USS

Basic Information

Stock Code
4732
Industry
Services
Category Detail
Automobile Retailers
Prefecture
Aichi Prefecture
Establishment Year
October 1980
Listing Year
September 1999
Official Website
https://www.ussnet.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Apple International, Nexstage, Trust, Bike King & Company, Keyware, Aucnet, Up Garage Group, Welbeing Group, Zenkoku Hosho, IDOM, Optimus Group, Kimura Unite, KEYU HOLDINGS

Overview

USS is the leading company in the automobile auction operation industry, founded in 1980, holding approximately 30% share in the used car auction market, and a leading company in the service industry.

Current Situation

USS recorded consolidated sales of approximately 78.1 billion yen and net assets of approximately 183.9 billion yen in the fiscal year ended March 2020, maintaining its top industry share. Its core automobile auction business features participation from domestic and international dealers, with more than 20 auction venues nationwide. In recent years, it has expanded its own used car buyback store chain 'Rabbit' and motorcycle auction business, promoting diversification. The operation of the internet information service 'CIS' supports its competitiveness, establishing information superiority within the industry. As part of sustainability efforts, it is exploring ways to reduce the industry's environmental impact, and going forward, it aims for sustained growth through IT-driven auction efficiency improvements and expansion in overseas markets, particularly Southeast Asia. Its strengths include a nationwide auction network ahead of competitors and its brand power as the industry leader. Its revenue base is stable, aiming for sustainable growth while influenced by used car market trends.

Trivia

Interesting Facts

  • Pioneering presence in the used car auction industry with a 32.3% share.
  • The USS brand name derives from the abbreviation 'Used car Scramble and Survival'.
  • Operates over 20 dedicated auction venues nationwide, including subsidiaries.
  • Auction venues are mostly located in inconveniently accessible industrial parks.
  • Membership-based used car auctions achieve high market transparency.
  • Once planned a venue at the former Yokohama Dreamland site but abandoned it.
  • Holds top-class share in the motorcycle auction business as well.
  • Internet information service CIS contributes to industry distribution efficiency.
  • Japan Bike Auction was made a subsidiary in 2015.
  • Large auction venues host weekly without fail.
  • President Yukihiro Ando has extensive industry experience.
  • Listed on both Nagoya and Tokyo Stock Exchanges.
  • Has affiliates specializing in logistics and support services.
  • Featured on TV Tokyo programs, contributing to brand recognition.
  • Actively promoting energy-saving equipment and digitalization to reduce environmental impact.

Hidden Connections

  • Strong ties with Asian markets through used car export business.
  • Certain information coordination with competitors through shared automobile appraisal technology.
  • Market-segmentation-like collaborative relationship with peer Aucnet.
  • Subsidiary Rabbit strengthens industry collaborations as a used car buyback specialist.
  • Long-term negotiations and adjustments with local governments regarding venue land.
  • Nationwide logistics services provided via subsidiary U.S. Logistics.
  • Collaborations with Yahoo! Finance and Nikkei to enhance transaction information provision.
  • Has an in-house technology oversight division actively promoting IT system renewals.

Future Outlook

Growth Drivers

  • Increasing overseas export demand in the used car market
  • Auction efficiency and convenience improvements via IT technology
  • Activation of used EV car circulation amid stricter environmental regulations
  • Expansion of motorcycle auction business
  • Increased customer attraction through used car buyback chain store expansion
  • Market expansion by strengthening development in non-urban areas
  • Auction digitalization and enriched membership services
  • Growing demand for recycling and sustainability in the used car market
  • Global network expansion through overseas market partnerships
  • New customer segment development and service diversification

Strategic Goals

  • Achieve over 40% share in the used car auction market
  • Strengthen nationwide and overseas expansion of membership network
  • Standardize environmentally considerate auction venues
  • Full renewal of IT platform and promotion of AI utilization
  • Establish market leader status in motorcycle business
  • Complete introduction of logistics service efficiency systems
  • Nationwide expansion of used car buyback and sales business
  • Improve ESG ratings through achievement of sustainability goals
  • Strengthen global strategy via overseas base establishment
  • Establish position as the industry's top innovation company

Business Segments

Auction Business

Overview
Provides services supporting extensive used car and motorcycle auctions and information distribution.
Competitiveness
Industry-largest auction network and online-linked systems
Customers
  • Used Car Dealers
  • Used Car Buyback Dealers
  • Motorcycle Dealers
  • Exporters
Products
  • Used Car Auction Events
  • Motorcycle Auction Events
  • Internet Information Service (CIS)

Used Car Buyback and Sales

Overview
Total services for used car buyback and sales through buyback specialty stores 'Rabbit'.
Competitiveness
Extensive buyback network and high appraisal capabilities
Customers
  • General Consumers
  • Used Car Retail Stores
Products
  • Used Car Buyback Services
  • Used Car Sales Support

Logistics Services

Overview
Efficiently supports vehicle transportation and logistics management.
Competitiveness
Nationwide network and high-quality logistics services
Customers
  • Auction Venue Participants
  • Used Car Retail Stores
Products
  • Vehicle Transportation
  • Auction-Related Logistics

IT Services

Overview
Implements online provision of auction information and IT system construction.
Competitiveness
Operation of proprietary internet information platform CIS
Customers
  • Member Companies
  • Auction Participants
Products
  • Internet System Development
  • Information Provision Services

Motorcycle-Related Business

Overview
Provides motorcycle-specialized auction venue operations and related services.
Competitiveness
Dedicated venues and industry collaborations forming the market
Customers
  • Motorcycle Dealers
  • Motorcycle Buyback Stores
Products
  • Motorcycle Auctions
  • Motorcycle Buyback Services

Competitive Advantage

Strengths

  • Industry-largest auction venue network
  • Approximately 30% share in the used car auction market
  • Diversified used car-related businesses
  • Strong brand recognition and industry trust
  • Advanced internet information platform (CIS)
  • Nationwide dispersed venue logistics
  • Long history and stable financial base
  • Business expansion through numerous subsidiaries and affiliates
  • Market activation through domestic and international dealer participation
  • Scale expansion via active business alliances and subsidiary absorptions

Competitive Advantages

  • Weekly regular auctions at over 20 locations nationwide
  • Auction operations enhanced with online-linked systems for convenience
  • Entry barriers formed by customer attraction through used car buyback chain
  • Market dominance in diverse vehicle areas including motorcycle auctions
  • Exclusive information superiority from information services
  • In-house logistics services providing total support
  • Trust from dealers due to brand power and long industry track record
  • Rapid response to market needs through regionally focused business development
  • Market transparency and security ensured by certified membership system
  • Global dealer network built through overseas market expansion

Threats

  • Intensified competition from new IT companies entering the auction market
  • Risk of reduced demand in the used car market due to economic downturns
  • Impact on automobile sales from stricter regulations and environmental policies
  • Market contraction due to aging population and population decline in Japan
  • Risk of damage to logistics and operations bases from natural disasters
  • Exchange rate fluctuation risks accompanying overseas expansion
  • Delayed response to market structure changes from EV shift in used cars
  • Impact from social changes such as the COVID-19 pandemic
  • Risk of customer loss from competitors' service innovations
  • Security risks such as information leaks
  • Difficulties in base facility construction due to local resident opposition
  • Pressure to review business model amid rising environmental awareness

Innovations

2024: Enhanced Digital Auction Platform

Overview
Improved online venue functions and introduced AI appraisal technology to enhance convenience.
Impact
10% increase in participants, improved auction success rate

2023: Nationwide Expansion of Motorcycle Auction Business

Overview
Leveraging subsidiary Japan Bike Auction, newly established bases to promote usage.
Impact
15% increase in motorcycle auction participation volume

2022: Introduction of Logistics Efficiency System

Overview
Developed and implemented route optimization for vehicle transport and IT-based operation management systems.
Impact
10% reduction in logistics costs, shortened delivery times

2021: Initiation of Environmentally Friendly Auction Venue Construction

Overview
Promoting energy-saving equipment introduction to reduce environmental impact and strengthen sustainability.
Impact
Set target to reduce CO2 emissions by 5%

2020: Revamp of CIS Internet Information Service

Overview
Enhanced user interface and added new features to strengthen industry information distribution.
Impact
Increased member usage rate and improved market efficiency

Sustainability

  • Promoting introduction of energy-saving equipment at auction venues
  • Reducing paper resources and promoting digital transactions
  • Supporting improved recycling rates for scrapped vehicles
  • Participating in environmental protection activities for local communities
  • Implementing employee environmental awareness programs
  • Advancing verification of supply chain sustainability
  • Promoting paperless auctions through digitalization
  • Strengthening vehicle intake management considering resource circulation
  • Enlightening on environmental impact reduction through PR activities
  • Participating in environmental collaboration projects with local governments
  • Promoting proper processing of used vehicles
  • Strengthening internal environmental governance