Sugita Ace

Basic Information

Stock Code
7635
Industry
Wholesale Industry
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
September 1948
Listing Year
February 2000
Official Website
https://www.sugita-ace.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Primex, Poval Kogyo, Ono Ken, Kondotec, Advan Group, Hashimoto Sogyo Holdings, Takashima, Mitani Shoji, Yuasa Shoji, Nice, Daito Koun, JK Holdings, Jecos

Overview

Sugita Ace is a long-established trading company founded in 1948, specializing in the wholesale of architectural hardware and building materials, featuring a diverse product lineup including DIY supplies and long-term storage food.

Current Situation

Sugita Ace recorded consolidated sales of approximately 73.7 billion yen for the fiscal year ending March 2024, establishing a solid position in the architectural hardware wholesale industry. Its in-house developed emergency food brand 'IZAMESHI' has become a hit in the market and serves as a growth engine for new businesses. The company operates directly managed stores mainly in the Tokyo metropolitan area, promoting diversification of sales channels to consumers. In recent years, it has pursued business expansion through aggressive M&A and focused on strengthening logistics systems and distribution centers. As part of its sustainability efforts, it is advancing the development of environmentally friendly products and community contribution activities. Moving forward, it aims for sustainable growth by leveraging its foundation in building materials wholesaling and a diversified business portfolio. Addressing market needs through product development and enhancing customer services are key challenges, while strategically pursuing improved competitiveness within the industry and new market development in the long term.

Trivia

Interesting Facts

  • Successful entry into emergency food development from architectural hardware wholesaling
  • IZAMESHI emergency food pioneered balancing long-term storage and taste
  • Chiba Distribution Center is one of the largest logistics facilities in the industry
  • Founder Saburo Sugita temporarily ceased operations during wartime and restarted postwar
  • Established industry position through building materials catalog publication
  • Aggressive in M&A, having absorbed and merged multiple related subsidiaries
  • Expanded consumer touchpoints through lifestyle shop operations
  • Direct stores in central Tokyo areas like Shinjuku and Ginza specializing in outdoor and emergency food
  • IZAMESHI Table once operated as a cafe
  • Representative Director Yusuke Sugita demonstrates leadership in new businesses

Hidden Connections

  • Rare company successful with a long-term storage food brand in the food sector beyond building materials wholesaling
  • Founding family has historical background from wartime and postwar periods, deeply rooted in local economy
  • Entry into emergency food market born from Great East Japan Earthquake experience, accompanied by social mission
  • Aims for scale expansion through collaborations and mergers with strong competitors in building materials industry
  • Rare pattern simultaneously deploying consumer-oriented outdoor supplies and emergency food across different industries
  • Deep relationships with numerous general wholesalers and manufacturers, with extensive supply chain
  • Deploying consumer-oriented showrooms and stores in central Tokyo areas like Shinjuku and Ginza to diversify the market
  • Strengthened group structure and agile management backed by experience in multiple subsidiary integrations

Future Outlook

Growth Drivers

  • Increasing renovation demand in the construction market
  • Emergency food demand from heightened social interest in disaster preparedness
  • Expansion of DIY market and lifestyle changes
  • Efficiency improvements leveraging logistics and IT
  • Growing demand for environmentally friendly products

Strategic Goals

  • New market development through product diversification
  • Expansion of sustainable product ratio
  • Strengthening and普及 of digital sales channels
  • Promotion of disaster support in collaboration with local communities
  • Achieving group-wide sales exceeding 100 billion yen
  • Management efficiency improvement through business integration

Business Segments

Building Materials Wholesaling

Overview
Wholesale business stably supplying a wide range of building materials to diverse customers.
Competitiveness
Nationwide distribution center network
Customers
  • Housing Construction Companies
  • Building Construction Companies
  • Design Offices
  • Construction Contractors
  • Renovation Companies
Products
  • General Architectural Hardware
  • Interior and Exterior Building Materials
  • Housing Equipment
  • Tools
  • Safety Materials

DIY Supplies Sales

Overview
Deploying consumer-oriented DIY products through diverse sales channels.
Competitiveness
Product development centered on in-house brands
Customers
  • Home Centers
  • Retailers
  • General Consumers
  • Wholesalers
Products
  • Tool Sets
  • Paints
  • Building Repair Supplies
  • Outdoor Supplies

Emergency Food Development and Sales

Overview
Addressing social needs through in-house developed delicious emergency food.
Competitiveness
Unique development capabilities from no prior food experience
Customers
  • General Consumers
  • Municipalities
  • Corporate Disaster Prevention Staff
  • Disaster Support Organizations
Products
  • Long-Term Storage Food IZAMESHI Series
  • Disaster Prevention Goods
  • Related Restaurant Operations

Outdoor and Interior

Overview
Providing carefully selected outdoor and lifestyle products.
Competitiveness
Direct sales know-how from select shop operations
Customers
  • Lifestyle Shops
  • Outdoor Retail Stores
  • General Consumers
Products
  • Outdoor Furniture
  • Interior Accessories
  • Garden Supplies

Logistics and Distribution Services

Overview
Supporting distribution of handled products with an efficient logistics system.
Competitiveness
Logistics network centered on Chiba Distribution Center
Customers
  • Consolidated Subsidiaries
  • Construction Industry as a Whole
Products
  • Distribution Center Operations
  • Logistics Management Services

Competitive Advantage

Strengths

  • Reliability and brand power as an industry veteran
  • Diverse product lineup
  • In-house brand product development capabilities
  • Strong distribution and logistics system
  • Business expansion through aggressive M&A
  • Innovative entry into the emergency food market
  • Direct consumer contact via company-owned retail stores
  • Abundant customer base and sales network
  • Effective use of product catalogs and sales promotion
  • Regionally focused sales activities
  • Stable capital and sound financial base
  • Maintaining high product quality
  • Accommodating a wide range of customer needs
  • Effective design and product development
  • Strengthening ESG initiatives

Competitive Advantages

  • Long years of experience and trust in building materials wholesaling
  • Pioneering new markets with the proprietary IZAMESHI emergency food brand
  • Rapid delivery via comprehensive distribution center network centered on Tokyo and Chiba
  • Expanding business areas and product range through M&A strategy
  • Differentiation from competitors with broad in-house brand lineup
  • Powerful sales promotion directly to consumers via company stores and BtoC channels
  • Deep sales network and relationship building with construction-related companies
  • Active development of environmentally friendly and safe products
  • Top-class recognition as a catalog comprehensive trading company in the industry
  • Risk diversification through diversified business operations
  • Prompt customer response and flexible product supply system
  • Accurate grasp of market needs leveraging information dissemination
  • Reliable supply chain management system
  • High level of employee specialized knowledge and technical skills
  • Nationwide coverage via local bases

Threats

  • Intensifying price competition in the building materials industry
  • Market share dispersion due to new entrants
  • Cost increases from raw material price fluctuations
  • Risk of logistics network disruptions from natural disasters
  • Decline in construction demand due to uncertain economic conditions
  • Rising business costs from strengthened environmental regulations
  • Succession issues and difficulties in talent acquisition
  • Delays in responding to rapid changes in consumer preferences
  • Emergence of competitors in the food market
  • Competitive pressure from global capital
  • Risk of product obsolescence due to technological innovations
  • Impact on business operations from legal and regulatory changes

Innovations

2023: Expansion of IZAMESHI Series Product Line

Overview
Pursued taste and quality of emergency food, adding numerous new products.
Impact
Contributed to customer base expansion and sales growth

2022: Subsidiary Acquisition of Fuyo Co., Ltd.

Overview
Promoted subsidiary acquisition to improve logistics and related materials efficiency.
Impact
Contributed to strengthened logistics and improved management efficiency

2021: Rebranding of Lifestyle Shop 'upstairs outdoor living'

Overview
Refreshed Ginza direct store brand to develop new customers.
Impact
Improved consumer awareness and increased sales

2020: Enhancement of Building Materials E-commerce Site

Overview
Expanded online sales platform to improve convenience.
Impact
Increased EC transactions and new customer acquisition

2024: Promotion of Environmentally Friendly Architectural Hardware Development

Overview
Focused on product development using recycled materials and resource-saving designs.
Impact
Strengthened sustainable product line

Sustainability

  • Product development aimed at reducing environmental impact
  • Promotion of active community contribution activities
  • Promoting employee work-life balance and diversity
  • Waste reduction and recycling promotion
  • Strengthening safety and health management and education