
  • Image damage from past management scandals

Innovations

2022: Launch of New Brand Hotel Business 'STREAM'

Overview
Collaborated with Tokyu to launch a new brand hotel, promoting diversified business expansion.
Impact
Contributes to revenue source diversification

2021: Advancement of Logistics System Automation

Overview
Significantly improved product shipping efficiency by introducing in-warehouse automation robots.
Impact
30% reduction in shipping time, decreased human errors

2023: EC Site UI/UX Renewal

Overview
Completely refreshed site design and functions to improve user convenience.
Impact
Increased site visits and purchase rates

2024: Introduction of AI Customer Purchase Prediction Analysis

Overview
Implemented AI technology to optimize inventory and improve customer needs prediction accuracy.
Impact
Improved inventory turnover and sales growth

2023: Adoption of Sustainable Packaging Materials

Overview
Adopted low-environmental-impact packaging materials to enhance sustainability.
Impact
Contributes to improved environmental awareness

2022: Expansion of Multilingual Services

Overview
Strengthened EC services and inquiries for inbound foreign tourists.
Impact
Increased overseas customers and market expansion

2024: Development of Smart Home Appliance Integration Functions

Overview
Refreshed IoT integration functions for proprietary brand appliances to improve usability.
Impact
Improved customer satisfaction and new customer acquisition

2021: Introduction of AI Chatbot

Overview
Introduced AI chatbot for customer inquiries to achieve rapid responses.
Impact
50% reduction in response wait times

2020: Promotion of Payment Method Diversification

Overview
Expanded support for electronic money and smartphone payments to improve convenience.
Impact
Contributes to increased purchasers

2023: Introduction of Warehouse Environmental Load Reduction Equipment

Overview
Reduced environmental impact through renewable energy introduction and energy-saving equipment.
Impact
10% reduction in CO2 emissions

Sustainability

  • Active adoption of environmentally friendly packaging materials
  • Introduction of renewable energy equipment
  • CO2 reduction through environmentally efficient logistics
  • Thorough promotion of recycling and waste reduction
  • Support for environmental education in collaboration with local communities
  • Sustainable supply chain management
  • Implementation of employee-participating environmental awareness activities
  • Strengthened handling of energy-saving appliances
  • Promotion of eco-driving during deliveries
  • Efficiency gains through digitalization of business processes
  • Promotion of fair working environments
  • Fostering a corporate culture that respects diversity