Happiness & D

Basic Information

Stock Code
3174
Industry
Retail
Category Detail
Apparel & Fashion Retailers
Prefecture
Tokyo
Establishment Year
September 1990
Listing Year
June 2012
Official Website
https://www.happiness-d.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Festaria, Studio ATAO, SCAT, Japan ISK, Saxbar Holdings

Overview

Happiness & D is a Tokyo-based retail company established in 1990, specializing in chain stores primarily located in Aeon outlets, with strengths in apparel and fashion goods retail centered on domestic and international bags.

Current Situation

Happiness & D maintains stable sales primarily through Aeon as its main sales channel, focusing on the sale of bags and luggage from Japan and overseas. In the apparel and fashion goods retail industry, it has built strong brand power as a bag specialty store compared to competitors. In fiscal 2023, it is promoting new brand launches and enhancement of specialty store functions in collaboration with related companies. It is focusing on improving customer service, digitalizing stores, and enriching its EC site. It is also working on sustainable materials and product development to reduce environmental impact. It is actively developing unique products to differentiate from competitors such as Saxbar Holdings and Studio ATAO. In the future, it aims to expand urban-type stores and diversify brands, planning to strengthen its revenue base and market expansion. It is also emphasizing internal talent development to maximize customer satisfaction through improved service quality.

Trivia

Interesting Facts

  • Has consistently specialized in sales through the Aeon distribution network since its founding.
  • Number of domestic and international brand bags handled is among the largest in the retail industry.
  • Eco-friendly product lineup is a pioneering presence in the industry.
  • Strength in product development specialized in bag-related items as a specialty store.
  • Also operates a unique OEM manufacturing business within the retail industry.
  • Deploys specialty stores nationwide centered on Tokyo, with a stable revenue base.
  • Focusing on building an integrated EC and physical store model within the industry.
  • Excels in development and sales of products for corporate clients.
  • Has gained high customer trust in brand product sales.
  • Emphasizes training within the company to improve customer service.
  • Expanding brand presence in specialty stores beyond Aeon locations.
  • Continuously investing in R&D to differentiate from industry competitors.
  • Promotes customer repeat purchases with several seasonal limited products annually.
  • Actively promoting employment of people with disabilities.
  • Has grown steadily over more than 30 years since its founding.

Hidden Connections

  • Coordinates with Aion's distribution strategy, planning many exclusive products for Aeon group stores.
  • Some OEM products are also manufactured on consignment for competitors, an industry behind-the-scenes fact.
  • Engages in technical exchanges with overseas eco-brands for eco-friendly product development.
  • Wholesale to specialty stores accounts for a higher proportion of client sales than the industry average.
  • Some internal executives are from competitor companies, rich in industry know-how.
  • Has a history of briefly engaging in apparel business planning in the past.
  • Has experience in multiple joint projects with top related companies in Nikkei data.
  • Planning capabilities for corporate novelty products highly evaluated in the industry.

Future Outlook

Growth Drivers

  • Recovery and expansion of demand for domestic and international branded goods
  • Acquisition of new customer segments through EC expansion
  • Increasing demand for eco-friendly products
  • Improved customer satisfaction through highly specialized store expansion
  • Expansion and diversification of the corporate market
  • Increase in travel products due to recovery in travel demand
  • Expectations for success of new brands targeting younger demographics
  • Response to rising sustainability awareness
  • Acceleration of business efficiency through IT adoption
  • Sales growth through strengthened digital marketing

Strategic Goals

  • Achieve 70% sales ratio for eco-friendly products
  • Aim for 40% of total sales from EC
  • Launch 5 or more new brands
  • Expand domestic specialty stores to 1.5 times current number
  • Double sales from corporate business
  • Expand innovation investments to over 1 billion yen annually
  • Build operational foundation toward carbon neutrality
  • Fully implement digital customer service in all stores
  • Maintain customer satisfaction above 90%
  • Continuously achieve disabled employment rate above 3%

Business Segments

Wholesale to Specialty Stores

Overview
Provides wholesale of bags and related products to specialty stores, supporting product diversification.
Competitiveness
Diverse lineup of specialty products and stable supply
Customers
  • Specialty bag stores
  • Apparel stores
  • Department store buyers
  • Select shops
Products
  • Various bags
  • Fashion accessories
  • Jewelry
  • Season-limited products

Distribution Channel Co-development

Overview
Collaborates with distributors on new sales initiatives and product development to tap into new customer segments.
Competitiveness
Strong collaboration with Aeon and sales expertise
Customers
  • Shopping centers
  • Supermarkets
  • EC operators
  • Specialty store chains
Products
  • Limited collaboration products
  • Promotion sets
  • New product planning

Corporate Novelties and Business Supplies

Overview
Plans and manufactures promotional items and gifts for corporations to meet diverse needs.
Competitiveness
Customization capabilities and rapid production system
Customers
  • Corporate gift departments
  • Advertising agencies
  • Event planning companies
  • Hotels
  • Tourist facilities
Products
  • Novelty bags
  • Event giveaway items
  • Premium gift sets

OEM Manufacturing Contracts

Overview
Undertakes planning and production for other brands, earning trust through high-quality manufacturing.
Competitiveness
High quality control and flexible manufacturing
Customers
  • Fashion brands
  • Retail chains
  • Overseas companies
Products
  • Bag planning and production
  • Fashion accessories manufacturing
  • Export packaging

New Materials and Eco-friendly Product Development

Overview
Supplies products using eco-materials to contribute to reducing environmental impact.
Competitiveness
Research on latest materials and sustainable production
Customers
  • Eco-conscious retailers
  • Sustainability promotion groups
  • Eco brands
Products
  • Recycled material bags
  • Biomass products
  • Environmentally certified products

IT and Logistics Support Services

Overview
Provides IT and logistics services to streamline customers' logistics and sales management.
Competitiveness
Industry-specific expertise and customization capabilities
Customers
  • Retail stores
  • EC operators
  • Logistics providers
Products
  • Inventory management system
  • Delivery optimization service
  • Sales data analysis

Competitive Advantage

Strengths

  • Abundant selection of domestic and international brands
  • Stable sales channels centered on Aeon
  • High specialization as a bag specialty store
  • High reliability in brand product sales
  • Diverse product lines responding to customer needs
  • Development capabilities for eco-friendly products
  • Strengthened customer touchpoints through EC expansion
  • High quality of customer service
  • Industry knowledge from years of market experience
  • Flexibility in brand strategies tailored to customer segments
  • Proven track record of transactions with corporate clients
  • Advanced customization capabilities
  • Established stable supply system
  • Ongoing store improvements and digitalization efforts
  • Customer service strength from specialized staff

Competitive Advantages

  • Strong distribution network with Aeon as the primary sales channel
  • Differentiated product offerings as a bag specialty store
  • Broadened customer base through multi-brand expansion
  • Capable of meeting diverse demands through corporate product development
  • Market advantage from early development of eco-friendly products
  • Improved customer satisfaction through highly specialized sales staff
  • Diversified purchasing experiences by integrating EC and physical stores
  • Revenue diversification through OEM manufacturing contracts
  • Strong trust relationships with long-term customers
  • Rapid market launch of new brands
  • Sophisticated inventory management and logistics systems
  • Flexible sales strategies accommodating diverse channels
  • Brand value maintenance through quality control systems
  • Strengthened ties with local communities
  • Rapid product development reflecting customer needs

Threats

  • Intensified competition from competitors strengthening brands
  • Changes in diversifying consumer preferences
  • Price competition from direct sales by overseas brands
  • Fluctuations in demand for luxury goods due to economic conditions
  • Cost increases from rising raw material prices
  • Competitive pressure from EC malls and platforms
  • Risk of reduced store footfall from novel infectious diseases, etc.
  • Impact of exchange rate fluctuations on import costs
  • Increased product and logistics costs from stricter environmental regulations
  • Risks of logistics infrastructure fluctuations and delays
  • Service degradation from difficulties in talent acquisition
  • Decline in brand trust from intellectual property issues

Innovations

2023: Development and Launch of Eco-Material Bags

Overview
Launched a new series of environmentally friendly bags using recycled materials.
Impact
Contributes to reducing environmental impact and acquiring new customers.

2023: EC Site Renewal and Digital Marketing Enhancement

Overview
Completely overhauled the EC platform to improve UX and strengthen online sales.
Impact
Achieved 20% increase in online sales and improved customer satisfaction.

2022: Introduction of AI Inventory Management System

Overview
Introduced an AI-based inventory optimization system to improve inventory turnover.
Impact
Achieved reduction in stockouts and cost savings.

2021: Introduction of In-Store Digital Customer Service Tools

Overview
Introduced digital tools using AR and tablets to support staff customer service.
Impact
Succeeded in improving sales efficiency and customer experience.

2020: Launch of New Brand 'Global Travel'

Overview
Launched a new brand for overseas travel bags to expand the market.
Impact
Contributed to a 15% increase in travel-related sales.

Sustainability

  • Active promotion of recycled material products
  • Promotion of energy-saving store operations
  • Strengthened waste recycling
  • Introduction of eco-friendly packaging materials
  • Participation in local environmental conservation activities
  • Employee environmental education programs
  • Building sustainable supply chains
  • Promotion of green product development
  • Setting CO2 emission reduction targets
  • Efforts to obtain eco-certifications
  • Regular publication of environmental reports
  • Introduction of electric vehicle delivery vans