Kanematsu

Basic Information

Stock Code
8020
Industry
Wholesale Trade
Category Detail
General Trading Companies
Prefecture
Tokyo
Establishment Year
August 1889
Listing Year
October 1961
Official Website
https://www.kanematsu.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sojitz, Itochu, Marubeni, Toyota Tsusho, Mitsui & Co., Sumitomo Corporation, Mitsubishi Corporation

Overview

Kanematsu is a long-established specialty trading company founded in 1889, with strengths in electronics and devices, food, and steel and materials sectors, conducting a wide range of business both domestically and internationally.

Current Situation

Kanematsu recorded consolidated net sales of approximately 911.4 billion yen, operating income of 38.9 billion yen, and net income of 18.6 billion yen for the fiscal year ended March 2023, maintaining solid performance. Its mainstay electronics and devices and food divisions hold stable market shares both at home and abroad, with revenue growth in ICT-related businesses contributing significantly. Having rebuilt itself as a specialty trading company after a management crisis in the 1990s, its asset scale has shrunk to less than one-third of the bubble-era peak, but it has successfully improved its financial health. It is focusing on environment and materials as well as vehicles and aviation sectors, possessing a diversified business portfolio. It is proactive in promoting sustainability and creating new businesses through IT utilization, advancing the foundation for growth under its medium-term vision 'future 135' through 2024. Its characteristics include a robust international network, long history, and commitment to sustainable growth.

Trivia

Interesting Facts

  • Long-established firm that achieved Japan's first direct import of wool in 1889.
  • Historically one of the top ten general trading companies.
  • Historically served as the general agent for Adidas in Japan.
  • Advanced trading company with head office in JP Tower.
  • Achieved reconstruction after receiving 170 billion yen debt forgiveness.
  • Specialized in food and materials while continuing diversified expansion.
  • Large group company with 131 subsidiaries domestically and abroad.
  • History of significant social contribution donations to Kobe University and Hitotsubashi University.
  • Experience of appointing an Olympic gold medalist as executive.
  • Company that filed amended returns following a tax audit in Vietnam.
  • In 2020, inappropriate response issue at Docomo shops came to light.
  • Company related to the sales secret leakage incident by former Sojitz employee.
  • Possesses wide business areas from plant equipment to health foods.
  • Since reconstruction, running as a specialty trading company centered on IT and food.
  • Has a broad customer base across diverse industries.

Hidden Connections

  • Founder was also involved in the establishment of Mitsui O.S.K. Lines and deeply engaged in Japan's trade history.
  • Donated social contribution facilities to Kobe University, Hitotsubashi University, and Sydney Hospital.
  • Formerly served as Adidas Japan agent, influencing the sports goods market.
  • Supported by strong banking relations with Tokyo Bank (now MUFG Bank).
  • Creates synergies through diversified business development in collaboration with Kanematsu Group companies.
  • Maintains close industry relations with Sojitz despite competition.
  • Has history of tax issues in transactions with Vietnamese state-owned enterprises.
  • Strong ties with Marunouchi's financial and trading cluster following JP Tower relocation.

Future Outlook

Growth Drivers

  • Expansion of demand in ICT and devices fields
  • Demand increase for food security and imported foods
  • Market growth in environment and energy-related materials
  • Strengthening business development in overseas emerging markets
  • Expansion of demand for functional foods in health and medical fields
  • Promotion of digital transformation
  • Product demand from rising sustainability awareness
  • Tailwind from global supply chain restructuring
  • Creation of synergistic effects from composite businesses
  • Expansion of application range for advanced material development technology
  • Demand recovery in automotive and aviation parts fields
  • Business opportunities expansion with growth of core customers

Strategic Goals

  • Double sales in electronics and food businesses
  • Achieve 30% market share with environmentally responsive products
  • Expand overseas business ratio to over 50%
  • Achieve environmental target of 30% CO2 emission reduction
  • Create new businesses in health and medical fields
  • 40% improvement in operational efficiency through DX promotion
  • Complete establishment of sustainable procurement system
  • Complete employee diversity promotion project
  • Profit growth through maximization of intra-group synergies
  • Strengthen risk management system

Business Segments

Electronics and Devices Wholesale

Overview
Supports domestic and international manufacturing through wholesale and sales of electronic components and devices.
Competitiveness
Rapid procurement leveraging global network
Customers
  • Manufacturing
  • IT companies
  • Industrial equipment manufacturers
  • Semiconductor manufacturers
  • Telecommunications carriers
Products
  • Semiconductors
  • Electronic components
  • Communication equipment
  • IoT devices
  • Advanced materials

Food Wholesale

Overview
Imports and sells food raw materials and supplies to processed food.
Competitiveness
Stable procurement of non-GMO raw materials
Customers
  • Food manufacturing
  • Food service chains
  • Retail
  • Feed manufacturers
  • Processed food factories
Products
  • Rice and grains
  • Soybean products
  • Livestock raw materials
  • Processed seafood
  • Seasonings

Steel and Materials Wholesale

Overview
Supplies steel materials and chemicals mainly to industry.
Competitiveness
Diverse material procurement and integrated logistics network
Customers
  • Construction
  • Manufacturing
  • Energy
  • Plant manufacturers
  • Chemical industry
Products
  • Steel materials
  • Industrial chemicals
  • Machinery parts
  • Energy equipment
  • Lubricants

Vehicles and Aviation Related Sales

Overview
Sells parts and equipment for vehicles and aircraft.
Competitiveness
Stable supply system for high-quality parts
Customers
  • Automakers
  • Airlines
  • Maintenance shops
  • Construction machinery manufacturers
  • Government agencies
Products
  • Automotive parts
  • Aircraft parts
  • Repair materials
  • Power equipment
  • Replacement parts

Plant Equipment Sales

Overview
Engages in wholesale of plant-related machinery domestically and internationally.
Competitiveness
Technology provision through overseas collaboration
Customers
  • Plant construction companies
  • Chemical plants
  • Energy businesses
  • Steel manufacturers
  • Environmental companies
Products
  • Plant machinery
  • Piping materials
  • Control devices
  • Environmental equipment
  • Safety devices

Health Foods and Medical Information Services

Overview
Develops functional labeled foods and provides medical-related information.
Competitiveness
High product development capabilities and specialized knowledge
Customers
  • Medical institutions
  • Pharmaceutical companies
  • Health food retailers
  • General consumers
  • Research institutions
Products
  • Functional foods
  • Medical information solutions
  • Health supplements
  • Analysis services
  • Research support tools

Competitive Advantage

Strengths

  • Long history and stable corporate foundation
  • Business diversification across multiple fields
  • International procurement and sales network
  • High technological capabilities as a specialty trading company
  • Strong customer base
  • Proven track record of management reconstruction
  • Improved financial constitution
  • Ability to respond to diverse customer needs
  • Utilization of local subsidiaries domestically and abroad
  • Initiatives in environmental and social responses
  • Strong supply chain management
  • Collaborative system within the corporate group
  • Rapid response to market changes
  • Promotion of latest technology adoption
  • High specialized knowledge and experience of management

Competitive Advantages

  • High expertise in electronics and devices field
  • Procurement strength in food non-resource raw materials
  • Ability to provide wide-ranging products to diverse industries
  • Reliability from successful management reconstruction post-bubble collapse
  • Well-developed sales network both regionally and internationally
  • Differentiation through high-function materials
  • Strength in developing environmentally responsive products and services
  • Ability to grasp customer needs across multiple industries
  • Comprehensive strength utilizing group synergies
  • Flexible business development as a specialty trading company
  • Deep penetration into domestic market
  • Established advanced quality control system
  • Efficiency through active use of IT/ICT
  • Customer-close sales system
  • Organizational initiatives for new field development

Threats

  • Sharp fluctuations in raw material prices
  • International trade friction and tariff hikes
  • Foreign exchange rate fluctuation risks
  • Intensifying price competition from competitors
  • Delays in responding to rapid technological innovations
  • Cost increases from strengthened environmental regulations
  • Impact on overseas business from geopolitical risks
  • Supply chain disruptions from natural disasters, etc.
  • Risk of deteriorating performance of major clients
  • Cyberattack and information leakage risks
  • Difficulty in securing talent due to labor shortages
  • Brand damage from loss of social trust

Innovations

2022: Head office relocation to JP Tower completed

Overview
Relocated head office to JP Tower in Chiyoda-ku, Tokyo, introducing latest facilities.
Impact
Improved communication efficiency and corporate image.

2021: Investment in Trade Waltz

Overview
Capital participation in trade management business utilizing blockchain technology.
Impact
Enhanced transparency and efficiency in trade transactions.

2023: Development of functional labeled foods

Overview
Kanematsu Wellness launched new health supplements to the market.
Impact
Contributes to new market acquisition and revenue expansion.

2024: Profit increase achieved through ICT business strengthening

Overview
ICT-related division expanded, making significant contribution to consolidated profits.
Impact
Contributed to 9% profit increase.

2020: Integration of overseas local subsidiaries

Overview
Integrated local subsidiaries in Europe and Asia for management efficiency.
Impact
Streamlined management and strengthened business collaboration.

2021: Expansion of soybean and rice imports

Overview
Strengthened procurement of Southeast Asian rice and non-GMO soybeans.
Impact
Expansion of food business and realization of stable supply.

2023: Promotion of digital transformation

Overview
Implemented measures to improve productivity through digitalization of internal operations.
Impact
Achieved approximately 20% improvement in operational efficiency.

2022: Introduction of plant-related environmentally responsive equipment

Overview
Introduced new equipment compliant with environmental regulations to strengthen competitiveness.
Impact
Reduced environmental impact and improved customer satisfaction.

2024: Expansion of services in health and medical fields

Overview
Kanematsu Wellness is expanding medical information services.
Impact
Expected to contribute to market share expansion in the relevant market.

2023: Formulation of ESG investment policy

Overview
Established ESG investment strategy to enhance corporate value.
Impact
Expected to improve evaluation from investors.

Sustainability

  • Setting and implementation of CO2 emission reduction targets
  • Promotion of sustainable procurement policies
  • Strengthening waste reduction and recycling
  • Support for environmental education in local communities
  • Promotion of investments considering ESG factors
  • Employee environmental awareness activities
  • Promotion of energy-saving equipment introduction
  • Collaborative activities with natural environment conservation groups
  • Regular issuance of social responsibility reports
  • Strengthening dialogue with stakeholders
  • Strengthening safety and health management system
  • Promotion of women's active roles and respect for diversity