Low barriers to entry and intensifying competition
First written in FY2016. 5 of 14 entries say "Restated". Latest entry: FY2026.
Toubujyuhan moved to the "Worse" side of this theme in 2019.
2 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Although the Company has its own know-how concerning property acquisition and sales, its real estate trading business is not based on technological originality or similar factors, and barriers to entry are therefore not high.」
The Company continues to recognise the risks arising from low barriers to entry, the entry of operators into the purchase-and-resale business and intensifying competition for acquisitions, and to respond through know-how, local networks and financial strength. - FY2025RestatedAnnual report
「Particularly in an economic environment marked by a downturn and an increasing tendency toward thrift, there have been cases of new operators entering the market by, for example, joining a franchise chain specialising in the purchase and resale of existing homes and developing businesses similar to the Company's. This may result in competition for the acquisition of existing homes and other properties, and in some cases may lead to higher acquisition prices.」
The Company has additionally explained that entry through measures such as joining a franchise for the purchase and resale of existing homes is a source of competition. Its recognition of the risks of intensified competition and higher acquisition prices, and its policy of responding through know-how, local networks and financial strength, remain unchanged. - FY2024MaterialisedAnnual report
「Due in part to the low-price strategies of companies selling newly built spec homes, first-half sales of 182 were below the 231 recorded in the same period of the previous year, and full-year sales of 413 were substantially below the 459 recorded in the previous fiscal year.」
Competition resulting from the low-price strategies of companies selling newly built spec homes appeared in actual results as first-half sales of 182, full-year sales of 413 and a year-on-year decline of 46. - FY2024-Q3MaterialisedAnnual report
「However, as sales during the cumulative second-quarter period remained below the same period of the previous year due in part to the low-price strategies of companies selling newly built spec homes, sales during the cumulative third-quarter period remained at 280, down 33 year on year.」
Competition resulting from the low-price strategies of companies selling newly built spec homes continued to appear in the results, with cumulative sales of 280, down 33 year on year. - FY2024-Q2MaterialisedAnnual report
「However, due in part to the low-price strategies of companies selling newly built spec homes, customer enquiries for the Company's own properties declined, and the number of properties sold remained at 182, down 49 year on year.」
Competition resulting from the low-price strategies of companies selling newly built spec homes appeared in actual business results as a decline in customer enquiries and a year-on-year decrease of 49 in sales of the Company's own properties. - FY2023RestatedAnnual report
「As competition with other buyers in the acquisition of existing homes intensified, the Company sought to expand its sales workforce and actively conduct advertising and other promotional activities to increase its inventory of existing homes and other properties and generate more customer enquiries.」
The Company continues to disclose the intensity of competition in acquisitions and its response through an expanded sales workforce and advertising and other promotional activities. - FY2022WorsenedAnnual report
「As competition with other buyers in the acquisition of existing homes intensified, the Company sought to expand its sales workforce and actively conduct advertising and other promotional activities to increase its inventory of existing homes and other properties and generate more customer enquiries.」
The Company explained that competition with other buyers had become even more intense and is responding by expanding its sales workforce and conducting advertising and other promotional activities. - FY2021WorsenedAnnual report
「While stable demand for residential real estate continued in the in-house real estate sales business, competition for used-home acquisitions intensified due to an increase in competitors and other factors. We therefore sought to expand inventory of used homes and other properties by developing new sources of acquisition information.」
The Company explained that acquisition competition had become even more intense as the number of competitors increased, indicating that the risk of intensified competition had continued and worsened. - FY2020WorsenedAnnual report
「As competition intensified due to new entrants and other factors, acquisition prices rose, leading to an increase in the cost ratio.」
The increase in new entrants into the buy-and-renovate resale business for existing homes and the resulting intensification of competition appeared in higher acquisition prices and a higher cost ratio as factors behind the shortfall against results and the medium-term management plan. - FY2019MaterialisedAnnual report
「Although the Company focused on acquiring existing homes and other properties during the fiscal year, acquisitions declined because of intensifying competition resulting from new entrants and other factors.」
The Company explained that intensifying competition actually led to a decline in acquisition volume, with the low barriers to entry and risk of increased competition materialising in acquisitions. - FY2018RestatedAnnual report
「Although the Company has its own know-how concerning property acquisition and sales, its real estate trading business is not based on technological originality or similar factors, and barriers to entry are therefore not high.」
The Company continues to identify low barriers to entry and the potential for increased competition as risks, and uses renovation and acquisition know-how and local networks as countermeasures. - FY2018-Q1MaterialisedAnnual report
「The Company discontinued its online shopping business, which was part of its real estate-related operations, effective 1 June 2017, due to intense competition.」
The disclosure states that intense competition led to the discontinuation of the online shopping business, indicating that the risk of intensifying competition materialised in a related business. - FY2017RestatedAnnual report
「The Company has worked to accumulate various forms of know-how, including the renovation and refurbishment of existing homes and careful evaluation of acquisitions. It has also built up a track record in the Chugoku and Kyushu regions and established personal and information networks.」
The Company recognises that barriers to entry are not high and that competition may increase, and continues to respond through renovation expertise, careful evaluation of acquisitions and local networks. - FY2016First statedAnnual report
「Although the Company has its own know-how concerning property acquisition and sales, its real estate trading business is not based on technological originality or similar factors, and barriers to entry are therefore not high. Particularly in an economic environment marked by a downturn and an increasing tendency toward thrift, the number of companies operating businesses similar to the Company's may increase.」
The Company is addressing this through the renovation and refurbishment of existing homes, careful evaluation of acquisitions, and the accumulation of local personal and information networks.