Recomm

Basic Information

Stock Code
3323
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
September 1994
Listing Year
May 2004
Official Website
https://www.recomm.co.jp/
TSE Information
TSE Information
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Yahoo! Finance
Other Companies
KTK, Hyper, Daiva Bo Holdings, Startia Holdings, Hokunichi Boseki, No.1, Avix, Canon Marketing Japan, Forval, Daian

Overview

Recomm is a specialist telecommunications equipment wholesaler established in 1994 with its head office in Shibuya-ku, Tokyo. It centers on the sale of branded products from NTT and others, providing a variety of ICT-related services.

Current Situation

Recomm achieved consolidated sales of approximately 4.4 billion yen in 2016 and is a mid-sized wholesaler centered on telecommunications equipment sales and maintenance. It primarily sells NTT branded products and related equipment to small and medium-sized enterprises, strengthening its agency functions. It once engaged in terminal development and manufacturing but withdrew from manufacturing operations in 2009, now focusing on supply chain optimization and service provision. In 2015, it prioritized customer response to an IP phone unauthorized access incident to restore trust. Through its group company Opus, it handles a wide range of information and communications equipment, securing stable agency income. In recent years, it has been investing in IoT and enhanced remote management functions, while expanding corporate BPO services. It operates from multiple bases including Shibuya-ku and Shinjuku-ku in Tokyo, aiming to strengthen competitiveness through solution proposals tailored to industry needs going forward.

Trivia

Interesting Facts

  • The name is a coined term from 'Real Communication'
  • Introduced a pure holding company structure in 2008, integrated in 2013
  • Once entered PHS terminal manufacturing but withdrew in 2009
  • Recorded special losses for customer response to IP phone unauthorized access incident
  • Acquired Opus as a subsidiary, also possessing product manufacturing functions
  • Main bases in Shibuya-ku and Shinjuku-ku, Tokyo
  • Paid-in capital exceeds 1 billion yen, mid-sized capital structure
  • Established a strong position in NTT product wholesaling
  • Focused on supporting SMEs in the communications industry
  • Continuously expanding business centered in Tokyo since founding

Hidden Connections

  • Integrates manufacturing and sales within the group through Opus
  • Serves as a major agent for NTT Group products
  • Strengthened collaboration with related communications carriers in response to 2015 IP phone incident
  • Actively participates in communications industry community in Shibuya-ku, Tokyo
  • Expanding into Asian markets utilizing overseas subsidiaries
  • Hideaki Ito, one of the major shareholders, serves as President and CEO
  • Owns related companies in BPO and consulting
  • Strong influence on SMEs through diverse sales channels

Future Outlook

Growth Drivers

  • Increased demand for telecommunications equipment due to DX promotion among SMEs
  • Network equipment renewal accompanying 5G rollout
  • Expansion and sophistication needs in IP phone market
  • Stable revenue from leasing business expansion
  • Diversification of BPO services
  • ICT introduction support projects for local governments
  • Growing demand for environmentally compatible products
  • Expansion in overseas markets, especially Asia

Strategic Goals

  • Telecommunications equipment wholesaling sales exceeding 5 billion yen
  • Top 10 ranking in corporate IT leasing business
  • Nationwide expansion of BPO and outsourcing business
  • Achieve 60% ratio of sustainable environmentally compatible products handled
  • Strengthen development of IoT/remote management compatible products
  • Expand overseas business sales ratio to 20%
  • Strengthen support for digital transformation
  • Maintain top-tier industry customer satisfaction
  • Advanced security measures
  • Improve ESG transparency and information disclosure

Business Segments

Telecommunications Equipment Wholesaling

Overview
Wholesale sales and maintenance services for telecommunications equipment, mainly targeting SMEs.
Competitiveness
Strong agency network for NTT products
Customers
  • Small and medium-sized enterprises
  • Agents for major telecom carriers
  • Sales agents
  • IT-related companies
Products
  • IP phones
  • Fiber optic routers
  • Network equipment
  • Business phones
  • Maintenance services

IT Equipment Leasing Services

Overview
Supports ICT adoption through digital product leasing.
Competitiveness
Specialized in flexible leasing contracts and SME support
Customers
  • Small and medium-sized enterprises
  • Educational institutions
  • Local governments
Products
  • OA equipment leasing
  • Digital multifunction devices
  • Network setup support

BPO and Outsourcing

Overview
Provides business support services in collaboration with group companies.
Competitiveness
Integration with telecommunications equipment sales network
Customers
  • Information and communications industry
  • Manufacturing industry
  • Service industry
Products
  • Business process outsourcing
  • Customer management support
  • IT support services

Global Telecommunications Equipment Sales

Overview
Supplies telecommunications equipment to the Asian region through overseas subsidiaries.
Competitiveness
Close collaboration with local corporations
Customers
  • Overseas corporations
  • Telecom carriers
  • Local agents
Products
  • Telecommunications equipment
  • Installation and maintenance services

Competitive Advantage

Strengths

  • Strong position as a sales agent for NTT branded products
  • Services specialized for small and medium-sized enterprises
  • Comprehensive capabilities leveraging group companies' manufacturing and BPO functions
  • Sales operations from multiple bases in Tokyo and customer touchpoints
  • Stable base of agency income
  • Flexible proposal capabilities in IT leasing
  • Long track record in telecommunications equipment sales
  • Rapid maintenance service system
  • Multi-channel sales utilizing specialty stores and e-commerce
  • Customization capabilities responsive to customer needs

Competitive Advantages

  • Preferential handling rights for NTT product wholesaling
  • Diverse product lineup addressing IT needs of SMEs
  • Product development through strengthened collaboration with group companies like Opus
  • Ability to provide integrated solutions including leasing
  • Robust sales network centered in the Tokyo metropolitan area
  • Strong technical support for IP phone-related products
  • Rapid market response and customer follow-up capabilities
  • Value creation through BPO service expansion
  • Expertise and knowledge in communications industry standards

Threats

  • Intensifying competition in the telecommunications equipment market leading to price pressure
  • Risk of shrinking agency market due to direct sales strengthening by major manufacturers
  • Decline in trust due to increasing information security risks
  • Image damage from past scandals such as IP phone incidents
  • External supply chain risks (e.g., parts supply delays)
  • Product obsolescence due to rapid evolution of communications technology
  • High sensitivity to economic conditions in the SME market
  • Increased operational burden from strengthened regulations

Innovations

2023: Enhanced remote management for IP phones

Overview
Advanced remote maintenance functions for IP business phones to improve security.
Impact
20% increase in customer support efficiency

2022: Expansion of digital product leasing program

Overview
Introduced flexible IT leasing plans for SMEs to expand market share.
Impact
15% increase in contracts

2021: Strengthened BPO services

Overview
Expanded outsourcing services for customer management and communications maintenance.
Impact
Annual sales increase of 400 million yen

2020: Enhanced collaboration products with Opus

Overview
Promoted expansion of OA peripheral equipment lineup manufactured by group company.
Impact
Improved customer satisfaction, 10% sales increase

Sustainability

  • Strengthened handling of resource-recyclable telecommunications equipment
  • Increased procurement ratio of environmentally friendly products
  • Promotion of energy-saving equipment
  • Promotion of paperless operations within the company
  • Thorough environmental education for employees