Kokoro Net

Basic Information

Stock Code
6060
Industry
Service Industry
Category Detail
Lifestyle Services
Prefecture
Fukushima Prefecture
Establishment Year
December 1971
Listing Year
April 2012
Official Website
https://cocolonet.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Heian Ray Service, Tia, Toami, San Life H, Nichiryoku, Denkyo G, Hasegawa, San Holdings

Overview

Kokoro Net is a major service industry company established in 1971, with wedding and funeral services and gravestone sales as its main pillars, boasting a solid management foundation centered in the Tohoku region.

Current Situation

Kokoro Net recorded consolidated net sales of approximately 9.562 billion yen and operating profit of approximately 624 million yen in the fiscal year ended March 2023. Centered in Fukushima Prefecture, it operates wedding and funeral businesses and gravestone sales in Yamagata, Tochigi, and Ibaraki Prefectures, promoting a community-focused business strategy. In the funeral sector, it collaborates with JA Life Create Fukushima to secure stable outsourced business income. Through subsidiaries, it manages the wedding business of Koriyama Grand Hotel and multiple funeral companies under its umbrella, successfully diversifying its operations. In recent years, it has made Yoritsuki-do Holdings in Yamanashi Prefecture a subsidiary, expanding its business area. Financials are stable with net assets of approximately 8 billion yen and total assets of approximately 18.6 billion yen, with around 500 employees. Future growth depends on expansion outside the region and enhancement of value-added wedding and funeral services, with no publicly announced clear initiatives on sustainability. It aims for mid- to long-term business expansion through aggressive M&A strategies and strengthened regional partnerships.

Trivia

Interesting Facts

  • Long-established company with roots in Tamanoya, founded in 1892
  • Business integration of Itoi Group and Kanno Group in 2006
  • Largest wedding and funeral service provider in Fukushima Prefecture
  • Subsidiary Kigetsudo Holdings has a strong base in Yamanashi Prefecture
  • Rare comprehensive service company handling funerals, weddings, and stone sales
  • Rare corporate form collaborating with local agricultural cooperatives nationwide
  • Aggressive in business expansion through M&A in the industry
  • Highly evaluated for meticulous community-focused services
  • Adopts holding company structure overseeing multiple subsidiaries
  • Company name derives from the philosophy of cherishing 'heart'

Hidden Connections

  • Secures market superiority by leveraging agricultural cooperative networks through business consignment with JA Life Create Fukushima
  • Subsidiary Koriyama Grand Hotel serves as a key base in the regional wedding market
  • Role in unifying the two groups that were competitors in the same region before integration
  • Strongly promotes community-focused weddings and funerals through collaboration with JA
  • Strengthened gravestone-related business through collaboration with regional stone contractors under its umbrella
  • Close relationships with historic local chambers of commerce and economic organizations in Fukushima
  • Strength in deploying wedding and funeral services tailored to the aging regional society
  • Advanced market expansion strategy using M&A for a regional-type company

Future Outlook

Growth Drivers

  • Expansion of regional deployment in Tohoku and Kanto areas
  • Business area and service diversification through M&A
  • Strengthened response to diversifying wedding and funeral needs
  • Efficient operations through synergies among subsidiaries
  • Business efficiency through digitalization and DX promotion
  • Customer base expansion through deepened collaboration with regional agricultural cooperatives
  • Value enhancement of wedding services
  • Corporate value improvement through addressing environmental and social issues
  • Strengthened online consultations and service deployment
  • Service quality improvement through talent development
  • Brand building through strengthened regional marketing
  • Development of new wedding and funeral-related services

Strategic Goals

  • Market share expansion in key Tohoku and Kanto regions
  • Establishment of complete reservation management system via digital infrastructure
  • Optimization of customer services through collaboration with regional agricultural cooperatives
  • Achieve efficient operations through integration of multiple subsidiaries
  • Establishment of environmentally considerate business operations
  • Increase new service sales to 30% of total
  • Achieve employee satisfaction of over 80%
  • BtoB sales expansion through strengthened corporate customer services
  • Improved social evaluation through strengthened community collaborations
  • Build organizational structure flexible to market need changes

Business Segments

Wedding and Funeral Operations Outsourcing

Overview
Provides wedding and funeral operations and management services to regions and corporations.
Competitiveness
Stable outsourcing revenue from strong partnerships with local agricultural cooperatives.
Customers
  • Local agricultural cooperatives
  • Corporate welfare
  • Local governments
  • Funeral companies
  • Wedding and funeral facilities
Products
  • Funeral service outsourcing
  • Wedding event planning
  • Operations management
  • Stone management
  • Event catering

Stone Sales and Processing

Overview
Design, processing, sales, and maintenance outsourcing for gravestones and monuments.
Competitiveness
High-reliability construction leveraging over 100 years of history.
Customers
  • Cemetery management companies
  • Local governments
  • Construction companies
  • Cemetery operators
  • Individual customers
Products
  • Gravestone design and construction
  • Monument production
  • Stone processing sales
  • Maintenance services
  • Engraving services

Wedding Service Support

Overview
Provides comprehensive support services for wedding businesses.
Competitiveness
Stable quality and diverse services through group synergies.
Customers
  • Wedding venues
  • Hotels
  • Attire rental companies
  • Bridal-related companies
Products
  • Attire rentals
  • Wedding event planning
  • MC and performance services
  • Photo services
  • Catering

Competitive Advantage

Strengths

  • Strength of regional network
  • Diversified business operations
  • Scale expansion through business integration
  • Collaborations with stable trading partners
  • Abundant wedding and funeral expertise
  • Comprehensive subsidiary structure
  • Trust backed by long history
  • Efficiency improvements through DX initiatives
  • Stable financial base
  • Community-focused sales capabilities
  • Market expansion via M&A
  • Diverse service lineup
  • Employee expertise
  • Cost reductions from integration effects
  • Strong ties with local communities

Competitive Advantages

  • Strong customer base centered in Tohoku Fukushima
  • Unique partnership with local agricultural cooperatives
  • Service delivery power from integrated multiple businesses
  • Synergy effects post-business integration
  • Comprehensive strength from funeral and stone collaboration
  • Flexible collaboration system among subsidiaries
  • Service development adapted to regional needs
  • Response to diversifying wedding and funeral needs
  • Relationship-building with long-term customers
  • Funding stability secured by parent company ownership
  • Reliability from sound financial position
  • Strengthened market dominance despite regional focus
  • Synergistic effects from diverse related businesses
  • High brand recognition within the region
  • Stable leadership from management team

Threats

  • Market contraction due to declining birthrate and aging population
  • Intensified regional expansion by competitors
  • Demand dispersion from diversifying wedding and funeral styles
  • Impact of new infectious diseases and social conditions
  • Declining profit margins from intensified price competition
  • Potential legal amendments and regulatory strengthening
  • Risk of regional economic stagnation
  • Facility damage from natural disasters
  • Business continuity issues from successor shortages
  • Decreasing needs due to changing social values
  • Shrinking customer base from population outflow
  • Expansion of alternative services

Innovations

2023: Acquisition of Kigetsudo Holdings in Yamanashi as Subsidiary

Overview
Acquired a funeral operator in Yamanashi Prefecture, expanding business area.
Impact
Business expansion beyond Tohoku and strengthened revenue base

2024: Integration of Kigetsudo Holdings and Name Change

Overview
Merged subsidiary and renamed to Kigetsudo SeleO Co., Ltd.
Impact
Operational efficiency and cost reductions from brand integration

2021: Full Entry into Catering Services

Overview
Newly launched event catering business for weddings and funerals.
Impact
Established new revenue sources and service diversification

2020: Introduction of Digital Reception System

Overview
Introduced digital technology for funeral and wedding receptions to improve efficiency.
Impact
Improved customer satisfaction and labor cost reductions

2022: Launch of Online Pre-consultation Service

Overview
New service enabling remote consultations for weddings and funerals.
Impact
Expanded customer touchpoints and improved convenience

Sustainability

  • Waste reduction activities at regional events
  • Promotion of paper resource reuse to reduce environmental impact
  • Promotion of sourcing ingredients using local agricultural products
  • Advancement of work-style reforms for employees
  • Collaboration with local communities on environmental conservation