LEC

Basic Information

Stock Code
7874
Industry
Chemicals
Category Detail
Daily Necessities & Household Products
Prefecture
Tokyo
Establishment Year
March 1983
Listing Year
June 1996
Official Website
https://www.lecinc.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Mitsui Matsushima Holdings, Win Partners, OSG Corporation, Nihon Trim, Tirado, Transac

Overview

LEC is a chemical industry company established in 1983, engaged in the planning, manufacturing, and sales of household products and corporate promotional items, with strong market competitiveness through the diversified expansion of its key brands.

Current Situation

LEC recorded consolidated net sales of approximately ¥55.4 billion and operating profit of approximately ¥900 million in the fiscal year ended March 2023, securing stable earnings. In its mainstay household products business, brands such as the 'Gekiochi-kun' series and 'Barusan' have shown solid sales performance. While most manufacturing is outsourced externally, the company also owns its own factories and strives for quality control. It is actively expanding brands in insecticides and pharmaceuticals acquired from Lion, promoting diversification. Domestic sales channels are diverse, including supermarkets, drugstores, and online mail order, and in the BtoB sector, it develops promotional products for businesses. Since 2015, it has strengthened global expansion through the establishment of overseas subsidiaries and the launch of online sales. On the other hand, in response to recent factory fire accidents and orders from the Consumer Affairs Agency, it is working to strengthen internal controls and compliance systems. It has completed the transition from the First Section to the Prime Market, and is strategically focusing on enhancing brand power and sustainable business development toward 2030.

Trivia

Interesting Facts

  • The Gekiochi-kun series is a popular household cleaning brand
  • Barusan was once an insecticide brand developed by Lion
  • LEC USA Corporation serves as sales and logistics base for the U.S. market
  • Experienced a factory fire accident in Shizuoka in 2020 and strengthened safety management
  • Chairman and CEO Mitsuo Aoki serves concurrently as president

Hidden Connections

  • Originates from the management integration of former Lec and Suruga Co., Ltd.
  • Has a partnership with Daiso Industries for the Petit Train railway toy series
  • Inherited brand assets through asset transfer from Lion Corporation
  • Increasing importance of corporate legal affairs due to administrative interactions with Consumer Affairs Agency

Future Outlook

Growth Drivers

  • Expansion of diverse household product needs
  • Market share increase through brand acquisitions
  • Advancement of digital marketing
  • Rising consumer hygiene awareness
  • Expansion and strengthening of global sales channels
  • Swift response to environmental regulations
  • Increasing demand for promotional materials in BtoB market

Strategic Goals

  • Expansion of major brands' market share domestically and internationally
  • Company-wide penetration of sustainability management
  • Achievement of highest standards in factory safety and environmental criteria
  • Online sales channel revenue ratio exceeding 30%
  • Strengthening of earnings base through diversified business展開
  • Active investment and expansion into new business areas

Business Segments

Corporate Promotional Products

Overview
Provides diverse promotional products for corporate marketing support, assisting customer promotional activities.
Competitiveness
Diverse product development through planning capabilities and low-cost manufacturing network
Customers
  • Retailers
  • Advertising agencies
  • Event planning companies
  • Restaurants
  • Manufacturers
  • Distributors
Products
  • Promotional samples
  • Novelty items
  • Store display products
  • Cleaning tools OEM
  • Corporate novelties
  • Sales promotion goods

OEM Manufacturing Services

Overview
Undertakes design and manufacturing of other companies' branded products, supplying high-quality OEM products.
Competitiveness
Flexible production adjustments and quality control systems
Customers
  • Domestic and overseas household goods brands
  • Retail chains
  • Manufacturers
  • Trading companies
Products
  • Cleaning products
  • Hygiene products
  • Insect repellents
  • Household chemical products

Overseas Business Expansion

Overview
Established U.S. subsidiary to develop product sales and logistics tailored to local markets.
Competitiveness
Rapid market response through local production and sales bases
Customers
  • Local retailers
  • Importers/exporters
  • Local distributors
Products
  • Cleaning products for U.S. market
  • Toys
  • Household hygiene products

Quasi-Drug Manufacturing

Overview
Contributes to household hygiene maintenance through manufacturing and sales of quasi-drugs.
Competitiveness
Well-known brands acquired from Lion
Customers
  • General consumers
  • Sales agents
  • Drugstores
Products
  • Barusan
  • Guronsan
  • New Glomont

Logistics & Warehouse Services

Overview
Builds efficient logistics systems to support stable supply.
Competitiveness
Latest warehouse facilities and IT management systems
Customers
  • Own and related companies
  • External customers
Products
  • Warehouse management
  • Delivery management
  • Logistics operations

Planning & Marketing Support

Overview
Supports customers' new product development and promotional activities from the planning stage.
Competitiveness
Abundant market data and experienced planning team
Customers
  • Small and medium enterprises
  • New brand launch companies
Products
  • Product planning
  • Promotional strategies
  • Market research

Competitive Advantage

Strengths

  • Strong product portfolio with diverse brands
  • Hybrid production system of outsourced manufacturing and own factories
  • Established wide distribution network
  • Stable financial base and asset scale
  • Active global expansion efforts
  • Leadership by experienced management team
  • Market expansion through acquisition of famous brands
  • Product planning and marketing capabilities
  • Diversified BtoB and BtoC business展開
  • Thorough quality control systems
  • Enhanced competitiveness through rich product categories
  • Expansion of online sales channels
  • Solid profit structure and sustainable management
  • Track record in regional and social contribution activities
  • Efforts to strengthen compliance and internal controls

Competitive Advantages

  • Powerful brand assets such as Barusan acquired from Lion
  • Diversified product lineup for households and businesses
  • Optimization of production network including Shizuoka manufacturing base
  • Market penetration leveraging wide distribution channels
  • Product planning capabilities tailored to diverse customer segments and industries
  • Market expansion through overseas subsidiaries and local sales networks
  • Utilization of digital marketing and online stores
  • Established compliance systems supporting social trust
  • Product provision emphasizing safety and quality
  • Planning strengths and niche advantages in corporate promotional products market
  • Customer base built on brand recognition and trust
  • Market risk diversification through diverse product展開
  • Introduction of advanced environmental and safety management technologies
  • Strengthened internal controls and crisis management systems
  • Product development speed aligned with customer needs

Threats

  • Accident and fire risks at manufacturing facilities
  • Strengthened regulatory oversight on advertising claims by Consumer Affairs Agency
  • Intensifying price competition with competitors
  • Cost increases due to raw material price fluctuations
  • Delays in responding to rapid changes in consumer needs
  • Increased business operation costs from stricter environmental regulations
  • Political and economic risks in overseas markets
  • Impact of exchange rate fluctuations on earnings
  • Competition in distribution channels and changing transaction terms
  • Introduction of new technologies and products by emerging companies
  • Reputation damage risks from regulatory violations
  • Criticism and litigation risks regarding social responsibility

Innovations

2024: Acquisition of Lion Product Brands

Overview
Acquired manufacturing and sales rights for 'Guronsan' and 'New Glomont', expanding product lineup.
Impact
Contributes to market share expansion and earnings base strengthening

2023: Enhanced Digital Promotion and Online Sales Expansion

Overview
Focused on digital sales in overseas markets, including opening of LEC USA online store.
Impact
Sales channel diversification leading to revenue growth

2021: Review of Advertising Claims in Response to Consumer Affairs Agency Order

Overview
Strengthened evidence for claims like space disinfection and improved internal compliance systems.
Impact
Maintaining compliance and brand credibility

2020: Factory Equipment Improvements for Enhanced Safety Measures

Overview
Conducted thorough review of equipment and safety management following fire accident.
Impact
Preventing recurrence of accidents and ensuring employee safety

Sustainability

  • Promotion of environmentally considerate product design
  • Strengthening of factory safety management systems
  • Advancement of community coexistence activities
  • Expansion of recycled resource utilization
  • Thorough compliance and governance