Asahi

Basic Information

Stock Code
3333
Industry
Retail Industry
Category Detail
Specialty Stores & Drugstores
Prefecture
Osaka Prefecture
Establishment Year
May 1975
Listing Year
August 2004
Official Website
https://corporate.cb-asahi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Alpen, Golf-Do, Suppin, D Cycle, Cube, Nagailebe, Himalaya, Zebio Holdings

Overview

Asahi is a bicycle specialty store chain established in 1975, operating over 500 stores nationwide in Japan and boasting high profitability as a manufacturing retailer.

Current Situation

Asahi recorded sales of approximately ¥59.8 billion and operating profit of about ¥4 billion in fiscal 2020, making it the largest bicycle specialty store domestically. It operates 500 stores across 45 prefectures nationwide, having built a solid sales foundation as a specialty store chain. Private brand products account for 50% of the total, ensuring price competitiveness and quality through in-house planning and development. The EC business is also strong, enhancing diverse purchasing channels and contributing to revenue stability. It is expanding overseas operations, including in China, to drive growth. Through maintenance services like Cycle Mate, it works to improve customer loyalty. It has built an efficient supply chain through logistics facility improvements. It is advancing a management strategy aimed at ensuring social sustainability through 2050. Moving forward, amid market maturity and population decline, it plans to accelerate its digital shift, with expansion in the sports bicycle and electric bicycle markets as growth drivers.

Trivia

Interesting Facts

  • Known as Japan's largest bicycle specialty chain
  • Own PB products ratio exceeds 50%, industry-leading level
  • Early adopter of combining online sales with in-store pickup
  • Rare company with former pro road racer in management
  • Rare retailer that grew profits even after Lehman Shock
  • Differentiation through diverse bicycle-related services
  • Efficient with two logistics centers in east and west
  • Offers wide range from competition to commuting bicycles
  • Contributed to early普及 of electric assist bicycles
  • Urban store openings to tap city dwellers
  • Launched used bike buyback at Rohas Cycle specialty stores
  • Exclusive Japan agent for multiple foreign sports bicycle brands
  • Active support for regional sports bicycle events
  • Ongoing bicycle safety education for children
  • Numerous certified bicycle mechanics on staff

Hidden Connections

  • Former name was 'Asahi Toys,' but no capital ties to Asahi Toy manufacturer
  • Business dealings with 'Asahi Cycle' in Sakai, Osaka, but no capital relationship
  • President Yoshifumi Shimoda is from a family of former pro racers
  • Became industry leader through online and physical store fusion strategy
  • Urban stores debuted famously in Kitahorie, Osaka City
  • Holds agency rights for numerous overseas famous sports bicycle brands
  • Long-term support for specific pro cycling teams
  • Bicycle safety instruction at local events deeply rooted in community

Future Outlook

Growth Drivers

  • Expansion of electric assist bicycle market
  • Increasing mobility needs of elderly
  • Further growth in online sales
  • Expansion of sports bicycle hobby market
  • Rising bicycle demand from environmental awareness
  • Logistics efficiency and store network expansion
  • Strengthening private brand differentiation
  • Customer retention through community-focused services
  • Acceleration of digital technology utilization
  • Enhanced overseas market expansion

Strategic Goals

  • Achieve private brand ratio over 60%
  • EC sales to account for over 40% of total sales
  • Maintain and expand to over 550 stores nationwide
  • Achieve carbon neutrality for reduced environmental impact
  • Strengthen ties with regional communities
  • Expand share in high-value sports bicycle segment
  • Cost optimization through domestic logistics efficiency
  • Nationwide rollout of bicycle safety education
  • Complete digital marketing system
  • Achieve over ¥3 billion in overseas bicycle market sales

Business Segments

Product Supply Business

Overview
Stable supply of a wide range of bicycle products to retailers.
Competitiveness
Rapid supply system via in-house planning and large-scale logistics network
Customers
  • Other bicycle specialty stores
  • Sports goods stores
  • Retail chains
  • Wholesalers
Products
  • Standard bicycles
  • Electric assist bicycles
  • Sports bikes
  • Bicycle parts and accessories

Logistics Services Business

Overview
Efficient shipping and delivery using logistics centers in Mie and Saitama.
Competitiveness
In-house logistics network covering nationwide
Customers
  • EC operators
  • Retail stores
  • Wholesalers
Products
  • Product management
  • Delivery services
  • Inventory optimization

Maintenance and Repair Services

Overview
Maintenance business for safety assurance and customer satisfaction.
Competitiveness
High-convenience maintenance system with nationwide stores
Customers
  • General consumers
  • Retail stores
  • Corporate customers
Products
  • Bicycle maintenance
  • Repair services
  • Regular inspections

EC Business

Overview
Operates one of Japan's largest bicycle specialty online stores.
Competitiveness
Convenience enhanced by in-store pickup service
Customers
  • Individual consumers
  • Corporate customers
Products
  • Bicycle mail-order service
  • Parts mail-order
  • Ancillary service sales

Competitive Advantage

Strengths

  • Japan's largest bicycle specialty store chain
  • Strength in private brand planning and development
  • Integration of diverse sales channels and EC
  • Comprehensive maintenance services
  • Efficient in-house logistics network
  • High customer loyalty
  • Extensive nationwide store network
  • Experienced management team and founding history
  • Implementation of community-focused services
  • Rapid product supply capability
  • Brand strength in sports bicycles
  • Synergy between online sales and in-store pickup
  • Stable capital structure and financial base
  • Integrated management from product planning to manufacturing
  • Product assortment tailored to regional needs

Competitive Advantages

  • Industry-leading PB product ratio ensuring price superiority
  • Differentiated by EC system with store pickup
  • Rapid delivery and inventory management via logistics centers
  • Service network from over 500 nationwide specialty stores
  • Broadening customer base through multifaceted sales channels
  • Customer retention via abundant maintenance services
  • In-house brand product planning and quality control
  • Competitive edge as domestic agent for sports bicycles
  • Diversified assortment to match regional needs
  • High employee expertise and customer service skills
  • Sustainable growth strategy and community contributions
  • Nationwide expansion model difficult for competitors to enter
  • Success in acquiring new customers through digital enhancements
  • Stable management backed by sound finances
  • Market diversification through multi-brand rollout

Threats

  • Domestic market shrinkage due to population decline
  • Intensifying competition from new entrants
  • Risk of rising raw material prices
  • Entry of EC giants and other industries
  • Sales fluctuations due to poor weather
  • Delayed response to electric bicycle technological innovations
  • Cost increases from stricter regulations
  • Declining bicycle demand from social trend shifts
  • Intensifying overseas market competition
  • Rising logistics costs
  • Risk of store operation halts from natural disasters
  • Demands for strengthened internal controls and governance

Innovations

2024: Smart bicycle-linked app development

Overview
Developed an app for managing bicycle riding data and maintenance notifications.
Impact
Improved customer satisfaction and repeat rate

2023: EC in-store pickup service enhancement

Overview
Expanded high-convenience system for picking up EC-purchased bicycles at nearby stores.
Impact
Enhanced fusion effect of sales channels

2022: Expansion of in-house PB product manufacturing

Overview
Integrated from planning and development to manufacturing to strengthen quality control.
Impact
Improved production efficiency and product competitiveness

2021: Opening of large sports bicycle specialty floors

Overview
Newly established dedicated sports bicycle sales areas in major stores.
Impact
Succeeded in promoting high-end sports bicycle sales

2020: Advancement of logistics center IT integration

Overview
Introduced automation systems for logistics operations to improve shipping speed.
Impact
Achieved rapid product supply to stores

Sustainability

  • Promotion of low-environmental-impact store designs
  • Activities to promote recycling of discarded bicycles
  • CO2 reduction through普及 of electric assist bicycles
  • Employee environmental awareness education programs
  • Promotion of long-term use via Cycle Mate
  • Participation in regional events with eco-cycles
  • Online coupon distribution to reduce paper materials
  • Energy-saving LED lighting in stores
  • In-store unwanted bicycle collection service
  • Introduction of hybrid delivery vehicles
  • In-house development of environmentally friendly parts
  • Advocacy activities for improving regional traffic environments