Daiichi Kosho

Basic Information

Stock Code
7458
Industry
Wholesale
Category Detail
Leisure & Recreation Facilities
Prefecture
Tokyo
Establishment Year
April 1973
Listing Year
September 1995
Official Website
https://www.dkkaraoke.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Koshidaka Holdings, Tetsujin Holdings, Suppin, Hirakawa Hutech, NISSO

Overview

Daiichi Kosho, established in 1973, is the industry leader in business karaoke equipment sales and karaoke boxes, with communication karaoke DAM at its core, and engages in diversified business operations.

Current Situation

Daiichi Kosho recorded consolidated sales of approximately ¥93.3 billion in its latest financial results, maintaining its position as the industry leader in sales of business communication karaoke equipment and karaoke room operations. It operates karaoke boxes 'Big Echo' nationwide, striving to expand its customer base through discounts for the disabled and various point services. Technologically, it highly integrates communication karaoke DAM equipment and services, focusing on its proprietary membership services and internet karaoke business. By making record company subsidiaries and engaging in satellite broadcasting, it strengthens content production and delivery, while expanding store operations through directly operated and franchise models. Amid the COVID-19 pandemic, it implemented temporary closures and phased reopenings, while also launching new services such as telework spaces. Toward sustainable growth, it actively supports diverse payment channels and community-based social contributions. Moving forward, its strategy is to establish a competitive edge in the market through strengthened diversified businesses and digitalization initiatives.

Trivia

Interesting Facts

  • Business communication karaoke system 'DAM' was launched in 1994 as Japan's first communication karaoke system.
  • Karaoke box 'Big Echo' boasts the largest number of stores in Japan.
  • Subsidiary Nippon Crown is a long-established record company with a long history.
  • Daiichi Kosho grew from audio equipment sales founded in 1971.
  • Possesses proprietary exclusive songs and has won exclusive audio source competitions against competitors.
  • New format 'VIGO' is attracting attention as an adult luxury karaoke room.
  • Has numerous sales subsidiaries nationwide to strengthen local sales.
  • Pioneered telework business in the industry and succeeded in diversification.
  • Point services feature integrated card-type electronic money for enhanced convenience.
  • Acquired closed stores from Cidax Community to expand franchise base.
  • Offers higher discount rates for disabled than competitors to differentiate.
  • Corresponds to diverse customer needs with 8 QR code payments.
  • Operates satellite music broadcasting STAR digio as a music content business.
  • Founder Tadanori Hoshi has shaped the company culture through long-term management.
  • Business karaoke remote 'Denmoku' has become the industry standard.

Hidden Connections

  • Partnership with ANA Mileage Club allows earning miles through point services.
  • Partners with multiple local governments in Japan to contribute to regional revitalization.
  • Maintains relationships with diverse music artists through subsidiary record companies.
  • Forms unique online community via customer SNS 'DAM★とも'.
  • Synergies with restaurant management address complex entertainment needs and expand market.
  • Provides system introduction support and operation consulting to franchise stores.
  • Collaborates with CS broadcasters and community FM in satellite music broadcasting.
  • Has experienced court battles with competitors over past patent infringements.

Future Outlook

Growth Drivers

  • High-functionality communication karaoke equipment and IoT utilization
  • Response to diversifying leisure needs and new format deployment
  • Growth of digital content delivery services
  • Strengthening diverse payment and point services for customers
  • Business telework services and new market development
  • Revenue expansion in diversified music production and broadcasting
  • Customer base expansion through accelerated regional deployment
  • Brand value enhancement through SDGs initiatives

Strategic Goals

  • Maintain business communication karaoke share and promote technological innovation
  • Nationwide deployment of new format store portfolio responding to diverse customer needs
  • Advance sustainability through reduced environmental impact and social inclusion
  • Expand digital platforms and strengthen customer data utilization
  • Achieve 30% of group sales from new businesses
  • Secure top share in business telework services
  • Further strengthen sales systems of nationwide sales subsidiaries
  • Strengthen social responsibility and promote employee diversity
  • Enhance sustainable social contributions through local community collaboration

Business Segments

Business Communication Karaoke Equipment Sales and Rentals

Overview
Provides sales and services of communication karaoke equipment for business facilities.
Competitiveness
No.1 market share in communication karaoke equipment industry and strong support capabilities
Customers
  • Karaoke box operators
  • Dining chain stores
  • Nightclubs
  • Hotels
  • Amusement facilities
  • Large commercial facilities
Products
  • Communication Karaoke System DAM
  • Operation Remote Terminal Denmoku
  • Communication Line Services
  • Software Update Services

Karaoke Room Store Development and FC Support

Overview
Develops and operates karaoke box stores and supports franchisees.
Competitiveness
Comprehensive support backed by extensive large-scale store operation expertise
Customers
  • Franchise stores
  • Directly operated stores
  • Dining operators
  • Event companies
Products
  • Karaoke box operation know-how
  • Customer attraction support and marketing services
  • Store design and interior support
  • Sales management systems

Content Production and Delivery

Overview
Content production and delivery management through record company subsidiaries.
Competitiveness
Vertically integrated music and video production and delivery capabilities
Customers
  • Music publishers
  • Content production companies
  • Delivery platforms
  • Broadcasters
Products
  • Music software production
  • Video production
  • Audio · Lyrics delivery services
  • Rights management and licensing services

Web Delivery and Mobile Services

Overview
Karaoke and music content delivery via the internet.
Competitiveness
Extensive digital delivery network with own brands
Customers
  • End users
  • Telecom carriers
  • Media companies
  • Advertising agencies
Products
  • Internet karaoke services
  • Ringtone delivery
  • SNS-linked services
  • Delivery platform operations

Satellite Broadcasting and BGM Delivery Business

Overview
Provides corporate music broadcasting and store BGM delivery services.
Competitiveness
Comprehensive broadcasting channels and copyright agreements
Customers
  • Store and facility operators
  • Broadcasters
  • Event organizers
  • Cable TV operators
Products
  • STAR digio music broadcasting
  • STAR☆DAM corporate services
  • BGM/BGV delivery services

Music Production Related Business

Overview
Wide-ranging operations from music software production to artist support.
Competitiveness
Robust music copyright management and production system
Customers
  • Artists
  • Music producers
  • Video production companies
  • Promotion companies
Products
  • Record production
  • Music publishing
  • Artist management
  • Event planning and operation support

Restaurant and Complex Store Operations

Overview
Operations of stores fusing karaoke boxes and restaurants.
Competitiveness
Multi-format fusion and region-specific service deployment
Customers
  • Food ingredient manufacturers
  • Food wholesalers
  • Dining franchises
  • General customers
Products
  • Karaoke-equipped restaurant operations
  • Menu development
  • Staff training
  • Store management systems

Parking Business

Overview
Parking lot management services through coin parking operations.
Competitiveness
Efficient region-focused parking operation know-how
Customers
  • Car users
  • Real estate management companies
  • Local governments
Products
  • Coin parking operations
  • Parking lot management systems
  • Contract management

Card and Point Services

Overview
Provides electronic money and point services for members.
Competitiveness
Integration with diverse payment methods and abundant discount benefits
Customers
  • General consumers
  • Point partner companies
Products
  • BIG ECHO club DAM MEMBERSHIP Card
  • Point management systems

Telework Space Provision Services

Overview
New workstyle support services utilizing karaoke stores.
Competitiveness
Convenience of nationwide stores and rapid deployment capability
Customers
  • Corporate customers
  • Teleworkers
  • Local governments
Products
  • Telework spaces using karaoke stores
  • Reservation management systems
  • Health and safety management

Customer Data Analysis and Marketing

Overview
Marketing support utilizing customer behavior data.
Competitiveness
Cross-business data integration and analysis capabilities
Customers
  • Internal business divisions
  • Advertising agencies
  • Marketing companies
Products
  • Customer usage data analysis services
  • Promotion planning support

Competitive Advantage

Strengths

  • Largest market share in business communication karaoke
  • Abundant content and proprietary communication technology
  • Nationwide network of directly operated karaoke box stores
  • Introduction of diverse payment and point services
  • Stable content supply from record company subsidiaries
  • Strong industry brands 'DAM' and 'Big Echo'
  • Vertically integrated communication system and content structure
  • Region-focused sales through extensive sales subsidiaries
  • Diversified revenue base through multi-business segments

Competitive Advantages

  • Overwhelming market dominance of communication karaoke device 'DAM'
  • Proprietary membership services and diverse customer loyalty measures
  • Exclusive song provision system through subsidiary record companies
  • Nationwide store deployment via directly operated and franchises
  • Enhanced service integration using ICT and IoT technologies
  • Superior diverse electronic payments and point linkages
  • Revenue risk diversification through diverse business segments
  • Advanced initiatives like new store formats and telework services
  • Stable revenue structure backed by strong customer base
  • Broad content delivery business using satellite broadcasting

Threats

  • Decline in business store demand due to COVID-19
  • Intensifying equipment and content development by competitors
  • Legal risks from song exclusivity issues in night markets
  • Emergence of new entrants with technology advancements
  • Risk of reduced usage from diversifying youth entertainment preferences
  • Consumer spending restraint due to economic fluctuations
  • Concerns over rising copyright-related costs and stricter regulations
  • Fluctuations in store sales due to digital media proliferation
  • Rising store operation costs from labor shortages
  • Increasing cybersecurity risks

Innovations

2024: Nationwide rollout of telework space services

Overview
Telework space services using karaoke stores rolled out to 500 stores nationwide.
Impact
Formation of new revenue pillar and securing non-face-to-face demand.

2023: Full store rollout of disabled discount services

Overview
Discount services upon presentation of disabled ID introduced at all Big Echo karaoke stores.
Impact
Expansion of customer base and strengthened community contributions.

2022: Enhanced smartphone payment diversification

Overview
Improved convenience by introducing 8 types of QR code payments.
Impact
Improved customer satisfaction and cashless promotion.

2021: Development of AI voice recognition singing evaluation system

Overview
Trial introduction of real-time singing analysis using AI technology.
Impact
Improved user experience and differentiation.

2020: Big Echo new format 'VIGO' Ginza store opening

Overview
New brand for adult luxury karaoke rooms launched in Ginza.
Impact
Successfully acquired new customer segments.

2020: Enhanced Karaoke@DAM internet service

Overview
Enriched communication karaoke services for home practice.
Impact
Responded to increased demand during the pandemic.

Sustainability

  • Promotion of social inclusion through disabled discount services
  • Promotion of cashless payments at nationwide stores
  • Environmentally considerate energy use in business activities
  • Strengthened collaboration with local communities
  • Improved work-life balance through diverse workstyle promotion