Risk of price declines and loss of competitive advantages due to intensifying domestic and overseas competition
First written in FY2018. 10 of 20 entries say "Materialised", first in FY2019-Q1. Latest entry: 2026-08-19.
Hokuto moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2026: 38 of 84 companies on the "Worse" side.
33 other companies' latest entry also says "Worsened".
- FY2026-H1Competitive impact varies by region and marketAnnual report
「As a result of strengthening efforts to expand sales to new customers, transactions with major retailers began, and we steadily advanced initiatives to expand sales.」
While the company began trading with major retailers in the United States by developing new customers, sales weakness continued in Taiwan and Malaysia, resulting in differing effects from competition and sales conditions by region. - FY2025-H1Competitive impact varies by region and marketAnnual report
「In Malaysia and Singapore, the effect of inexpensive Chinese mushrooms was limited because we strengthened proposals and promotional activities. In other ASEAN regions, however, sales conditions remained difficult because of intense competition for market share with Korean products in addition to inexpensive Chinese products.」
While the impact of products from China was limited in Malaysia and Singapore through product proposals and promotions, competition with products from China and South Korea remained intense in other ASEAN regions, resulting in differing effects from competitive risks by region. - FY2024WorsenedAnnual report
「However, both sales and operating profit fell below plan.」
In Malaysia, the impact of inexpensive products from China and continued weakness across the retail sector persisted, while price competition also intensified in Taiwan, and overseas competition continues to pressure sales and earnings. - FY2024-Q3WorsenedAnnual report
「Price competition intensified among retailers, and the company faced difficult conditions in which requests for price increases were rejected by individual customers, resulting in sales and operating profit falling short of plan.」
Price competition intensified in Taiwan's retail market, and price increases were not approved, with competitive pressure on earnings becoming evident in actual results. - FY2024-Q2MaterialisedAnnual report
「Large volumes of mushrooms from China were imported into the ASEAN region at low prices, significantly affecting sales of the company's mushrooms.」
In Malaysia, low-priced, large-volume imports of mushrooms from China had a significant actual impact on the company's sales. - FY2024-Q1MaterialisedAnnual report
「Large volumes of mushrooms from China were imported into the ASEAN region at low prices, significantly affecting sales of the company's mushrooms.」
In Malaysia, low-priced, large-volume imports of mushrooms from China had a significant actual impact on the company's sales. - FY2023MaterialisedAnnual report
「In addition, the overseas business faces competition from Asian companies. Although the group is working to shift and expand toward value-added sales leveraging its brand strength, declines in unit prices resulting from increased supply and other factors may affect the group's financial position and operating results.」
The company continues to disclose the risks of competition from Asian companies overseas and lower unit prices due to increased supply, while the impact of inexpensive products from China has also emerged in actual results in Malaysia. - FY2023-Q3MaterialisedAnnual report
「At HOKTO MALAYSIA SDN. BHD., inflation has been progressing across ASEAN countries, driving up the prices of essential goods, while consumers have increasingly refrained from purchasing non-essential goods or shifted to inexpensive products from China. This also affected sales of the company's mushrooms.」
In Malaysia, inflation led to restrained consumer spending and a shift in demand toward inexpensive products from China, and competitive pressure on sales affected actual sales. - FY2023-Q2MaterialisedAnnual report
「At HOKTO KINOKO COMPANY in the United States, sales remained firm, but operating profit was slightly below plan due to competition from imported products and the impact of rising prices.」
In the United States, competition from imported products emerged as an actual factor behind the shortfall against the profit plan, and competitive pressure on the company's advantage and earnings is continuing. - FY2023-Q1MaterialisedAnnual report
「In addition, competition for market share with products from China intensified in every country where the company sells its products, while consumption also stagnated amid inflation, making sales of mushrooms overall difficult.」
Intensifying competition with products from China in every overseas sales market emerged as actual sales weakness, compounded by sluggish consumption due to inflation. - FY2022RestatedAnnual report
「By launching unique new products and strengthening advertising activities, the group is working to increase the added value of the mushrooms it produces and sells, thereby further strengthening its brand and differentiating itself from other companies.」
The company continues to disclose the risk of losing its competitive advantage due to increased supply, discounting and advertising by competitors, as well as its response through new products and advertising. - FY2021RestatedAnnual report
「Depending on competitors' increases in supply volumes, discounting strategies and advertising and promotional activities, among other factors, the group may be unable to maintain its competitive advantage, potentially affecting its financial position and operating results.」
The company continues to disclose the risk that increased supply, discounting, advertising and lower unit prices by domestic and overseas competitors may affect its competitive advantage and performance. - FY2020MaterialisedAnnual report
「On the sales side, amid intense competition for market share with Chinese and Korean products, we strengthened campaigns and promotions at mass retailers with strong sales capabilities. This enhanced the branding effect and led to expanded new customer acquisition efforts.」
While intense competition for market share with products from China and South Korea continues in Malaysia, the company is responding through campaigns, promotions and branding initiatives. - FY2020-Q3MaterialisedAnnual report
「On the sales side, amid intense competition for market share with Chinese and Korean products, we strengthened campaigns and promotions at mass retailers with strong sales capabilities, thereby enhancing the branding effect and intensifying new customer acquisition efforts.」
In Malaysia, intense competition for market share with products from China and South Korea has emerged, and competitive pressure on sales is continuing. - FY2020-Q2MaterialisedAnnual report
「At HOKTO MALAYSIA SDN. BHD., the production division has reached a stage, 4 years after construction of the plant, at which stable cultivation is continuing. On the sales side, amid intense competition for market share with products from China, core sales channels are gradually becoming established, and the company has been pursuing sales through proposals and product planning, centered on these channels.」
In Malaysia, intense competition for market share with products from China has emerged, and competitive pressure on the company's advantage and sales is evident in the actual business environment. - FY2019RestatedAnnual report
「Depending on competitors' increases in supply volumes, discounting strategies and advertising and promotional activities, among other factors, the group may be unable to maintain its competitive advantage, potentially affecting its financial position and operating results.」
The company continues to disclose the risk that increased supply, discounting and advertising by domestic and overseas competitors may affect its competitive advantage and performance. - FY2019-Q1MaterialisedAnnual report
「The Singapore market performed well, but sales of the company's products stagnated in other ASEAN markets as they came under pressure from competing products made in China.」
Sales pressure from competing products made in China actually emerged in other ASEAN markets, causing sales of the company's products to stagnate. - FY2018First statedAnnual report
「Depending on competitors' increases in supply volumes, discounting strategies and advertising and promotional activities, among other factors, the group may be unable to maintain its competitive advantage, potentially affecting its financial position and operating results. The overseas business also faces competition from Asian companies.」
The company identifies as a separate risk the possibility that increases in supply volumes, discounting, advertising and promotion, and declines in unit prices by domestic and overseas competitors could affect its competitive advantage and business performance.