Marketplace and Marketing: the Two Pillars of the E-Commerce One-Platform Business

「In the One Commerce Service, productivity improved through the use of a system combining data, technology, and methods, resulting in higher revenue year on year of ¥1,525.417 million. In the Collaborative Brand Partners Service, several new projects were launched, resulting in higher revenue year on year of ¥5,576.419 million. In the Co-creation and Self-created Value Enhancement Service, the cosmetics brand for which the Company holds exclusive distribution rights progressed as planned. However, a consolidated subsidiary whose main business is the sale of snow apparel recorded lower revenue and profit due to the impact of competition, weather, and other factors, resulting in revenue of ¥331.629 million. In the EC Platform Service, commission income from Peace you LIVE, a live-commerce platform, increased from the previous fiscal year, resulting in revenue of ¥98.573 million.」

「In the One Commerce Service, revenue declined year on year due to changes in the revenue structure for transactions with certain customers and other factors, resulting in revenue of ¥1,335.754 million. In the Collaborative Brand Partners Service, revenue increased year on year as existing brands performed steadily and several brands launched in the previous fiscal year grew well, resulting in revenue of ¥4,676.887 million. In the Co-creation and Self-created Value Enhancement Service, revenue declined year on year due to lower revenue resulting from inventory adjustments at a consolidated subsidiary, as well as the impact of the timing of shipments of products for which the Company holds exclusive distribution rights being moved to the second half of the fiscal year, among other factors, resulting in revenue of ¥500.291 million. In the EC Platform Service, revenue was ¥63.966 million, mainly from commission income generated by Peace you LIVE, a live-commerce platform, and distribution fees based on streaming time.」

「The service categories, service descriptions, and the position of each Group company’s business are as follows. One Commerce Collaborative Brand Partners Co-creation and Self-created Value Enhancement EC Platform」

「In the One Commerce Service, the number of continuing contracts and the average contract value grew steadily, resulting in revenue of ¥2,521.189 million. In the Collaborative Brand Partners Service, steady growth of existing brands and increased revenue from the live commerce and wholesale businesses contributed to revenue of ¥5,976.850 million. In the Co-creation and Self-created Value Enhancement Service, increased transactions under license agreements acquired in the previous fiscal year resulted in revenue of ¥1,596.055 million.」

「In the One Commerce Service, the number of continuing contracts and the average contract value grew steadily, resulting in revenue of ¥1,611.697 million. In the Collaborative Brand Partners Service, steady growth of existing brands and increased revenue from the live commerce and wholesale businesses contributed to revenue of ¥3,789.592 million. In the Co-creation and Self-created Value Enhancement Service, increased transactions under license agreements acquired in the previous fiscal year resulted in revenue of ¥954.638 million.」

「As the service categories have been changed from the first quarter of the current consolidated fiscal year, the information is presented under the new service categories.」

「The Group operates a single business, EC One Platform, and therefore does not report segment information. It offers two services: the EC Marketplace Service and the EC Marketing Service.」

「In the EC Marketplace Service, existing brands performed steadily, resulting in higher revenue than in the same quarter of the previous year. Newly added brands, which had only recently begun being handled, also continued to grow steadily, and their revenue increased gradually.」

「In the EC Marketplace Service, the brands we handle continued to grow steadily, but sales slowed for some brands against a backdrop of relaxed restrictions on movement related to COVID-19 and instability in product procurement caused by changes in the global situation. In the EC Marketing Service, revenue increased year on year as recurring-contract business performed well and additional contracts were secured with existing business partners.」

「In the EC Marketplace Service, the brands we handle continue to grow steadily, but new brands made only a limited contribution to profit during the quarter because of the nature of the business.」

「In the EC Marketplace Service, each brand handled through our e-commerce business outsourcing service, including the operation of official brand websites, is growing steadily. In addition, the number of brands handled increased through brand value enhancement initiatives, involving the acquisition and development of proprietary brands, which had been underway since the beginning of the fiscal year, contributing to higher revenue from the EC Marketplace Service. Going forward, we will continue to focus on further growth of existing brands and the acquisition of new brands. We also support business partners in expanding their e-commerce operations. The EC Marketing Service is also performing steadily.」

「The EC Marketplace Service performed steadily, with both existing brands and newly added brands progressing well.」

「The EC Marketplace Service performed steadily against a backdrop of e-commerce market expansion driven by stay-at-home demand and the shift to digital. Demand for the EC Marketing Service was also strong among companies facing barriers to entering the e-commerce business and other challenges, and we provided many business partners with services to address a broad range of issues related to operating the e-commerce value chain.」

「The Company operates a single business, EC One Platform, and therefore does not report segment information. It offers two services: the EC Marketplace Service and the EC Marketing Service.」

「The EC Marketplace Service performed steadily, supported in part by demand generated by year-end sales on the e-commerce platform. The EC Marketing Service, which supports e-commerce operations broadly, also saw growing demand for our services from companies focusing on their e-commerce businesses. As the number of projects supported increased, recurring revenue from contract renewals continued to grow steadily.」