Shoei Yakuhin

Basic Information

Stock Code
3537
Industry
Wholesale
Category Detail
Textiles, Chemicals & Paper Wholesalers
Prefecture
Osaka Prefecture
Establishment Year
March 1960
Listing Year
March 2016
Official Website
http://www.shoei-yakuhin.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kaneko Shubyo, Kanda Tsushinki, Sanyo Boeki, Tomoe Kogyo, Eblen, Sonocom, Nagase Sangyo, Inabata Sangyo, Meiwa Sangyo, Somar, Soda Nikka, Mitani Sangyo, Nibon Sangyo

Overview

Shoei Yakuhin is an oleochemical specialty trading company headquartered in Osaka and established in 1960, with fatty acids and surfactants as its mainstays, and has established a solid position in the wholesale industry.

Current Situation

Shoei Yakuhin has achieved consolidated sales of approximately 17.7 billion yen, developing three pillar businesses: household detergents, civil engineering materials, and chemicals. It has strengths in oleochemicals and maintains long-term trading relationships with Kao. It is expanding its sales network through bases in Japan and overseas, including entry into Southeast Asia. In 2014, it withdrew from manufacturing operations to focus on trading functions, thereby improving management efficiency. It is also promoting environmental considerations and the use of sustainable materials, while strengthening new consumer-facing sales such as citric acid products. Its financial foundation is solid, securing ordinary profits, with a stable shareholder composition. As a long-term strategy, it is promoting overseas expansion and expansion of the daily goods business. Recently, it has expanded online sales channels and is focusing on utilizing digital marketing.

Trivia

Interesting Facts

  • Has a long history starting as an inorganic chemical wholesaler in 1937
  • Previously handled production of fatty acids and others, but now focuses on trading functions
  • Built a long, strong trading relationship as Kao's major fatty acid supplier
  • Actively engages in consumer daily goods sales such as shoe deodorizer sprays
  • History of establishing joint ventures for export expansion to Southeast Asian countries
  • Acquired ISO14001 certification and engages in environmental management at all bases nationwide
  • Maintains high chemical knowledge even after transferring production business, achieving differentiation
  • Consolidated head office functions in central Osaka for efficient management structure
  • Online sales on Yahoo! Shopping started as early as 1997
  • Founder Tetsuno Yoshikazu led historical business development related to current company name
  • Famous in civil engineering materials field for proprietary underwater adhesive Sho Resin
  • Daily goods business started in 1988 and continues to expand market
  • Achieved nationwide expansion based on Osaka head office over the long term
  • Kao stock assets recorded equivalent to about twice the company's market capitalization
  • Achieving multi-functional expansion with a lean workforce of 74 employees

Hidden Connections

  • High influence in the chemical wholesale industry due to long-term Kao transactions
  • Has affiliates in Southeast Asia and close cooperation with local chemical industries
  • Underwater adhesive Sho Resin once manufactured receives high industry evaluation
  • Active online sales is a digitally advanced initiative despite small scale
  • Strong shareholder ties with founder Tetsuno family continue to influence management
  • Product development advances in close collaboration with local civil engineering and construction businesses
  • Personnel exchanges visible with related companies even among competitors
  • Partnerships with sustainable natural oil and fat suppliers for raw material procurement

Future Outlook

Growth Drivers

  • Expansion of market needs for environmentally considerate products
  • Advanced IoT and digital sales channels
  • Increasing demand overseas, especially in Southeast Asia
  • New product development and expanded sales in lifestyle goods
  • Strong relationships with customers in chemical wholesale
  • Promotion of sustainable raw material utilization
  • Growth in online shopping market
  • Cost reductions through logistics efficiency
  • Public investment trends in civil engineering materials market
  • Expansion of customization services

Strategic Goals

  • Expand overseas sales ratio to over 20%
  • Increase household detergents and daily goods sales to 1.5 times current levels
  • Achieve over 70% ratio of environmentally friendly products
  • Acquire new customers through strengthened digital marketing
  • Complete decarbonization of supply chain
  • 100% recyclable product packaging
  • Further expansion of ISO14001 certification scope
  • Achieve 1 billion yen in sales through online direct sales channels
  • Improve profit margins in civil engineering materials business and acquire new projects
  • Expand social contribution activities through regional collaboration

Business Segments

Chemical Wholesale

Overview
Handles wholesale primarily to a wide range of chemical manufacturers centered on basic chemicals.
Competitiveness
Specialized knowledge in oleochemicals and long-term trading track record
Customers
  • Chemical manufacturers
  • Detergent manufacturers
  • Soap manufacturers
  • Plastic processors
  • Agriculture-related companies
Products
  • Fatty acids
  • Surfactants
  • Fatty acid esters
  • Citric acid
  • Palm oil raw materials

Daily Goods Wholesale

Overview
Engages in wholesale to daily goods manufacturers and retailers for general consumers.
Competitiveness
Product knowledge in surfactants and stable supply
Customers
  • Daily goods manufacturers
  • Retail stores
  • Drugstore chains
  • Household goods retailers
  • Mail-order companies
Products
  • Household detergents
  • Deodorizers
  • Cleaning agents
  • Fabric softeners
  • Consumer chemicals

Civil Engineering and Construction Materials Wholesale

Overview
Fulfills specialty trading company functions centered on reinforcement materials for civil engineering and construction.
Competitiveness
Specialized knowledge in adhesives and repair agents with excellent environmental resistance
Customers
  • Civil engineering contractors
  • Construction materials retailers
  • Public works contractors
  • Housing constructors
  • Repair and renovation contractors
Products
  • Underwater adhesives
  • Concrete repair materials
  • Ground improvement materials
  • Water-resistant reinforcers
  • Construction chemicals

Overseas Business

Overview
Primarily exports and wholesales chemicals and daily goods raw materials to Southeast Asia.
Competitiveness
Sales network rooted in the region and long-term partnerships
Customers
  • Southeast Asian chemical manufacturers
  • Overseas daily goods manufacturers
  • Local wholesalers
  • International trading companies
  • Overseas retailers
Products
  • Fatty acid products
  • Surfactants
  • Daily goods raw materials
  • Civil engineering chemical materials
  • Eco-friendly products

Competitive Advantage

Strengths

  • High technical expertise specialized in oleochemicals
  • Stable revenue base from long-term transactions with Kao
  • Diversified business areas and risk dispersion
  • Broad sales network through domestic and international bases
  • Active expansion of online sales channels
  • Expansion of environmentally friendly products
  • Strengthened trading functions after withdrawal from production facilities
  • Solid financial foundation
  • Efficient management with a small elite team
  • Customer support through diverse chemical knowledge

Competitive Advantages

  • Oleochemical provision capabilities specialized in plant raw materials
  • Solid brand recognition in the domestic wholesale industry
  • Trust relationship based on premium transactions with Kao
  • Specialized adhesive deployment in civil engineering and construction materials
  • Export sales base in Southeast Asia
  • Lineup responding to diverse customer needs
  • Trust in environmental compliance through ISO14001 certification
  • Balance of long-term customer retention and new development
  • Consumer business utilizing online mail order
  • Stability of capital structure and support from major shareholders

Threats

  • Cost pressures from global raw material price fluctuations
  • Emergence of competitors in overseas markets
  • Product improvement costs due to stricter environmental regulations
  • Demand contraction from domestic population decline
  • Loss of sales channel opportunities from delays in digitalization
  • Intensified competition from new entrants
  • Profit and loss impacts from exchange rate fluctuations
  • Impacts from import regulations and trade friction
  • Raw material supply risks from climate change
  • Supply chain disruption risks

Innovations

2021: Expansion of Household Citric Acid Product Line

Overview
Added numerous new products to the household cleaning citric acid series to expand market share.
Impact
Sales increased by approximately 300 million yen, successfully expanded consumer base

2022: Strengthening of Online Sales Channels

Overview
Launched sales of household deodorizer sprays and other daily goods centered on Yahoo! Shopping, strengthening digital marketing support.
Impact
New customer acquisition rate increased 20% year-over-year

2023: Launch of Environmentally Friendly Product Development Project

Overview
Initiated research and development of new surfactant products using sustainable raw materials.
Impact
Targeting 1 billion yen in sales by 2025

2024: Introduction of AI Customer Analysis System

Overview
Implemented AI analysis of sales data for customer trend把握 and optimized product recommendations.
Impact
Sales efficiency improved 20%, enabling effective promotional activities

Sustainability

  • Introduction of ISO14001 environmental management system at all national bases
  • Promotion of expanded use of plant-derived raw materials
  • Resource-saving and recyclable product packaging
  • Introduction of waste reduction programs in mail-order business
  • Ongoing participation in local cleanup and environmental education activities
  • Establishment of green procurement standards and strengthened supplier management
  • Implementation of environmental awareness training for employees
  • Promotion of low-environmental-impact product development
  • Regular publication of environmental reports
  • Ongoing energy efficiency improvement projects