Brother Industries

Basic Information

Stock Code: 6448
Industry: Electrical Equipment
Category Detail: Information & Communication Equipment
Prefecture: Aichi Prefecture
Establishment Year: October 1998
Listing Year: January 1963
Official Website: https://www.brother.co.jp
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: FUJIFILM Holdings, Konica Minolta, Riso Kagaku, Katsuragawa Electric, Makita, Epson, Kyocera, Aichi Tokei, Canon Electronics, Canon, Ricoh

Overview

Brother Industries is a major electrical equipment manufacturer founded in 1934, holding a global market share in fields such as printers and sewing machines, and is a diversified company.

Current Situation

Brother Industries recorded consolidated sales of 631.8 billion yen and net profit of 24.5 billion yen for the fiscal year ended March 2021, and is a global company with overseas sales accounting for about 75%. In its mainstay printing equipment business, it boasts the top market share in North America for multifunction devices and facsimiles. Home sewing machines have world-class sales records, and industrial sewing machines maintain high technological capabilities. In 2015, it made Domino Printing Sciences in the UK a subsidiary and is expanding its industrial printing business. In technological innovation, it is working on practical applications of IoT-compatible industrial sewing machines, electronic paper, and AR devices since 2021. It also considers sustainability, promoting global expansion along with reduction of environmental impact. Its 2030 growth strategy aims for business expansion leveraging diverse product lines and nurturing new businesses.

Trivia

Interesting Facts

Brand name originates from 'Brother' named after the founding brothers
Boasts top share in multifunction devices and faxes in North American market
Holds one of the world's leading sales records for home sewing machines
Once manufactured 70cc motorcycle 'Darling'
First in the world to manufacture pantograph keyboard
Pioneering development company for electronic paper and AR display devices
Karaoke business operated by subsidiary Exing
Made Domino Printing Sciences a wholly-owned subsidiary
Established position as industry leader with communication karaoke JOYSOUND
Practicalized world's first retinal scan display 'AiRScouter'
Holds patents for lamination technology for label printers
Operated sales base for software vendor TAKERU in the 1980s
Owns naming rights for Nagoya City Science Museum planetarium dome
Self-developed tandem color engine for laser printers
Developed high-speed dot printer with Centronics in 1971

Hidden Connections

Karaoke JOYSOUND is an industry competitor with Daiichi Kosho, yet related subsidiary Exing handles manufacturing and sales
Rival companies in home sewing machines like Janome and JUKI grow together in diversified fields
Historical connection with overseas IT companies through keyboard supply to IBM
Once sold home appliances received via OEM from Mitsubishi Electric
Many collaboration records with domestic and international machine tool manufacturers, printer makers, and communication equipment companies
Founding family named the company in English notation from brothers' sewing machine business at founding
In Japanese sewing machine market, long-term competitive relationship as one of the big three with JUKI and Janome
Headquartered in Nagoya City, Aichi Prefecture, building close relationships with Tokai region economic organizations and universities

Future Outlook

Growth Drivers

Strengthening brands in overseas markets, especially North America and Europe
High value-added industrial sewing machines through IoT and digitalization
Expansion in industrial printing field and introduction of new technologies
Deployment of new field technologies like electronic paper and AR devices
Diversification of communication karaoke and content distribution services
Technological innovation in home and business printers
Corporate value enhancement through strengthened sustainability activities
Optimization of global production bases and productivity improvement
Sales expansion in emerging markets and development of locally adapted products
Value-added enhancement of products and services through AI technology introduction
Revenue base strengthening through synergy creation in diversified businesses
Expansion of demand for digital workplaces and remote business equipment

Strategic Goals

Achieve over 85% global sales ratio
Deploy IoT-compatible products to all industrial sewing machines
Enter world top 5 share in industrial printing equipment market
50% CO2 emission reduction through sustainability management
Expand new business sales to over 15% of total sales
Diversify product lineup in electronic paper market
Expand domestic and international share in communication karaoke services
Maintain R&D investment at over 5% of annual sales
Strengthen SNS and digital marketing
Active participation in community and environmental contribution activities

Business Segments

Industrial Sewing Machine Sales

Overview

Supports productivity improvement with high-performance sewing machines for industry.

Competitiveness

Advanced IoT functions and proprietary technology

Customers

Sewing factories
Apparel manufacturers
Industrial processing companies

Products

Electronic Feed Lockstitch Direct Drive Sewing Machine
NEXIO IoT-compatible Sewing Machine
Program-controlled Sewing Machine

Printer and Multifunction Device OEM Supply

Overview

Supplies high-performance printer components via OEM.

Competitiveness

Proprietary laser technology

Customers

Major printer manufacturers
IT equipment sales companies
Office equipment trading companies

Products

Laser Printer Engine
Inkjet Multifunction Device
Products with Facsimile Functions

Machine Tools

Overview

Deploys machine tools for precision processing.

Competitiveness

High-precision processing technology and durability

Customers

Automotive parts manufacturers
Electronic parts manufacturers
Machine tool sales agents

Products

Tapping Center Series
Wire EDM
CNC Machining Center

Communication Karaoke Equipment Sales

Overview

Provides communication karaoke equipment and distribution.

Competitiveness

Industry-leading content distribution capabilities

Customers

Karaoke box operators
Entertainment facilities
Music distribution service companies

Products

JOYSOUND Communication Equipment
Communication Karaoke Distribution Service

Label and Marking Equipment

Overview

Label equipment that contributes to business efficiency.

Competitiveness

World top share in lamination patents

Customers

Logistics companies
Manufacturing industry
Retail industry

Products

Label Printer
P-touch Cube
IC Tag Printer

Electronic Paper Devices

Overview

Information terminals using electronic paper technology.

Competitiveness

Miniaturization of electronic paper displays

Customers

Information equipment manufacturers
Sales agents
E-book related businesses

Products

Brother Document Viewer

Software and Network Business

Overview

Provides networks and content distribution.

Competitiveness

Diverse content integration and distribution technology

Customers

Telecommunications carriers
Entertainment companies
IT service companies

Products

Einy Content Distribution System
Network-based Image Processing Service

Product Maintenance and Support

Overview

Product support tailored to customer needs.

Competitiveness

Global support network

Customers

Corporate customers
Sales agents
User companies

Products

Printer Maintenance Service
Industrial Sewing Machine Support
Software Updates

Business Embroidery Service (BEaaS)

Overview

Cloud-based DX service for business embroidery.

Competitiveness

Industry-specific AI for automatic file generation

Customers

Apparel companies
Workwear manufacturers
Retail companies

Products

BEaaS Cloud Embroidery Service

Industrial Printing Equipment

Overview

High-performance printing equipment for packaging and marking.

Competitiveness

Top share in industrial printing technology

Customers

Packaging manufacturers
Manufacturing line operators
Logistics providers

Products

Domino Coding Equipment
Laser Marker
Digital Printing Machine

Entertainment Robots

Overview

Entertainment robots for events.

Competitiveness

Differentiation through proprietary design and intellectual property rights

Customers

Exhibition planning companies
Expo operators
Event producers

Products

Ifbot

Home Sewing Machine Sales

Overview

Widely provides multifunctional home sewing machines.

Competitiveness

World-class brand recognition

Customers

Home appliance mass retailers
Craft specialty stores
E-commerce site operators

Products

Innov-is Series
Embroidery Sewing Machine
Cutting Machine

Competitive Advantage

Strengths

Possesses a global sales network
Top share in multifunction devices and faxes in North America
World top class in home sewing machines
Laser printer development using proprietary technology
Advanced IoT-compatible industrial sewing machines
Business risk diversification through diversification
Strengthening industrial printing with subsidiary Domino
Strong brand recognition and trust
Diverse product lineup
Possesses advanced technological development capabilities
Absorption of UK industrial printing machinery technology
High-precision processing technology for industrial machinery
Presence in communication karaoke equipment market
Long-term technological accumulation and patents
Strong global support system

Competitive Advantages

Top share in fax multifunction devices in North American market
Global brand position in home sewing machines
Development of proprietary tandem color engine
Successful diversification establishing solid management base
Promotion of innovative technologies like IoT industrial sewing machines
Market superiority through JOYSOUND communication karaoke technology
Acquisition and integration of industrial printing exclusive company Domino
Multi-site production system deployed globally
Market diversification response through wide product range
High technological assets cultivated over many years
Secure strong sales channels and customer base
Niche market development with innovative products
Practical application of advanced electronic paper technology
High precision and reliability in industrial machine tools
Technological foundation for digital and network business

Threats

Intensifying competition with large IT companies in the market
Need to keep up with the speed of technological innovation
Risk of profit deterioration due to overseas exchange rate fluctuations
Domestic market shrinkage due to aging population
Demand fluctuations due to digitalization of printer market
Market share capture by major competitors' diversification
Price competition pressure in emerging markets
Global instability in supply chains
Increased manufacturing costs due to strengthened environmental regulations
Increasing IoT security risks
Risk of productivity decline due to labor shortage
Risk of technology patent imitation

Innovations

2023: IoT-compatible Industrial Sewing Machine NEXIO BAS-H Released

Overview: Launched the latest industrial sewing machine equipped with IoT technology for remote monitoring and efficiency improvement.
Impact: Improves manufacturing site productivity by about 20%

2022: Successful Miniaturization of Electronic Paper Display Device

Overview: Achieved practical use of portable electronic paper terminals through miniaturization of retinal scan display technology.
Impact: Creation of new markets and patent acquisition

2021: Expansion of Industrial Printing Machines through Acquisition of UK Domino

Overview: Strengthened industrial printing business by making Domino Printing Sciences a wholly-owned subsidiary.
Impact: Increased industrial printing business sales by 30%

2024: Launch of BEaaS Cloud-linked Embroidery Sewing Machine Service

Overview: Provides cloud service for business embroidery sewing machines, achieving UX and DX improvements.
Impact: Improved customer satisfaction and strengthened new customer acquisition

2023: Improvement of Tandem Color Laser Engine

Overview: Implemented higher efficiency for in-house color laser engine in use since 2007.
Impact: Printer performance improvement and cost reduction

2020: Commercialization of AR Retinal Scan Display 'AiRScouter'

Overview: Successfully commercialized AR display as an industrial visual support device.
Impact: Expectations for business efficiency improvement and expansion to multiple industries

2022: Development of Next-Generation Laser Marker Technology

Overview: Equipped new products with high-definition, high-speed laser marking functions.
Impact: Strengthened competitiveness in industrial printing field

2021: Development of Network-type Karaoke Platform 'CROSSO'

Overview: Subsidiary Exing released platform for next-generation communication karaoke services.
Impact: Expansion of user base and acquisition of stable revenue sources

2023: Quality Improvement of Inkjet Multifunction Device Heads

Overview: Renewed printing heads of MFC multifunction devices, succeeding in reducing failure rate.
Impact: Improved customer satisfaction and reduced warranty costs

2024: AI-based Automatic Embroidery Design Generation Technology

Overview: Introduced system that automatically generates embroidery designs at order receipt using AI technology.
Impact: Shortened order processing time and improved business efficiency

Sustainability

Promotion of energy efficiency improvements in factories
Environmentally considerate product design and recycling promotion
Setting global targets for CO2 emission reduction
Promoting employee diversity and creating comfortable workplaces
Environmental conservation activities in collaboration with local communities
Strengthening sustainability across the entire supply chain
Introduction of rules for sustainable material procurement
Enhancement of ESG (Environment, Society, Governance) information disclosure
Thorough waste reduction and resource recycling activities
Participation in sustainable urban development projects
Promotion of plastic reduction in packaging materials
Improved energy-saving performance of business equipment