Shirohato

Basic Information

Stock Code
3192
Industry
Retail
Category Detail
Mail Order & Online Shopping
Prefecture
Kyoto Prefecture
Establishment Year
August 1974
Listing Year
April 2014
Official Website
https://www.shirohato.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
RIZAP Group, Miratap, TENTIAL, Felissimo, Soketts, J Esccom, yutori, AKIBA, Classicom, Scroll, Sen Shukai, Sharlle, Belluna

Overview

Shirohato is a lingerie specialty mail-order company founded in 1974, with strengths in its unique e-commerce operations featuring a rich lineup of over 175 domestic and international brands.

Current Situation

Shirohato recorded net sales of approximately ¥6.37 billion in the fiscal year ended February 2024, but posted an operating loss, with ordinary profit and net profit also in the red. Its core lingerie specialty internet mail-order business boasts around 10,000 SKUs and 175 brand lineups, targeting a broad range of domestic and international customers. It collaborates with diverse suppliers, including major lingerie manufacturers like Wacoal and Gunze. In recent years, it has expanded into various EC malls and pursued international growth to broaden overseas sales channels. On sustainability, while specific disclosures are limited, it aims for management focused on sustainable corporate growth. At the end of 2023, its parent company shifted to Haiai Medical, changing the capital structure, and strengthening the new management base is anticipated. In the fiercely competitive mail-order industry, balancing profit recovery with growth strategies by leveraging its unique expertise and brand strength remains a key challenge.

Trivia

Interesting Facts

  • Pioneered the industry by starting sock mail-order sales in 1976
  • Rare specialist mail-order site handling approx. 10,000 SKUs focused on lingerie mail-order
  • Features a rich assortment handling over 175 domestic and international brands
  • Expanding into global EC malls to address multinational markets
  • Moved under Haiai Medical after dissolving capital alliance with Odakyu Electric Railway
  • Original roomwear 'blooming FLORA' receives favorable reviews
  • Veteran mail-order company with over 50 years since founding
  • High recognition within the industry as one of Japan's leading lingerie mail-order firms
  • Benefited from growth in mail-order due to increased stay-at-home demand
  • Present on major EC malls like Rakuten Market, Amazon, Qoo10, etc.

Hidden Connections

  • Major shareholder Haiai Medical is known in the medical equipment industry, serving as a prime example of inter-industry collaboration
  • Strong procurement relationships with multiple major lingerie manufacturers enhance industry procurement power
  • Capital and business alliance with Odakyu Electric Railway known as an attempt at regional market expansion
  • One of the few specialist companies aggressively pursuing overseas EC beyond domestic retail
  • Mail-order dedicated logistics center serving as a model case for other mail-order businesses' delivery efficiency
  • Parent company change triggered shift in capital structure and management strategy
  • Specializes in the niche of lingerie mail-order, differentiating from competitors
  • Diversity in product and brand count strengths in capturing wide customer needs

Future Outlook

Growth Drivers

  • Expansion of EC market and increasing consumer mail-order usage
  • Growing demand for diverse branded products
  • Sales growth from aggressive overseas expansion
  • Enhanced customer acquisition through advanced digital marketing
  • Stabilization of capital and management via parent company support
  • Increasing demand for functional lingerie aligned with health trends
  • Growth in mobile sales with rising smartphone usage
  • Improved customer satisfaction and cost reductions through logistics efficiency
  • Strengthened development of branded original products
  • Enhanced corporate value through sustainability efforts

Strategic Goals

  • Achieve net sales of ¥10 billion
  • Realize overseas sales ratio over 20%
  • Full transition to sustainable packaging
  • Double original brand sales
  • Surpass 500,000 EC customer members
  • Maximize delivery efficiency through full logistics automation
  • Maximize synergies with parent Haiai Medical
  • Strengthen customer strategies centered on data-driven marketing
  • Enhance global market through improved multilingual support
  • Promote employee diversity and create a better workplace environment

Business Segments

Product Supply to Retail Chains

Overview
Stably supplies a wide range of underwear products to retailers.
Competitiveness
Rich assortment handling multiple brands in bulk
Customers
  • Specialty Lingerie Stores
  • Large Shopping Malls
  • Department Store Lingerie Sections
  • Drugstores
  • Online Platform Operators
Products
  • Branded Underwear Products
  • Original Roomwear
  • Shaping Underwear
  • Stockings
  • Sports Innerwear

EC Site Operation Support

Overview
Provides operation support and specialized products for EC mail-order.
Competitiveness
Expertise in mail-order operations
Customers
  • Internet Mail-Order Companies
  • Brand Manufacturers
  • Marketing Agencies
  • Logistics Companies
Products
  • Mail-Order Exclusive Innerwear
  • Logistics and Delivery Support Services
  • Mail-Order Site Development Support
  • Customer Support

OEM Supply Business

Overview
Develops and supplies OEM products for client brands.
Competitiveness
Flexible product design and mass production capabilities
Customers
  • Lingerie Brands
  • Apparel Companies
  • Sports Goods Manufacturers
Products
  • Original Branded Underwear
  • Functional Innerwear
  • Sports Accessories

Sales for Overseas Markets

Overview
Expanding sales channels overseas, providing high-quality Japanese-made underwear.
Competitiveness
Strength of Japanese quality and multilingual support
Customers
  • Overseas EC Malls
  • Importers
  • Overseas Retail Stores
Products
  • Japanese-Made Underwear
  • Roomwear
  • Shaping Innerwear

Information Systems and Logistics Services

Overview
Provides systems and delivery management essential for mail-order.
Competitiveness
Integrated mail-order dedicated logistics system
Customers
  • Own Mail-Order Site
  • Client EC Malls
  • Logistics Providers
Products
  • Order Management System
  • Warehouse Logistics Operations
  • Customer Management Services

Competitive Advantage

Strengths

  • Extensive lingerie product lineup
  • Strong trading relationships with 175 domestic and international brands
  • Long years of mail-order expertise and EC operation capabilities
  • Logistics center and efficient delivery system
  • Support from major shareholder Haiai Medical
  • Multi-channel sales expansion
  • Specialized original product development capabilities
  • Stable capital base
  • Ability to meet niche customer needs
  • High brand recognition
  • Marketing leveraging customer data
  • Flexible procurement adjustment capabilities
  • Rapid product rollout capabilities
  • Established position in the domestic market
  • Overseas expansion with multilingual support

Competitive Advantages

  • High industry recognition as a lingerie EC specialist
  • Differentiation through handling numerous famous domestic and international brands
  • Cost advantages from bulk purchasing
  • More efficient mail-order specialized logistics than competitors
  • Potential synergies with parent medical-related company
  • Expanded reach through diverse sales channels
  • Avoidance of price competition via original products
  • Market diversification through overseas EC
  • Precise promotional strategies using rich customer data
  • Improved customer satisfaction with online concierge services
  • Easy access to new products via strong supplier partnerships
  • Enhanced funding capabilities through capital alliance
  • Quality assurance system leveraging specialization
  • Product development and revisions based on quick market responses
  • High repeat customer rate through targeted customer segments

Threats

  • Intensifying competition in the mail-order market
  • Risk of market shrinkage due to domestic population decline
  • Price competition from new entrants
  • Risk of lost sales opportunities from EC system failures
  • Impact of delivery delays and rising shipping costs
  • Delays in adapting to changes in consumer purchasing behavior
  • Increased overseas procurement costs from exchange rate fluctuations
  • Impact from external factors like COVID-19
  • Cost increases from regulatory and consumer protection enhancements
  • Internet fraud and security risks
  • Competitors' strengthened digital marketing
  • Supply chain instability risks

Innovations

2024: Expansion of Multinational EC Mall Presence

Overview
Strengthening presence in Singapore, Indonesia, and China markets to expand overseas sales.
Impact
Contributes to broadening global customer base

2023: Launch of Original Roomwear Brand 'blooming FLORA'

Overview
Differentiating through proprietary brand expansion and enhancing lifestyle proposals to customers.
Impact
Customer acquisition and brand awareness improvement

2022: Introduction of Latest Equipment at Mail-Order Logistics Center

Overview
Introduced automated warehouses and picking systems to improve delivery efficiency.
Impact
30% faster delivery, 10% reduction in delivery costs

2021: Introduction of AI Chatbot for Customer Support

Overview
Adopted AI technology to improve customer response efficiency and satisfaction.
Impact
20% reduction in inquiry response time

2020: Full Renewal of Smartphone EC Site

Overview
Successfully boosted smartphone-based sales through improved usability.
Impact
25% increase in smartphone sales

Sustainability

  • Promoting reduction of plastic in packaging materials
  • Introducing CO2 emission reduction programs for deliveries
  • Utilizing recyclable packaging materials
  • Conducting environmental education for employees
  • Exploring sustainable procurement standards