No.1

Basic Information

Stock Code
3562
Industry
Wholesale Industry
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
September 1989
Listing Year
March 2017
Official Website
https://www.number-1.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
KTK, Hyper, Daiwa Bo Holdings, Recam, Startia Holdings, Dual T, Media Kobo, Canon Marketing Japan, Forval, Ecosystem

Overview

No.1 is a leading company in OA equipment wholesaling for small and medium-sized enterprises in the building materials, electrical machinery, and metal wholesaling industry, based in Tokyo and established in 1989.

Current Situation

In 2023, No.1 maintained stable performance, focusing on sales of OA equipment and servers primarily to small and medium-sized enterprises. While building materials, electrical machinery, and metal wholesaling are its mainstay, the PC and OA equipment wholesaling business is the core. In a market with many competitors, it excels in detailed customer service and support for local companies. It is expanding its handling of IT-related products, including sales of network equipment and packaged software, to diversify its business. Recently, it has focused on providing solutions to support DX initiatives, while engaging in sustainable management and environmentally conscious business activities. In the medium term, it aims to increase sales in line with growing demand for IT equipment, by improving business process efficiency and strengthening the supply chain. It is also considering shareholder returns while flexibly responding to changes in the external environment.

Trivia

Interesting Facts

  • Over 30 years since establishment, supporting IT infrastructure for small and medium-sized enterprises as a specialized wholesaler.
  • Renowned for its unique detailed customer service amid numerous major competitors.
  • One of the few companies offering combined wholesaling of OA and network equipment.
  • Strengthening regionally focused sales nationwide, centered in Tokyo.
  • Also handles packaged software sales to diversify business.
  • Strengthening web mail order and direct sales, focusing on online sales.
  • Early adopter of ESG-compliant products with high environmental awareness.
  • Frequently featured in Nikkei News for personnel changes.
  • Numerous partnerships and distributor relationships with competitors.
  • Offers network environment maintenance services, featuring total IT support.
  • Niche strategy focused on SMEs despite listing on the First Section of the Tokyo Stock Exchange.
  • Pioneer in early entry into IT consumables recycling business.
  • Flexible logistics for custom orders and small lots from customers.
  • Diverse sales channels actively utilizing specialty stores and EC.
  • Emphasis on technical training and employee education within the industry.

Hidden Connections

  • Business collaboration such as sales channel expansion with related stock Media Kobo.
  • Engages in not only competition but also information exchange and collaboration with numerous competitors.
  • Capital alliances and transaction relationships with groups of interesting IT emerging companies.
  • Participates extensively in IT equipment procurement for government offices centered in Tokyo.
  • Collaborates with green energy companies etc. on ESG-related product supply.
  • Serves as lecturer or sponsor at industry association seminars and study sessions.
  • Connected to multiple overseas IT equipment manufacturers via supply chain.
  • Deep involvement in supporting utilization of IT introduction subsidy programs for SMEs.

Future Outlook

Growth Drivers

  • Demand expansion due to increased IT investment by SMEs
  • Spread of DX-related products and services
  • Market growth of low-environmental-impact products
  • Increasing demand for cloud service implementation support
  • Shortening of IT infrastructure replacement cycles
  • Market boost from government IT support policies
  • Strengthening customer base through regionally focused sales
  • Expansion of online sales channels
  • Increasing demand for packaged software for SMEs
  • Expanding possibilities for indirect expansion into Asian markets
  • Growth of network maintenance services
  • Growth of IT consumables recycling market

Strategic Goals

  • Expand share in SME IT market
  • Achieve 50% sales ratio of environmentally friendly products
  • Expand IT-related services ratio to 40%
  • Complete digitalization of sales channels
  • Build robust supply chain
  • Company-wide rollout of employees' DX skills
  • Achieve annual sales exceeding 20 billion yen
  • Expand social contribution activities and enhance recognition
  • Expand product lineup to meet diverse customer needs
  • Establish sustainable management system through regional collaboration

Business Segments

IT Equipment Wholesaling for SMEs

Overview
Wholesales OA equipment and related software that support IT infrastructure for small and medium-sized enterprises.
Competitiveness
Detailed customer service specialized for SMEs and rapid logistics system
Customers
  • SME owners
  • IT management departments
  • Government offices
  • Educational institutions
  • Medical institutions
  • SIers
  • Engineers
Products
  • OA equipment copiers
  • Printers
  • Facsimiles
  • PC peripherals
  • Servers
  • Network equipment
  • Packaged software

System Solution Provision

Overview
Provides systems and services that contribute to business efficiency for small and medium-sized enterprises.
Competitiveness
IT implementation know-how and collaboration with partner companies
Customers
  • Small and medium-sized enterprises
  • IT vendors
  • Consultants
Products
  • Business packaged software
  • IT implementation support services
  • Network construction support

Accessories and Consumables Wholesaling

Overview
Wholesales consumables and accessories related to OA equipment.
Competitiveness
Wide inventory of products and handling of environmentally friendly products
Customers
  • Mass retailers
  • Specialty stores
  • Repair shops
Products
  • Printer toner
  • Recycled products
  • Copy paper
  • Various cables

Competitive Advantage

Strengths

  • Sales capabilities specialized for small and medium-sized enterprises
  • Rapid delivery and logistics network
  • Proven track record in handling diverse OA equipment
  • Stable customer base
  • Specialized technical support capabilities
  • Environmentally friendly product lineup
  • IT solution offerings
  • Strong relationship building with trading partners
  • Solid financial foundation
  • Experienced sales staff
  • Regionally rooted services
  • Flexible pricing
  • Proposal capabilities for business efficiency
  • Rapid response to market needs
  • Continuous education and employee training system

Competitive Advantages

  • Service specialized for SMEs enables more detailed support than competitors
  • Diverse product range allows one-stop procurement
  • Rapid logistics system achieves shorter delivery times
  • Environmentally conscious product lineup supports customers' ESG initiatives
  • Provides value beyond mere wholesaling through IT implementation support and software sales
  • High repeat rate due to trust with long-term customers
  • Technical support by specialized staff is a strength
  • Flexible pricing maintains price competitiveness
  • Cost reduction through efficient sales and logistics systems
  • Accurately grasps the detailed needs of small and medium-sized enterprises
  • Product portfolio corresponding to diverse industries
  • Flexible business strategy responding to market changes
  • Procurement power leveraging economies of scale
  • Rapid introduction of latest equipment and IT solutions
  • Differentiation through regionally focused sales strategy

Threats

  • Intensifying price competition from major wholesalers
  • Increase in direct online sales of IT products
  • Demand fluctuations due to IT budget cuts in SMEs
  • Risk of product obsolescence due to technological innovation
  • Supply chain disruption risks
  • Increased compliance costs due to stricter environmental regulations
  • Difficulty in securing talent due to labor shortage
  • Demand-supply instability due to COVID-19 and other infectious diseases
  • Rising import costs due to exchange rate fluctuations
  • Market reorganization due to M&A by competitors

Innovations

2023: Launch of DX Support Solutions

Overview
Introduced various IT services to support digital transformation for small and medium-sized enterprises.
Impact
Contributes to improved business efficiency for customers and increased sales

2022: Strengthened Sales of Cloud AWS Services

Overview
Expanded support for cloud infrastructure implementation and handling of AWS-related products.
Impact
Achieved new customer acquisition and sales diversification

2021: Expansion of Environmentally Friendly Product Line

Overview
Strengthened sales of eco-toner, recycled paper, and other environmentally friendly products.
Impact
Supports customers' ESG initiatives and contributes to sales growth

2024: Expansion of Network Maintenance Services for SMEs

Overview
Deployed network construction and maintenance services by specialized technical teams.
Impact
Increased service revenue and improved customer satisfaction

Sustainability

  • Expansion of environmentally friendly OA consumables handling
  • Promotion of in-house energy-saving activities
  • Promotion of recycled products
  • Reduction of environmental impact in supply chain
  • IT equipment disposal recycling program