Circulation

Basic Information

Stock Code
7379
Industry
Services
Category Detail
Professional Services for Businesses
Prefecture
Tokyo
Establishment Year
January 2014
Listing Year
July 2021
Official Website
https://circu.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Circulation is a leading human resources services company established in 2014, offering pro-sharing services that provide highly specialized professional talent to companies.

Current Situation

Circulation recorded standalone net sales of approximately 7.6 billion yen and net profit of approximately 170 million yen for the fiscal year ending July 2024, continuing steady growth. Its mainstay pro-sharing business boasts over 20,000 registered professional talents and numerous project achievements, providing high-value-added services to address management challenges. The company has expanded regional bases nationwide, strengthening support for local businesses. In technology development, it focuses on enhancing matching accuracy and operational efficiency using digital tools. It is proactive in ESG initiatives and social contributions, tackling diverse social issues through business succession support, side job promotion services, and more. As a differentiator from competitors, it has established a sharing model for highly specialized talent, expanding its customer base across large enterprises to SMEs. Moving forward, it aims to strengthen its domestic and international business foundation through strategic allocation of management resources and new service development.

Trivia

Interesting Facts

  • Number of registered pro talents exceeds 20,000, among the top in the industry.
  • Focuses on supporting local companies with 7 bases nationwide.
  • Actively advocates new working styles for the side job and multi-job era.
  • Listed on the Tokyo Stock Exchange Growth Market in 2021, growing in the public market.
  • The former representative director's resignation drew attention.
  • Pioneer in popularizing the pro-sharing concept in Japan.
  • Operates diverse side job support media 'nomad journal'.
  • President Yuto Fukuda is central to management reform and DX promotion.
  • Has formed capital and business alliances with numerous large companies.
  • Holds strong track record in business succession support.

Hidden Connections

  • Strengthened freelancer domain through capital and business alliance with CrowdWorks.
  • Expanded management support from financial perspective via alliance with Mizuho Bank.
  • Simplex Holdings provides strategic support as major shareholder.
  • Actively expanding local bases beyond Tokyo to contribute to regional economies.
  • Contributes to market matching optimization through freelancer diagnosis.
  • Advances social issue resolution activities via Social Development Promotion Office.
  • One of the growth companies as a Tokyo Stock Exchange Growth Market listed firm.
  • Leads new trends in talent utilization through side job media operations.

Future Outlook

Growth Drivers

  • Increasing market needs with penetration of diverse working styles
  • Expansion of demand for advanced talent due to DX promotion
  • Regional economic revitalization through pro talent utilization by local companies
  • Formation of social trends from side job deregulation and multi-job promotion
  • Business expansion through strengthened partner company collaborations
  • Service sophistication utilizing AI and digital technologies
  • Market share expansion through new customer segment acquisition
  • Increasing demand for social issue resolution services
  • Entry into overseas markets and international collaborations
  • Diverse business development in education and training areas

Strategic Goals

  • Expand registered pro talent to over 50,000
  • Deploy 15 or more bases in major cities nationwide
  • Achieve net sales exceeding 10 billion yen
  • Strengthen social value creation aligned with SDGs
  • Become industry leader through DX services
  • Expand service provision to diverse customer segments
  • Realize long-term profitability and sustainable growth
  • Improve brand recognition in side job and freelancer markets
  • Generate 10 or more new businesses annually
  • Contribute to local revitalization through regional collaborations

Business Segments

Pro talent matching

Overview
Service matching highly specialized pro talent to corporate challenges
Competitiveness
Network of over 20,000 registered pro talents
Customers
  • SMEs
  • Venture companies
  • Large enterprises
  • Startups
  • Local governments
Products
  • Pro-sharing matching
  • Spot consulting
  • Long-term project support

New business creation support

Overview
Comprehensive support service for new business creation and idea development
Competitiveness
Experienced professionals and extensive industry knowledge
Customers
  • Large enterprises
  • Mid-sized companies
  • Startups
  • Investment funds
Products
  • Open Idea
  • Innovation consulting
  • Business planning support

Technical support and IT consulting

Overview
Provides technology strategy and development support for CTOs and engineers
Competitiveness
Team of specialists focused on technical fields
Customers
  • IT companies
  • Manufacturing
  • Financial institutions
  • Government offices
Products
  • CTO support
  • System optimization
  • IT strategy formulation

Business succession and organizational growth support

Overview
Comprehensive support for business succession from a people and organizational growth perspective
Competitiveness
Team of consultants with extensive industry track record
Customers
  • SMEs
  • Family businesses
  • Business owners
Products
  • Business succession support
  • Organizational development consulting
  • Talent development programs

Side job and multi-job promotion service

Overview
Provides information and systems to promote new ways of working
Competitiveness
Rich services accommodating diverse working styles
Customers
  • Companies
  • Sole proprietors
  • Freelancers
Products
  • Side job consulting
  • Welfare benefits plan
  • Nomad Journal

Local revitalization support

Overview
Supports utilization of local pro talent for regional challenges
Competitiveness
Nationwide branch network
Customers
  • Local governments
  • Regional companies
  • SMEs
Products
  • Regional talent utilization
  • Local project support
  • Regional collaboration promotion

Digital talent services

Overview
Talent provision and training support specialized in digital fields
Competitiveness
Talent database corresponding to latest technologies
Customers
  • IT ventures
  • Large companies
  • Startups
Products
  • Digital talent introduction
  • IT training
  • Project management support

Education and training business

Overview
Conducts training aimed at skill improvement for talent
Competitiveness
Customized programs based on proven track record
Customers
  • Corporate training managers
  • Individual learners
  • Educational institutions
Products
  • Training program development
  • Seminar operations
  • Skills diagnosis tools

Business consulting

Overview
Deploys support for solving management challenges to promote corporate growth
Competitiveness
Experienced talent adaptable to diverse industries
Customers
  • Corporate executives
  • SMEs
  • Startup investors
Products
  • Management strategy consultation
  • Financial advice
  • Marketing support

IT system operation support

Overview
Provides technical support from system introduction to operation
Competitiveness
Continuous support by specialist technicians
Customers
  • Government offices
  • General companies
Products
  • System infrastructure development
  • Operation management
  • Technical support

M&A advisory

Overview
Comprehensive support services for business transfers and acquisitions
Competitiveness
Extensive network and expertise across industries
Customers
  • Prospective acquirers
  • Prospective sellers
Products
  • M&A intermediation
  • Financial analysis
  • Integration consulting

CSR and SDGs consulting

Overview
Provides consulting for creating social value
Competitiveness
Practical know-how for solving social issues
Customers
  • Companies
  • Local governments
  • NPOs
Products
  • Sustainability assessment
  • Social contribution planning
  • Environmental response support

Competitive Advantage

Strengths

  • Extensive network of highly specialized pro talent
  • Regional responsiveness through nationwide branch network
  • Diverse industry knowledge and numerous achievements
  • Utilization of innovative matching technology
  • Strong capital alliances and partner companies
  • Rapid management challenge resolution capabilities
  • Flexible service customization
  • Adaptability to broad customer segments
  • Leadership from experienced management team
  • Diverse service lineup
  • Comprehensive freelancer support system
  • Proactive stance on social issues
  • Stable financial base
  • Digitalization promotion for operational efficiency
  • Strong network building capabilities

Competitive Advantages

  • Unique business model enabling sharing of highly specialized pro talent as needed
  • High matching accuracy from over 20,000 diverse registrants
  • Improved access to regional companies and localized services via local bases
  • Comprehensive response to customer needs across diverse business areas
  • Solid resources and trust gained through partner companies and capital alliances
  • Project management and efficiency via technology utilization
  • Flexible working style support services for side job and multi-job era
  • Strengthened SDGs-linked services aiming for social issue resolution
  • Strategic management led by experienced leadership team
  • Industry-leading track record and know-how accumulation
  • Established broad customer base from companies to freelancers
  • Fusion of IT technology-driven management and technical support
  • Customizable service suite for diverse industries
  • High-quality talent development through enriched education and training programs
  • Market trend forecasting based on advanced data analysis

Threats

  • Expansion of similar services by competitors
  • Cost increases due to intensifying talent acquisition competition
  • Decreased corporate hiring and investment during economic downturns
  • Increased operational costs from strengthened regulations
  • Risk of lagging behind technology changes
  • Decline in local market demand or widening regional disparities
  • Accelerated innovation by new entrants
  • Difficulty adapting to diversifying customer needs
  • Contract risks from changes in labor market fluidity
  • Increased service demands from escalating social issues
  • Deteriorating fundraising environment due to capital market fluctuations
  • Risk of information security breaches

Innovations

2023: Introduction of AI matching algorithm

Overview
Introduced AI technology to improve matching accuracy between pro talent and companies.
Impact
Matching success rate improved by 20%

2022: Launch of new business launch support service 'Open Idea'

Overview
Released support program to promote corporate new business creation.
Impact
New case acquisitions increased by 15%

2021: Expansion of local bases to strengthen community-focused services

Overview
Opened 7 bases including Osaka, Nagoya, and Fukuoka to enhance services for local companies.
Impact
Local case acquisitions increased by 30%

2024: Expansion of freelancer welfare benefits 'Circulation Benefit Plan'

Overview
Expanded welfare benefits to strengthen secure employment support for freelancers.
Impact
Improved satisfaction among registered freelancers

2020: Development of digital work platform

Overview
Introduced system to streamline online case management and communication.
Impact
Operational efficiency improved by 10%

Sustainability

  • Employment creation support activities contributing to local revitalization
  • Work-life balance improvement through promotion of diverse working styles
  • Strengthened programs for utilizing female and senior talent
  • Expansion of services addressing social challenges
  • Digitalization promotion aiming to reduce environmental impact