Jade Group

Basic Information

Stock Code
3558
Industry
Retail
Category Detail
Internet Site Operations
Prefecture
Tokyo
Establishment Year
October 2010
Listing Year
March 2017
Official Website
https://jade-group.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
ZOZO, Hamee, Market Enterprise, Golf Digest Online, BEEnos, iSTYLE, Enigmo, Cave, Edia, Mercari, Rakuten Group, C Channel, GROWM HD

Overview

Jade Group operates LOCONDO.jp, an e-commerce site for shoes and apparel founded in 2010, and is a leading company in the retail industry with strengths in customer convenience in the EC domain.

Current Situation

Jade Group achieved consolidated sales of approximately 19.2 billion yen and operating profit of approximately 1.5 billion yen in the fiscal year ending February 2025. Its core mail-order business has expanded its customer base around a free return try-on service, demonstrating uniqueness in the highly competitive EC industry. Since 2018, aggressive investments in advertising and promotion led to temporary losses, but it has now succeeded in improving operating profit. In recent years, it has strengthened its business structure through subsidiary acquisitions and absorptions/mergers, and is advancing logistics differentiation such as first-class delivery and payment after try-on. Specific disclosures on environmental considerations and sustainability are limited, but it aims for sustainable growth centered on enhancing customer satisfaction. In 2023, it changed its name to Jade Group, focusing on further business development and brand strengthening. On the other hand, intense competition in the EC market and diversifying customer needs present risks to the business.

Trivia

Interesting Facts

  • One of the pioneers of mail-order sites offering free returns and try-on options
  • Renovated "LOCONDO Tokyo" flagship store in Harajuku, Tokyo
  • Handles apparel and sports goods in addition to shoes
  • Holds exclusive domestic distribution rights for women's fashion brand MANGO
  • Actress Nana Katase works as an employee
  • Founded in 2010 and listed on Tokyo Stock Exchange Mothers in just 7 years
  • Gained attention by featuring Dewi Sukarno in advertisements
  • Pursues customer convenience with multiple logistics services
  • Acquired Mobacolle subsidiary in 2019 to expand product categories
  • Strengthened group integration through name change

Hidden Connections

  • Strengthens collaboration with overseas brands through MANGO's exclusive Japan distribution rights
  • Vertical integration of supply chain through subsidiary acquisitions and mergers for efficiency
  • Enhances corporate recognition as sponsor of TV music programs
  • Achieves high-quality delivery by adopting Yamato Transport for logistics
  • Features prominent shareholders including global investment trusts and Norway Government Pension Fund
  • Potential collaborations with multiple startups in Shibuya, Tokyo
  • Receiving attention from apparel specialty sites and industry media
  • Strengthens engagement with younger demographics through official SNS accounts

Future Outlook

Growth Drivers

  • Further expansion of EC market and demand for convenience improvements
  • Enhanced customer loyalty through free return try-on service
  • Strengthened purchasing experience via faster and more diverse logistics
  • Expansion of exclusive distribution and collaborations with major domestic and international brands
  • Business diversification and sales channel expansion through subsidiaries
  • New customer acquisition via strengthened digital marketing
  • Promotion of efficient management through AI and IT technology adoption
  • Expansion of eco-friendly products and strengthened sustainability efforts

Strategic Goals

  • Achieve top 5 share in domestic EC market
  • Balance improvement in return service quality with reduction in environmental impact
  • Sales growth through new businesses and brand line expansions
  • 50% improvement in delivery efficiency through logistics optimization
  • Maintain customer satisfaction above 80% via digital technology utilization
  • Active promotion of sustainability-related initiatives
  • Deepening of multi-channel sales strategy and consideration of overseas expansion
  • Organizational strengthening through talent development and work-style reforms

Business Segments

Online Platform Provision

Overview
Provision and support of EC platforms centered on the mail-order site "LOCONDO.jp"
Competitiveness
Differentiation from competitors via the convenience of free returns after try-on service
Customers
  • Brand Manufacturers
  • Retailers
  • Logistics Providers
  • Advertising Agencies
Products
  • Mail-Order Site Operation Service
  • Marketing Support Tools
  • Data Analysis Service
  • Logistics Management System

Logistics and Delivery Services

Overview
Provides diverse delivery options and high-quality logistics services
Competitiveness
Same-day shipping from orders and delivery time designation services
Customers
  • Mail-Order Customers
  • Online Sales Businesses
Products
  • Express Delivery
  • Standard Delivery
  • First-Class Delivery
  • Payment After Try-On Delivery

Subsidiary Businesses

Overview
Expansion of manufacturing and wholesale businesses through subsidiaries
Competitiveness
Sales expansion through linkage with directly operated EC
Customers
  • Women's Shoe Industry
  • Apparel Manufacturers
  • Wholesalers
Products
  • Women's Shoe Manufacturing
  • Apparel Products
  • Promotion Support

Advertising and Promotion Support

Overview
Strategic advertising deployment to enhance brand awareness and acquire customers
Competitiveness
Advertising campaigns featuring celebrities
Customers
  • Own Company
  • Brand Partners
Products
  • Digital Advertising
  • CM Production
  • SNS Marketing

Competitive Advantage

Strengths

  • Enhanced customer satisfaction through free returns and try-on service
  • Provision of flexible delivery options
  • Brand recognition and strength in the EC market
  • Business diversification utilizing subsidiaries
  • Advanced marketing strategies
  • Strong customer base and high repeat rate
  • Aggressive investment in advertising and promotion
  • Rapid product shipping system
  • Information dissemination strength based in Tokyo
  • Industry experience and track record of management team

Competitive Advantages

  • Differentiation through unique services including payment after try-on
  • Integration of online and offline sales channels
  • Logistics services specialized in customer convenience
  • Adoption of exclusively distributed MANGO brand
  • Product lineup adapted to diverse consumer segments
  • Proven rapid increase in membership in the EC market
  • Business scale expansion through subsidiary acquisitions
  • Flexible inventory management and returns handling
  • CM campaigns contributing to brand awareness
  • Utilization of multi-channel sales network

Threats

  • Risk of customer churn due to intensifying EC market competition
  • Impact of logistics delays or cost increases
  • Challenges in responding to changing consumption trends in the fashion industry
  • Price competition pressure from emerging brands and major EC platforms
  • Risk of profit compression from increased advertising expenses
  • Decline in profit margins due to rising return rates
  • Risk of supply chain instability
  • Increased operational costs from stricter regulations
  • Need for rapid response to changes in consumer purchasing behavior
  • Logistics disruptions from weather or natural disasters

Innovations

2023: Expansion of Locondo Try-On After-Payment Service

Overview
Introduced and expanded post-try-on purchase decision payment settlement service.
Impact
Contributes to improved customer convenience and increased repeat rate

2022: Launch of First-Class Delivery

Overview
Launched time-specified delivery service from 6 a.m. to midnight to improve customer satisfaction.
Impact
Significant improvement in delivery convenience and customer satisfaction

2021: Business Expansion through Subsidiary Absorption and Merger

Overview
Absorbed and merged Misuzu Shoji, a women's shoe wholesaler, to strengthen product lineup and distribution channels.
Impact
Improved management efficiency through integration from manufacturing to sales

2020: Development of Proprietary Logistics System

Overview
Built an optimized in-house logistics system to enhance shipping speed and customer response.
Impact
Succeeded in faster delivery and cost reduction

2024: AI Customer Analysis Implementation Plan

Overview
Plans to introduce AI tools for customer behavior analysis to enhance marketing precision.
Impact
Aims to improve customer targeting and sales efficiency

Sustainability

  • Exploring reduction of environmental impact associated with free return service
  • Considering introduction of reusable packaging materials
  • Promoting energy-saving measures at regional bases
  • Expanding handling of sustainable brands
  • Social contributions through work-style reforms for staff