Advan Group

Basic Information

Stock Code
7463
Industry
Retail Industry
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
March 1975
Listing Year
October 1995
Official Website
https://www.advan.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Advan Group is a fabless manufacturer headquartered in Shibuya-ku, Tokyo, established in 1975, primarily engaged in manufacturing and selling housing equipment and building materials.

Current Situation

Advan Group recorded consolidated sales of approximately 204 million yen and capital of 12.5 billion yen in the fiscal year ended March 2023, mainly conducting manufacturing, sales, and wholesale business of building materials and housing equipment. Store interior building materials are its main products, and it handles a wide range of products including gardening supplies. Headquartered in Shibuya-ku, Tokyo, it has secured a certain market share in the intermediate distribution market, centered on building materials and housing equipment wholesale. Amid numerous competitors in the industry, it maintains competitiveness through stable supply capabilities and a diversified product lineup. In recent years, it has implemented capital policies such as treasury stock cancellation to strengthen its financial foundation. Moving forward, it aims for sustainable growth by addressing needs in the construction-related market primarily through BtoB transactions, while pursuing new customer development and product expansion. It is also emphasizing advertising efforts, utilizing TV Tokyo's sponsored program "Outbreak! Ad Street Heaven" to enhance corporate recognition. It is promoting production efficiency, including at the Fujimi Plant, and plans to strengthen environmentally friendly products and services in the medium to long term.

Trivia

Interesting Facts

  • Long-established building materials manufacturer with headquarters in Jingu-mae, Shibuya-ku, Tokyo.
  • Known as a fabless manufacturer of housing equipment.
  • Sponsor of TV Tokyo's popular program 'Outbreak! Ad Street Heaven'.
  • Has a stable capital base of 12.5 billion yen among mid-sized companies.
  • Main product is store interior building materials, highly evaluated in the industry.
  • Recently expanded business into gardening products.
  • Implementing treasury stock cancellation to promote financial health.
  • Strength in providing diverse products in bulk in building materials wholesale.
  • Built unique sales channels despite many competitors in the industry.
  • Approximately 254 employees, achieving efficient organizational operations.
  • Features actor Naoto Fujiki in advertising CMs.
  • One of the few companies operating in both building materials and housing equipment.
  • Focusing on development of eco-friendly products to promote sustainable management.
  • Actively collaborates with various industry associations for information exchange.
  • Established position in the industry centered on intermediate distribution.

Hidden Connections

  • Brand recognition expansion to consumers through long-running TV Tokyo program sponsorship.
  • Enables multi-variety deployment through flexible outsourced manufacturing in collaboration with partner factories.
  • Built partnerships and competitive relationships with multiple listed companies in the building materials wholesale market.
  • Deep ties with overseas material manufacturers through imports of some products.
  • Connections to the lifestyle-related products wholesale industry through gardening business.
  • Treasury stock cancellation reflects management stance emphasizing shareholder returns.
  • As a Tokyo-based company, has strong networks in the metropolitan construction industry.
  • Planning capabilities for housing equipment promote collaboration with design offices.

Future Outlook

Growth Drivers

  • Increasing demand for eco-friendly building materials
  • Expansion of remodeling demand for aging buildings
  • Recovery trend in housing starts in the Tokyo metropolitan area
  • Strengthening of multi-product provision capabilities for building materials
  • Promotion of digitalization in BtoB wholesale operations
  • Expansion of gardening-related market
  • Enhancement of regionally focused services
  • Rapid increase in demand for energy-saving and eco-materials
  • Strengthening sales to small and medium-sized carpentry shops
  • Cost reduction through advanced logistics systems
  • Improvement in corporate brand recognition
  • Expansion of value-added services related to construction

Strategic Goals

  • Development and dissemination of zero-environmental-impact building material products
  • Achieve annual sales of 3 billion yen
  • Complete digital transformation
  • Strengthen customer base through regionally focused sales
  • Active disclosure of sustainability metrics
  • Expand scale of gardening business
  • Achieve 20% sales ratio from new businesses
  • Further improve capital efficiency
  • Expand repeat customers through improved customer satisfaction
  • Improve workplace environment and strengthen employee education

Business Segments

Building Materials Wholesale

Overview
Main wholesale division responsible for intermediate distribution of various materials for construction sites.
Competitiveness
Comprehensive wholesaler able to provide a wide range of building material products in bulk.
Customers
  • Construction companies
  • Carpentry shops
  • Design offices
  • Home centers
  • Remodeling contractors
Products
  • Interior building materials
  • Exterior building materials
  • Scaffolding materials
  • Unit baths
  • System kitchens
  • Insulation materials
  • Piping materials

Housing Equipment Sales

Overview
Contributes to comfortable living environments through manufacturing and sales of housing equipment.
Competitiveness
Flexible planning capabilities and outsourced manufacturing system as a fabless manufacturer.
Customers
  • Housing manufacturers
  • Remodeling companies
  • New construction contractors
  • Design offices
Products
  • Unit baths
  • System kitchens
  • Water fixtures
  • Bath accessories

Gardening-Related Wholesale

Overview
Wholesale division mainly handling intermediate distribution of flowers and gardening supplies.
Competitiveness
Stable supply of diverse plants and related products.
Customers
  • Garden centers
  • Home centers
  • Gardening specialty stores
Products
  • Foliage plants
  • Seedlings
  • Gardening soil
  • Pots

Construction Equipment Rental and Services

Overview
Provides equipment rental and related services for construction sites.
Competitiveness
Rapid equipment delivery and maintenance system.
Customers
  • Construction sites
  • Civil engineering contractors
  • Remodeling contractors
Products
  • Scaffolding equipment rental
  • Stepladder rental
  • Construction tool rental

Eco-Friendly Building Materials Sales

Overview
Supports sustainable construction through handling and sales of environmentally friendly products.
Competitiveness
Abundant energy-saving performance and environmentally certified products.
Customers
  • Architectural design offices
  • General contractors
  • Energy-saving housing manufacturers
Products
  • Insulation materials
  • Water-saving faucets
  • Low-VOC building materials
  • Recycled building materials

Construction Material Procurement Support

Overview
Efficient procurement services for various materials and supplies needed for construction work.
Competitiveness
Extensive product range and short delivery times.
Customers
  • Construction companies
  • Remodeling contractors
Products
  • Various building materials
  • Construction tools
  • Safety gear

Professional Housing Equipment Maintenance

Overview
BtoB division specialized in providing materials for housing equipment repair and maintenance.
Competitiveness
Wide range of parts inventory and technical support.
Customers
  • Equipment contractors
  • Remodeling companies
Products
  • Water fixture parts
  • Repair supplies
  • Bathroom accessories

Imported Building Materials Sales

Overview
Imports and sells building materials from overseas for the Japanese market.
Competitiveness
Stable import channels and diverse product lineup.
Customers
  • Building material traders
  • Home centers
  • Construction companies
Products
  • Imported interior materials
  • Imported exterior materials
  • Interior building materials

Housing Equipment Planning and Development

Overview
Business division handling equipment planning and outsourced manufacturing tailored to customer needs.
Competitiveness
High expertise from planning to design.
Customers
  • Housing manufacturers
  • Sales agents
Products
  • Original unit baths
  • Custom kitchens

Gardening Planning

Overview
Provides planning, design, and management services for gardening and greening.
Competitiveness
Fusion of design capabilities and specialized technology.
Customers
  • Individual customers
  • Corporations
  • Public facilities
Products
  • Garden design
  • Planting management
  • Environmental greening consulting

Store Construction and Interior Services

Overview
Handles building material supply and interior construction for commercial facilities in an integrated manner.
Competitiveness
Integrated management from construction to material procurement.
Customers
  • Retail stores
  • Restaurants
  • Commercial facilities
Products
  • Store interior materials
  • Construction management
  • Design proposals

Logistics and Delivery Services

Overview
Logistics service that delivers building materials to customers safely and without delay.
Competitiveness
Efficient logistics network and high delivery quality.
Customers
  • Building material wholesalers
  • Contractors
  • Retailers
Products
  • Building material delivery
  • Inventory management
  • Delivery support

Competitive Advantage

Strengths

  • Diverse lineup of building materials and housing equipment products
  • Cost-efficient production through fabless model
  • Urban management with headquarters in Shibuya-ku, Tokyo
  • Brand awareness improvement through advertising
  • Stable capital base (12.5 billion yen capital)
  • Capital efficiency improvement through treasury stock cancellation
  • Market responsiveness through wide sales channels
  • Long industry experience and strong relationships with trading partners
  • Diversified business including gardening products
  • Value-added services including construction and interiors
  • Promotion of environmentally friendly products
  • Efficient logistics and delivery system
  • Responsiveness to diverse trading customer segments
  • Regionally focused sales activities
  • Integrated system from planning and design to delivery

Competitive Advantages

  • Positioned as a specialist intermediate trader strong in store interior building materials
  • Product planning capabilities and flexible outsourced manufacturing as a fabless manufacturer
  • Total supplier of a wide range of building materials and housing equipment
  • High recognition through sponsorship of TV Tokyo's popular program
  • Stable treasury stock management and implementation of capital policies
  • Utilization of wide sales channels (EC, specialty stores, direct sales, etc.)
  • Long-cultivated customer base and continuous repeat orders
  • Responding to market needs through expansion of eco-friendly products
  • Partnerships with corporations across multiple industries
  • Provision of construction and maintenance services on regional and national scales
  • Risk diversification through diverse product portfolio
  • Rapid delivery services through effective logistics network
  • Expansion of value-added services such as construction and gardening
  • Building long-term trust relationships with clients
  • Investment in sustainable building material development

Threats

  • Intense price competition in the construction materials wholesale market
  • Risk of fluctuations in raw material prices
  • Intensified competition from new entrants
  • Burden of product improvements due to strengthened environmental regulations
  • Destabilization of demand in the construction industry due to economic fluctuations
  • Risk of logistics and construction delays due to labor shortages
  • Impact of exchange rate fluctuations on imported building material prices
  • Risk of reduced transactions with major clients
  • Decline in competitiveness due to lagging technological innovation
  • Disruption in production and logistics due to natural disasters
  • Import disruptions due to economic sanctions or international situations
  • Cost increases due to legal amendments

Innovations

2023: Capital Efficiency Improvement through Treasury Stock Cancellation

Overview
Implemented treasury stock cancellation in 2023 to strengthen financial foundation.
Impact
Contributes to improved capital efficiency and enhanced shareholder value

2022: Expansion of New Line of Eco-Friendly Building Materials

Overview
Introduced new environmentally considerate products centered on low-VOC and high-insulation materials.
Impact
Achieved expansion of customer base with high environmental awareness

2021: Logistics Efficiency Improvement Project Launch

Overview
Optimized delivery network and reduced logistics costs through IT utilization.
Impact
Reduced delivery delays and improved cost ratios

2020: Introduction of Online Ordering System

Overview
Built an online building materials ordering platform for BtoB customers.
Impact
Improved order processing efficiency and customer convenience

Sustainability

  • Promotion of energy-saving building materials to reduce environmental impact
  • Increased adoption rate of recyclable materials
  • Efforts to reduce waste and promote resource recycling
  • Expansion of environmentally friendly products and acquisition of certifications
  • Environmental awareness activities in collaboration with local communities
  • Employee training to raise environmental awareness
  • Strengthened development of resource-saving and water-saving products
  • Thorough environmental management in the supply chain
  • Continuous promotion of noise and dust reduction measures
  • Formulation and implementation of sustainable procurement policies
  • Measurement of carbon footprint and setting reduction targets
  • Improved recycling rate of construction waste materials