Zaoh Sangyo

Basic Information

Stock Code
9986
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
April 1956
Listing Year
July 1994
Official Website
https://www.zaohnet.co.jp/
TSE Information
TSE Information
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Overview

Zaoh Sangyo is a trading company for professional cleaning and washing equipment, established in 1956 with headquarters in Koto-ku, Tokyo. It combines its own developed products with imported brands to build a solid position in the domestic market.

Current Situation

Zaoh Sangyo recorded net sales of approximately 9.6 billion yen and operating profit of about 1.37 billion yen in the fiscal year ended March 2023, maintaining a solid financial constitution. Centered on the import and sales of professional cleaning equipment, it also deploys its own developed products and possesses high competitiveness in the cleaning equipment field. Through collaboration with the Italian home appliance brand "Ariete," it maintains a diverse product lineup and is expanding its customer base. In 2021, it absorbed and merged its subsidiary Etani Sangyo to strengthen its business foundation. Headquartered in Koto-ku, Tokyo, it asserts its presence as a professional equipment wholesaler within the domestic wholesale industry. It focuses on the development and sales of environmentally responsive products and aims to further enrich its product lineup in response to market needs. For sustainable growth, it promotes employee education and technological innovation, aiming for further market expansion and improved profitability in the medium to long term.

Trivia

Interesting Facts

  • Began sales of professional vacuum cleaners in 1967
  • Serves as the Japanese agent for Italian home appliance brand "Ariete"
  • Refurbishment business for used cleaning equipment is rare domestically
  • Specialized wholesaler that also conducts proprietary technology development in cleaning equipment field
  • Headquartered in Koto-ku, Tokyo, with over 60 years of history since founding
  • Absorbed and merged subsidiary in 2021 to pursue business expansion
  • Actively promotes product development for environmental impact reduction
  • Approx. 206 employees with high specialization organization
  • Widely supplies products to professional cleaning market nationwide
  • Highly evaluated at cleaning industry trade shows

Hidden Connections

  • Holds unique distribution channels in domestic cleaning robot market as Ariete authorized dealer
  • Improved parts supply capability in cleaning equipment field through subsidiary merger
  • Handling of environmental equipment has expanded in recent years, strengthening ties with local governments
  • Includes financial institutions and employee stock ownership association among major shareholders, forming stable shareholder composition
  • Differentiation in environmental consideration through refurbishment technology in used equipment market
  • Leverages collaborations with cleaning industry companies to differentiate from competitors
  • Utilizes base in Koto-ku, Tokyo, with excellent logistics convenience
  • Promptly refreshes product lineup in response to strengthened environmental laws and regulations

Future Outlook

Growth Drivers

  • Diversification and advancement of professional cleaning equipment market
  • Expansion of demand for environmentally responsive products due to strengthened regulations
  • Increasing demand for refurbishment in used market
  • Development and adoption of cleaning equipment utilizing IoT and AI technologies
  • Product lineup expansion through strengthened collaborations with domestic and international brands
  • Expansion of building maintenance market centered on Tokyo metropolitan area
  • Increasing needs for equipment renewal in public facilities, etc.
  • Rising social demand emphasizing sustainability
  • Introduction of smart equipment aimed at business efficiency improvement
  • Market development through utilization of diverse sales channels

Strategic Goals

  • Establish position in domestic top 3 in professional cleaning equipment field
  • Achieve over 50% sales ratio for environmentally considerate products
  • Realize over 1 billion yen annual sales in used equipment business
  • Expand IoT-equipped product lineup
  • Establish sustainable management system and strengthen regional contributions
  • Expand exclusive products from overseas brands
  • Strengthen product differentiation through new technology introduction
  • Enhance employee specialized technical training system
  • Maintain stable financial foundation and continue growth investments
  • Expand sales channels and strengthen digital marketing

Business Segments

Professional Cleaning Equipment Wholesaler

Overview
Wholesale and sales of diverse professional cleaning equipment and materials, contributing to improved cleaning efficiency for customers.
Competitiveness
Product deployment strength from fusion of in-house manufacturing and imported brands
Customers
  • Building maintenance companies
  • Factories
  • Hotels
  • Hospitals
  • Schools
  • Commercial facilities
  • Public institutions
  • Real estate management companies
  • Cleaning contractors
  • Environmental service companies
Products
  • Professional vacuum cleaners
  • Automatic floor washers
  • High-pressure washers
  • Detergents
  • Consumables
  • Cleaning tools
  • Environmental purification materials
  • Used machinery

Machinery and Materials Import Sales

Overview
Imports and sales of cleaning and washing equipment from Europe and Asia, along with domestic distribution.
Competitiveness
Exclusive sales rights based on contract with Italian appliance Ariete
Customers
  • Domestic agents
  • Contractors
  • Retailers
  • Cleaning service providers
Products
  • Imported high-pressure washers
  • Home cleaning robots
  • Cleaning machinery consumables

Used Machinery Refurbishment and Sales

Overview
Deploys used machinery refurbishment and sales business aiming to reduce environmental impact.
Competitiveness
High-quality refurbishment technology
Customers
  • Cost-conscious customers
  • Small and medium enterprises
  • Cleaning contractors
Products
  • Refurbished floor washers
  • Used high-pressure washers

Maintenance Services

Overview
Provides post-purchase equipment maintenance and repair services.
Competitiveness
Prompt response and extensive technical expertise
Customers
  • Business facility owners
  • Cleaning contractors
Products
  • Periodic equipment inspections
  • Repairs and replacements
  • General after-sales service

Environmental Equipment Sales

Overview
Proposes and sells pollution prevention and environmentally considerate equipment.
Competitiveness
Strength in responding to environmental regulations
Customers
  • Municipalities
  • Environmental conservation companies
  • Cleaning industry associations
Products
  • Pollution prevention equipment
  • Water purification and purification equipment
  • Waste treatment related equipment

OA Equipment and Related Products Sales

Overview
Wholesale of OA-related equipment and supplies for business efficiency.
Competitiveness
Diverse product lineup compatible with multiple models
Customers
  • Offices
  • Government agencies
  • Educational institutions
Products
  • Office equipment
  • Printer consumables
  • Office cleaning supplies

Competitive Advantage

Strengths

  • Specialized wholesaler focused on professional cleaning equipment
  • Diverse product deployment through both in-house developed products and imports
  • Solid management base in Koto-ku, Tokyo
  • Technical and service provision by approx. 206 specialized staff
  • Strengthened business foundation through subsidiary absorption and merger
  • Promotion of environmentally responsive product development
  • Long-cultivated trust with customers
  • Wide sales channel network
  • Stable market share in professional equipment field
  • Abundant handled brands
  • Multi-faceted service provision
  • Enhanced technical support system
  • Reliable quality control system
  • Prompt maintenance services
  • Stable financial foundation

Competitive Advantages

  • Differentiation through exclusive sales rights for Italian "Ariete"
  • Position as specialized wholesaler in domestic professional cleaning equipment market
  • Environmental consideration and cost competitiveness via used equipment regeneration technology
  • Advanced maintenance services and customer follow-up
  • Comprehensive strength from wide product lineup
  • Utilization of strong customer base and diverse sales channels
  • Product provision capability responsive to environmental regulations
  • Stable financial performance and asset base
  • Support by experienced specialized technical staff
  • Prompt market response and product development capabilities
  • Close collaboration system with trading partners
  • Response capability to diverse industry needs
  • Optimal combination of imported and domestic in-house products
  • Building trust through regional closeness
  • Promotion of innovation through continuous investment

Threats

  • Intensifying price competition from new entrants
  • Risk of price fluctuations in overseas products
  • Increased burden of product adaptation due to strengthened environmental regulations
  • Changes in competitive environment accompanying accelerating technological innovation
  • Risk of market contraction due to domestic population decline
  • Destabilization of import costs due to exchange rate fluctuations
  • Price decline pressure in used equipment market
  • Risk of deterioration in trading partners' economic conditions
  • Market impact from emergence of alternative technologies or products
  • External environmental risks such as new infectious diseases
  • Rising raw material prices
  • Impact of international trade regulations

Innovations

2023: Launch of New High-Pressure Washer ZE-1608-10

Overview
Introduced a new model engine-type high-pressure washer, targeting expansion of demand in agriculture and construction sites.
Impact
Contributes to increased sales volume and market share expansion

2022: Start of Ariete Cleaning Robot Imports

Overview
Strengthened import and sales of Italian cleaning robot brand "Ariete" for the Japanese market.
Impact
Achieved new entry into the home market

2021: Absorption and Merger of Etani Sangyo

Overview
Absorbed and merged cleaning equipment parts-related subsidiary to pursue business efficiency and synergy effects.
Impact
Strengthened business foundation and reduced management costs

2020: Improvement in Used Machinery Refurbishment Technology

Overview
Enhanced refurbishment technology for used cleaning equipment and established quality assurance system.
Impact
Improved trust and increased sales in used market

Sustainability

  • Efforts to improve biodegradability of detergents to reduce environmental impact
  • Promotion of waste reduction through used machinery reuse business
  • Promotion of sales of energy-saving cleaning equipment
  • Expansion of adoption of environmentally considerate packaging materials
  • Promotion of resource-saving and energy-saving activities within the company
  • Implementation of environmental education for employees
  • Development and provision of clean tech products
  • Building environmental collaboration system with partner companies
  • Introduction of ISO14001 environmental management system
  • Participation in and support for regional cleaning activities
  • Thorough implementation of green procurement policy
  • Improvement of waste recycling rate