Intensifying Competition in the Mystery Shopping Market and Declining Gross Profit Margins Due to Price Competition
First written in FY2018. 8 of 12 entries say "Mitigated", first in FY2025-H1. Latest entry: 2026-10-15.
The whole theme swung hardest in 2026: 41 of 85 companies on the "Worse" side.
18 other companies' latest entry also says "Mitigated".
- 2026-10-15MitigatedEarnings
「The MSR gross margin improved from 47.2% in the previous first half to 49.9%.」
The improvement in the MSR gross margin, previously affected by declines in pricing and margins, progressed further through price optimization and lower manufacturing costs. - FY2027-H1MitigatedAnnual report
「On the production side, MSR's gross margin improved from 47.2% in the first half of the previous fiscal year to 49.9%, mainly due to lower manufacturing costs per report and price adjustments.」
In response to the previously identified declines in MSR's unit prices and gross margin, the gross margin improved through lower manufacturing costs and price adjustments. - 2026-07-10MitigatedFinancial results presentation
「MSR margin improvement continues Margin: 45.5% (2.9-point improvement) Cost reductions through various productivity improvements Continuing efforts to increase selling prices through negotiations with customers」
In response to the decline in MSR pricing and gross margins, improvements through higher productivity and negotiations with customers continued, lifting the MSR margin to 45.5%. - FY2026MitigatedAnnual report
「MSR's gross margin improved from 43.9% in the previous fiscal year to 48.5%.」
In response to the previously evident decline in MSR's average price and gross margin, the gross margin recovered from 43.9% to 48.5% through price and terms negotiations and productivity improvement initiatives. - 2026-05-01MitigatedGeneral Meetings of Shareholders
「By continuing and intensifying productivity improvements per report, the MSR gross margin improved from 43.9% in the previous consolidated fiscal year to 48.5%.」
In response to the previously apparent decline in MSR pricing and gross margins, a concrete full-year improvement in the gross margin was reported. - FY2026-H1MitigatedAnnual report
「The decline in the cost ratio from 74.8% in the first half of the previous fiscal year to 68.9% was attributed to the effectiveness of measures to “restore MSR's gross margin through negotiations on prices and more flexible terms.”」
Improvements were made in response to the previously evident decline in MSR's average price and gross margin through price and terms negotiations, the use of AI and lower monitor assignment costs, resulting in a lower cost ratio. - FY2025MitigatedAnnual report
「MSR's revenue per survey increased 8.6% from the previous fiscal year, while its profit margin is also recovering, from 40.9% to 43.9%.」
Alongside measures including price negotiations, more flexible survey conditions, increased monitor engagement and the use of AI, MSR's profit margin recovered from 40.9% to 43.9%. - FY2025-H1MitigatedAnnual report
「MSR's profit margin is also on a recovery trend.」
In response to the previously evident decline in the average price and gross margin per survey, it was explained that MSR's profit margin is recovering alongside measures including price negotiations, more flexible survey conditions, increased monitor engagement and the use of AI. - FY2023-Q3MaterialisedAnnual report
「Although MSR for major food service and retail customers has resumed and the number of surveys continues to recover, the unit price and gross profit per survey are trending lower.」
Against the backdrop of the resumption of business with major MSR clients and the recovery in the number of surveys, the actual operating results were described as showing a downward trend in the average price and gross margin per survey. The disclosure does not expressly identify intensifying competition or requests for discounts as the cause of the decline. - FY2020RestatedAnnual report
「Customers in industries where competition with peers is intensifying may request discounts. If dependence on the performance of client companies in such industries increases, gross margin may decline.」
The risk of lower gross margins due to intensified competition, discount requests and dependence on specific industries continues. - FY2019RestatedAnnual report
「Customers in industries where competition with peers is intensifying may request discounts. If dependence on the performance of client companies in such industries increases, gross margin may decline.」
The risk of lower gross margins due to intensified competition, discount requests and dependence on specific industries continues to be reported. - FY2018First statedAnnual report
「Although gross profit for the mystery shopping research business as a whole remains solid, customers in industries where competition with peers is intensifying may request discounts. If dependence on the performance of client companies in such industries increases, gross margin may decline.」
The company indicated that intensified competition in a market with continued new entrants, together with greater dependence on specific industries, could lead to discount requests and lower gross margins.