Onward Holdings

Basic Information

Stock Code
8016
Industry
Textile Products
Category Detail
Apparel & Fashion Accessories
Prefecture
Tokyo
Establishment Year
September 1947
Listing Year
October 1961
Official Website
https://www.onward-hd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Pal Group Holdings, Daido Limited, Cross Plus, TSI Holdings, World, Sanyo Shokai, Sanko Seiko, Look Holdings, King, Narumiya, Taki Hiyo

Overview

Onward Holdings is a comprehensive apparel holding company founded in 1947, deploying major brands such as '23KU' and others, and is a leading company in the textile products industry with strengths in e-commerce.

Current Situation

Onward Holdings recorded consolidated sales of approximately 208.3 billion yen and operating profit of approximately 10.1 billion yen in the fiscal year ending February 2025, deploying apparel and accessories businesses domestically and internationally. Centered on main brands '23KU' and 'GODAI', it engages in planning, manufacturing, and wholesale sales, and is actively strengthening e-commerce. In recent years, it has been advancing brand consolidation and integration for efficient management, while focusing on developing environmentally friendly products and sustainability initiatives. Amid fierce market competition, it is strengthening digital strategies to address price competition and changes in customer purchasing behavior. In the apparel industry reorganization, it is considering collaborations and acquisitions with competitors. In the mid-to-long term, it aims for growth through the use of sustainable materials and enhancement of online platforms, promoting brand value improvement and market expansion toward 2030. Although global expansion is trending downward, it has established superiority in the domestic high-quality apparel market. It is also focusing on improving working environments and utilizing diverse talent to enhance corporate value.

Trivia

Interesting Facts

  • Originally established as 'Kashiyama Shoji' handling pre-war Japanese apparel wholesale.
  • Brand name 'Onward' named after a hymn.
  • Holds diverse brands with comprehensive deployment excluding casual clothing.
  • Withdrew from overseas luxury brand business in 2014 and reorganized operations.
  • Strengthening BtoB sector through specialization in uniforms.
  • Improved earnings structure through brand streamlining and management efficiency.
  • Pioneering expansion of eco-friendly materials in the fashion industry.
  • Relocated headquarters from Osaka at founding to Tokyo, where it remains.
  • Founding family centered on Mitsukoshi alumni with long history.
  • Listed on the stock exchange since 1961, maintaining Tokyo Prime listing.

Hidden Connections

  • Brand name 'Onward' adopted from a hymn title during trademark registration by the founder.
  • Onward Corporate Design strong in corporate uniforms, dealing with diverse industries.
  • Consolidated operations by selling off previously held overseas apparel brands.
  • Competitive yet collaborative relationship with Sanyo Shokai and World in the industry.
  • Building competitive edge in rapidly growing EC market through IT and digital tech applications.
  • Sustainability initiatives for environmental considerations serve as pioneering examples in the IKK Group.
  • History of successful transition from traditional Japanese to Western clothing.
  • Concentrated headquarters functions in Tokyo, optimizing domestic sales network.

Future Outlook

Growth Drivers

  • Expansion of demand from middle-senior segment amid domestic aging
  • Sales growth through strengthened EC and omni-channel strategies
  • Rising market needs for sustainable products
  • Expansion of corporate customers in uniform business
  • New development through brand collaborations and planning
  • Operational efficiency gains from digitalization and AI utilization
  • Selective overseas market expansion centered on Asia
  • Creation of differentiated products through new material development
  • Investment in enhancing customer experience value
  • Strengthened response to sustainable fashion
  • Promoting innovation through employee diversity
  • Supply chain environmental impact reduction

Strategic Goals

  • Achieve over 40% EC sales ratio
  • Over 70% sustainable products in major brands
  • 50% CO2 emissions reduction
  • 200 billion yen in corporate uniform business sales
  • 20% operational efficiency improvement through digital tech
  • Over 30% female managers ratio
  • Expansion of limited deployment in Asian markets
  • Over 80% sustainable materials ratio
  • Maintain over 90% customer satisfaction
  • Profit margin improvement through maximized brand value

Business Segments

Corporate Uniform Business

Overview
Corporate uniforms and branding support tailored to various industries.
Competitiveness
Proposal capabilities and high-quality customization
Customers
  • Corporations
  • Service industry
  • Restaurants
  • Hospitals and medical facilities
  • Hotels and ryokans
Products
  • Uniforms
  • Workwear
  • Promotional goods
  • Space design services

Imported Brand Wholesale

Overview
Domestic wholesale and sales support for overseas brand products.
Competitiveness
Sales expertise for luxury brands
Customers
  • Domestic specialty stores
  • Department stores
  • Select shops
Products
  • Overseas luxury fashion
  • Accessories
  • Shoes

Brand Planning and Development

Overview
Brand planning and marketing support within and outside the group.
Competitiveness
Extensive planning experience and market insight
Customers
  • Group subsidiaries
  • Retail partners
Products
  • Apparel planning
  • Design development
  • Marketing support

Manufacturing and Logistics Management

Overview
Provision of efficient production and logistics management services.
Competitiveness
Optimization of domestic and international networks
Customers
  • Contract manufacturers
  • Retailers
Products
  • Production management services
  • Logistics optimization

Digital Sales Support

Overview
Sales support for digital channels and customer analysis provision.
Competitiveness
e-Commerce development expertise
Customers
  • Own EC sites
  • Partner EC malls
  • Retail partner EC
Products
  • EC platforms
  • Customer analysis services

Environmental and Sustainability Promotion Support

Overview
Procurement and support for sustainability-compliant materials.
Competitiveness
Industry-leading environmental technology
Customers
  • Group companies
  • Partner companies
Products
  • Eco-friendly materials
  • Sustainability consulting

Overseas Business Expansion Support

Overview
Research and brand adaptation support for overseas markets.
Competitiveness
Experienced personnel in domestic and international operations
Customers
  • Overseas sales subsidiaries
  • Local partners
Products
  • Market research
  • Brand localization

New Technology and Material Development

Overview
Promoting development of durable and environmentally friendly materials.
Competitiveness
In-house R&D and technological capabilities
Customers
  • Development teams
  • Manufacturing departments
Products
  • Functional materials
  • Eco-conscious materials

Collaboration Planning

Overview
Planning of collab products between brands and promotional support.
Competitiveness
Extensive brand network
Customers
  • Domestic and international brands
  • Designers
Products
  • Limited product planning
  • Joint marketing

Retail Store Operation Support

Overview
Support for efficient store operations and sales force improvement.
Competitiveness
Experienced store operation know-how
Customers
  • Directly operated stores
  • Franchise stores
Products
  • Store planning
  • Sales staff training

Logistics Solutions

Overview
Solutions for logistics efficiency and cost reduction.
Competitiveness
Multi-site logistics network
Customers
  • Manufacturers
  • Retailers
Products
  • Logistics center operations
  • Delivery management

Customer Support Services

Overview
Support to improve customer satisfaction.
Competitiveness
Prompt response and reliability
Customers
  • Own customers
  • Retail partner customers
Products
  • Customer service
  • After-sales service

Competitive Advantage

Strengths

  • Market coverage through diverse brand portfolio
  • Strengthened e-commerce sales channels
  • Long years of experience and know-how in the apparel industry
  • High-quality product planning and manufacturing capabilities
  • Strong domestic sales network
  • Environmental considerations and sustainability measures
  • Strong brand value and customer base
  • Active digital marketing
  • Well-developed BtoB uniform business
  • Adaptability to diverse customer segments
  • Stable financial foundation
  • Recognition as a major industry player
  • Long-term brand nurturing policy
  • Rich product lineup
  • Diversity in domestic and international sales channels

Competitive Advantages

  • Powerful brand deployments such as '23KU' and 'GODAI'
  • EC sales reinforcement enables quick response to market changes
  • Specialized services for uniforms tailored to company scale
  • Customer touchpoint expansion through digital-real store fusion strategy
  • Differentiation through eco-friendly product planning and development
  • Abundant sales experience and trust in the domestic market
  • High expertise specialized in apparel
  • Risk diversification through multi-brand deployment
  • Utilization of past know-how from global fashion brands
  • Rapid planning and product development cycle
  • Supply chain efficiency and cost management capabilities
  • Product development focused on wear comfort and functionality
  • Improved demand forecasting accuracy through customer data utilization
  • Strategic flexibility from competition experience with industry giants
  • Comprehensive customer support system

Threats

  • Shrinkage in domestic and overseas apparel markets
  • Rise of fast fashion and online-only operators
  • Brand selection difficulties due to diversifying consumer preferences
  • Raw material price fluctuation risks
  • Rising production costs due to domestic labor shortages
  • Increased business operation costs from stricter environmental regulations
  • Market encroachment by emerging brands
  • Intensifying competition in EC market
  • Import cost fluctuations due to exchange rate changes
  • Heightened price sensitivity among customers and discount pressures
  • Performance impacts from unforeseen external factors like pandemics
  • Delays in social sustainability responses

Innovations

2023: Major reinforcement of digital sales channels

Overview
Revamped own EC platform to strengthen online sales infrastructure.
Impact
EC sales increased 30% year-over-year, expanding customer touchpoints.

2022: Expansion of sustainable material adoption

Overview
Actively adopting eco-friendly materials to reduce product environmental impact.
Impact
Eco-materials used in 30% of major brand products.

2021: Management efficiency through brand integration

Overview
Streamlined brand portfolio and optimized operations to improve group-wide profitability.
Impact
Contributed to 5% improvement in operating profit margin.

2024: Improved demand forecasting accuracy using AI

Overview
Introduced AI tools to streamline market trends and customer needs analysis.
Impact
15% inventory reduction rate, 20% decrease in stockouts.

2023: Refresh of BtoB services in corporate uniform business

Overview
Strengthened Onward Corporate Design business to expand customer customization.
Impact
Achieved improved customer satisfaction and sales growth.

2020: Introduction of smart fitting

Overview
Implemented virtual try-on systems in stores to enhance customer experience.
Impact
Contributed to increased purchase rates in stores.

Sustainability

  • Promotion of active adoption of eco-friendly materials
  • Achieve 20% CO2 emissions reduction target by 2025
  • Introduction of waste recycling systems
  • Environmental audits of supply chains
  • Environmental awareness activities in collaboration with local communities
  • Strengthening ESG investment compliance
  • Compliance with international labor standards
  • Expansion of discarded clothing recycling programs
  • Annual publication of sustainability reports
  • Setting targets for plastic packaging reduction