Japan Craft Holdings

Basic Information

Stock Code: 7135
Industry: Retail
Category Detail: Specialty Stores & Drugstores
Prefecture: Aichi Prefecture
Establishment Year: January 2022
Listing Year: January 2022
Official Website: https://www.jcraft-hd.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Axus HD, Disrupta, Pixela, Ryohin Keikaku

Overview

Japan Craft Holdings is a retail holding company established in 2022, operating craft supply specialty stores and centering on publishing and educational businesses for multifaceted regional community-based operations.

Current Situation

Japan Craft Holdings recorded net sales of 15.7 billion yen and a net loss of 2.6 billion yen for the fiscal year ended June 2022. It operates its main craft supply specialty store 'Heart Craft Tokai' as well as publishing and educational businesses, strengthening operations centered on Fujikyū Co., Ltd. and Japan Vogue Co., Ltd. In recent years, it has established a management structure through stock exchanges and name changes, shifted to the Standard Market, and is working to stabilize its business. While focusing on the specialty store sector in the retail industry, it is also emphasizing sales channel expansion through mail-order and e-commerce. Moving forward, it will focus on improving its financial foundation and maximizing business synergies, aiming for sustainable growth and contributions to local society. While addressing intensifying competition and changes in consumer needs, it is strengthening digitalization promotion and new customer acquisition strategies. In the medium to long term, it aims to enhance subsidiary brand value, build a diverse business portfolio, and tackle profitability improvement and growth foundation establishment.

Trivia

Interesting Facts

Emerging company established in 2022 as the holding company for Fujikyū Co., Ltd.
Unique business model fusing craft material retail with publishing and education
Rare example of immediate listing on the Tokyo Stock Exchange Standard Market
Balances locally rooted management in Aichi Prefecture with nationwide business expansion
Craft supply specialty store 'Heart Craft Tokai' has high local recognition
Strengthened publishing business through full ownership of Japan Vogue
Promoting new sales strategies combining EC and store sales
Leading role in advancing sustainability in the specialty store industry
Actively hosts events and classes in collaboration with local communities
Brand supported by a wide age range centered on female customers
Quickly implemented market segment change after IPO
Enhanced presence in the hobby market with abundant craft kit assortments
Advanced DX by launching online craft classes in the education field
Possesses a customer base with high repeat rate
Actively implementing capital policies such as stock acquisition rights issuance

Hidden Connections

Inherited transaction network from Fujikyū era, closely collaborating with local retailers
Fuses specialized information dissemination and educational services through collaboration with Japan Vogue
Structure to maximize management synergies among group companies through holding company structure
CSR activities developed in collaboration with local community support initiatives in Aichi Prefecture
Hybrid strategy of EC and physical stores covering a wide range of new and existing customer segments
Achieved improved funding capabilities and recognition through simultaneous listing on TSE and Nagoya Exchange
Promoting management diversity and image refresh through appointment of female executives
Differentiates through specialty store-focused strategy differing from industry competitors

Future Outlook

Growth Drivers

Increasing niche demand in the specialty store market
Growth in EC and mail-order businesses and digitalization promotion
Service diversification in publishing and education fields
Sales growth accompanying customer base expansion
Expansion of sustainability-compliant products
Improved customer loyalty through strengthened regionally rooted services
Continuous reinforcement of digital marketing strategies
Market development through new craft kits and teaching materials
Cost reductions through logistics efficiency
Service quality improvements through human resource development
Potential for overseas craft products
Revenue stabilization through optimized group management

Strategic Goals

Establishment of a management structure achieving sustainable growth
Improvement in sales ratio of specialty stores and mail-order channels
Expansion of domestic market share in publishing and education businesses
Handling ratio of environmentally considerate products over 40%
Achievement of over 90% customer satisfaction
Business efficiency and customer experience improvements through DX promotion
Sales doubling through new market development
Strengthening of regional social contribution activities and improved social evaluation
Promotion of diverse human resource utilization and diversity
Construction of stable revenue base and enhanced shareholder value

Business Segments

Retail Management

Overview

Handles overall group management and strategy promotion.

Competitiveness

Optimal allocation of management resources and synergy creation

Customers

Subsidiary executives
Board of Directors
Business division managers
Finance department
Marketing department

Products

Business strategy formulation
Management resource allocation
Performance management systems
Risk management
Governance enhancement

Publishing and Educational Services

Overview

Provides publishing and services related to craft and hobby education.

Competitiveness

Abundant specialized knowledge and brand power

Customers

Educational institutions
Craft class operators
Vocational schools
Cultural organizations
Libraries

Products

Specialty book publishing
Correspondence education services
Workshop hosting
Teaching material sales
Online education programs

Product Development Support

Overview

Provides diverse product development and sales support services.

Competitiveness

Development capabilities aligned with the market and sales network

Customers

Retail operators
Craft supply manufacturers
Designers
Sales agents
New entrants

Products

Product planning support
Market research
Product test sales
Sales promotion plans
OEM/ODM対応

Logistics and Inventory Management Services

Overview

Services supporting efficient logistics and inventory management.

Competitiveness

Logistics optimization through group collaboration

Customers

Group companies
Logistics providers
Retail chains
Mail-order businesses
Warehouse operators

Products

Inventory management systems
Logistics optimization services
Delivery management
Returns management
Supply chain improvements

Marketing and Promotion Support

Overview

Comprehensive support for marketing strategies and promotional activities.

Competitiveness

Specialized marketing expertise

Customers

Retailers
Brand owners
Advertising agencies
EC operators
Event planning companies

Products

Promotion planning
SNS campaign operations
Customer analysis
Promotion tool production
Event planning and operations

Store Operations and Management Support

Overview

Supports store operation efficiency and sales improvement.

Competitiveness

Abundant store operation know-how and data analysis capabilities

Customers

Directly managed store managers
Franchise operators
Retail businesses
Facility managers
Store staff training staff

Products

Store management systems
Staff training programs
Sales data analysis
Business efficiency support
Shelf allocation planning

IT System Development and Maintenance

Overview

Provision and operation management of diverse IT solutions.

Competitiveness

IT services closely aligned with on-site needs

Customers

Group companies
Retailers
Mail-order businesses
Logistics companies
Educational institutions

Products

EC site development
Sales management systems
Customer management systems
Business system maintenance
Data analysis tools

Licensing and Brand Management

Overview

Supports brand value maintenance and expansion.

Competitiveness

Specialized intellectual property management system

Customers

Subsidiaries
Brand owners
Sales agents
Licensors
Marketing companies

Products

Brand license management
Contract management
Trademark management
Brand promotion
Rights protection activities

Quality Control and Safety Management Support

Overview

Supports product quality and safety assurance.

Competitiveness

Strict quality standards and management system

Customers

Manufacturers
Retailers
Inspection agencies
Logistics providers
Customers

Products

Product inspections
Raw material management
Safety standards operations
Traceability management
Complaint response support

Human Resource Development and Training Services

Overview

Provides training aimed at improving employee capabilities.

Competitiveness

Proven training curriculum

Customers

Group companies
Retail stores
Educational institutions
Employee training participants
Management layer

Products

Human resource development programs
Sales skills training
Management training
Online training
Evaluation system design

Environmental and CSR Consulting

Overview

Supports promotion of environmental conservation and social contribution activities.

Competitiveness

Track record of CSR activities through local collaboration

Customers

Group executives
Retail businesses
Local organizations
School corporations
Municipalities

Products

Environmental impact assessments
CSR strategy formulation
Sustainability report creation
Local contribution activity support
ESG compliance support

Legal and Compliance Support

Overview

Supports legal risk management and regulatory compliance.

Competitiveness

Experienced legal specialist team

Customers

Management divisions
Legal staff
Subsidiary managers
Audit institutions
Business partners

Products

Contract drafting support
Compliance education
Risk management
Corporate governance support
Internal audit response

Competitive Advantage

Strengths

High market recognition in the craft specialty field
Revenue base from diversified business operations
Strengths as a regionally rooted holding company
Rich brand power and specialized knowledge
Stable customer base and membership system
Flexible mail-order and EC operations
Business synergies from consolidated subsidiaries
Quick market response and product development capabilities
Strong editing and publishing capabilities
Specialized educational service provision
Group-wide management integration
Strategic promotion of new businesses
Unique logistics and inventory management know-how
Rich human resource development programs
Product planning based on customer needs

Competitive Advantages

Leading position in the craft supply specialty store market
Strengthening of cross-selling strategies with publishing and education businesses
Diversification of sales channels through integration of EC and physical stores
Building and maintenance of trust in regionally rooted brands
Efficiency through optimal allocation of management resources as a holding company
Customer management and marketing power utilizing information technology
Industry-specific know-how and long-term customer relationships
Business expansion and stabilization through integrated subsidiary management
Integrated service provision of specialty books and educational programs
Consistent support system from product planning to sales
High-quality product development and strict quality control
Product lineup capable of meeting diverse customer needs
Rapid sales promotion activities and brand strategies
Cost reduction effects utilizing group synergies
Environmental and social response capabilities supporting sustainable management

Threats

Impact on demand from changes in consumer lifestyles
Price competition and service enhancements by competitors
Store foot traffic decline due to COVID-19 effects
Rising pressure from raw material and manufacturing costs
Further intensification of competition in the EC market
Digital transformation risks accompanying technological innovations
Market contraction trends due to population decline
Logistics delays and quality issues in mail order
Cost fluctuations in imported goods due to exchange rate variations
Operational burdens from legal regulations and strengthened consumer protection
Delays in responding to sudden social trend changes
Supply chain disruptions from natural disasters, etc.

Innovations

2022: Integration of Fujikyū Co., Ltd. Shares and Holding Company Establishment

Overview: Conducted a sole share transfer of Fujikyū Co., Ltd. to improve management efficiency in the craft supplies sector and established a holding company.
Impact: Strengthening of group management structure and promotion of business integration

2022: Japan Vogue Made Wholly Owned Subsidiary

Overview: Completed making it a wholly owned subsidiary through stock exchange to strengthen publishing and educational businesses.
Impact: Business diversification and revenue stabilization in publishing and education fields

2023: Change to Tokyo Stock Exchange Standard Market

Overview: Focused on maintaining market suitability standards and enhancing corporate value through market segment change.
Impact: Improved trust from investors and improved funding environment

2023: Enhancement of EC Site Functions and Mail-Order Sites

Overview: Improved convenience for customers by strengthening mail-order sites for Shugale and Handmade Town.
Impact: Increase in mail-order sales and expansion of customer base

2023: Promotion of Digital Marketing Strategies

Overview: Focused on acquiring new customers and improving brand awareness through SNS and web advertising.
Impact: Refresh of brand image and improved sales promotion effects

2024: Advanced Logistics and Inventory Management Systems

Overview: Currently implementing system renewal for inventory optimization and logistics efficiency using IT.
Impact: Operational cost reductions and service quality improvements

2024: Expansion of New Craft Kit Product Development

Overview: Developed and began selling diverse craft kit lineups based on customer needs.
Impact: Sales increase and strengthened market competitiveness

2024: Launch of Online Craft Classes

Overview: Opened online classes for beginners to address digitalization of educational services.
Impact: Development of new customer segments and diversification of revenue sources

2024: Promotion of Sustainability Management

Overview: Advancing green procurement and energy-saving measures, strengthening handling of environmentally friendly products.
Impact: Improved corporate image and regulatory compliance

2024: Enhanced Customer Analysis Using AI

Overview: Introduced AI into sales data analysis for utilization in understanding customer needs and product planning.
Impact: Improved profitability through advanced sales strategies

Sustainability

Promotion of green procurement and active rollout of environmentally considerate products
CO2 emission reductions through energy-saving measures
Environmental conservation activities through collaboration with local communities
Implementation of sustainability education for employees
Logistics efficiency improvements aimed at reducing environmental impact