Service Expansion Through the Acquisition and Subsidiarization of 株式会社ジープ

「In the e-commerce service, the Company changed its sales policy to secure appropriate profits and move away from excessive price competition. Rather than pursuing revenue through repeated discounting and sales campaigns, it prioritized securing profits at appropriate prices, even at the expense of lower revenue. As a result, revenue declined from the prior-year period, but profits increased.」

「In the e-commerce service, import prices for overseas clubs remained high due to continued inflation in the United States and the weak yen. The Company therefore reviewed sales of parallel-import products and revised its product mix by increasing its range of Japanese models and high-margin original products. To secure earnings, it strengthened online sales of store products and focused on trade-in services and duty-free sales at each store to capture inbound demand and retain customers. Sales at the renovated Shimbashi store also remained solid, and the Company will continue expanding sales channels while reducing costs and reviewing selling, general and administrative expenses to increase earnings.」

「At its stores, the Company focused on trade-in services and duty-free sales, capturing inbound demand and strengthening customer retention. It also pursued initiatives including wholesale sales to golf courses and contract operation of pro shops at golf courses, seeking to build a new business model less dependent on parallel-import sales. As a result, revenue increased significantly from the previous year.」

「By opening stores on cross-border e-commerce sites such as eBay and WorldShopping Biz, the Company became able to accept orders from overseas. It also expanded sales channels through duty-free sales and trade-in services to address inbound demand, putting revenue on a recovery trend. In addition, it continued expanding high-margin private-label products to secure profits.」

「In the e-commerce service, high import prices for overseas clubs, due to rising prices in the United States and the weak yen, and higher selling prices made it difficult to secure revenue. As parallel-import products lost the price advantage that had been a Group strength, the Company expanded sales channels by opening stores on cross-border e-commerce sites such as eBay and WorldShopping BIZ, mainly for private-label products, to accept orders from overseas. It also worked to build new business models, including duty-free sales to address inbound demand, in-shop operations at golf courses and trade-in services.」

「The Group differentiated itself from competitors by handling a large volume of parallel-import products. However, as it expects to be unable to maintain a price advantage over Japanese models for the time being, it is transforming its business model, including by significantly changing its product mix. One element of this transformation was the start of in-shop operations at golf courses.」

「In the e-commerce service, rising prices in the United States and the weak yen continued to erode the price advantage of parallel-import golf clubs. Sales of parallel-import products, previously a strength of the Group, are expected to remain challenging on price for the time being, so the Company plans to revise its overall product mix, including by increasing the proportion of Japanese models. At its stores, it also established craft workshops to meet golfers' detailed needs, such as grip replacement and loft adjustment, began duty-free sales to capture inbound demand, and started new initiatives including wholesale sales to golf courses and contract operation of pro shops at golf courses, with the aim of building a new business model less dependent on parallel-import sales.」

「In the e-commerce service, the weak yen since last year has kept import prices for overseas golf clubs high, while higher selling prices made it difficult to secure revenue. Revenue from balls and accessories excluding clubs exceeded that of the prior-year period, so the Company plans to change its club sales strategy. It will address foreign-exchange risk by increasing the proportion of Japanese clubs handled and reducing its reliance on imported clubs. It will also continue expanding high-margin private-label products to secure earnings.」

「The Company worked to secure profits by increasing orders for its high-margin original private-label products, continuing to develop new products and strengthening sales marketing.」

「March 2023: The consolidated subsidiary 株式会社ジープ opened a new-format store, "Jeeper's Golf Club Urayasu byValueGolf," in Urayasu, Chiba Prefecture.」

「Online retail continued to perform strongly. The Company implemented sales expansion measures, including issuing member coupons on its own e-commerce site and changing prices at night on marketplaces.」

「Meanwhile, as sales on third-party e-commerce marketplaces increased, fees and logistics costs rose proportionately, continuing to put pressure on profits. In response, the Company expanded Jeeper's original private-label products, which have high gross margins, to more than 30 products, continued developing new products and strengthened sales marketing to address the challenge of securing profits.」

「In the e-commerce service, revenue increased further due to the arrival of large quantities of popular products and the distribution of store-specific coupons. The Company continued to respond to user demand by procuring products from multiple domestic and overseas brands and manufacturers. … It also worked to secure profits by expanding its high-margin original private-label products.」

「To strengthen earning power, the Company expanded its high-margin original private-label products. As of the end of the period, it offered 14 products, including head covers and caddy bags. Meanwhile, global shortages and price increases for raw materials caused by COVID-19 made stable procurement a challenge. The Company therefore developed new procurement sources in multiple regions in addition to its traditional North American route.」

「In its e-commerce service, the Company completely revamped its online retail site to improve convenience. The site renewal also contributed to continued strong online retail performance. Customer traffic at physical stores likewise showed signs of recovery from the state of emergency, partly because many companies had resumed normal operations. However, the effects of COVID-19 persisted, including continued delivery delays for products sourced through the North American route, making it important to secure sufficient product availability. In response, the Group expanded Jeeper's original private-label products and increased its handling of Japanese-made products beyond previous levels.」

「Demand for golf equipment in Japan remained strong in the e-commerce service. To maintain strong performance, the Company expanded its product lineup, including Jeeper's original private-label products and Japanese-made products.」

「In its e-commerce service, the Company responded to growing demand from golf's rising popularity by procuring products from multiple domestic and overseas brands and manufacturers. By strengthening its e-commerce operations and in-house brands, it further increased revenue.」

「The Group's active procurement before the effects of COVID-19 began to emerge proved effective, and online retail revenue for the period increased 33.0% year on year to a record high.」

「In the e-commerce service, cumulative online retail revenue through October increased 34.1% year on year, maintaining strong performance. As overseas conditions remained unstable due to the effects of COVID-19, the Company established a system for stable procurement by using routes via Asia and Oceania in addition to its traditional North American route. Customer traffic at physical stores also gradually recovered, and the stores showed signs of recovery, including the return of shortened operating hours to normal.」

「Demand for online retail increased further as people avoided nonessential outings, making a significant contribution to growth in golf equipment sales. The Group's active procurement before the effects of COVID-19 began to emerge proved effective, and revenue rose sharply from May, with cumulative revenue through July increasing 32.4% year on year. To stabilize future overseas procurement, the Company also established routes via Asia and Oceania in addition to its traditional North American route.」

「In online retail, measures including detailed price adjustments by product proved effective, and revenue increased 18.8% year on year. To avoid stockouts, the Company also took measures such as establishing new procurement routes from countries including Australia and Hong Kong.」

「Online retail revenue continued to grow steadily, reaching 118.8% of the prior-year period, but selling costs increased due to higher shipping charges, marketplace fees and sales promotion measures, continuing to put pressure on profits.」

「To strengthen earning power in this environment, the Company also focused on actively developing OEM products and establishing new procurement routes for imported products.」

「As a result, revenue increased from the previous year, driven mainly by online retail, and the Company made significant progress, including setting a new monthly revenue record in April. Profitability, however, remained under sustained pressure from rising shipping costs and other factors. To address this situation, the Company revised shipping charges for online retail and added new development projects to increase the number of high-margin OEM products.」

「In anticipation of expanded online retail sales, the Company invested in logistics, including constructing a logistics center and outsourcing part of its inventory transfers.」

「Although performance fell below plan due to the absence of hit products comparable to those of last year, the Company fundamentally overhauled its logistics system with a view to future growth. By consolidating warehouses previously dispersed across multiple locations into a single logistics center, it achieved more efficient delivery and appropriate staffing.」

「In its e-commerce services focused on golf equipment sales, the Company sought to expand sales by strengthening its product selection and broadening its product lineup amid the absence of a notable hit product from its core brands, unlike last year. In parallel, it focused on developing new sales channels and expanding OEM products to secure profits. However, in response to the ongoing expansion of mail-order sales, a fundamental review of its logistics system temporarily increased costs.」

「In its e-commerce service focused on golf equipment sales, the Company did not benefit from hit products comparable to those of last year during the early-spring new-product campaign, and sales at physical stores in particular struggled. However, by expanding sales channels and strengthening its range of parallel-import products, it was able to steadily increase sales through mail-order channels. In response to rising costs, including higher shipping charges, the Company expanded sales of internally developed products and pursued initiatives to improve margins.」

「The e-commerce service has continued to deliver strong sales, centered on online retail, and is driving consolidated group revenue.」

「Since 株式会社ジープ became a consolidated subsidiary in September last year, its performance in e-commerce services, including golf equipment sales, has recovered sharply. In addition to generating several hit products from foreign brands, it significantly increased sales by strengthening sales channels and actively procuring products.」

「In its e-commerce service focused on golf equipment sales, the Company significantly increased sales by expanding sales channels and strengthening its range of parallel-import products.」

「The Company also made 株式会社ジープ, whose principal business is the sale of golf equipment, a subsidiary and continued efforts to further enhance golf-related services and develop new services.」

「A joint business with the newly consolidated subsidiary 株式会社ジープ also commenced, marking the full-scale expansion of golf-related services.」

「At a meeting of the Board of Directors held on 22 August 2016, the Company resolved to acquire shares of 株式会社ジープ and make it a subsidiary, and acquired the shares on 1 September 2016. ② Acquisition cost: ¥160 million ③ Ownership interest after acquisition: 100%」