Hotman

Basic Information

Stock Code
3190
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Miyagi Prefecture
Establishment Year
January 1975
Listing Year
March 2014
Official Website
http://www.yg-hotman.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Onoya Kiko, Auto W, Buffalo, Rutsubo, Toami, Ai Group, Fuji Corporation, Autobacs Seven, Yellow Hat

Overview

Hotman is a specialty retail company founded in 1975, based in Sendai City, Miyagi Prefecture, primarily engaged in franchising car supplies stores centered in the Tohoku region, with a strength in studless tire sales.

Current Situation

In 2023, Hotman operates multiple franchise stores including Yellow Hat mainly centered in Miyagi Prefecture, with studless tires serving as the pillar of revenue. It maintains a strong sales network in snowy areas such as Tohoku, Ibaraki, Tochigi, and Nagano, stabilizing performance through a region-focused sales strategy. Financially, with paid-in capital of 1.9 billion yen, net sales of approximately 22.7 billion yen, and a stable operating profit margin, it secures steady profits. In recent years, it has focused on diversifying into franchises beyond car supplies, such as Jiyū Space, Daiso, and Nico Nico Rent-a-Car, advancing business diversification. In the market, it competes with rivals like Yellow Hat and Autobacs Seven while establishing superiority through local, community-oriented services. Moving forward, it aims to elevate its status as a top-class regional car supplies chain by sustaining tire demand in snowy areas and expanding other industry franchises as growth drivers. Management has strengthened governance as a company with a board of auditors, pursuing sustainable growth.

Trivia

Interesting Facts

  • One of the leading car supplies franchisors in the Tohoku region, headquartered in Sendai City.
  • Unmatched strength in the region for studless tire sales specialized for snowy areas.
  • Long-term stable management as a major Yellow Hat franchisee.
  • Successfully diversified through numerous living-related franchises.
  • Founded in 1975 in Kurukawa City, Miyagi Prefecture, deeply rooted in the local economy.
  • Established unique customer support as a regional community-oriented car supplies retailer.
  • Also offers automotive maintenance services beyond franchises.
  • Actively involved in Tohoku reconstruction support after the Great East Japan Earthquake.
  • Shares listed on the Tokyo Stock Exchange Standard Market.
  • Existence of employee stock ownership plan fosters strong employee commitment.
  • Deep capital relationship as a shareholder of Yellow Hat.
  • Seasonal fluctuations in winter car products easily impact performance.
  • Also offers Hotman original products limited to the region.
  • Area around headquarters in Taihaku Ward, Sendai, serves as an important logistics hub.
  • Continuously engages in active social contribution activities for the local community.

Hidden Connections

  • Equity-method affiliate of Yellow Hat, with close capital and business alliance.
  • Collaborates with Bridgestone and Yokohama Tires through shareholder relationships.
  • Contributes to local government economic revitalization through multi-industry franchises.
  • Specializes in regional snowy area demand surge, maintaining strong sales network unmatched by competitors.
  • Employee stock ownership plan holds over 16% of shares, contributing to management stability.
  • Franchise expansion in Nagano and Tochigi Prefectures extends influence to central Kanto.
  • Creates synergies with different industries such as Jiyū Space and Nico Nico Rent-a-Car.
  • No relation whatsoever to the towel manufacturer of the same name, Kabushiki Kaisha Hotman.

Future Outlook

Growth Drivers

  • Continued increase in tire demand for snowy regions
  • Strengthening revenue base through franchise diversification
  • Enhanced sales power utilizing online and physical stores
  • Improved customer loyalty through regional community strategy
  • New customer acquisition via active eco-friendly product rollout
  • Increasing demand for automotive maintenance and repair services
  • Business efficiency through digital technology introduction
  • Sales promotion via improved brand recognition
  • Cost reduction through logistics network optimization
  • Development of new franchise formats

Strategic Goals

  • 20% increase in franchise stores in Tohoku region
  • Expansion of studless tire sales share
  • 40% sales achievement in diversified franchise business
  • 50% online sales ratio achievement by product category
  • 70% handling ratio for eco-friendly products
  • Enhanced brand value through strengthened regional community ties
  • Maintain and strengthen employee stock ownership ratio to 15%
  • Completion of digital transformation for store operations
  • 80% sustainability certification acquisition rate
  • Maintain franchise store customer satisfaction above 90%

Business Segments

Car Supplies Retail Franchise Operations

Overview
Primarily provides management support for car supplies franchises such as Yellow Hat.
Competitiveness
Strong sales network rooted in the Tohoku region
Customers
  • Regional Franchise Stores
  • Car Supplies Retailers
  • Local Dealers
  • Repair Shops
  • Automotive Maintenance Businesses
Products
  • Tire Sales Support
  • Car Accessory Supply
  • Franchise Operation System
  • Marketing Support
  • Logistics Management

Automotive Maintenance & Repair Services

Overview
Provides maintenance and repair services for customer vehicles, supporting regional after-sales services.
Competitiveness
Presence of skilled professional staff
Customers
  • Car Shops
  • Local Workshops
  • Corporate Fleet Managers
  • Logistics Companies
Products
  • Tire Replacement Service
  • Oil Change Service
  • Vehicle Inspection Maintenance
  • Repair Materials Supply

Diversified Franchise Business Operations

Overview
Expands business areas and diversifies revenue base through multi-type store franchises.
Competitiveness
Regional community-oriented franchise operation expertise
Customers
  • Daiso FC Stores
  • TSUTAYA Owners
  • Rent-a-Car Stores
  • Jiyū Space Operators
Products
  • Retail Franchise Management
  • Living-Related Services Operations
  • Customer Attraction Support
  • Business Efficiency System Provision

Wholesale & Logistics Services

Overview
Enhances customer satisfaction through rapid product supply and logistics services.
Competitiveness
Efficient logistics network tailored to the region
Customers
  • Franchise Stores
  • Car Supplies Retailers
  • Repair Shops
Products
  • Car Supplies Wholesale
  • Logistics Delivery Service

Competitive Advantage

Strengths

  • Strong franchise expansion centered in Tohoku
  • Studless tire sales strength specialized for snowy regions
  • Diversified franchise business portfolio
  • Stable regional community-based customer base
  • Sound corporate governance through board of auditors

Competitive Advantages

  • Leverages Yellow Hat's know-how and brand power
  • Builds efficient sales network in Tohoku and Kanto areas
  • Diversifies revenue sources through multi-industry franchises
  • Winter tire sales strategy tailored to regional demand
  • Gains trust through long-term regional community-oriented management

Threats

  • Demand instability due to annual fluctuations in snowfall
  • Intensifying competition in the domestic car supplies market
  • Risk of store sales decline from rapid online sales expansion
  • Decline in consumer sentiment due to economic downturn
  • Cost increases from rising raw material prices

Innovations

2023: Strengthening Digital Marketing

Overview
Utilizes SNS and online ads to appeal to younger demographics.
Impact
Achieved improved store traffic and sales growth.

2022: Launch of Online Reservation Service for Winter Tires

Overview
Enabled online reservations with in-store pickup to enhance convenience.
Impact
Improved customer satisfaction and contributed to sales promotion.

2024: Expansion of Environmentally Friendly Products

Overview
Extensively offers eco-friendly studless tires and other high-environmental performance products.
Impact
Enhanced sustainability evaluation and acquired new customers.

2021: Advancement of Diversified Franchise Strategy

Overview
Expanded store count in living-related fields such as Daiso and Jiyū Space.
Impact
Accelerated diversification of revenue structure.

2020: Promotion of Store Digitalization

Overview
Completed POS system renewal and inventory management system introduction.
Impact
Achieved business efficiency and advanced sales analysis.

Sustainability

  • Promoting switch to energy-saving lighting in stores
  • Advancing waste tire recycling
  • Actively offering environmentally friendly products in franchise stores
  • Employee environmental awareness training
  • Continuous participation in local cleanup activities
  • Establishment of proper disposal system for car supplies waste