Lower margins due to increased transaction volumes aimed at gaining market share
First written in FY2021-Q3. 8 of 12 entries say "Mitigated", first in FY2022-Q2. Latest entry: FY2026-H1.
No other company in this theme has enough history to compare yet.
- FY2026-H1MitigatedAnnual report
「As a result, the main KPIs were 655,857 RENOSY members, up approximately 17% year on year, 24,806 owners, up approximately 12%, and 47,916 subscription contracts, up approximately 26%. Progress remained strong. The RENOSY Marketplace business reported revenue of ¥138,418 million, up 29.5% year on year, gross profit of ¥21,527 million, up 29.7%, and segment profit of ¥7,092 million, up 14.2%.」
The company continued to maximize gross profit through product lineup expansion and other measures, resulting in year-on-year increases in RENOSY Marketplace gross profit and segment profit. - FY2024MitigatedAnnual report
「We have sought to maximize gross profit through various fee improvement measures, including the promotion of Sale DX and expansion of the product lineup.」
To address lower margins, the company continued fee improvements, Sale DX and product lineup expansion, reporting RENOSY Marketplace gross profit of ¥26,747 million and segment profit of ¥8,885 million. - FY2024-Q2MitigatedAnnual report
「We have also sought to maximize gross profit through various fee improvement measures, including the promotion of Sale DX and expansion of the product lineup. As a result, the RENOSY Marketplace business reported revenue of ¥83,586 million, up 35.3% year on year, gross profit of ¥12,135 million, up 39.4%, and segment profit of ¥4,458 million, up 58.9%.」
To address lower margins, the company continued Sale DX, product lineup expansion and fee improvements, resulting in year-on-year increases in gross profit and segment profit. - FY2024-Q1MitigatedAnnual report
「As a result, the RENOSY Marketplace business reported revenue of ¥33,211 million, up 42.5% year on year, gross profit of ¥4,786 million, up 48.8%, and segment profit of ¥1,390 million, up 255.8%.」
The company stated that gross profit and segment profit at the RENOSY Marketplace increased substantially, reflecting the effects of fee improvements, Sale DX and product lineup expansion in response to the previous decline in margins. - FY2023-Q3MitigatedAnnual report
「We have sought to maximize gross profit through fee improvement initiatives, including the promotion of Sale DX and expansion of the product lineup.」
To address lower margins associated with market share expansion, the company continued Sale DX, product lineup expansion and fee improvement initiatives, seeking to maximize gross profit. - FY2023-Q2MitigatedAnnual report
「As a market leader, we have continued to invest with discipline, pursued efficient customer acquisition through digital marketing, and sought to maximize gross profit through the promotion of Sale DX and expansion of the product lineup.」
To address lower margins associated with market share expansion, the company continued to promote Sale DX and expand the product lineup, seeking to maximize gross profit. - FY2022MitigatedAnnual report
「Through the promotion of Sale DX and expansion of the product lineup, among other measures, the company improved its gross margin, resulting in gross profit of ¥16,519 million, up 61.4% year on year.」
To address lower margins associated with increased transaction volumes, the company promoted Sale DX and expanded the product lineup, disclosing an improvement in gross margin and an increase in gross profit. - FY2022-Q3AdvancedAnnual report
「Profit at the RENOSY Marketplace improved as a result of the effects of various fee improvement initiatives implemented previously and the business integration with Ricordi Co., Ltd.」
The company explained that profit improved through the effects of fee improvement initiatives and the business integration with Ricordi as measures to address lower margins associated with market share expansion. - FY2022-Q2MitigatedAnnual report
「Profit at the RENOSY Marketplace improved as a result of the effects of various fee improvement initiatives implemented previously and the business integration with Ricordi Co., Ltd.」
The company stated that, after lower margins associated with market share expansion became an issue, profit improved through fee improvement initiatives and the business integration with Ricordi. - FY2022-Q1MaterialisedAnnual report
「As a result, the main KPIs were GMV※3 of ¥20.2 billion, up approximately 40% year on year, approximately 900 completed transactions※4, up approximately 70%, and approximately 260,000 members, up approximately 35%. Revenue reached a record high, but segment profit grew only modestly due in part to increases in personnel and advertising expenses and lower margins.」
The company disclosed that, while transaction volumes and KPIs increased, personnel and advertising expenses continued to rise and margins continued to decline, limiting segment profit growth. - FY2021MaterialisedAnnual report
「As transaction volumes increased, the number of products purchased at higher procurement prices rose and many low-margin transactions occurred. As a result, margins have remained below initial expectations.」
As a result of increasing transaction volumes to gain market share, low-margin transactions increased, and for the full year, gross profit growth remained limited relative to revenue growth. - FY2021-Q3MaterialisedAnnual report
「As transaction volumes increased, the number of products purchased at higher procurement prices rose and many low-margin transactions occurred. As a result, margins have remained below initial expectations.」
As a result of increasing transaction volumes to raise market share over a short period, the number of products with higher procurement prices and low-margin transactions increased, and margins actually fell below initial expectations.