GMO Pepabo

Basic Information

Stock Code
3633
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
January 2003
Listing Year
December 2008
Official Website
https://pepabo.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kita no Tatsujin, Chinushi, Sakura Internet, GMO GlobalSign Holdings, Terrasky, Change Holdings, Amiya, Board RUA, ServerWorks, ID Holdings, Japan Business Systems, GMO, KSK

Overview

GMO Pepabo is an internet-related services company founded in 2003, a major player in the information and communications industry with strengths in rental servers and EC support services.

Current Situation

GMO Pepabo recorded net sales of approximately ¥8.9 billion and operating profit of approximately ¥700 million in FY2019, with a solid revenue base centered on low-priced, high-function rental servers for individuals. The core hosting business accounts for about 70% of sales and 68% of profits, with the 'LOLIPOP!' brand targeting students and young people serving as the pillar for customer acquisition. In the EC support business, it offers diverse solutions such as 'Color Me Shop' and 'Goope,' strengthening support for net sales for sole proprietors and small and medium-sized enterprises. To diversify its business portfolio, it is growing community businesses like the handmade marketplace 'minne.' It promotes new service development through active internal innovation activities and strengthens its brand by leveraging the credibility of the GMO Internet Group. The market features intense price competition with competitors, making technological innovation and maintaining customer satisfaction key challenges. In 2023, it transitioned to the Tokyo Stock Exchange Standard Market, and going forward, it aims to expand revenues through investments in growth areas and service diversification.

Trivia

Interesting Facts

  • Company name derives from the founder's newspaper delivery experience during student days.
  • Friendly service names like 'LOLIPOP!' and 'JUGEM' decided in casual internal discussions.
  • Holds an annual development camp system from which new services are born.
  • Introduces mascot characters for each service to close the distance with users.
  • Achieved subsidiary status in GMO Internet Group in a short time after founding.
  • Originated in Fukuoka but head office located in Cerulean Tower, Shibuya, Tokyo.
  • Conducts new service planning creation through annual presentation contest.
  • Blog service 'JUGEM' was transferred to another company in 2021.
  • Espouses corporate philosophy 'We can make it more fun.'
  • Activates staff communication via internal SNS 'Tampark.'

Hidden Connections

  • Accelerated growth through capital and management support from GMO Internet Group.
  • Contributes to expansion of local manufacturing market through creator support business.
  • Close market share competition with rival Sakura Internet in server sector.
  • Community business minne is one of Japan's largest handmade marketplaces.
  • Deploys comprehensive net sales support within the group through EC support service linkages.
  • Online payment service 'OsaiPo' links with group payment infrastructure.
  • Numerous new businesses born via internal presentation contests.
  • Unique brand naming contributes to brand recognition and familiarity.

Future Outlook

Growth Drivers

  • Ongoing expansion of demand for low-priced rental servers
  • Further growth and diversification of EC market
  • Needs to strengthen individual creator support
  • Expansion of synergies with GMO Internet Group
  • New service creation and technological innovation
  • Activation of handmade market
  • Acceleration of shift to cloud services
  • Promotion of digital payment service adoption
  • Strengthening online community formation
  • Increasing demand for security measures

Strategic Goals

  • Achieve net sales of ¥15 billion
  • Maintain No.1 share in domestic individual hosting market
  • Enter top 3 in EC support platform industry
  • Promote sustainable work styles and diversity
  • New services annual sales exceed ¥1 billion
  • Adopt low-environmental-impact technologies
  • Deepen service linkages within the group
  • Gradual entry into overseas markets
  • Maintain user satisfaction above 90%
  • Strengthen digital security infrastructure

Business Segments

Rental Server and Cloud Services

Overview
Mainly provides web hosting-related infrastructure, covering a wide range from individuals to companies.
Competitiveness
Rich features in a low-priced, easy-to-use service lineup
Customers
  • Individual Creators
  • Small and Medium Enterprises
  • Web Designers
  • Developers
Products
  • Rental Servers
  • Domain Registration
  • Cloud Storage
  • Payment Services

EC Platform Support

Overview
Deploys a variety of services to support the launch and operation of online sales.
Competitiveness
Easy implementation and superior usability tools
Customers
  • Sole Proprietors
  • Small and Medium EC Operators
  • Store Owners
Products
  • Shopping Cart ASP
  • Subscription Management Service
  • Online Store Construction
  • Goods Printing Orders

Handmade Marketplace Operation

Overview
Operates a dedicated platform for buying and selling handmade works, leading market expansion.
Competitiveness
Activation of user community and reliable trading environment
Customers
  • Creators
  • Individual Buyers
Products
  • Works Sales Platform
  • Payment Agency Service

Competitive Advantage

Strengths

  • Deployment of high-function services at low prices
  • Diverse internet-related business portfolio
  • Integrated support from GMO Internet Group
  • Strong brand recognition and user base
  • Unique internal innovation culture
  • Approachability through abundant service naming
  • Broad対応 to diverse customer segments
  • Utilization of online and offline sales channels
  • Sustainable community building
  • Solid financial foundation

Competitive Advantages

  • Market superiority in services for students and young people
  • Product lineup specialized in individual creator support
  • Customer retention through diverse EC support services
  • Leveraging group credibility and resource sharing
  • Culture oriented toward active new service creation
  • Solid position in handmade marketplace
  • Low-cost, high-quality web hosting provision
  • Implementation of ongoing brand image enhancement measures
  • Nationwide branch network
  • Promotion of creativity through development camps and presentation contests

Threats

  • Intense price competition with peers
  • Need to keep up with the speed of technological innovation
  • Increasing cyber security risks
  • Impact of strengthened internet regulations
  • Rapid diversification and changes in user needs
  • Competition with SNS and other platforms
  • Emergence of new competitors due to low market entry barriers
  • Uncertainty in domestic economy
  • Intensifying competition for technology resources
  • Increasing costs for data privacy regulation compliance

Innovations

2023: Expansion of Sales Channels through YouTube and BASE Collaboration

Overview
Implemented initiatives to expand product sales options by partnering with video platforms.
Impact
Promotes diversification of sales channels and sales growth for EC businesses.

2022: Deepening of Internal Presentation Contest

Overview
Strengthened internal contests aimed at new service development, materializing numerous ideas.
Impact
Improved innovation creation system and expanded service lineup.

2021: Function Improvements for Handmade EC 'minne'

Overview
Implemented site design optimization and payment system renewal to enhance user experience.
Impact
Contributes to promoting sales for creators and improving customer satisfaction.

2020: Scalability Enhancement of Cloud Services

Overview
Renewed infrastructure to speed up hosting services and ensure stable operation.
Impact
Successfully improved customer satisfaction and data processing speed.

Sustainability

  • Maintaining corporate culture through employee creative activity support
  • Active participation in local communities
  • Strengthening information security systems
  • Introduction of environmentally friendly data center equipment
  • Promoting diverse work styles and diversity