Changes in the Market Environment, Competition, and Customer Preferences

「During the interim accounting period (1 April 2025 to 30 September 2025), Japan’s economy showed a gradual recovery against a backdrop of improving employment and income conditions. However, the outlook for the economy remained uncertain due to the U.S. tariff policy, foreign-exchange fluctuations and sluggish personal consumption resulting from prolonged price increases. In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.5616 trillion in 2024, expanding steadily by 3.6% year on year (Source: “FY2024 Project for Developing the Digital Transaction Environment (E-Commerce Market Survey),” August 2025, Ministry of Economy, Trade and Industry). Since the EC usage rate in the furniture and interior industry remains lower than in other industries, there is scope for further progress in the shift to EC, and market expansion is expected.」

「During the interim accounting period (1 April 2024 to 30 September 2024), Japan’s economy showed a gradual recovery, with personal consumption picking up as economic activity normalized and employment and income conditions improved. However, concerns grew over sharp fluctuations in foreign-exchange rates caused by Japanese and U.S. monetary policy, surging raw-material and energy prices, and deteriorating consumer sentiment due to rising prices, and economic trends in Japan and abroad continued to require close monitoring. In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.4721 trillion in 2023, expanding steadily by 5.0% year on year (Source: FY2023 Project for Developing the Digital Transaction Environment (E-Commerce Market Survey)_September 2024, Ministry of Economy, Trade and Industry). Since the EC usage rate in the furniture and interior industry remains lower than in other industries, there is scope for further progress in the shift to EC, and market expansion is expected.」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.3541 trillion in 2022, expanding steadily by 3.5% year on year (Source: FY2022 Project for Developing the Digital Transaction Environment (E-Commerce Market Survey)_August 2023, Ministry of Economy, Trade and Industry). Since the EC usage rate in the furniture and interior industry remains lower than in other industries, there is scope for further progress in the shift to EC, and market expansion is expected.」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.3541 trillion in 2022, expanding steadily by 3.5% year on year (Source: FY2022 Project for Developing the Digital Transaction Environment (E-Commerce Market Survey)_August 2023, Ministry of Economy, Trade and Industry).」

「During the first three months of the fiscal year (1 April 2023 to 30 June 2023), Japan’s economy gradually moved toward normalization as efforts to balance COVID-19 containment with economic activity progressed, and a recovery in personal consumption was expected. However, concerns grew over the deterioration in consumer sentiment caused by the rapid depreciation of the yen, influenced by Japanese and U.S. monetary policy, and by rising prices, and economic trends in Japan and abroad continued to require close monitoring. In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.2752 trillion in 2021, expanding steadily by 6.7% year on year.」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.2752 trillion in 2021, expanding steadily by 6.7% year on year (Source: FY2021 Project for Developing the Digital Transaction Environment (E-Commerce Market Survey)_August 2022, Ministry of Economy, Trade and Industry). Since the EC usage rate in the furniture and interior industry remains low relative to other industries, there is scope for further progress in the shift to EC, and market expansion is expected.」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.2752 trillion in 2021, expanding steadily by 6.7% year on year (Source: FY2021 Project for Developing the Digital Transaction Environment (E-Commerce Market Survey)_August 2022, Ministry of Economy, Trade and Industry).」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.1322 trillion in 2020, expanding significantly by 22.4% year on year.」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.1322 trillion in 2020, expanding steadily by 22.35% year on year.」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥2.1322 trillion in 2020, expanding steadily by 22.3% year on year.」

「In the furniture and interior industry, the operating environment remained challenging due to rising raw-material and logistics costs, as well as intensifying sales competition across business formats.」

「In the furniture and interior industry, time spent at home increased due to the continuation of remote work and other factors, and demand continued to expand in the first nine months. However, the operating environment remained challenging due to rising logistics costs and intensifying sales competition across business formats. Meanwhile, the BtoC-EC market for general merchandise, furniture and interiors, which includes the Company’s market, reached ¥1.7428 trillion in 2019, expanding steadily by 8.4% year on year (Source: FY2019 Survey Project on International Economic Research for Building an Integrated Domestic and International Economic Growth Strategy (E-Commerce Market Survey)_July 2020, Ministry of Economy, Trade and Industry). Further market expansion is expected as the rate of EC usage increases amid changes in lifestyles arising from the COVID-19 pandemic.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats, although time spent at home increased as working from home continued and demand expanded during the second quarter, following the first quarter. Meanwhile, the B2C e-commerce market for miscellaneous goods, furniture and interior furnishings, to which the company belongs, reached ¥1.7428 trillion in 2019, expanding steadily by 8.4% from the previous fiscal year (Source: International Economic Survey Project for Building an Integrated Domestic and Overseas Economic Growth Strategy for fiscal 2019 (Market Survey on Electronic Commerce), July 2020, Ministry of Economy, Trade and Industry). Although the market had expanded steadily, further growth is expected due to the increased use of e-commerce accompanying changes in lifestyles stemming from the COVID-19 pandemic.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats, although time spent at home increased as a result of requests to refrain from going out and the increase in working from home, leading to expanded demand during the cumulative first-quarter period.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats. Meanwhile, the B2C e-commerce market for miscellaneous goods, furniture and interior furnishings, to which the company belongs, reached ¥1.6083 trillion in 2018, expanding steadily by 8.6% from the previous fiscal year.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats. Meanwhile, the B2C e-commerce market for miscellaneous goods, furniture and interior furnishings, to which the company belongs, reached ¥1.6083 trillion in 2018, expanding steadily by 8.6% from the previous fiscal year.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats. Meanwhile, the B2C e-commerce market for miscellaneous goods, furniture and interior furnishings, to which the company belongs, reached ¥1.6083 trillion in 2018, expanding steadily by 8.6% from the previous fiscal year.」

「The company's customers are primarily women in their 20s and 30s. Weak consumption and declining demand among these customer segments, as well as the declining birthrate and population decrease, may affect the company's business performance and financial position.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats. Meanwhile, the B2C e-commerce market for miscellaneous goods, furniture and interior furnishings, to which the company belongs, reached ¥1.4817 trillion in 2017, expanding steadily by 9.8% from the previous fiscal year.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats. Meanwhile, the B2C e-commerce market for miscellaneous goods, furniture and interior furnishings, to which the company belongs, reached ¥1.4817 trillion in 2017, expanding steadily by 9.8% from the previous fiscal year.」

「In response to intensifying price competition within major shopping malls, the company implemented markdowns on commodity products during the first half of the previous fiscal year. However, because it reviewed the selling prices of existing products by the end of the previous fiscal year, the cost ratio improved year on year.」

「On the cost side, price competition within major shopping malls has intensified, and the cost ratio increased as a result of markdowns on commodity products. On the logistics side, delivery costs increased due to price increases by delivery companies.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats. In response to intensifying price competition within major shopping malls, the company implemented markdowns on commodity products during the cumulative second-quarter period. However, it reviewed the selling prices of existing products during the third quarter and seasonal products performed well, resulting in an improved cost ratio.」

「Meanwhile, intensifying price competition in major shopping malls led the company to lower selling prices for commodity products, resulting in a higher cost ratio. In addition, logistics costs increased due to changes in delivery companies and requests for price increases following some delivery companies' withdrawal from business-to-consumer operations. Selling, general and administrative expenses also increased due to advertising to raise awareness and continued investment in new business development, including research and development for the launch of a furniture platform business. As a result, revenue increased but profit declined year on year.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats. Meanwhile, the B2C e-commerce market for miscellaneous goods, furniture and interior furnishings, to which the company belongs, reached ¥1.35 trillion in 2016, expanding steadily by 11.4% from the previous fiscal year.」

「The furniture and interior furnishings industry continues to face a challenging operating environment due to rising logistics costs and intensifying sales competition across business formats.」

「In addition, amid sharp foreign exchange rate fluctuations, inbound demand, which had previously expanded rapidly, has been affected by slower growth in visitor numbers to Japan and a shift in purchased products from luxury goods to consumer goods, creating a need to respond to changes in consumer behavior.」

「In addition, against a backdrop of yen appreciation and slowing overseas economies, inbound demand, which had previously expanded rapidly, has been affected by slower growth in visitor numbers to Japan and a shift in purchased products from luxury goods to consumer goods, creating a need to respond to changes in consumer behavior.」

「The company's market share in the approximately ¥1 trillion B2C e-commerce market for miscellaneous goods, furniture and interior furnishings remains low, leaving considerable room for growth. If various factors affecting the company's business, including economic conditions and technological innovation, change beyond expectations, they may affect its business performance and financial position.」