Zenken

Basic Information

Stock Code
7371
Industry
Services
Category Detail
Advertising
Prefecture
Tokyo
Establishment Year
July 1978
Listing Year
June 2021
Official Website
https://www.zenken.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Members, Carta Holdings, Oro, User Local, DI System, Giftee, Speee, Tryeyes, AnyMind Group, Geniee, Rentia, Macbee Planet, Net Advertising Agency Group that Sells

Overview

Zenken is a diversified services company in the information and communications industry, established in 1978, with strengths in advertising, language support, IT solutions, and matchmaking support.

Current Situation

Zenken recorded net sales of approximately ¥5.8 billion and operating profit of approximately ¥750 million in the fiscal year ended June 2020, securing stable earnings. In the advertising sector, it focuses on SEO and online marketing support. Language support includes foreign language education and study abroad services for children and working adults. The IT solutions business offers a wide range of services using cloud computing and web analytics, and it also operates e-commerce sites in the health and beauty sector. By providing diverse services such as matchmaking and job placement support, it has built a stable customer base. After listing on the Tokyo Stock Exchange Growth Market in 2021, it transferred its English conversation schools to concentrate management resources on IT and language training. Moving forward, it positions the expansion of inbound demand and foreign talent business as growth drivers. It focuses on developing sustainable IT services and strengthening its organization, while advancing digitalization and global expansion as mid- to long-term goals. Recently, it has been actively involved in talent development support in the Indian market and AI-based IT service development.

Trivia

Interesting Facts

  • One of Japan's early language support companies founded in 1975
  • English Conversation Linguage is reputed as a practical school for working adults
  • Listed on Tokyo Stock Exchange Growth Market in 2021
  • Long track record in both English and Japanese education
  • Previously operated flash marketing 'Grou'
  • Mid-sized company with 914 employees nationwide
  • Achieved business diversification through composite IT, education, and advertising
  • Concurrent community-based real estate leasing
  • Focus on foreign talent training in Japan and overseas
  • Certified qualification exam implementing organization by Ministry of Health, Labour and Welfare
  • Previously published manga information magazine
  • Operates job site specialized for health and beauty industry
  • Head office located in Nishi-Shinjuku, Shinjuku-ku
  • Handles from children's English classrooms to adult education
  • Changed company name to Zenken Co., Ltd. in 2023

Hidden Connections

  • Transferred English conversation business to NOVA Holdings to concentrate business resources
  • Partnered with Diamond Inc. to provide FP qualification business and numerous educational programs
  • Collaborated with Linguaphone Japan to develop English conversation business for working adults
  • Launched foreign worker support business with global inbound in mind
  • Zenken Education System's sold materials had Specific Commercial Transaction Law violation issues in the past
  • Actively promoting talent training and care worker business in India to develop the market
  • World Academy expanded in the 1970s was a pioneer of nationwide children's English conversation classrooms
  • Strong historical ties to education and culture business since founding

Future Outlook

Growth Drivers

  • Increasing demand from expansion of internet advertising market
  • Growth expectations in foreign talent training business
  • Recovery and expansion of inbound demand
  • Acceleration of digital education service penetration
  • Increasing demand for IT marketing in health and beauty fields
  • Response to diversifying language education needs
  • IT solution development through DX promotion
  • Increasing corporate recruitment and training needs
  • Strengthening community-based services
  • Market expansion from establishment of remote learning and work
  • Rising focus on sustainability and social contributions
  • Acceleration of new business and technology investments

Strategic Goals

  • Further diversification of business portfolio
  • Establish top-class position in overseas talent training market
  • Change to Tokyo Stock Exchange Prime Market listing
  • Double sales of digital marketing services
  • Sophistication and expansion of language training programs
  • Development of new services for health and beauty industry
  • Building sustainable management structure
  • New business creation utilizing cloud technology and AI
  • Strengthening contributions to local communities and environmental load reduction
  • Promoting employee diversity and work style reforms

Business Segments

Digital Marketing Support

Overview
Provides internet advertising and SEO support to companies across diverse industries, achieving customer acquisition enhancement.
Competitiveness
Technical support based on extensive SEO know-how and track record
Customers
  • Small and medium-sized enterprises
  • Large corporations
  • Advertising agencies
  • EC operators
  • SNS management companies
  • IT companies
  • Manufacturing
  • Services
  • Educational institutions
  • Medical institutions
Products
  • SEO Consulting
  • Web Analytics Service
  • Ad Management Support
  • SNS Marketing Support
  • Content Creation
  • Ad Effectiveness Measurement
  • Data Analysis Service
  • Marketing Automation
  • Listing Ads
  • Video Ad Production

Language Education and Training Services

Overview
Provides language training and related services to educational institutions and companies, promoting global talent development.
Competitiveness
Long years of language business operation and diverse program offerings
Customers
  • School corporations
  • Corporate training departments
  • Local governments
  • Study abroad aspirants
  • Language school operators
  • Foreign worker support organizations
  • Recruitment support companies
  • Job support organizations
  • Individual learners
  • Education-related groups
Products
  • English Conversation School Operation
  • Japanese Education Program
  • Qualification Acquisition Courses
  • Study Abroad Support
  • Training Material Development
  • Online English Conversation
  • Corporate Language Training
  • Job Support Courses
  • Talent Development Programs
  • Event Planning and Operation

IT Solution Provision

Overview
Provides IT solutions to multiple fields such as education, health/beauty, and jobs, supporting business efficiency.
Competitiveness
対応 to wide industries and contract development track record
Customers
  • Educational institutions
  • Health and beauty industry
  • Recruiting companies
  • Small and medium-sized enterprises
  • Talent agencies
  • Inbound-related companies
  • Government offices
  • Flash marketing operators
  • e-Learning companies
  • Correspondence education companies
Products
  • Website Creation and Operation
  • Online Learning System
  • Job Information Management System
  • Health Beauty Trading Site
  • IT Consulting
  • Talent Referral Platform
  • Data Analysis Tool
  • Cloud Service Introduction
  • API Development
  • Electronic Material Development

Matchmaking and Job Support Services

Overview
Promotes matching between individuals and companies through multifaceted matchmaking and job support services.
Competitiveness
Know-how in youth-focused employment skills development
Customers
  • Matchmaking aspirants
  • Youth in job hunting
  • Corporate HR departments
  • Local governments
  • Talent agencies
  • Event planning companies
  • Educational institutions
Products
  • Matchmaking Matching System
  • Job Skills Courses
  • Recruitment Consulting
  • Career Counseling
  • Online Matching
  • Talent Database Operation
  • Job Support Events

Education and Culture Business Support

Overview
Provides textbooks and operation support to educational institutions to enrich learning environments.
Competitiveness
Extensive material development experience and community-based services
Customers
  • Cram schools
  • Educational publishers
  • School corporations
  • Correspondence education companies
  • Local education boards
  • Cultural groups
  • Individual tutoring classrooms
Products
  • Textbook Sales
  • Cram School Operation Support
  • Correspondence Education Support
  • Educational Event Planning
  • Cultural Seminars
  • Educational IT Introduction Consulting
  • Qualification Acquisition Guidance

Health and Beauty Industry Support Business

Overview
Accelerates digitalization in the beauty and health industry, providing sales and customer acquisition support.
Competitiveness
Specialized digital service deployment in health and beauty industry
Customers
  • Beauty salons
  • Health food manufacturers
  • Medical institutions
  • Health-related companies
  • Beauty equipment retailers
  • Online mail-order companies
  • Recruiting companies
Products
  • Job Information Site
  • Commercial Trading Platform
  • Beauty Digital Advertising
  • Health Consultation System
  • Online Sales Support
  • Talent Referral Service
  • Digital Marketing Support

Real Estate Leasing Business

Overview
Provides corporate leasing using owned real estate to secure stable income.
Competitiveness
Excellent location in central Tokyo's Shinjuku area
Customers
  • Corporate tenants
  • Event operators
  • Mid- to long-term renters
  • New businesses
  • Startups
Products
  • Office Leasing
  • Commercial Facility Leasing
  • Event Space Rental
  • Property Management Service

Overseas Talent Business

Overview
Diversified talent business centered on foreign talent training and referral.
Competitiveness
Multinational network and language education strengths
Customers
  • Foreign talent referral companies
  • Care operators
  • IT companies
  • Educational institutions
  • Inbound-related companies
Products
  • Foreign Care Worker Training
  • IT Talent Referral
  • Japanese Education Program
  • Internship Planning
  • Multicultural Coexistence Support

Flash Marketing Support

Overview
Marketing support centered on previously provided group buying services.
Competitiveness
Experience in consumer-participatory digital marketing
Customers
  • E-commerce operators
  • Retail
  • Advertising agencies
  • Event planning companies
Products
  • Group Buying Coupon Platform
  • Digital Promotion
  • Event-Linked Coupons

Qualification Certification Business

Overview
Supports lifelong education through qualification acquisition support and certification exam operation.
Competitiveness
Experience operating Ministry of Health, Labour and Welfare certified programs
Customers
  • Individual learners
  • Working adults
  • Educational institutions
  • Corporate talent development departments
Products
  • FP Qualification Support
  • Youth Employment Basic Skills Certification Exam
  • Qualification Acquisition Course Provision

Competitive Advantage

Strengths

  • Diversified business portfolio
  • Extensive language education know-how
  • Strength in digital marketing technology
  • Community-based real estate leasing
  • Experience in foreign talent training
  • Long-standing education and training system
  • Trusted as a Tokyo Stock Exchange Growth Market listed company
  • Track record of nationwide English conversation school chains
  • IT services specialized for health and beauty industry
  • Stable financial base
  • IT and talent fusion business development
  • Utilization of diverse sales channels
  • Advanced internet ad technology
  • Sustainable service development
  • Strong management team operation

Competitive Advantages

  • Differentiated from competitors through composite business in advertising, language, IT, and matchmaking support
  • Proven technical capabilities and track record in SEO and internet advertising
  • Broad service network in language support from children to adults
  • High-value-added services through IT consulting and contract development
  • Early entry into emerging markets with foreign talent training
  • Secures revenue stability through real estate business
  • Improved customer satisfaction with IT-driven marketing support
  • Flexible service design corresponding to diverse customer segments
  • Enhanced fundraising capabilities via Tokyo Stock Exchange Growth Market listing
  • Built community-based brand power through education and culture business
  • Deep market understanding specialized in health and beauty
  • Established value chain fusing talent, education, and IT
  • Strength in both corporate training and individual services
  • Able to provide extensive business efficiency tools
  • High market coverage through multi-channel sales

Threats

  • Rapid adoption of digital technologies by competitors
  • Decline in demand for language classrooms and face-to-face services due to COVID-19, etc.
  • Risk of strengthened regulations on foreign workers
  • Intensifying price competition in internet advertising market
  • Long-term risk of shrinking education demand due to declining birthrate
  • Rising costs for talent recruitment and training
  • Increased compliance costs from strengthened personal information protection regulations
  • Regulatory changes in health/beauty market and shifts in consumer preferences
  • Risk of revenue decline in real estate leasing
  • Exchange rate fluctuation risks in overseas business
  • Pressure from major entrants in online education market
  • Increase in new entrants due to deregulation

Innovations

2023: Strengthening App Development with Indian IT Talent

Overview
Accelerating application development in collaboration with Indian IT talent.
Impact
Improved development efficiency and numerous new project orders

2023: Foreign Care Worker Retention Support Project

Overview
Started support for settling foreign care staff in Tottori.
Impact
Contributes to alleviating regional care worker shortages and business expansion

2022: Introduction of AI-Utilizing SEO Marketing Service

Overview
Launched SEO optimization support service using AI analytics technology.
Impact
Improved client search rankings and cost-effectiveness

2021: Z-NET SCHOOL System Renewal for Digital Cram School

Overview
Enhanced functionality and UX of online learning system.
Impact
Succeeded in improving user satisfaction and acquiring new customers

2020: Large-Scale Renewal of Health and Beauty Trading Site

Overview
Comprehensive site renewal to improve usability.
Impact
Increased transaction volume and high evaluation from the industry

Sustainability

  • Promoting reduction in environmental impact through digital services
  • Talent development support through collaboration with local communities
  • Promoting sustainable transactions in health and beauty fields
  • Foreign support business advancing multicultural coexistence
  • Efficient education resource allocation through IT utilization
  • Promoting work-life balance for employees
  • Reducing transportation load through remote work introduction
  • Strengthening support for local events and cultural activities
  • Strengthening data privacy protection
  • Sustainable real estate management operations