Right-On

Basic Information

Stock Code
7445
Industry
Retail
Category Detail
Apparel & Fashion Retailers
Prefecture
Tokyo
Establishment Year
April 1980
Listing Year
May 1995
Official Website
https://right-on.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Adastria, Star Seas, ANAP Holdings, TOKYO BASE, Baroque Japan Limited, Marche, Workman, MacHouse, United Arrows, Cross For, Shimamura, Cox

Overview

Right-On is a Japanese retailer founded in 1980, specializing in casual apparel centered on jeans, with nationwide operations and support from a wide range of customers as an apparel chain company.

Current Situation

Right-On achieved net sales of approximately 38.8 billion yen in the fiscal year ending August 2024, operating 473 stores nationwide. Jeans are its main product, providing casual clothing to a wide customer base regardless of age or gender. In addition to Right-on, its formats include Right-on ex, FLASH REPORT, BACK NUMBER, CHIME, BACK NUMBER KIDS, Naughty Dog, and others for diversification. Following the successful TOB by W&D Investment Design Co., Ltd. in January 2025, it is strengthening management under the World Group umbrella. By relocating its head office functions to Taito Ward, Tokyo, from the main store in Tsukuba City, it is promoting efficient operations and cost reductions. It has introduced Fujitsu-made POS systems to enhance inventory management and sales promotion. It is also addressing sustainability for sustainable business operations, with plans to improve brand value domestically and internationally and launch new formats in the future.

Trivia

Interesting Facts

  • Right-On is one of Japan's first casual apparel specialty store chains.
  • The Tsukuba main store building is known for its distinctive architecture designed by Arata Isozaki.
  • It once received a recommendation from the Japan Fair Trade Commission for violations related to delayed subcontractor payments.
  • Entered the Taiwan market for the first time in 2016 and is advancing local expansion.
  • Acquired a wide customer base through diverse brand deployments.
  • Sponsors Christmas illuminations in Tsukuba City every year.
  • Adopts Fujitsu-made POS system for efficient sales management.
  • Undergoing regeneration with management support from World Group.
  • One of the key players in the youth jeans market.

Hidden Connections

  • Parent company W&D Investment Design is a joint venture between World and the Development Bank of Japan.
  • Conducts business in the center of Tsukuba Academic New Town and is a regular member of the local revitalization council.
  • Strengthened collaborations expected with industry competitors like MacHouse and Adastria.
  • Past FTC recommendation served as a catalyst for strengthening internal controls.
  • Features diverse store formats in collaboration with department stores and shopping centers.

Future Outlook

Growth Drivers

  • Market expansion through aggressive rollout of new store formats
  • Competitive strengthening via utilization of World Group's management resources
  • Expansion of digital sales channels and EC reinforcement
  • Advanced marketing through customer data utilization
  • Promotion of sustainable product development and environmental measures

Strategic Goals

  • Optimization and expansion of store networks domestically and internationally
  • Increase EC sales ratio to over 30%
  • Achieve over 50% ratio of sustainability-compliant products
  • Further strengthening of management foundation and profitability improvement
  • Creation of new brands targeted at youth market

Business Segments

Store-Directed Product Procurement

Overview
Supplying a wide range of apparel to retailers to ensure stable distribution channels.
Competitiveness
Stable supply capacity through nationwide multi-format expansion
Customers
  • Department Store Tenants
  • Shopping Mall Managers
  • Retail Stores
  • Specialty Store Owners
Products
  • Jeans
  • Casual Apparel
  • Outdoor Gear
  • Children's Clothing

OEM and Collaborative Business

Overview
Addressing diverse customer needs through OEM product development.
Competitiveness
High-quality provision through design capabilities and manufacturing collaboration
Customers
  • Fashion Brands
  • Corporate Uniform Manufacturers
  • Sports Equipment Manufacturers
  • Event Staff Service Providers
Products
  • Casual Apparel OEM
  • Uniform Production
  • Limited Collaboration Products

Logistics and Distribution Center Operations

Overview
Achieving rapid store delivery through in-house logistics systems.
Competitiveness
Efficient logistics system integrated with POS
Customers
  • Warehouse Management Companies
  • Delivery Companies
  • Affiliated Chain Stores
Products
  • Inventory Management Systems
  • Logistics Efficiency Services

Competitive Advantage

Strengths

  • Nationwide store network
  • Specialization in jeans
  • Ability to cater to a wide customer base
  • Diverse brand deployment
  • Efficient sales management via POS systems
  • Management foundation under World Group
  • Abundant product development experience
  • Outlet business expansion
  • Community-based store operations
  • Diverse sales channels

Competitive Advantages

  • Product assortment covering youth to family segments
  • Brand awareness expansion through multi-format stores
  • Management stabilization via World Group support
  • Flexible product strategy utilizing POS data
  • Adaptability to diverse sales channels and store formats
  • Coexistence strategy of outlets and urban stores
  • Proactive investment in new formats
  • Specialized expansion in children's clothing market
  • Improved profitability through cost reduction and IT utilization
  • Stable procurement network

Threats

  • Intensifying price competition in apparel industry
  • Diversification of consumer fashion preferences
  • Impact on store operations from external factors like COVID-19
  • Raw material price fluctuation risks
  • Intensifying competition with major online players
  • Changes in youth consumption behavior
  • Cost increases from strengthened environmental regulations
  • Labor shortages and rising personnel costs
  • Supply chain instability
  • Strengthened promotional regulations from legal amendments

Innovations

2023: Consolidation of head office functions in Taito Ward, Tokyo

Overview
Consolidated and relocated head office functions for cost reduction and operational efficiency improvement.
Impact
Improved management efficiency and decision-making speed

2024: Full update of POS system

Overview
Optimized sales management by renewing Fujitsu-made POS system.
Impact
Improved inventory turnover and strengthened sales promotion

2022: Expansion of outlet formats

Overview
New outlet store openings using the 'BACK NUMBER' brand.
Impact
Increased customer traffic from youth and families

2021: Strengthened rollout of new children's brand 'Naughty Dog'

Overview
Accelerated rollout of new jeans-focused brand for children.
Impact
Expanded market share in children's clothing

2025: Business reorganization through World Group collaboration

Overview
Implemented management foundation strengthening with group support post-TOB.
Impact
Stabilized financial base and accelerated business growth

Sustainability

  • Promotion of energy-saving and LED lighting in stores
  • Strengthened recycling for waste reduction
  • Promotion of product development using sustainable materials
  • Environmental protection activities in collaboration with local communities
  • Promotion of environmentally considerate store designs