Kohnan Corporation

Basic Information

Stock Code
7516
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Osaka Prefecture
Establishment Year
September 1978
Listing Year
September 1996
Official Website
https://www.hc-kohnan.com
TSE Information
TSE Information
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Other Companies
Nafco, DCM, Super Value, Joyful Honda, Watahan Holdings, Arenza HD, Sunday, Hansman, Komeri, Arclands

Overview

Kohnan Corporation is a major Kansai-based home center founded in 1978, operating diverse store formats and a wide range of private-label products, making it a leading company in the specialty store and drugstore industry.

Current Situation

Kohnan Corporation recorded consolidated sales of approximately 472.7 billion yen, operating profit of about 21.3 billion yen, and net profit of about 14.5 billion yen for the fiscal year ending February 2024, maintaining a solid financial foundation. Primarily centered in the Kansai region, it operates diverse formats such as Kohnan home centers and Kohnan PRO, and has been expanding into the Tokai, Kanto, Kyushu, and Okinawa areas in recent years. It strengthens its unique private label 'LIFELEX' and also engages in building materials wholesale through KenDepo and remodeling business. It has established an efficient product supply system with logistics centers and online services. In 2023, it made Home Improvement Hirose a wholly-owned subsidiary to diversify and strengthen its business. It focuses on sustainability and digital services, actively enhancing Kohnan Pay security and partnering with Rakuten Point Card. Long-term, it aims to meet diverse customer needs with region-specific marketing strategies to maintain competitive edge and pursue new market expansion.

Trivia

Interesting Facts

  • Kohnan was founded in 1961 as an oil trading company.
  • Pioneer in early large home center openings in urban areas.
  • Successfully retained customers by early adoption of Rakuten Point Card.
  • Features wide product assortment from DIY to camping supplies.
  • Offers proprietary electronic money 'Kohnan Pay' for improved convenience.
  • Refreshed management structure in 2013 due to president's unclear transactions.
  • Already expanded into overseas markets like Vietnam and Cambodia.
  • Actively engages in remodeling business through affiliates.
  • Particularly high recognition in home base Osaka Prefecture.
  • Operates 'KenDepo' for building materials wholesale to tap corporate demand.
  • Opened camping specialty store in 2023 for business diversification.
  • Past transactions with company led by female director drew attention.
  • Kohnan PRO differentiates as pro-oriented specialty store.
  • Integrated acquired Beaver The Sun stores under brand.
  • Private-label products expand sales channels through group companies.

Hidden Connections

  • Founding family member Kosaku Hikita has supported the business since inception as a family enterprise.
  • Strengthened regional ties through mutual supply of private-label products with Kirin-do.
  • Acquired Beaver The Sun from Odakyu Electric Railway to expand in Kanto region.
  • Strategic acquisition absorbed PPIH's Doit business to expand store network.
  • Promotes fusion of e-commerce and in-store sales through Rakuten Points integration.
  • Advanced overseas expansion for retail with multiple bases in Asia.
  • Withdrew from kerosene sales in 2008 to focus on home centers.
  • Past suspension for Electrical Appliance Law violation due to quality issues.

Future Outlook

Growth Drivers

  • Store expansion into regional cities beyond Kansai
  • Growth in pro-oriented building materials market and rising demand
  • Strengthened online sales and customer convenience
  • Expanding demand for eco-friendly products
  • Further aggressive overseas market expansion
  • Promotion of electronic payment system adoption
  • Diversification of private-label product lineup
  • Expansion of remodeling and home equipment business
  • New development in camping and outdoor market
  • Introduction of region-specific new services
  • Cost competitiveness through logistics efficiency
  • Business efficiency and sales enhancement via DX

Strategic Goals

  • Multiply store openings in major cities nationwide
  • Achieve sales over 500 billion yen
  • Over 50% of all products with sustainability considerations
  • Private-label products accounting for over 40% of sales
  • 10% increase in electronic payment users
  • Top 3 in domestic building materials wholesale
  • Expansion and stabilization of overseas sales
  • Nationwide rollout completion of camping supplies business
  • Pioneer enterprise in regional social contributions
  • Build workplace with over 95% employee satisfaction

Business Segments

Building Materials Wholesale

Overview
Supplies high-quality, competitively priced materials and tools to construction-related companies, with a stable logistics system.
Competitiveness
Rapid product supply through extensive store and logistics networks
Customers
  • Construction companies
  • Carpentry shops
  • Remodeling contractors
  • Equipment contractors
  • Real estate management companies
  • Home center franchise stores
  • Trading companies
  • Civil engineering contractors
  • Public works bidders
  • Design offices
Products
  • Construction lumber
  • Plywood
  • Cement
  • Paints
  • Construction tools
  • Piping materials
  • Electrical materials
  • Hardware
  • Remodeling materials
  • Insulation materials
  • Waterproofing materials
  • Interior materials
  • Exterior materials
  • Safety supplies
  • Protective materials

Remodeling-Related Services

Overview
Supports the home remodeling industry with diverse materials, parts, and specialized support.
Competitiveness
Proposal capabilities from specialized staff and comprehensive product lineup
Customers
  • Remodeling companies
  • Housing sales agencies
  • Interior contractors
  • Painting contractors
  • Real estate brokers
  • Equipment maintenance companies
  • Housing design offices
  • Housing equipment manufacturers
Products
  • System kitchen components
  • Bathroom parts
  • Flooring materials
  • Interior materials
  • Plumbing equipment
  • Lighting fixtures
  • Insulation products
  • Remodeling paints

Corporate Sales Services

Overview
Stably supplies a wide range of consumables and business materials to corporate customers, enhancing convenience.
Competitiveness
Dedicated services and logistics systems for large-volume customers
Customers
  • Retailers
  • Construction companies
  • Factories
  • Restaurants
  • Hotels
  • Government offices
  • Schools and educational institutions
  • Service industries
Products
  • Commercial cleaning supplies
  • Safety gear
  • Office supplies
  • Consumables
  • Maintenance supplies
  • Food packaging materials
  • Hygiene products

Logistics and Inventory Management Services

Overview
Supports customer business efficiency through efficient logistics and centralized inventory management.
Competitiveness
Robust logistics centers and advanced IT systems
Customers
  • Retail companies
  • Wholesalers
  • Logistics companies
  • Manufacturers
  • Trading companies
Products
  • Warehouse storage
  • Inventory management systems
  • Delivery services
  • Distribution processing
  • Order fulfillment services

Overseas Procurement and Import Operations

Overview
Leverages procurement networks in Vietnam, Cambodia, and other Asian countries to supply high-quality goods.
Competitiveness
Rapid product procurement utilizing overseas bases
Customers
  • Domestic retailers
  • Import sales agents
  • Manufacturers
  • Trading companies
Products
  • Overseas DIY products
  • Gardening supplies
  • Household goods
  • Building materials
  • Specialized tools

IT and Electronic Payment Systems

Overview
Advances customer convenience and data utilization based on proprietary electronic payment systems.
Competitiveness
Integration with Rakuten Points and high-level security measures
Customers
  • Own stores
  • Partner retailers
  • Consumers
Products
  • Kohnan Pay
  • Point card services
  • Corporate cards for businesses
  • Electronic money compatibility

Recycling and Environmental Business

Overview
Promotes sustainable environmental conservation initiatives in collaboration with local communities.
Competitiveness
Region-specific environmental solutions
Customers
  • Municipalities
  • Local organizations
  • Commercial facilities
Products
  • Waste collection services
  • Recycling materials
  • Environmental conservation consulting

Pet Supplies Wholesale

Overview
Wholesales a wide range of pet products, responding quickly to market needs.
Competitiveness
Diverse brands and product lineup
Customers
  • Pet shops
  • Animal hospitals
  • Retail stores
  • Wholesalers
Products
  • Pet food
  • Care supplies
  • Housing equipment
  • Toys

Camping Supplies Wholesale

Overview
Stably supplies camping-related products to the outdoor market.
Competitiveness
Specialized product rollout and support for specialty stores
Customers
  • Specialty stores
  • Leisure goods stores
  • Outdoor shops
Products
  • Tents
  • Chairs
  • Cooking utensils
  • Outdoor gear

Restaurant Supplies Provision

Overview
Provides supplies and materials to support restaurant openings and operations.
Competitiveness
Restaurant-specific proposals and rapid supply system
Customers
  • Restaurant chains
  • Independent restaurants
  • Hotels
  • Catering service companies
Products
  • Cooking utensils
  • Store furniture
  • Hygiene supplies
  • Packaging materials

Home Center Support Services

Overview
Provides data utilization and logistics services to support store management.
Competitiveness
Extensive market knowledge and sales support
Customers
  • Franchise stores
  • Local retailers
  • Independent stores
Products
  • Product supply
  • Store operation support
  • Sales data analysis
  • Marketing support

Maintenance and Repair Services

Overview
Offers rapid, proven building and equipment maintenance services.
Competitiveness
High-quality response from specialized technicians
Customers
  • Commercial facilities
  • Stores
  • Residential properties
  • Public facilities
Products
  • Equipment repairs
  • Material replacements
  • Regular maintenance
  • Emergency response

Competitive Advantage

Strengths

  • Dominant market share centered in Kansai
  • Broad customer base through diverse formats
  • Robust private labels and product development
  • Reliable logistics and delivery network
  • Region-specific sales approach
  • Omnichannel strategy integrating online and physical stores
  • Business diversification via subsidiaries
  • Extensive stores and large-scale expansions
  • Long industry experience and reliability
  • Strong presence in building materials wholesale
  • Established proprietary electronic payment system
  • Proactive sustainability efforts
  • Customer retention through Rakuten Points partnership
  • Revenue stabilization via enhanced corporate services
  • Expansion of overseas markets and procurement networks

Competitive Advantages

  • Top-tier brand recognition and strength in Kansai
  • Specialization of pro-oriented materials 'Kohnan PRO'
  • Flexible response to customer needs via multiple formats
  • Differentiation through comprehensive private brands
  • Rapid supply enabled by robust logistics centers
  • Advanced IT utilization including electronic money 'Kohnan Pay'
  • Efficiency gains from group company synergies
  • Improved customer loyalty via Rakuten Points integration
  • Proven new field development like 'CAMP DEPOT' camping specialty store
  • Capturing corporate demand through 'KenDepo' building materials wholesale
  • Stable repeat customers via region-specific strategies
  • Globalization through advances in Vietnam and Cambodia
  • Abundant store formats for diverse customers
  • Strong procurement power from extensive partner networks
  • Active investments toward sustainable operations

Threats

  • Intensifying price competition in home center industry
  • Risks in adapting from suburban to urban stores
  • Shifts in consumer purchasing (EC expansion)
  • Labor shortages impacting staff recruitment and retention
  • Rising costs from international material price fluctuations
  • Impacts from natural disasters on logistics and store operations
  • New entrants and major retailer format expansions
  • Impacts from stricter regulations on products
  • Cybersecurity risks for electronic payment systems
  • Delays in responding to diversifying customer needs
  • Political and economic risks in overseas operations
  • Market contraction from regional population declines

Innovations

2023: Launch of Land-based Aquaculture Business

Overview
Started land-based farming of vannamei shrimp through subsidiary Kohnan Business Innovation.
Impact
Contributes to establishing new revenue sources and business diversification

2020: Absorption and Succession of Doit Business

Overview
Absorbed home center and remodeling business from PPIH subsidiary Doit via company split, launching 'Kohnan Doit'.
Impact
Contributes to product and market share expansion

2020: Opening of Camping Specialty Store 'CAMP DEPOT'

Overview
Opened camping specialty store on former head office site, entering outdoor market.
Impact
Expands target customer base and gains new brand recognition

2023: Making Home Improvement Hirose Wholly-owned Subsidiary

Overview
Acquired shares of Home Improvement Hirose for stronger collaboration, making it wholly-owned.
Impact
Contributes to group competitiveness and synergy creation

2023: Enhanced Security for Electronic Payment System 'Kohnan Pay'

Overview
Implemented two-factor authentication to counter unauthorized access.
Impact
Restores customer trust and improves service safety

2022: Business Expansion in Southeast Asia

Overview
Opened new store at Sen Sok City in Cambodia, accelerating international expansion.
Impact
Strengthens global business foundation

2024: Strengthening Sustainability Strategy

Overview
Accelerated initiatives to reduce plastic use and promote recycling.
Impact
Reduces environmental impact and enhances corporate image

Sustainability

  • Efforts to reduce plastic packaging
  • Recycling promotion activities in stores
  • Environmental conservation activities in collaboration with local communities
  • Enhanced security for electronic payment services
  • Promotion of energy-efficient store development
  • Improvements in environmental considerations for private-label products
  • Active adoption of sustainable materials
  • Strengthened environmental awareness training for employees
  • Establishment of sustainable procurement standards
  • Promotion of local resource utilization
  • Advancement of green logistics
  • Improved transparency in CSR activities