Crops

Basic Information

Stock Code
9428
Industry
Information and Communications
Category Detail
Consumer Electronics Retailers
Prefecture
Aichi Prefecture
Establishment Year
November 1977
Listing Year
August 2005
Official Website
https://www.crops.ne.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kōki, Sanko Techno, Kyōritsu Information Communications, Benefit Japan, Nihon Rad, Hiro Holdings, Kokoro Net, AE Group, Sankyō Kasei, Somaru, Daiun, NJ Holdings, ReYuu Japan, Hikari Tsushin, Bell Park, Toshin Holdings, Sakai Holdings, Nippon Kenchiku Gaku, MT Genex, Eiwa

Overview

Crops is a company in the information and communications industry founded in 1977, primarily operating au shops and staffing dispatch as its core businesses centered in the Tokai region, serving as a leading regionally integrated company.

Current Situation

Crops achieved consolidated net sales of approximately 54.5 billion yen, operating profit of approximately 2.1 billion yen, and net profit of approximately 1.2 billion yen in the fiscal year ending March 2024. Its main businesses are the operation of au shops and UQ mobile stores, operating a total of 76 stores across the four Tokai prefectures plus the Kanto area, providing regionally tailored services. It also engages in staffing dispatch and recruitment businesses, building a diversified revenue base. In recent years, it has advanced international expansion by making its overseas subsidiaries in Singapore and Vietnam wholly owned, aiming to expand digital communication services. In 2024, it completed the conversion of Tempo Innovation Co., Ltd. into a holding company, aiming to strengthen competitiveness through business diversification. Moving forward, it will leverage its capital and business alliance with KDDI to further expand mobile phone sales and advance its staffing dispatch business, implementing sustainable growth strategies. Boasting a solid financial constitution, it aims to further strengthen its business foundation by enhancing collaboration with local communities while responding to digital shift needs.

Trivia

Interesting Facts

  • Has a history of transitioning from an Isuzu Motors dealer to mobile phone sales
  • Possesses the largest number of communications sales stores in the Tokai region
  • One of the few mobile sales companies with local subsidiaries in Singapore and Vietnam
  • Staffing dispatch business growing as a core group operation
  • Diversified operations including building maintenance through subsidiaries
  • Stable business foundation characterized by capital alliance with KDDI
  • Successful new customer acquisition through UQ Spot expansion
  • Listed on both Tokyo and Nagoya Stock Exchanges, establishing credibility
  • Established company that has grown from Showa era to Reiwa era
  • Provides distribution support for restaurant chains through group companies

Hidden Connections

  • Strong regional network rooted in former dealer relationship with Isuzu Motors
  • Close partnership with KDDI, playing a key role as a regional agent supporting mobile handset distribution
  • Acquired Singapore's INNOVARE HOLDINGS as a subsidiary, accelerating entry into Southeast Asia market and global expansion
  • Staffing dispatch division is an indispensable pillar of the group's growth strategy
  • Controls the Tempo Innovation (now Innovation Holdings) group, achieving diversified business operations
  • Maintains strong relationships with local retailers and telecom carriers
  • Secures stable regional revenue base through building maintenance business via subsidiaries
  • Accumulated long-term trust and expertise as a sales agent for communications carriers

Future Outlook

Growth Drivers

  • New demand for mobile communications handsets and acceleration of 5G adoption
  • Response to diversifying needs in the staffing dispatch market
  • Business expansion in the Southeast Asian market
  • Sales capability enhancement through strengthened KDDI group collaboration
  • Advancement of digital shift and sophisticated customer services
  • Diversification of services across industries and collaborative ventures

Strategic Goals

  • Expand stores to over 100 in Tokai and Kanto regions
  • Increase overseas business sales ratio to over 20%
  • Expand staffing dispatch sales to over 30% of consolidated total
  • Ongoing promotion of sustainability-focused community contributions
  • Realize improved customer experiences through digital technologies

Business Segments

Services for Mobile Phone Sales Agents

Overview
Provides sales support for mobile handsets and contract agency services to telecom companies and retail stores.
Competitiveness
Extensive regional network and strong KDDI partnership
Customers
  • Telecom Carriers
  • Mobile Phone Retailers
  • Local Retail Stores
Products
  • Mobile Handset Sales Support
  • Communication Service Contract Agency
  • Sales Promotion Support

Staffing Dispatch and Recruitment Services

Overview
Supports human resource needs of companies across a wide range of industries through staffing dispatch and recruitment services.
Competitiveness
Detailed matching system and regionally focused responsiveness
Customers
  • Small and Medium Enterprises
  • Large Corporations
  • Retail Industry
  • Clerical Operations Companies
Products
  • Clerical and Sales Dispatch
  • Recruitment
  • Job Placement Services

Building Maintenance Services

Overview
Provides comprehensive building maintenance services to create comfortable environments.
Competitiveness
Stable service provision leveraging subsidiaries
Customers
  • Office Building Owners
  • Commercial Facility Operators
  • Public Facilities
Products
  • Cleaning Operations
  • Facility Management
  • Property Management

Competitive Advantage

Strengths

  • Extensive store network centered in the Tokai region
  • Strong capital and business alliance with KDDI
  • Diversified business portfolio
  • Regionally tailored customer service capabilities
  • Stable management base utilizing subsidiaries
  • Abundant staffing dispatch expertise
  • Solid financial position
  • Growth opportunities from overseas expansion
  • High sales efficiency
  • Adaptability to diverse customer segments

Competitive Advantages

  • Dominant strategy with au shops securing market penetration
  • Rapid provision of latest handsets and plans through KDDI group collaboration
  • Comprehensive service provision from both staffing dispatch and communications sales
  • Strong brand and trust in the Tokai region
  • Expansion of overseas subsidiaries enhancing international presence
  • Group synergies through diverse related subsidiaries
  • Ongoing efficiency improvements via store acquisitions and reorganizations
  • Enhanced management flexibility through holding company structure
  • Stable funding capabilities
  • Unique expertise differentiating from competitors

Threats

  • Intensifying competition and price wars in the mobile communications market
  • Growth slowdown due to saturation in smartphone sales
  • Pressure to adapt to technological changes in the communications industry
  • Risks from strengthened legal regulations in the staffing industry
  • Decline in consumption due to novel coronavirus, etc.
  • Rising store operating costs
  • Impact from regional economic fluctuations
  • Political and economic risks in overseas expansion
  • Risks from changes in sales policies by communications carriers
  • Need for rapid response to IT technological innovations
  • Challenges in securing talent
  • Competitors' service innovations

Innovations

2024: Restructuring to Holding Company System

Overview
Completed the conversion of Tempo Innovation Co., Ltd. into a holding company, improving group management efficiency.
Impact
Achieved improved management flexibility and synergy creation

2023: Full Ownership of Singapore and Vietnam Subsidiaries

Overview
Made overseas subsidiary INNOVARE HOLDINGS a wholly owned subsidiary, strengthening international expansion.
Impact
Expected expansion in Southeast Asia market and increase in overseas sales

2022: Capital and Business Alliance Agreement with KDDI

Overview
Alliance with major telecom KDDI to strengthen handset sales capabilities and service collaboration.
Impact
Enhanced competitiveness through introduction of latest technologies and expansion of sales bases

2021: Expansion of Digital Communications Services

Overview
Accelerated UQ Spot rollout and began handling new communication plans.
Impact
Successfully acquired younger customer base

2020: System Renewal for Store Operation Efficiency

Overview
Cloud migration of sales management system to improve operational efficiency.
Impact
Reduced workload for store staff and enabled rapid information sharing

Sustainability

  • Job creation and workplace environment improvements closely tied to local communities
  • Promotion of energy-saving measures in stores
  • Promotion of eco-friendly products and reused items
  • Efforts to reduce environmental impact in the supply chain
  • Fostering corporate culture focused on talent development and diversity