Fuji Corporation

Basic Information

Stock Code: 7605
Industry: Retail
Category Detail: Specialty Stores & Drugstores
Prefecture: Miyagi Prefecture
Establishment Year: November 1971
Listing Year: June 1999
Official Website: https://www.fujicorporation.com/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Onoya Kiko, Auto Wave, Hotman, Eternal Hospitality Group, Buffalo, Tsuruha Holdings, Ateam Holdings, Ceres, Round One, Nippon Hume, Makino Milling Machine, Toyota Industries, Iseki, IA Group, ispace, Autobacs Seven, Yellow Hat

Overview

Fuji Corporation is a specialty retailer in the automotive supplies industry, established in 1971 with headquarters in Tomiya City, Miyagi Prefecture. It operates nationwide centered on tires and wheels, with mail-order sales as a key strength.

Current Situation

Fuji Corporation achieved net sales of approximately 43 billion yen, operating profit of about 5 billion yen, and net profit of approximately 3.7 billion yen for the fiscal year ended October 2022, maintaining steady performance. Its core business is tire and wheel specialty stores, operating 48 stores from Tohoku to Kanto and Kinki regions. It is focusing on mail-order sales and has started handling wines and other food and beverages to pioneer new markets. It is striving to enhance brand recognition through sponsorship deals with local professional sports teams. It is scheduled to become a wholly-owned subsidiary via a TOB by Usami Mineral Oil in 2025, anticipating organizational strengthening and business expansion. In recent years, it has pursued efficiency improvements, including adding automated warehouses to logistics facilities and renovating multi-store expansions. Moving forward, it aims to sustain and enhance competitiveness by integrating regionally rooted services leveraging its expertise with e-commerce.

Trivia

Interesting Facts

Founded in 1969, incorporated in 1971, with over 50 years of history.
Sponsor since the inception of Tohoku Rakuten Golden Eagles.
Store formats include specialty stores, satellite stores, and import car specialty stores.
Began selling beverages in addition to car supplies via mail-order.
Major capital structure change planned via 2025 TOB.
Regionally rooted company headquartered in Tomiya City, Miyagi Prefecture.
Net sales approx. 43 billion yen, operating margin around 12%.
Continuously advancing logistics efficiency with automated warehouse additions.
Brand strengthening through ties with pro sports teams.
48 stores nationwide, strong recognition in Tohoku region.

Hidden Connections

Strong community ties through local sports team sponsorship.
Potential logistics collaboration with gas stations via capital alliance with Usami Mineral Oil.
Expanding network in food and beverage industry through handled wine products.
Forms complementary business model with large stores via satellite store expansion.
Enhancing cost competitiveness against peers through logistics automation.
Regionally rooted capital structure with local banks and securities firms as major shareholders.
Preparing to launch own-brand car navigation, drive recorders, and other communication devices.
Tire and wheel specialty brand 'Fuji Special Brand' leverages local strengths for differentiation.

Future Outlook

Growth Drivers

Deepening specialization in car supplies market
Sales expansion through strengthened mail-order and EC integration
Logistics optimization via group integration with Usami Mineral Oil
Expansion of luxury car brand lineup
Brand awareness boost from local pro sports sponsorship effects
Pioneering demand for new tires amid automotive electrification
Customer retention via diversified car care products
Improved cost competitiveness from logistics automation
Non-automotive market expansion from wine and beverage sales
Enhanced customer convenience through diversified store formats

Strategic Goals

Strengthen management base and create synergies via full subsidiarization
Optimize and expand store network in major areas nationwide
Expand mail-order sales and strengthen EC platform
Full rollout of sustainability management and achieve CO2 reductions
Increase presence in luxury and import car markets
Enhance brand value through deepened regional society collaboration
Maximize operational efficiency with additional automated warehouses
Improve customer satisfaction via new products and services development
Enter new business areas leveraging capital alliances
Advanced digital marketing and customer data utilization

Business Segments

Wholesale Sales

Overview

Wholesale distribution of products to retailers and repair shops nationwide.

Competitiveness

Rapid product supply via extensive logistics network

Customers

Gas stations
Car supply stores
Repair shops
Dealers

Products

Tires
Wheels
Car care products
Automotive electronics

Mail-Order Business

Overview

Sales nationwide via EC site and catalog mail-order.

Competitiveness

Customer service and rapid delivery leveraging specialized product knowledge

Customers

General consumers
Corporate customers

Products

Tire and wheel sets
Car accessories
Beverages and wine

Logistics Services

Overview

Efficient logistics management with automated warehouse operations at own facilities.

Competitiveness

Efficiency and cost reduction through addition of latest automated warehouses

Customers

Store operations division
External companies

Products

Automated warehouse management
Logistics center operations

Competitive Advantage

Strengths

Regional closeness strength centered on Tohoku
Diverse store formats
Room for mail-order expansion
Solid financial base
Strengthened ties with local sports teams
Abundant tire and wheel brand lineup
Efficiency improvements via logistics automation
Wide selection of car care products
Sales system emphasizing customer service
Staff with specialized knowledge

Competitive Advantages

Differentiation through deep product knowledge as a specialty store
Broad store network from Tohoku to Kinki
Accelerated growth via capital strengthening from TOB
Hybrid sales strategy combining mail-order and physical stores
Optimized handling of own and imported brands
Cost competitiveness from logistics efficiency
Regionally rooted marketing and local support
Brand awareness via pro sports sponsorship
Faster delivery from automated warehouse additions
Increased customer touchpoints via dedicated satellite stores

Threats

Intense competition with major car supply chains
Changes in tire demand from automotive electrification
Raw material price fluctuation risks
Rise of large EC sites in mail-order
Intensified price competition from new entrants
Regional differences in consumption trends
Risks to stores and logistics from natural disasters
Fluctuations in auto sales due to economic conditions
Lost market opportunities from delayed strategic alliances
Profit pressure from rising logistics costs

Innovations

2020: Added New Automated Warehouse to 3rd Logistics Center

Overview: Newly installed automated warehouse for logistics efficiency, optimizing product management and delivery.
Impact: 20% improvement in shipping efficiency, enhanced inventory management accuracy

2021: Launched Fuji Wine Shop

Overview: Began handling wines and other food and beverages, diversifying product lineup.
Impact: Opened new customer segments and increased sales

2023: Renovated Major Stores

Overview: Implemented satellite conversions and store relocations at multiple sites to enhance customer convenience.
Impact: 15% increase in store sales, improved customer satisfaction

Sustainability

Promoting energy-saving and CO2 reduction in logistics operations
Social contributions via regionally rooted sports support
Recycling promotion activities at stores
Expanding eco-friendly and resource-saving products
Environmental awareness training for employees