LIXIL

Basic Information

Stock Code
5938
Industry
Metal Products
Category Detail
Construction Materials & Equipment
Prefecture
Tokyo
Establishment Year
September 1949
Listing Year
August 1985
Official Website
https://www.lixil.com/jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
JT, Astellas, TOTO, Asahi Eito Holdings, Janis Kogyo, Kawasaki Kisen

Overview

LIXIL is Japan's largest company in the building materials and housing equipment sector, founded in 1949, featuring a wide range of brands both domestically and internationally along with advanced technological capabilities as a comprehensive living solutions enterprise.

Current Situation

LIXIL recorded consolidated sales of approximately ¥1.4285 trillion and operating profit of approximately ¥69.4 billion in fiscal 2022, maintaining solid performance as one of Japan's largest building materials and housing equipment manufacturers. Key brands include Tostem, INAX, Shin Nikkei, and Sunwave, expanding its customer base through a diverse product portfolio. It strengthens competitiveness in product categories such as bathroom fixtures, system kitchens, and residential sashes by introducing high quality and cutting-edge technology. In recent years, it has improved business efficiency through domestic and international M&A and restructuring, while actively promoting sustainability initiatives. Organizational restructuring has bolstered sales structures, and refreshing franchise chains aims to expand sales channels. In 2024, it plans to acquire the shower toilet business from Aisin, anticipating further strengthening. It maintains superiority in technology and brand power against domestic and international competitors, while focusing on new technologies like energy-saving and security features. Looking ahead to 2030, it aims for growth backed by increasing demand domestically and abroad, establishing its position as a leading company supporting sustainable living.

Trivia

Interesting Facts

  • LIXIL was born from the merger of five building materials manufacturers into a large conglomerate
  • Uses unique composite logos incorporating legacy brand names
  • LIXIL showrooms nationwide are industry-leading in scale
  • Gold Partner for housing equipment at Tokyo 2020 Olympics and Paralympics
  • Has sponsored Kashima Antlers uniforms for over 10 years
  • Features an end-to-end business model from manufacturing to sales and renovations
  • Operates Japan's largest-scale housing renovation franchise chain
  • Strengthening subsidiary's online housing equipment sales to advance digital shift
  • Entered capital and business alliance with Sharp in 2013
  • Deploys smart energy housing services jointly with Tokyo Electric
  • LIXIL Publishing plans to end book sales in fall 2022
  • Signboards at builders and stores nationwide are being updated from legacy brands
  • President has been Kinya Seto since 2016
  • Operates franchise 'LIXIL FC Madurie' for builders nationwide
  • Deploys public exterior products beyond building materials and equipment

Hidden Connections

  • LIXIL has deep capital and business ties with diverse industries like Kawasaki Kisen and Japan Tobacco.
  • Management from General Electric background has driven overseas M&A.
  • Implemented management efficiency and organizational streamlining through subsidiary and affiliate restructuring.
  • Enhanced brand recognition as official sponsor for housing equipment at Tokyo Olympics.
  • As a major building materials firm, actively sponsors TV programs and features celebrities in CMs.
  • Improves customer experience through lifestyle proposal-type renovation shops.
  • Differentiates from competitors in renovation market via proprietary franchise network.
  • Focusing on overseas expansion and technological innovation amid anticipated shrinkage of Japan's housing market.

Future Outlook

Growth Drivers

  • Expansion of domestic housing renovation market and aging society needs
  • Acceleration of energy-saving and smart home technology adoption
  • Increasing demand for building materials and equipment in overseas emerging markets
  • Business efficiency and customer engagement enhancement via DX
  • Rising consumer interest in sustainable, eco-friendly products
  • Development and sales expansion of IoT/AI-integrated products
  • Nationwide strengthening of franchise network
  • Expansion of equipment products tied to public infrastructure development
  • New housing needs from changing lifestyles
  • Enhanced R&D in next-generation materials and technologies
  • Increased demand for housing equipment due to remote work prevalence
  • Promotion of new construction and renovations through government housing policies

Strategic Goals

  • Achieve over ¥2 trillion in sales domestically and internationally
  • Expand sustainable certified products to over 80% of all products
  • Enrich and promote energy-saving compatible product lines
  • Standardize smart home features across all products
  • Achieve carbon neutrality across the group
  • Expand digital sales channels and improve customer satisfaction
  • Maintain and expand domestic largest-scale franchise network
  • Establish top market share in overseas emerging markets
  • Fully implement sustainable materials procurement
  • Continuously strengthen product differentiation through technological innovation

Business Segments

To Building Materials Manufacturers

Overview
Contributes to construction efficiency and durability improvement by providing high-quality building materials to the construction industry.
Competitiveness
Diverse building materials brands and technological development capabilities
Customers
  • Housing Construction Companies
  • Local Builders
  • Building Materials Wholesalers
Products
  • Aluminum Sashes
  • Steel Fittings
  • System Kitchens
  • System Baths
  • Residential Toilet Equipment

To Renovation Businesses

Overview
Implements diverse product offerings and sales support targeting the renovation market.
Competitiveness
Nationwide franchise chain operations
Customers
  • Renovation Companies
  • Franchise Stores
  • Housing Equipment Sales Agents
Products
  • Bathroom Fixtures
  • Kitchen Replacement Products
  • Energy-Saving Building Materials

To Commercial & Public Facilities

Overview
Provides products contributing to safety and comfort in commercial and public facilities.
Competitiveness
Regulatory compliance and custom design technology
Customers
  • Commercial Facility Managers
  • Local Governments
  • Public Organizations
Products
  • Fire Shutters
  • Public Toilet Units
  • Store Building Materials

To Distribution Retailers

Overview
Provides building materials supply and support systems adapted to diverse distribution channels.
Competitiveness
Operation of membership-based building materials stores for professionals
Customers
  • Home Centers
  • Housing Materials Specialty Stores
  • Building Materials Wholesalers
Products
  • Building Materials Wholesale
  • DIY-Related Products
  • Specialty Store Materials

Environment & Energy-Related Business

Overview
Deploys smart building materials and energy-saving services that reduce environmental impact.
Competitiveness
Integrated services via joint venture with Tokyo Electric Power
Customers
  • Power Companies
  • Zero Energy House Developers
  • Smart Home Developers
Products
  • ZEH-Compatible Building Materials
  • Solar Power Systems
  • Power Sales Services

Living Solutions

Overview
Enhances customer convenience through online housing equipment sales and financial services.
Competitiveness
Utilization of synergies within the group
Customers
  • Home Buyers
  • Renovation Customers
Products
  • Online Housing Equipment Sales
  • Housing Loan Services
  • After-Sales Services

To Materials Manufacturing Subsidiaries

Overview
Supplies high-quality building materials and parts to group and external entities.
Competitiveness
Integrated manufacturing and development system
Customers
  • Group Manufacturing Divisions
  • External Building Materials Partners
Products
  • Building Materials
  • Housing Equipment Parts

Equipment Maintenance Services

Overview
Deploys maintenance business for housing and public equipment, providing long-term customer support.
Competitiveness
Nationwide service network
Customers
  • Home Owners
  • Facility Management Companies
Products
  • Housing Equipment Maintenance
  • Maintenance Services

Finance Business

Overview
Provides financial services to support purchases of building materials and housing equipment.
Competitiveness
Comprehensive financial solutions through group collaboration
Customers
  • Home Purchase Prospects
  • Renovation Prospects
Products
  • Housing Loans
  • Renovation Loans

Overseas Business Expansion

Overview
Strengthens localized manufacturing and sales networks for overseas markets.
Competitiveness
Global M&A and brand deployment
Customers
  • Overseas Construction Firms
  • Local Sales Agents
Products
  • Housing Equipment
  • Building Materials Products

Housing-Related Technology Development

Overview
Promotes technological innovation to enhance competitiveness.
Competitiveness
Leading domestic R&D structure
Customers
  • Internal Development Teams
  • Manufacturing Divisions
  • External Partners
Products
  • Energy-Saving Technology
  • Smart Locking Systems
  • New Materials

Franchise Operations

Overview
Operates Japan's largest-scale housing renovation support franchise chain.
Competitiveness
Nationwide network and sales power
Customers
  • Franchise Builders
  • Sales Agents
Products
  • LIXIL Renovation Shops
  • LIXIL Renovation Network
  • LIXIL FC Madurie

Competitive Advantage

Strengths

  • Japan's largest comprehensive building materials and housing equipment manufacturer
  • Powerful and diverse brand portfolio
  • Advanced technological development capabilities and high product quality
  • Nationwide sales network and franchise chains
  • Risk diversification through diversified business operations
  • Ample capital and stable management foundation
  • Global expansion via aggressive overseas M&A
  • Leadership in energy-saving and smart equipment technology
  • User-oriented product development
  • Long-term sustainability strategy
  • Broad sales channels to diverse customer segments
  • High operating profit margin
  • Industry-leading production capacity
  • Robust supply chain management
  • Diverse franchise store network

Competitive Advantages

  • Strength in proprietary water- and energy-saving technologies in housing equipment
  • Top-class domestic market share in toilets and kitchens
  • Global brand deployment strength through overseas M&A
  • Broad product range meeting diverse needs
  • Powerful sales organization and franchise support system
  • Customer trust gained through high-quality management
  • Technological innovation driven by aggressive R&D investment
  • Leading company in energy efficiency and eco-friendly technology
  • Market expansion power through comprehensive renovation chain
  • Enhanced market recognition via strong brand logo
  • Superiority in both construction materials and housing equipment due to diversification
  • Competitive edge from enriched lineup for public facilities
  • Smart energy services provided in collaboration with Tokyo Electric
  • Improved customer experience through nationwide showrooms
  • Strong fundraising capabilities and stable shareholder base

Threats

  • Impact of housing market fluctuations on performance
  • Share pressure from increasing overseas competition
  • Rising material costs and procurement risks
  • Increased compliance costs due to stricter environmental regulations
  • Overseas earnings instability from exchange rate fluctuations
  • Risk of lagging in rapid technological advancements
  • Market contraction pressure from domestic population decline
  • Increasing competition in renovation market
  • Supply chain disruptions during disasters
  • Financial risks from failed M&A
  • Decline in manufacturing and sales capabilities due to labor shortages
  • Risk of declining social trust

Innovations

2024: Acquisition of Shower Toilet Business from Aisin

Overview
Acquired high-functionality shower toilet business from Aisin to expand product lineup.
Impact
Contributes to brand strengthening and market share expansion

2023: Development of Smart Locking Gate Doors

Overview
Commercialized IoT-compatible smart locking gate doors for detached houses.
Impact
Achieves improved security and enhanced housing value

2022: Strengthening Online Sales Business

Overview
Launched online housing equipment sales by LIXIL Living Solutions.
Impact
Promotes customer touchpoint expansion and sales channel diversification

2021: Promotion of ZEH-Compatible Building Materials

Overview
Developed and sold smart home-compatible building materials in JV with Tokyo Electric.
Impact
Contributes to popularization of energy-saving housing and environmental load reduction

2020: Efficiency Improvement through Business Integration

Overview
Restructured domestic and overseas subsidiaries by function to improve productivity.
Impact
Achieved management efficiency and profit improvement

Sustainability

  • Promotion of resource recycling and energy-saving technology
  • Acceleration of low-environmental-impact product development
  • Advancement of community-based environmental protection activities
  • Strengthening CSR compliance in supply chain
  • Promoting SDGs awareness through employee education
  • Introduction and enforcement of green procurement standards
  • Efforts to reduce waste and improve recycling rates
  • Improving power usage efficiency and utilizing renewable energy
  • Enhancing product longevity and maintenance support
  • Disclosure of environmental reports and ensuring transparency
  • Strengthening safety and health management systems
  • Systematization of community contribution activities