Risk of Declining Profitability Due to New Entrants and Excessive Competition in the E-Commerce Market
First written in FY2016. 2 of 5 entries say "Worsened", first in FY2018-Q1. Latest entry: FY2020.
Generation Pass moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 6 of 15 companies on the "Worse" side.
10 other companies' latest entry also says "Restated".
- FY2020RestatedAnnual report
「Because barriers to entry are low, if the further expansion of the e-commerce market leads to an increase in new entrants and excessive price competition that disregards margins and quality becomes widespread in the industry, the business and performance of the Group may be affected.」
The Company has reconfirmed the competitive risks posed by new entrants and excessive price competition in the e-commerce market, as well as the strengthening of online sales by major mail-order operators. - FY2018WorsenedAnnual report
「In addition, major mail-order operators whose core business is based on paper media such as catalogs may strengthen their sales activities by making full use of the internet. If catalog mail-order operators and others with extensive product lineups, customer bases, and sales expertise strengthen their internet-based sales activities, the Company may be unable to secure its expected market share, which could affect the business and performance of the Group.」
In addition to the existing risks of new entrants and excessive competition, the Company has added the risk of losing market share as major catalog mail-order operators strengthen their internet sales. - FY2018-Q1WorsenedAnnual report
「In the retail industry in which our group operates, consumers continue to have a strong preference for saving, while the operating environment remains challenging due to competitors' aggressive store openings and higher procurement and delivery costs as we respond to diversifying consumer needs.」
Aggressive store expansion by competitors and increases in procurement costs and delivery charges are specifically identified as factors contributing to the difficult operating environment. - FY2017-Q3MaterialisedAnnual report
「However, changes to the operating entity in the Shanghai special economic zone and intensifying price competition in BtoB sales have delayed progress toward the sales revenue initially planned, and an inventory write-down has been recorded for some products.」
The Company states that intensifying price competition in B2B sales actually led to delays in progress toward its sales plan. - FY2016First statedAnnual report
「Because barriers to entry are low, if the further expansion of the e-commerce market leads to an increase in new entrants and excessive price competition that disregards margins and quality becomes widespread in the industry, the business and performance of the Group may be affected.」
The Company states that, given the low barriers to entry in the e-commerce market, new entrants and excessive price competition could affect performance.