Intensifying Competition in the E-Commerce Market and Sluggish Performance Growth
First written in FY2017-Q1. 10 of 25 entries say "Mitigated", first in FY2018. Latest entry: FY2024.
System Integrator Corp. moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 6 of 15 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2024ReframedAnnual report
「Against this backdrop, our E-Commerce Business has sought fundamental reforms as a growth strategy for the future, beyond relying solely on our own resources, while working to maintain its competitive advantage amid a rapidly changing market environment characterized by the entry of numerous competing products and increasingly diverse customer demands.」
The E-Commerce Business’s response to intensifying competition and increasingly diverse customer demands is being restructured from a company-only approach toward fundamental reforms that include collaboration with external companies. - FY2024-Q3WorsenedAnnual report
「Against this backdrop, our E-Commerce Business has sought fundamental reforms as a growth strategy for the future, beyond relying solely on our own resources, while working to maintain its competitive advantage amid a rapidly changing market environment characterized by the entry of numerous competing products and increasingly diverse customer demands.」
Regarding the E-Commerce Business, the company explicitly identifies the entry of numerous competing products and increasingly diverse customer demands as features of a rapidly changing market environment, and describes its efforts to pursue fundamental reforms beyond relying solely on its own resources. - FY2024-Q2MitigatedAnnual report
「Although multiple development projects for Adobe Commerce, which was commercialized in the previous fiscal year, are progressing in the E-Commerce Business, we struggled to win new orders as investment previously directed toward online sales was also diverted to physical-store sales in the post-COVID environment. As a result, revenue for the cumulative second quarter was ¥428.399 million, down 3.3% year on year, while segment profit was ¥117.229 million, down 13.5%.」
Although difficulty in winning new orders continues, the decline in revenue narrowed to 3.3% year on year and the decline in segment profit to 13.5%, representing an improvement in performance from the previous quarter’s declines in revenue and profit. - FY2024-Q1WorsenedAnnual report
「Although multiple projects for Adobe Commerce, which was commercialized in the previous fiscal year, are progressing in the E-Commerce Business, investment previously directed toward online sales has also been diverted to physical-store sales in the post-COVID environment. As a result, revenue for the cumulative first quarter was ¥202.975 million, down 10.8% year on year, while segment profit was ¥49.907 million, down 30.0%.」
In the EC business, investment directed toward online sales has been diverted to physical-store sales in the post-COVID environment, resulting in revenue down 10.8% and segment profit down 30.0%. - FY2023-Q3WorsenedAnnual report
「As described above, we have actively pursued new initiatives. However, orders from new project acquisition activities resumed after the suspension of a large-scale project due to customer circumstances in the previous fiscal year have been delayed, and the Adobe Commerce business, launched as a business that does not depend on development resources, has also failed to secure orders as planned. As a result, we were unable to secure sufficient development work, and revenue from the E-Commerce Business for the cumulative third quarter was ¥656.654 million, down 34.9% year on year, while operating profit was ¥129.206 million, down 65.2%.」
In addition to the impact of the suspension of a large-scale project, delays in orders for new projects and failure to meet the plan for Adobe Commerce resulted in revenue from the E-Commerce Business down 34.9% and operating profit down 65.2%. - FY2023-Q2WorsenedAnnual report
「As described above, we have actively pursued new initiatives, and our proposal activities are beginning to produce results. However, in addition to the impact of the suspension of a large-scale project due to customer circumstances in the previous fiscal year, we have struggled to win new projects. As a result, revenue from the E-Commerce Business for the cumulative second quarter was ¥442.938 million, down 27.3% year on year, while operating profit was ¥89.223 million, down 61.1%, resulting in lower revenue and profit.」
In addition to the impact of the suspension of a large-scale project, difficulty in winning new projects resulted in revenue from the E-Commerce Business down 27.3% and operating profit down 61.1%. - FY2023-Q1WorsenedAnnual report
「In the same quarter of the previous year, stay-at-home demand resulting from the COVID-19 pandemic and the receipt of large-scale orders coincided, resulting in substantial increases in revenue and profit for the E-Commerce Business. In the cumulative first quarter, however, the E-Commerce Business was significantly affected by the suspension of a large-scale project due to customer circumstances in the previous fiscal year, resulting in lower revenue and profit.」
In addition to the competitive environment in the EC market, the suspension of a large-scale project due to customer circumstances in the previous fiscal year was reflected in lower revenue and profit for the E-Commerce Business in the quarter. - FY2022-Q3MitigatedAnnual report
「The EC market has been extremely active due to stay-at-home demand during the COVID-19 pandemic, and our E-Commerce Business is also progressing ahead of plan. As a result, revenue for the cumulative third quarter reached ¥1,009.176 million, up 73.5% year on year, while operating profit reached ¥370.820 million, up 176.5%, resulting in substantial increases in revenue and profit.」
Although there is no direct new reference to the competitive environment, the company describes the buoyant EC market, progress ahead of plan and improved performance, with revenue up 73.5% and operating profit up 176.5%. - FY2022-Q2MitigatedAnnual report
「The EC market has been extremely active due to stay-at-home demand during the COVID-19 pandemic, and our E-Commerce Business is also progressing ahead of plan. As a result, revenue for the cumulative second quarter reached ¥609.047 million, up 81.0% year on year, while operating profit reached ¥229.493 million, up 324.2%, resulting in substantial increases in revenue and profit.」
Against the backdrop of a buoyant EC market, the E-Commerce Business progressed ahead of plan, with revenue up 81.0% and operating profit up 324.2%. - FY2021-Q3MitigatedAnnual report
「Through the cumulative second quarter, the state of emergency declared in response to the spread of the novel coronavirus delayed the start of development projects as customers’ decision-making slowed, and the business was affected by lower utilization of development personnel and other factors. In the current third quarter, however, revenue increased 15.0% year on year, while the gross profit margin rose 1.8 percentage points year on year as utilization recovered.」
In the E-Commerce Business, revenue for the third quarter increased 15.0% year on year and the gross profit margin rose 1.8 percentage points, indicating a recovery from the delayed start of orders and lower utilization through the previous quarter. However, revenue and profit continued to decline on a cumulative basis. - FY2021-Q2WorsenedAnnual report
「This business was also affected by the spread of the novel coronavirus. The state of emergency declared in April slowed customers’ decision-making, delaying the timing of new orders and pushing back the start of development projects. This reduced the utilization rate of development personnel and resulted in lower profit margins than normal. As a result, the E-Commerce Business reported revenue of ¥336.482 million for the cumulative second quarter, down 16.1% year on year, and operating profit of ¥54.095 million, down 48.5%, resulting in lower revenue and profit.」
In addition to the competitive environment in the EC market, delays in decision-making caused by COVID-19, delays in order intake and lower utilization resulted in revenue down 16.1% and operating profit down 48.5%. - FY2020MitigatedAnnual report
「The EC market continues to develop steadily and is expected to grow further. While many competitors have suffered deteriorating profitability as competition has intensified with market expansion, our technical capabilities in steadily bringing large-scale EC websites into operation and increasing sales, drawing on more than 20 years of expertise in building EC websites, have been recognized. In addition, the review of development methods and operational improvement initiatives implemented since last year have proved effective, enabling us to increase the operating profit margin year after year and transform the business into a high-margin business.」
Although intensifying competition in the EC market continues to be mentioned, the company explains that reviewing development methods and improving operations have increased the operating profit margin each year, transforming the business into a high-margin business. - FY2020-Q3MitigatedAnnual report
「The EC market continues to develop steadily and is expected to grow further. While many competitors have suffered deteriorating profitability as competition has intensified with market expansion, our technical capabilities in steadily bringing large-scale EC websites into operation and increasing sales, drawing on more than 20 years of expertise in building EC websites, have been recognized. In addition, the review of development methods and operational improvement initiatives implemented since last year have proved effective, enabling us to build a business with high profit margins.」
Although competition continues to intensify, the company states that reviewing development methods and improving operations proved effective in the EC business, enabling it to become a high-margin business. - FY2020-Q2MitigatedAnnual report
「The EC market continues to develop steadily and is expected to grow further. While many competitors have suffered deteriorating profitability as competition has intensified with market expansion, our technical capabilities in steadily bringing large-scale EC websites into operation and increasing sales, drawing on more than 20 years of expertise in building EC websites, have been recognized. Revenue from the E-Commerce Business for the cumulative second quarter reached ¥400.856 million, up 9.5% year on year, while operating profit reached ¥104.978 million, up 39.6%.」
Although competition continues to intensify, the E-Commerce Business reported revenue growth of 9.5% and operating profit growth of 39.6%, improving performance year on year. - FY2020-Q1WorsenedAnnual report
「While many competitors have suffered deteriorating profitability as competition has intensified with market expansion, our technical capabilities in steadily bringing large-scale EC websites into operation and increasing sales, drawing on more than 20 years of expertise in building EC websites, have been recognized. Revenue from the E-Commerce Business for the cumulative first quarter reached ¥120.937 million, down 29.8% year on year, while operating profit reached ¥1.234 million, down 96.7%.」
References to intensifying competition have reappeared, and the E-Commerce Business reported revenue down 29.8% and operating profit down 96.7% year on year. However, the company also states that business conditions were favorable and that it got off to a strong start ahead of plan. - FY2019-Q3SoftenedAnnual report
「The EC market continues to develop steadily and is expected to grow further. Our technical capabilities in steadily bringing large-scale EC websites into operation and increasing sales, drawing on more than 20 years of expertise in building EC websites, have been recognized. As a result, revenue from the EC and Omnichannel Business for the cumulative third quarter reached ¥529.820 million, up 21.2% year on year, while operating profit reached ¥103.920 million, up 126.3%.」
The direct references previously made to intensifying market competition and sluggish performance have disappeared, with the description now centered on the market’s steady condition and improved performance. - FY2019-Q2MitigatedAnnual report
「The EC market continues to develop steadily and is expected to grow further, but competition has intensified each year as the market has expanded. While many competitors have suffered deteriorating profitability as competition has intensified, our technical capabilities in steadily bringing large-scale EC websites into operation and increasing sales, drawing on more than 20 years of expertise in building EC websites, have been recognized. As a result, revenue from the EC and Omnichannel Business for the cumulative second quarter reached ¥366.034 million, up 24.9% year on year, while operating profit reached ¥75.203 million, up 293.5%.」
Although market competition continues to intensify, the EC and Omnichannel Business reported revenue growth of 24.9% and operating profit growth of 293.5%, with business performance continuing to improve. - FY2019-Q1MitigatedAnnual report
「The EC market continues to develop steadily and is expected to grow further, but competition has intensified each year as the market has expanded. While many competitors have suffered deteriorating profitability as competition has intensified, our technical capabilities in steadily bringing large-scale EC websites into operation and increasing sales, drawing on more than 20 years of expertise in building EC websites, have been recognized. As a result, the EC and Omnichannel Business got off to a strong start, with revenue for the cumulative first quarter reaching ¥172.387 million, up 38.9% year on year, and operating profit reaching ¥37.075 million, compared with an operating loss of ¥6.621 million in the same quarter of the previous year.」
Although market competition continues to intensify, the EC and Omnichannel Business turned from an operating loss in the same period of the previous year to operating profit, while revenue increased 38.9%. - FY2018MitigatedAnnual report
「The scale of the business had grown steadily with the spread of online shopping, but competition has intensified each year as the market has expanded. We, too, had experienced sluggish growth over the past several years as a result, but the policy of returning to our roots by focusing on our core business paid off, enabling a V-shaped recovery this fiscal year.」
Although market competition continues to intensify, the company states that its own sluggish performance over the past several years recovered in a V-shaped recovery this fiscal year. - FY2018-Q3RestatedAnnual report
「The scale of the business had grown steadily with the spread of online shopping, but competition has intensified each year as the market has expanded. While many competitors have suffered deteriorating profitability as competition has intensified, we are developing the business with an emphasis on steadily generating profits by drawing on our more than 20 years of expertise in building EC websites.」
The company continues to mention intensifying competition in the EC market and contrasts deteriorating profitability at competitors with its own policy of prioritizing profits. - FY2018-Q2RestatedAnnual report
「The scale of the business had grown steadily with the spread of online shopping, but competition has intensified each year as the market has expanded. While many competitors have suffered deteriorating profitability as competition has intensified, we are developing the business with an emphasis on steadily generating profits by drawing on our more than 20 years of expertise in building EC websites.」
The company continues to mention intensifying competition in the EC market. Rather than describing sluggish performance, it contrasts competitors suffering deteriorating profitability with its own policy of prioritizing profits. - FY2018-Q1SoftenedAnnual report
「The scale of the business had grown steadily with the spread of online shopping, but competition has intensified each year as the market has expanded.」
Although the document continues to mention intensifying market competition, the previous expression that “performance has remained sluggish over the past 2 fiscal years” does not appear in this filing. - FY2017-Q3RestatedAnnual report
「The scale of the business had grown steadily with the spread of online shopping, but competition has intensified each year as the market has expanded, and performance has remained sluggish over the past 2 fiscal years.」
The company reiterates that intensifying competition in the EC market and sluggish performance over the past 2 fiscal years are part of the same situation. - FY2017-Q2RestatedAnnual report
「The scale of the business had grown steadily with the spread of online shopping, but competition has intensified each year as the market has expanded, and performance has remained sluggish over the past 2 fiscal years.」
The company describes intensifying competition in the EC market and sluggish performance over the past 2 fiscal years as part of the same situation. - FY2017-Q1WorsenedAnnual report
「Competition has intensified each year as the market has expanded, and performance has remained sluggish over the past 2 fiscal years.」
Competition has intensified year after year, and this has been reflected in the actual business conditions through sluggish performance over the past 2 fiscal years.