Nichiryoku

Basic Information

Stock Code
7578
Industry
Retail Industry
Category Detail
Lifestyle Services
Prefecture
Tokyo
Establishment Year
December 1966
Listing Year
February 1998
Official Website
https://www.nichiryoku.co.jp/
TSE Information
TSE Information
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Other Companies
Heian Rei Service, Tia, Axel M, Kokoro Net, Sun Life H, Hasegawa, RISE, San Holdings

Overview

Nichiryoku is a pioneer in the cemetery, graveyard, and funeral service business founded in 1966, and is one of the leading companies in the industry with strengths in the development of indoor mausoleums and an extensive network of cemeteries centered in the Tokyo metropolitan area.

Current Situation

Nichiryoku recorded sales of approximately 3 billion yen and assets of about 9.5 billion yen in the fiscal year ended March 2022, operating cemeteries and graveyards mainly in Tokyo and across the Tokyo metropolitan area and nationwide. As a pioneering developer of indoor mausoleums, it differentiates itself and also operates funeral services to ensure stable revenue. It is advancing the supply of large-scale columbarium facilities and new business development through partnerships with temples, aiming to strengthen regional expansion and expand its customer base in the medium to long term. In recent years, it has undertaken capital alliances and third-party allotment of new shares to strengthen its financial base and invest in business growth. Going forward, it will promote product development tailored to diversifying market needs and enhance competitiveness through enriched community-based services.

Trivia

Interesting Facts

  • The company that developed Japan's first indoor mausoleum.
  • A listed company headquartered in Yaesu, Chuo Ward, Tokyo.
  • Manages and operates numerous cemeteries mainly in the Tokyo metropolitan area.
  • Deploys funeral service Lastel within the group.
  • Approximately 170 employees in a highly specialized organization.
  • Gains customer support with advanced designs for indoor mausoleums.
  • Actively strengthens capital through third-party allotments and such.
  • Advances large-scale columbarium construction via business partnerships with temples.
  • Established online consultation services even during the COVID-19 pandemic.
  • Expands nationwide including Kanto, Kansai, Kagoshima beyond Tokyo.
  • Nichiryoku's cemeteries are well-regarded for excellent transportation access.
  • Paid-in capital of approx. 1.8 billion yen with a stable financial base.
  • Annual settlement fixed at end of March for transparent financial information.
  • Operates over 10 cemeteries mainly in the Tokyo metropolitan area.
  • Utilizes diverse sales channels for business expansion.

Hidden Connections

  • Has built capital and business partnerships with multiple prominent temples to strengthen trust base.
  • Participates in cemetery development support for local governments, fostering strong community ties.
  • Group collaboration with funeral business Lastel enables one-stop service deployment.
  • Some capital participants are investment funds supporting future growth.
  • Differentiates from competitors and promotes operational efficiency through management system introduction.
  • Online cemetery search site collaborates with competitors to form a broad network.
  • Partners with real estate firms near cemeteries to improve convenience.
  • Actively promotes resident interaction through cemetery-sponsored local events.

Future Outlook

Growth Drivers

  • Increasing cemetery needs in an aging society
  • Customer expansion through online service utilization
  • Strengthening business deployment in provincial cities
  • Deepening collaboration with temples and religious corporations
  • One-stop provision of funeral services and cemeteries
  • Enhanced consideration for sustainability
  • Operational efficiency improvement through digital technology introduction
  • Customer base expansion through diverse plan offerings
  • Promotion of new facility development through capital strengthening
  • Maintaining trusted brand in the domestic market
  • Enrichment of community-based services
  • Active investment in new business areas

Strategic Goals

  • Expansion of cemetery deployment in major cities nationwide
  • Capture over 50% market share in indoor mausoleum market
  • Doubling funeral business sales
  • 80% utilization rate for online platform
  • Acquire 5 or more business alliance partners
  • Establishment of sustainable operations framework
  • Maintain customer satisfaction at 90% or higher
  • Build stable base with paid-in capital exceeding 2 billion yen
  • Routine implementation of employee specialized skills training
  • Expansion of support services for the elderly

Business Segments

Business for Temples and Religious Organizations

Overview
Business handling design and construction of indoor mausoleums in partnership with temples.
Competitiveness
Development capabilities for joint planning and operation with temples
Customers
  • Temples
  • Religious corporations
  • Cemetery management corporations
Products
  • Indoor Mausoleum Design and Construction
  • Large-scale Columbarium Construction
  • Maintenance Services

Services for Funeral Service Providers

Overview
Provides a variety of services to companies engaged in funeral businesses.
Competitiveness
Wide range of funeral plans and venue operation expertise
Customers
  • Funeral companies
  • Funeral hall operators
  • Event management companies
Products
  • Funeral Hall Operation Support
  • Funeral Plan Provision
  • Altar and Equipment Rental

Cemetery and Graveyard Development Consulting

Overview
Consulting business supporting new development of cemeteries and graveyards.
Competitiveness
Planning expertise familiar with the industry market
Customers
  • Local governments
  • Real estate developers
  • Urban planning firms
Products
  • Cemetery Site Planning and Survey
  • Market Analysis Reports
  • Development Plan Formulation

Cemetery Management System Provision

Overview
Business providing management software that contributes to operational efficiency.
Competitiveness
Customization capabilities tailored to operations
Customers
  • Cemetery management companies
  • Religious corporations
  • Municipal offices
Products
  • Cemetery Management Software
  • Customer Management System
  • Reservation Reception Platform

Equipment Maintenance and Management Business

Overview
Maintenance management services for long-term facility preservation.
Competitiveness
Prompt response leveraging specialized technology
Customers
  • Cemetery management operators
  • Temples
  • Public facility operators
Products
  • Columbarium Equipment Maintenance
  • Cemetery Facility Inspections
  • Cleaning and Maintenance

Funeral Supplies Wholesale Business

Overview
Wholesale business supplying funeral-related products to businesses.
Competitiveness
Diverse product lineup
Customers
  • Funeral companies
  • Retail stores
  • Worship facilities
Products
  • Altar Supplies
  • Buddhist Altar Sets
  • Offering-related Products

Education and Awareness Business

Overview
Educational business to promote cemetery use and raise awareness of end-of-life planning.
Competitiveness
Practical courses leveraging on-site knowledge
Customers
  • Local governments
  • Educational institutions
  • Community groups
Products
  • Cemetery and Funeral-related Seminars
  • Lectures on Enshrinement and End-of-Life Planning
  • Community Activity Support

Online Platform

Overview
IT platform business to promote cemetery utilization.
Competitiveness
Comprehensive information provision and reservation functions
Customers
  • Consumers
  • Funeral companies
  • Cemetery operators
Products
  • Cemetery Search Site
  • Reservation and Management System
  • Online Consultation Desk

Real Estate Management and Sales Business

Overview
Engages in management and brokerage of cemetery-related real estate.
Competitiveness
Expertise in cemetery-specific legal regulations
Customers
  • Land owners
  • Urban developers
  • Temples
Products
  • Cemetery Site Management
  • Land Sales Brokerage
  • Real Estate Valuation

Public Relations and Marketing Support

Overview
Implements promotional support for cemetery and funeral businesses.
Competitiveness
Effective strategies leveraging industry knowledge
Customers
  • Cemetery operating companies
  • Funeral providers
  • Community groups
Products
  • Advertising Planning
  • Event Operation Support
  • Customer Attraction Measures

Competitive Advantage

Strengths

  • Pioneer in indoor mausoleum development
  • Diverse cemetery network centered in the Tokyo metropolitan area
  • Strong business partnerships with temples
  • Stable capital base
  • Broad funeral service deployment
  • Rich community-based experience
  • Introduction of dedicated management systems
  • Employee expertise and experience
  • Meticulous customer service
  • Proactive new business development
  • Aggressive capital procurement strategy
  • Abundant sales channels
  • Diverse product offerings by region
  • Stable leadership from management
  • Industry knowledge since founding

Competitive Advantages

  • Exclusive developer position in the indoor mausoleum market
  • Leading company in cemetery management in the Tokyo metropolitan area
  • Deployment capability for large-scale columbaria through temple collaboration
  • Differentiation through synergy effects with funeral business
  • Continuous investment capability backed by stable capital and financial base
  • Customer needs response via diverse cemetery brands
  • Convenience improvement through online platform
  • High satisfaction maintained through attentive customer service
  • Efficient operations using cemetery management system
  • Market risk diversification through multi-regional deployment
  • Differentiation from competitors via continuous new facility development
  • Stable revenue structure from solid customer base
  • Trust gained through deep ties with local communities
  • Advanced business alliance network building
  • Market responsiveness through diversified service deployment

Threats

  • Risk of customer decline due to aging population and low birthrate
  • Intensified competition from new entrants by competitors
  • Facility expansion restrictions due to strengthened land acquisition regulations
  • Potential demand decline due to changes in social values
  • Risk of facility damage from natural disasters
  • Temporary setback in funeral demand due to infectious disease outbreaks
  • Cost increase pressure from rising material prices
  • Consumer spending decline due to deteriorating economic conditions
  • Increased difficulty in business deployment due to regional disparities
  • Difficulty in securing talent due to declining working population
  • Changes in operational environment due to legal amendments
  • Decline in market competitiveness due to delay in digitalization

Innovations

2023: Expansion of Online Cemetery Search System

Overview
Enhanced online platform enabling cemetery reservations and consultations.
Impact
Contributes to improved customer convenience and increased customer attraction

2023: Introduction of High-function Indoor Mausoleum Design

Overview
Deployed new designs for indoor mausoleums with environmental considerations and enhanced earthquake resistance.
Impact
Promotes customer satisfaction improvement and differentiation

2022: Promotion of Funeral Service Diversification

Overview
Achieved customer base expansion by introducing diverse funeral plans.
Impact
Sales increase and improved repeat customer rate

2021: Development and Introduction of Cemetery Management System

Overview
Newly designed and introduced IT system supporting efficient operations.
Impact
Succeeded in operational efficiency improvement and cost reduction

2020: Implementation of Capital Alliance and Third-Party Allotment

Overview
Capital strengthening for business expansion and financial base reinforcement.
Impact
Accelerated training system enhancement and new projects

Sustainability

  • Regular implementation of environmental beautification activities at cemeteries
  • Promotion of energy-saving equipment introduction
  • Thorough promotion of waste recycling
  • Cooperation with local communities on greening activities
  • Improvement of employee working environment and safety management