Advertising and Contract-Volume Risk for Indoor Mausoleum Burials
First written in FY2016. 12 of 29 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2026.
Nichiryoku moved to the "Worse" side of this theme in 2016, 5 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 4 of 25 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Although we sought to improve customer-acquisition efficiency by reviewing advertising expenses, visitor numbers declined in the process, leading to a decline in the number of contracts.」
While the company proceeded with a review of advertising expenses, visitor numbers and the number of contracts declined, and columbarium revenue fell 8.9% year on year. - FY2026-H1MitigatedAnnual report
「However, during the interim accounting period, the number of visitors declined slightly from the corresponding interim period of the previous year, while the average contract price increased slightly. Revenue was ¥81 million, up 3.5% from the corresponding interim period of the previous year.」
Although the number of columbarium visitors declined slightly, the increase in the average contract price lifted revenue 3.5% from the corresponding interim period of the previous year, partially offsetting the impact of lower customer traffic. - FY2025WorsenedAnnual report
「Although we worked to strengthen sales during the fiscal year, the number of contracts declined slightly, and revenue was ¥161 million, down 7.6% year on year.」
Although the company continued to review its advertising and sales strategy, sales of columbaria Nos. 6 and 7 declined, and columbarium revenue fell 7.6% year on year. - FY2025-H1MaterialisedAnnual report
「However, during the interim accounting period, the number of contracts also declined as visitor numbers fell from the corresponding interim period of the previous year. Revenue was ¥78 million, down 10.0% from the corresponding interim period of the previous year.」
At the columbarium, the decline in visitor numbers led to a decline in the number of contracts, and revenue fell 10.0% year on year. - FY2023MitigatedAnnual report
「Sales of cemetery and columbarium products have not progressed as planned, reflecting the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options. Although we reviewed our advertising strategy and pursued differentiation by adding the “Kakei-ju” digital signage function at Akasaka Hitotsugi Ryoen, revenue was ¥235 million, up 2.3% year on year, representing only a slight improvement.」
Although the shortfall against the columbarium sales plan continued, revenue increased 2.3% year on year through a review of the advertising strategy and differentiation through “Kakei-ju,” representing a slight improvement. - FY2023-Q3MitigatedAnnual report
「In light of the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options, we are working to fundamentally review our advertising strategy and implement thorough infection-control measures. Revenue was ¥188 million, up 13.9% year on year.」
Amid a challenging customer-acquisition and sales environment for columbaria, the company continued its fundamental review of the advertising strategy and other measures, and columbarium revenue increased 13.9% year on year. - FY2023-Q2MitigatedAnnual report
「In light of the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options, we are working to fundamentally review our advertising strategy and implement thorough infection-control measures. Revenue was ¥129 million, up 25.1% year on year.」
Although the customer-acquisition and sales environment for columbaria remained challenging, the company continued its fundamental review of the advertising strategy and infection-control measures, and columbarium revenue increased 25.1% year on year. - FY2022MitigatedAnnual report
「In light of the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options, we fundamentally reviewed our advertising strategy and implemented thorough infection-control measures. As a result, earnings are showing signs of improvement. Revenue was ¥229 million, up 13.1% year on year.」
While indicating that columbarium sales were not progressing as planned, the company reported an improving earnings trend resulting from a fundamental review of its advertising strategy and a 13.1% year-on-year increase in revenue. - FY2022-Q3MitigatedAnnual report
「In light of the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options, we fundamentally reviewed our advertising strategy and implemented thorough infection-control measures. As a result, earnings, as with outdoor cemeteries, are showing signs of improvement. Revenue was ¥165 million, up 10.3% year on year.」
Although the customer-acquisition and sales environment for columbaria remained challenging, earnings began to improve through a fundamental review of the advertising strategy and other measures, and revenue increased 10.3% year on year. - FY2022-Q2MitigatedAnnual report
「In light of the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options, we worked to fundamentally review our advertising strategy and implement thorough infection-control measures. However, earnings improved only slightly. Revenue was ¥103 million, up 0.4% year on year.」
Although the customer-acquisition and sales environment for indoor mausoleums remained challenging, earnings improved slightly through a fundamental review of the advertising strategy and other measures, and revenue increased 0.4% year on year. - FY2022-Q1MitigatedAnnual report
「In light of the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options, we worked to fundamentally review our advertising strategy and implement thorough infection-control measures. However, earnings improved only slightly. Revenue was ¥49 million, up 36.2% year on year.」
Although challenges remain in attracting customers and selling indoor mausoleums due to restrictions on going out and the diversification of burial options, earnings improved slightly through a fundamental review of the advertising strategy and other measures, and revenue increased 36.2% year on year. - FY2021RestatedAnnual report
「In light of the effects of restrictions on going out during the COVID-19 pandemic and the diversification of burial options, we worked to review our advertising strategy and implement thorough infection-control measures. However, as with outdoor cemeteries, these efforts did not make up for the decline in the first-quarter accounting period. Revenue was ¥203 million, down 30.7% year on year.」
Although the advertising strategy is being reviewed in response to the oversupply of indoor mausoleums and the challenge of securing customers, full-year revenue fell 30.7% year on year, and the decline in the first quarter could not be made up. - FY2021-Q3RestatedAnnual report
「However, in recent years, particularly in Tokyo, there has been a construction boom in columbaria, including automated retrieval facilities, primarily targeting the baby-boomer generation, resulting in an oversupplied market. In light of these circumstances, we worked to review our advertising strategy, including differentiation measures, and implement thorough infection-control measures. However, these efforts did not make up for the decline in the first-quarter accounting period. Revenue was ¥150 million, down 35.1% year on year.」
Continued oversupply of columbaria and the inability to make up for the first-quarter decline despite a review of the advertising strategy and other measures resulted in revenue falling 35.1% year on year. - FY2021-Q2WorsenedAnnual report
「In light of these circumstances, we worked to review our advertising strategy, including differentiation measures, and implement thorough infection-control measures. However, as with outdoor cemeteries, these efforts did not make up for the decline in the first-quarter accounting period. Revenue was ¥102 million, down 36.6% year on year.」
Although we reviewed the advertising strategy and took other measures in response to the oversupply of columbaria, we were unable to make up for the decline in the first quarter, and revenue from the indoor mausoleum business fell 36.6% year on year. - FY2021-Q1WorsenedAnnual report
「In light of these circumstances, we worked to review our advertising strategy, including differentiation measures, and implement thorough infection-control measures. However, as with outdoor cemeteries, these efforts did not halt the decline in the number of contracts. Revenue was ¥36 million, down 52.9% year on year.」
Amid continued oversupply of columbaria, a review of the advertising strategy and other measures failed to halt the decline in the number of contracts, and revenue from the indoor mausoleum business fell 52.9% year on year. - FY2020MitigatedAnnual report
「In light of these circumstances, we thoroughly reviewed our advertising strategy. Although the effects of the consumption tax increase and the spread of COVID-19 persisted, slight signs of a recovery in customer acquisition began to emerge. Revenue was ¥293 million, up 1.2% year on year.」
Although the oversupply of columbaria continued, signs of a recovery in customer acquisition emerged following a review of the advertising strategy, and revenue from the indoor mausoleum business increased 1.2% year on year. - FY2020-Q3MitigatedAnnual report
「Against this backdrop, we thoroughly revised our advertising strategy and began to see slight signs of a recovery in customer traffic. Revenue was ¥231 million, up 14.0% year on year.」
Although the oversupply of columbaria continued, signs of a recovery in customer acquisition continued to emerge following a review of the advertising strategy, and revenue from the indoor mausoleum business increased 14.0% year on year. - FY2020-Q2MitigatedAnnual report
「In recent years, particularly in Tokyo, there has been a construction boom in ossuaries, including automated retrieval systems, targeting mainly the baby-boom generation, and the market is currently oversupplied. Against this backdrop, we thoroughly revised our advertising strategy and began to see slight signs of a recovery in customer traffic. Revenue was ¥161 million, up 16.2% year on year.」
Although the oversupply of ossuaries continued, revising the advertising strategy provided signs of a recovery in customer traffic, and revenue from the indoor mausoleum business increased 16.2% year on year. - FY2020-Q1MitigatedAnnual report
「Against this backdrop, we conducted intensive marketing activities and began to see slight signs of a recovery in our ability to attract customers. Revenue was ¥77 million, up 7.3% year on year.」
Although the oversupply of ossuaries continued, intensive marketing activities provided signs of a recovery in customer traffic, and revenue from the indoor mausoleum business increased 7.3% year on year. - FY2019-Q3RestatedAnnual report
「In recent years, particularly in Tokyo, there has been a construction boom in ossuaries, including automated retrieval systems, targeting mainly the baby-boom generation, creating an environment of short-term oversupply. Although we revised our sales strategy in response, these efforts were insufficient, and results fell substantially short of plan. Revenue was ¥202 million, down 52.0% year on year.」
The oversupply of ossuaries in Tokyo and the inadequate response in the sales strategy continued, and revenue from the indoor mausoleum business declined 52.0% year on year. - FY2019-Q2WorsenedAnnual report
「In recent years, particularly in Tokyo, there has been a construction boom in ossuaries, including automated retrieval ossuaries, targeting mainly the baby-boom generation, creating an environment of short-term oversupply. Although we revised our sales strategy in response, these efforts were insufficient, and results fell substantially short of plan. Revenue was ¥139 million, down 56.5% year on year.」
The oversupply of ossuaries in Tokyo and the inadequate response in the sales strategy continued, and revenue from the indoor mausoleum business declined 56.5% year on year. - FY2019-Q1MaterialisedAnnual report
「In recent years, particularly in Tokyo, there has been a construction boom in ossuaries, including automated retrieval ossuaries, targeting mainly the baby-boom generation, creating an environment of short-term oversupply. Although we periodically revised our sales strategy in response, these efforts were insufficient, and results fell substantially short of plan.」
Oversupply of ossuaries and an inadequate response in the sales strategy have translated into a substantial shortfall against the sales plan. - FY2018RestatedAnnual report
「Although we believe the market is temporarily saturated, sales competition has reached unprecedented levels. If new indoor mausoleums continue to open, this could have a significant impact on sales plans, revenue, and earnings.」
The report reconfirms that the need to maintain sustained advertising visibility and sales competition caused by oversupply of ossuaries could affect sales plans and performance in the indoor mausoleum business. - FY2017MaterialisedAnnual report
「However, sales of the new indoor mausoleum launched in the fourth quarter did not attract enough customers because the notification period for the launch was limited. Although revenue increased, profit declined because more was spent on advertising than before.」
Insufficient customer traffic due to the inadequate notification period for the new indoor mausoleum and additional advertising expenses translated into lower profit. - FY2017-Q2MaterialisedAnnual report
「However, although revenue increased from the same period of the previous year, profit was substantially lower due to the impact of the decline in the average price per funeral and our focus on advertising strategies, among other factors.」
The decline in the average price per funeral and the focus on advertising strategies again resulted in earnings substantially below the previous year's level despite higher revenue. - FY2017-Q1MaterialisedAnnual report
「Due to the decline in the average price per funeral and our focus on medium- to long-term advertising strategies, among other factors, revenue declined slightly and profit was substantially lower than in the same period of the previous year.」
The report states that the decline in the average price per funeral and the focus on advertising strategies translated into a slight year-on-year decline in revenue and weaker earnings. - FY2016First statedAnnual report
「Because the profit per contract is small compared with outdoor cemeteries, approximately 100 contracts per month are required to generate a profit.」
The indoor mausoleum business has a revenue structure requiring continued advertising and a certain level of monthly contracts.