Dependence on Latent Demand and Consumer Sentiment
First written in FY2016. 11 of 37 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Asante moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 36 of 51 companies on the "Worse" side.
12 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「As most users of our group are individual customers, demand may be less likely to materialize if disposable income declines against a backdrop of weaker consumer sentiment, price trends and other factors.」
The risks that consumer sentiment among individual customers, price trends and declining disposable income may constrain the emergence of demand for services continue to be described. - FY2026-H1WorsenedAnnual report
「In addition to unstable weather and temperatures affecting termite activity, delays in the improvement of consumer sentiment meant that the short-term effects fell below expectations.」
The delay in improving consumer sentiment is described as limiting the effectiveness of promotional activities, indicating that risks related to consumer spending and sentiment were reflected in business operations. The business and other risks section itself states, "There are no applicable matters." - FY2025-H1MitigatedAnnual report
「Although consumer spending showed signs of recovery, conditions requiring attention due to the effects of rising prices and volatility in the financial and capital markets continued.」
While consumer spending showed signs of recovery, the need to monitor rising prices and volatility in the financial and capital markets continued. - FY2024-Q3RestatedAnnual report
「In our group's market, the government's housing policy remains focused on extending the lives of existing homes and maintaining them, and we believe the enormous latent demand remains intact. However, consumers' preference for saving remains strong against a backdrop of rising prices and other factors, limiting growth in demand for our services.」
While the policy of extending the lives of existing homes and the latent demand are presented as supportive factors, the situation in which consumers' preference for saving, driven by rising prices and other factors, constrains demand growth continues to be described. - FY2024-Q2RestatedAnnual report
「In our group's market, the government's housing policy remains focused on extending the lives of existing homes and maintaining them, and we believe the enormous latent demand remains intact. However, consumers' preference for saving remains strong against a backdrop of rising prices and other factors, limiting growth in demand for our services.」
While the policy of extending the lives of existing homes and the latent demand are presented as supportive factors, the situation in which consumers' preference for saving, driven by rising prices and other factors, constrains demand growth continues to be described. - FY2024-Q1WorsenedAnnual report
「During the first-quarter cumulative period, corporate earnings also showed signs of improvement as the employment and income environment improved, but the pace of improvement slowed. In addition, conditions requiring attention continued regarding consumer spending trends due to the effects of rising prices and other factors.」
With regard to consumer spending, conditions requiring attention due to the effects of rising prices and other factors are described as continuing alongside the previous recovery trend, making the risk factors more specific. - FY2023WorsenedAnnual report
「Consumers are expected to become more focused on saving, while labor shortages and a tight labor market are expected to result from population decline and the progression of an aging society.」
The increased focus on saving among individual consumers is described as an issue linked to rising prices and declining real wages, making the traditional risk of dependence on consumer sentiment more specific. - FY2023-Q3RestatedAnnual report
「During the third-quarter cumulative period, the Japanese economy moved toward normalization as the impact of COVID-19 gradually eased, and consumer spending recovered moderately. However, the economic outlook remained uncertain due to concerns over a resurgence of infections and surging resource prices.」
While consumer spending recovered moderately, uncertainty about economic conditions due to concerns over a resurgence of infections and surging resource prices continued to be described. - FY2023-Q2RestatedAnnual report
「During the second-quarter cumulative period, the Japanese economy moved toward normalization as the impact of COVID-19 gradually eased, and consumer spending recovered moderately. However, the economic outlook remained uncertain due to concerns over a resurgence of infections and surging resource prices.」
While consumer spending recovered moderately, uncertainty about economic conditions due to concerns over a resurgence of infections and surging resource prices continued to be described. - FY2023-Q1MitigatedAnnual report
「During the first-quarter cumulative period, the Japanese economy moved toward normalization as the impact of COVID-19 gradually eased, and corporate earnings and consumer spending showed signs of recovery. However, the economic outlook remained uncertain due to concerns over a resurgence of infections and surging resource prices.」
The risk of depressed consumer spending was partly mitigated as the impact of the pandemic eased and consumer spending recovered. Meanwhile, concerns over a resurgence of infections and uncertainty about the outlook due to surging resource prices remained. - FY2022WorsenedAnnual report
「As the impact of COVID-19 persisted, employment conditions remained weak, and corporate earnings and consumer spending also showed signs of stalling in their recovery.」
The description changed from the recovery in consumer spending through the previous quarter to signs that the recovery had stalled, indicating that the risk arising from dependence on consumer sentiment had worsened. - FY2022-Q3MitigatedAnnual report
「During the third-quarter cumulative period, the Japanese economy saw weak employment conditions due to the impact of COVID-19, but consumer spending gradually recovered as vaccinations were promoted. However, concerns over a resurgence of infections were not dispelled, and economic conditions remained uncertain.」
While consumer spending gradually recovered as vaccinations were promoted, weak employment conditions, concerns over a resurgence of infections and uncertainty about the economic outlook continued. - FY2022-Q2WorsenedAnnual report
「However, as the infection spread more rapidly than expected, conditions for reaching agreements became more difficult due to heightened public concern, among other factors, and the impact on our business continued.」
The faster-than-expected spread of COVID-19 heightened public concern and made the conditions for reaching agreements more difficult, indicating that the impact of the risk arising from dependence on consumer spending and demand continued. - FY2022-Q1WorsenedAnnual report
「During the first-quarter cumulative period, the Japanese economy saw weak consumer spending and employment conditions due to the impact of COVID-19. Corporate earnings, meanwhile, showed signs of improvement, but concerns over the risk of further infections emerged, and economic conditions remained uncertain.」
The description changed from the recovery in consumer spending seen in the previous fiscal year to weak consumer spending and employment conditions, while also indicating a resurgence of infections and an uncertain economic outlook. - FY2021MitigatedAnnual report
「Thereafter, consumer spending showed signs of recovery as economic activity gradually resumed, and employment conditions showed some resilience, but the timing of the end of the pandemic remained unforeseeable due to the resurgence of infections, and economic conditions remained uncertain.」
Consumer spending showed signs of recovery, partly mitigating the traditional risk of declining consumer sentiment, while the resurgence of infections and uncertainty about the economic outlook continued. - FY2021-Q3MitigatedAnnual report
「Consumer spending also recovered, but concerns over the risk of further infections emerged, and economic conditions remained uncertain.」
Consumer spending showed signs of recovery, indicating that the risk arising from dependence on consumer sentiment was partly mitigated. Meanwhile, concerns over the risk of further infections and uncertainty about the economic outlook continued. - FY2021-Q2MitigatedAnnual report
「Meanwhile, although economic conditions remained challenging due to the impact of COVID-19, consumer spending showed signs of recovery.」
While the challenging economic environment caused by COVID-19 continued, consumer spending showed signs of recovery. - FY2021-Q1MaterialisedAnnual report
「Meanwhile, consumer spending declined rapidly due to the impact of COVID-19, and the challenging business environment continued.」
The traditional risk of dependence on consumer spending continued to be reflected in the rapid decline in consumer spending caused by COVID-19 and the challenging business environment. - FY2020MaterialisedAnnual report
「In addition, consumer spending has declined rapidly due to the impact of COVID-19, and difficult conditions are expected to continue.」
The traditional risk of dependence on consumer spending was reflected in the actual business environment through the consumption tax increase and the rapid decline in consumer spending caused by COVID-19. - FY2020-Q3RestatedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, and awareness of extending the lives of existing homes continued to increase, but consumers' preference for saving remained strong and is limiting growth in demand for our services.」
While growing awareness of extending the lives of existing homes is providing support, the situation in which consumers' preference for saving constrains demand growth has continued to be described. - FY2020-Q2RestatedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, and awareness of extending the lives of existing homes continued to increase, but consumers' preference for saving remained strong and is limiting growth in demand for our services.」
While growing awareness of extending the lives of existing homes is providing support, the situation in which consumers' preference for saving constrains demand growth has continued to be described. - FY2020-Q1RestatedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, and awareness of extending the lives of existing homes continued to increase, but consumers' preference for saving remained strong and is limiting growth in demand for our services.」
While awareness of extending the lives of existing homes increased, the situation in which consumers' preference for saving constrains demand growth has continued to be described. - FY2019MaterialisedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, and awareness of extending the lives of existing homes continued to increase, but consumers' preference for saving remained strong, and the period was also affected by extremely hot weather and typhoons.」
The persistent consumer preference for saving and the effects of extremely hot weather and typhoons were reflected in the market environment during the fiscal year. - FY2019-Q3MaterialisedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, and awareness of extending the lives of existing homes continued to increase, but the strong consumer preference for saving, together with the effects of extremely hot weather and typhoons, resulted in a challenging environment.」
While awareness of extending the lives of existing homes increased, the challenging business environment actually continued due to consumers' preference for saving and the effects of extremely hot weather and typhoons. - FY2019-Q2MaterialisedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, and the industry's social recognition continued to increase, but consumers' preference for saving remained strong. The business environment was challenging, partly due to the effects of extremely hot weather and typhoons.」
While policies for existing homes and recognition of the industry increased, consumers' persistent preference for saving continued to be reflected in an actually challenging business environment. - FY2019-Q1MaterialisedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, raising awareness of housing maintenance and the industry's social recognition, but consumers' preference for saving remained strong, resulting in a particularly challenging environment for developing new customers.」
While awareness of existing-home maintenance and recognition of the industry increased, consumers' persistent preference for saving continued to result in a particularly challenging environment for developing new customers. - FY2018MaterialisedAnnual report
「In our market, housing policies aimed at promoting the circulation of existing homes and expanding the renovation market were further advanced, raising awareness of housing maintenance and the industry's social recognition, but consumers' preference for saving remained strong, resulting in a particularly challenging environment for developing new customers.」
Consumers' persistent preference for saving was reflected in full-year results as a particularly challenging environment for developing new customers. - FY2018-Q3MaterialisedAnnual report
「In our market, policies promoting the circulation and utilization of existing homes have heightened interest in the proper maintenance of wooden homes, but consumers' preference for saving remains strong and is limiting growth in demand for our services. As a result, sales activities targeting existing customers progressed steadily, but recovery in sales activities targeting new customers was slow amid weak consumer spending. Revenue decreased by ¥218 million, or 1.9%, year on year to ¥11,030 million.」
Consumers' preference for saving constrained demand growth, which continued to be reflected in the cumulative results for the third quarter through slower recovery in sales activities targeting new customers and a 1.9% year-on-year decline in revenue. - FY2018-Q2MaterialisedAnnual report
「In our market, policies promoting the circulation and utilization of existing homes have heightened interest in the proper maintenance of wooden homes, but consumers' preference for saving remains strong and is limiting growth in demand for our services. As a result, sales activities targeting existing customers progressed steadily, but recovery in sales activities targeting new customers was slow amid weak consumer spending. Revenue decreased by ¥171 million, or 2.1%, year on year to ¥7,820 million.」
Consumers' preference for saving constrained demand growth, which was reflected in the cumulative results for the current quarter through slower recovery in sales activities targeting new customers and lower revenue. - FY2018-Q1RestatedAnnual report
「In our market, policies promoting the circulation and utilization of existing homes have heightened interest in the proper maintenance of wooden homes, but consumers' persistent focus on protecting their household finances is limiting growth in demand for our services.」
While interest in maintaining existing homes is providing support, consumers' persistent focus on protecting their household finances continues to constrain demand growth. - FY2017MaterialisedAnnual report
「Demand for our termite control, damp-proofing and earthquake-resistance services remained firm as a result of these government policies, but consumers' strong focus on protecting their household finances persisted, and their willingness to purchase our services did not increase.」
The persistent focus on protecting household finances and the lack of an increase in purchasing intent were reflected in the full-year business environment. - FY2017-Q3RestatedAnnual report
「Although demand for our services remains firm, as government policy focuses on improving the maintenance of existing homes, extending their useful lives and increasing asset values, the business environment remains challenging due to consumers' strong preference for saving and difficulties securing personnel.」
While policies promoting the maintenance, longer useful lives and higher asset values of existing homes are supporting demand, the challenging business environment continues due to consumers' strong preference for saving. - FY2017-Q2RestatedAnnual report
「In our market, growing awareness of extending the useful lives and preserving existing homes is supporting our business, which is centered on termite control and earthquake protection. However, the recovery in consumer sentiment has been slow, competition to secure personnel has intensified amid tight labor supply and demand, and the business environment remains challenging.」
While growing awareness of extending the life of existing homes is providing support, the slow recovery in consumer sentiment means that the challenging business environment persists. - FY2017-Q1MaterialisedAnnual report
「In our market, growing awareness of extending the useful lives and preserving existing homes is supporting our business, which is centered on termite control and earthquake protection. However, the business environment remains challenging owing to sluggish consumer sentiment.」
Regarding the sluggish consumer sentiment previously identified as a risk, the Company explicitly states that the business environment during the current quarter was affected by it. - FY2016First statedAnnual report
「Our termite control and other services, the Company's principal products, are marketed primarily to the more than 26 million wooden detached houses existing nationwide. However, because their main purpose is to control termites, which can cause damage in areas that are difficult for users to notice in their daily lives, much of the demand remains latent.」
The Company identifies more than 26 million wooden detached houses as its market, while noting that demand may be less likely to materialize because of economic conditions, employment and disposable income, among other factors.