Aucnet

Basic Information

Stock Code
3964
Industry
Information and Communications
Category Detail
Automobile Retailers
Prefecture
Tokyo
Establishment Year
March 2008
Listing Year
March 2017
Official Website
https://www.aucnet.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Apple International, Market E, Nexstage, Trust, Bike King & Company, Neo Japan, U.S.S., Up Garage Group, WellBeing Group, IDOM, Kamei, Optimus Group, Key Holdings

Overview

Aucnet is a leading domestic circular market design company founded in 2008 in the information and communications industry, providing diverse online auctions and distribution services centered on used cars.

Current Situation

Aucnet achieved consolidated sales of approximately ¥55.9 billion, ordinary income of ¥7.2 billion, and net income of approximately ¥4.4 billion in the fiscal year ending December 2024, maintaining a stable business foundation. Its main business includes used car TV auctions, as well as diverse online auctions for used motorcycles, flowers, branded goods, and more. Recently, it has fully transitioned to internet real-time auctions, strengthening unique services that integrate logistics and IT technology. It is also focusing on sustainability, with partnerships with Chinese companies and expansion into overseas markets. Since the 2020s, it has diversified through corporate acquisitions into flower markets and branded goods businesses, enhancing competitiveness via cloud-based communications infrastructure and in-house FinTech development. Moving forward, it will prioritize DX initiatives and new BtoB service development as strategic pillars, aiming to improve used car distribution efficiency while expanding overseas. Leveraging its broad customer base, stable growth is expected.

Trivia

Interesting Facts

  • Launched Japan's first used car TV auction in 1985
  • Conducted the world's first satellite communication auction in 1989
  • Historical use of laser discs in used car auctions
  • Unique market company with diverse expansions into used motorcycles, flowers, branded goods, etc.
  • Family-run aspect supported by founder and his son
  • Continuous technological innovation from satellite communications to internet
  • Strength in proprietary development with many in-house systems
  • Developed new insurance products like used EV mileage guarantees
  • Once featured Aki Hoshino as a famous CM character
  • Regional close-up services through area offices expanding to local areas
  • Holds exclusive sales rights for Finnish data erasure software
  • Also handles auctions for used PCs and medical equipment
  • Entered China's flower market through collaboration with Yushima Group
  • Unique history of delisting and relisting on the Tokyo Stock Exchange
  • Comprehensive distribution services company composed of multiple group firms

Hidden Connections

  • Pioneer that created the satellite communication era in Japan's used car distribution network
  • International collaboration in China used car market with Orient Corporation and Itochu Corporation
  • Implemented overseas technology introduction via exclusive sales contract with Finnish IT software company
  • Formed extensive agricultural support network from Hokkaido to Kyushu through flower distribution business
  • Revolutionized the industry by introducing academic auction theory into used car appraisal system development
  • Achieved differentiation through diversification of used car distribution services linked to finance and warranties
  • Advocates circular market design by integrating diverse used goods circulation
  • Business foundation strengthened by management integration of parent IDS and former Aucnet

Future Outlook

Growth Drivers

  • Increased demand for warranty services with expansion of used EV market
  • Improved distribution efficiency and customer experience through DX promotion
  • Acceleration of online conversion in domestic and international used car markets
  • Diversified expansion in B2B auction fields
  • Synergy creation through group company collaboration
  • Competitiveness enhancement utilizing technological innovations like AI appraisals
  • Growth in used automobile distribution in emerging markets
  • Promotion of circular economy due to rising sustainability needs
  • Improved speed of response through in-house IT and FinTech services
  • Cost reductions via cloud technology introduction and operations

Strategic Goals

  • Maintain top domestic share in used car distribution platforms
  • Achieve over 20% sales ratio from overseas markets
  • Establish circular market model that reduces environmental impact
  • Achieve over ¥10 billion in sales from new B2B services
  • Secure industry-leading position through digitalization and DX
  • Realize management evaluation based on sustainability metrics
  • Integrated expansion in diverse used goods circulation areas
  • Scale up IT development team and strengthen technological capabilities
  • Enhance customer satisfaction and brand power
  • Sustain stable profit growth rate of over 5%

Business Segments

Used Car Distribution Support Business

Overview
Provides specialized online auctions and support services for used cars and related goods distribution.
Competitiveness
Unique real-time auction operation capabilities evolved from IT technology and satellite communications
Customers
  • Used Car Dealerships
  • Motorcycle Dealers
  • Branded Goods Dealers
  • Medical Equipment Dealers
  • Flower Distribution Companies
Products
  • Online Auction Platform
  • Procurement and Bidding Agency Services
  • Appraisal System (AucPro touch)
  • Sales Support Site (AUCNET GLOBAL)
  • Data Erasure Software

FinTech and Insurance Business

Overview
Provides warranties and insurance-related products associated with automobile distribution.
Competitiveness
Precise warranty and insurance design utilizing auction data
Customers
  • Automobile Dealerships
  • Insurance Agencies
  • Vehicle Owners
Products
  • Automobile Warranty Products
  • Insurance Services
  • Financial Intermediary Services

Digital Services and Software Development

Overview
Develops and operates IT systems specialized for in-house services and group companies.
Competitiveness
High development and design capabilities with nearly full in-house production
Customers
  • In-house Development Teams
  • Group Subsidiaries
  • Partner Companies
Products
  • Auction System Development
  • Data Analysis Services
  • Website Operation

Competitive Advantage

Strengths

  • One of Japan's largest used car auction operations
  • 対応 to online conversion for diverse product categories
  • High-quality development through in-house IT services
  • Abundant customer base and network
  • Long years of know-how in satellite and communications technology
  • Business diversification through group subsidiaries
  • Strengthened integration with financial products
  • Advanced real-time bidding system
  • Industry-leading appraisal and distribution support technology
  • Business expansion through active M&A
  • Track record of overseas market entry
  • Specialized auction domain for branded goods
  • Expansion into other fields like flowers and medical equipment
  • Strong financial base and stable earnings
  • Specialized customer service system

Competitive Advantages

  • Early adoption of satellite communication technology ahead of competitors, securing market leadership
  • Solid customer relationships centered on B2B
  • Risk diversification through diversified business portfolio
  • High-efficiency development and operations via in-house production
  • Value-added service expansion through integration of consolidated subsidiaries
  • Trust gained from proprietary appraisal and price analysis systems
  • Differentiation through new product development like used EV warranties
  • High reliability from Tokyo Stock Exchange Prime listing
  • Regional closeness with nationwide multiple bases network
  • Worldwide expansion through strengthened overseas partnerships
  • Competitive edge from linkages in finance and insurance sectors
  • Customer base expansion via diverse auction categories
  • Precise market trend analysis using vast transaction data
  • Industry leader with proactive introduction of latest technologies
  • Customizable services tailored to customer needs

Threats

  • Decline in used EV prices due to sluggish new EV market
  • Intensified competition from competitors catching up on IT technology
  • Market price fluctuation risks
  • Business impacts from regulatory changes
  • Demand decline due to economic recession
  • Political and economic uncertainties in overseas operations
  • Cybersecurity risks
  • Market fragmentation from new entrants
  • Changes in consumer preferences for used goods
  • Increased business costs from stricter environmental regulations
  • Profit pressure from rising logistics costs
  • Increased technology investment burden and declining ROI

Innovations

2024: Full Subsidiary Acquisition of Defactostandard and JOYLAB

Overview
Acquired two companies as subsidiaries to strengthen IT-related businesses and enhance technological capabilities.
Impact
Advances IT service development and diversification

2023: Launch of Used EV Mileage Guarantee Service

Overview
Provides warranty products to support secure transactions for used electric vehicles.
Impact
Contributes to improving trust in the used EV market

2022: Complete Migration of Auction System to Cloud

Overview
Renewed communication infrastructure from conventional satellite and analog lines to cloud platform.
Impact
Improved system stability and reduced operating costs

2021: Introduction of AI Appraisal System AucPro touch

Overview
Achieved improved appraisal accuracy and operational efficiency using artificial intelligence.
Impact
Enhanced customer satisfaction and competitiveness

2020: Partnership with Chinese Company for Flower Auction Business

Overview
Partnered with Yushima Group to expand flower distribution business into the Chinese market.
Impact
Diversification of overseas business and improved profitability

Sustainability

  • Reduced environmental impact through introduction of internet real-time auctions
  • Contributes to CO2 emission reductions by improving used car distribution efficiency
  • Promotes resource circulation through revitalization of reuse market
  • Supports regional agriculture through flower distribution
  • Promotes paperless operations and waste reduction in-house
  • Strengthened information security with ISO/IEC 27001 certification
  • Thorough compliance with environmental regulations
  • Promotes diversity through flexible work styles