Encho

Basic Information

Stock Code
8208
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Shizuoka Prefecture
Establishment Year
July 1962
Listing Year
November 1986
Official Website
https://www.encho.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Cygnex, Nafco, DCM, Joyful Honda, Menhan Holdings, Alenza Holdings, Tohoku Chemical, Sunday, Konan Corporation, Handsman, Komeri, Arclands

Overview

Encho is a home center chain established in 1962, mainly operating in Shizuoka Prefecture, specializing in DIY supplies and household goods, with strengths in its local community focus.

Current Situation

Consolidated sales for the fiscal year ended March 2020 were approximately 37 billion yen, positioning it as a mid-sized home center primarily serving the Shizuoka Prefecture market. In addition to its home center operations, it offers remodeling services utilizing a first-class architect's office to meet customer needs. It operates a total of 23 Jumbo Encho stores in eastern, central, and western Shizuoka Prefecture as well as Aichi Prefecture, two large Home Assist stores, and 11 Hard Stock stores. It also features diversified store formats such as pet shops under Zu Square, home fashion specialty store Casa, and outdoor gear store SWEN. It is scheduled to become a wholly-owned subsidiary of DCM Holdings in September 2025, with expectations for synergy creation within the group. It has a history of producing TV programs to promote DIY adoption, enhancing its locally rooted brand value. It maintains competitiveness through new private-label products and strengthened region-specific services while pursuing sustainable growth.

Trivia

Interesting Facts

  • Company name and brand derive from the founder's name.
  • Long-term planning and production of DIY programs contributing to their普及.
  • Strong local brand loyalty centered in Shizuoka and Aichi Prefectures.
  • Operates remodeling business with an attached first-class architect's office.
  • Scheduled to become wholly-owned subsidiary of DCM Holdings, playing a role in industry reorganization.
  • Has a history of also operating an automobile dealership business.
  • Successfully diversified by operating various specialty stores despite regional focus.
  • Long-term commitment to DIY education and sales promotion via TV programs.
  • Group includes pet shops and outdoor gear stores.
  • Thick trust from customers due to locally rooted management.
  • DIY product assortment rivals that of major players.
  • Headquartered in Fuji City, Shizuoka Prefecture since founding.
  • Track record of providing know-how to local home center founders.
  • Local TV famous announcers appeared on DIY promotion programs.
  • Maintains over 1,300 consolidated employees.

Hidden Connections

  • Joyful Honda and Yamashin have learned management know-how from Encho.
  • Tamori frequently visits the Numazu store and has mentioned it on his program.
  • Scheduled to become wholly-owned subsidiary of DCM Holdings in 2025 via stock swap.
  • Once operated Telwel Home Center in Chiba Prefecture in a joint venture with an NTT-affiliated company.
  • Started as Endo Lumber Yard in the timber business at founding.
  • Encho's logo derives from the founder's name 'Endo Chotaro'.
  • DIY supply TV program production was pioneering in the industry.
  • Strength lies in favorably linking massive customer base with local economy.

Future Outlook

Growth Drivers

  • Sales expansion through home center enlargement and multi-store rollout.
  • Revenue diversification via strengthened remodeling services.
  • Synergy effects under DCM Holdings.
  • Maintenance and expansion of customer base through local focus.
  • Enhanced product assortment amid growing DIY market needs.
  • Promotion of digital marketing and EC channels.
  • Increasing demand for sustainable products and services.
  • Growth in outdoor and pet supplies markets.
  • Consumption stimulus with local economic recovery.
  • Advancement of store operation efficiency and IT utilization.
  • Differentiation through new service launches.
  • Strengthened labor acquisition and talent development.

Strategic Goals

  • Maintain and strengthen position as No.1 regional home center brand.
  • Double remodeling business sales.
  • Achieve over 50% ratio of sustainable products.
  • Expand EC sales ratio to over 20%.
  • Maximize synergies within DCM Group.
  • Achieve over 90% customer satisfaction.
  • Promote new store formats and business innovations.
  • Systematize and expand regional social contribution activities.
  • Improve employee satisfaction and strengthen specialized talent development.
  • Business efficiency and customer experience improvements via digitalization.

Business Segments

Retail Stores & Franchises

Overview
Supplies products and services to locally rooted retail and specialty stores.
Competitiveness
Product provision tailored to local needs and comprehensive after-sales care
Customers
  • 地域のホームセンター
  • DIY専門店
  • 園芸ショップ
  • 建材販売店
  • ペットショップ
Products
  • DIY資材卸売
  • 木材・建材供給
  • 園芸用品卸販売
  • ペット用品卸
  • リフォームサービス協業

Construction & Remodeling Business

Overview
Provides planning, construction, and design support for home-related remodeling.
Competitiveness
Expertise of first-class architect's office and local support
Customers
  • 個人顧客
  • 不動産業者
  • 建築設計事務所
  • マンション管理組合
  • 公共施設
Products
  • リフォーム工事
  • 住宅改修
  • 一級建築士コンサルティング
  • 設備更新工事

Outdoor & Home Fashion Store Support

Overview
Supports stores under SWEN and casa brands.
Competitiveness
Highly specialized product range and regional marketing capabilities
Customers
  • アウトドア用品専門店
  • ホームファッション専門店
  • 商業施設運営会社
Products
  • 商品調達
  • 店舗運営支援
  • マーケティング支援

Competitive Advantage

Strengths

  • Locally rooted brand strength
  • Remodeling services utilizing first-class architect's office
  • Customer base from diversified store formats
  • Long-term commitment to DIY promotion
  • Stable local market
  • Employees' specialized technical skills
  • Comprehensive sales channels
  • Efficient inventory management system
  • Sustainable utilization of management resources
  • Strong ties with local economy
  • Ability to meet diverse customer needs
  • Advanced product knowledge
  • Extensive product lineup
  • Optimized local logistics
  • Differentiation strategies from competitors

Competitive Advantages

  • Added value from integration of home centers and remodeling business
  • Strong market share and customer trust despite regional limitation
  • Broad customer coverage through diverse store formats
  • Enhanced brand recognition via DIY program production
  • Resource sharing and strengthened competitiveness through integration with DCM Group
  • Stable sales foundation from strong local economic ties
  • Diversified operations combining specialty and directly operated stores
  • High-quality DIY supplies and services unique to the brand
  • Ongoing store renewals and service improvements
  • Locally rooted customer support system
  • Effective promotional activities and customer relationship management
  • Rapid response to market changes
  • High employee training standards
  • Trust building through regional community activities
  • Utilization of wide sales channels

Threats

  • Intensifying competition with major home centers
  • Risk of regional market contraction
  • Diversification of consumer preferences
  • Increase in new entrants
  • Risk of raw material price fluctuations
  • Economic uncertainty
  • Labor shortages hindering talent acquisition
  • Rising store operating costs
  • Competitiveness decline from delayed technological innovation
  • Logistics and store damage from natural disasters
  • Increased management burden from stricter regulations
  • Delay in digitalization

Innovations

2022: Launch of Konan Corporation Private-Label Products

Overview
Began handling private-label products for home centers.
Impact
Strengthened product competitiveness and sales promotion

2023: Advancement of Store Digitalization Project

Overview
Implemented POS system renewal and customer management digital tools.
Impact
Improved sales efficiency and customer service

2024: Expansion of Remodeling Services

Overview
Increased specialized technicians and strengthened construction quality management.
Impact
Higher customer satisfaction and sales growth

2021: Expansion of Outdoor Specialty Store SWEN

Overview
Expanded sales network in Shizuoka and Aichi areas with new store openings.
Impact
Market share expansion and revenue base strengthening

2020: Strengthened Collaboration on DIY Promotion Programs

Overview
Collaborated with TV programs to stimulate DIY demand and raise awareness.
Impact
Improved brand image and increased customer acquisition

Sustainability

  • 店頭でのリサイクル促進活動実施
  • 地域の環境清掃イベント参加
  • 省エネルギー型店舗設備の導入
  • 紙資源の削減を図る店舗施策
  • 持続可能商品の導入拡大