Risk of Price Competition and Erosion of Service Differentiation
First written in FY2016. 12 of 18 entries say "Restated". Latest entry: FY2026.
Sunnexta Group moved to the "Worse" side of this theme in 2021.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Revenue from management associations increased as we passed higher labor costs and other increases through to management fees and as repair work increased. In terms of profit, despite higher personnel expenses, increased earnings related to condominium management and lower subcontracting costs contributed to operating profit of ¥426 million, up 21.5% year on year.」
The condominium management business increased operating profit by passing higher labor costs through to management fees and reducing subcontracting costs. - FY2022-Q3WorsenedAnnual report
「In addition to delays in new orders due to the spread of COVID-19, some customers cancelled outsourcing contracts to reduce outsourcing fees, resulting in contracted revenue falling below plan.」
Customers that prioritize price actually cancelled contracts to reduce outsourcing fees, resulting in contracted revenue falling below plan. - FY2022-Q2WorsenedAnnual report
「In this business, consultations from some price-sensitive customers regarding revisions to the terms for outsourcing providers and other matters increased due to the impact on their performance and other factors.」
In the company housing management business, consultations from price-sensitive customers regarding reviews of outsourcing terms increased, making the pressure from price competition and reviews of terms more concrete. - FY2022-Q1WorsenedAnnual report
「Although some companies are reviewing their outsourcing terms with a greater emphasis on price due to the impact on their performance and other factors,」
In the company housing management business, companies that emphasize price have reviewed their outsourcing terms, making the pressure from price competition and reviews of outsourcing terms more concrete. - FY2020-Q3RestatedAnnual report
「Meanwhile, in the comprehensive facilities management business, competition for contracts accompanying management associations' reviews of management fees remains severe due to issues including insufficient repair reserve funds in condominium management, while construction costs continue to rise because of higher labor and transportation costs, and the supply-demand conditions for skilled workers and other factors remain matters requiring close attention.」
The company continues to monitor the severity of competition for contracts accompanying reviews of management fees against a backdrop of insufficient repair reserve funds, as well as costs and the supply-demand conditions for skilled workers. - FY2020-Q2RestatedAnnual report
「Meanwhile, in the comprehensive facilities management business, competition for contracts accompanying management associations' reviews of management fees remains severe due to issues including insufficient repair reserve funds in condominium management, while construction costs continue to rise because of higher labor and transportation costs, and the supply-demand conditions for skilled workers and other factors remain matters requiring close attention.」
The company continues to recognize the severity of competition for contracts accompanying reviews of management fees. - FY2020-Q1RestatedAnnual report
「Meanwhile, in the comprehensive facilities management business, competition for contracts accompanying management associations' reviews of management fees remains severe due to the shortage of repair reserve funds in condominium management, while construction costs continue to rise because of higher labor and transportation costs, and the supply-demand conditions for skilled workers and other factors remain matters requiring close attention.」
The company continues to describe the severity of competition for contracts accompanying reviews of management fees against a backdrop of insufficient repair reserve funds. - FY2019RestatedAnnual report
「In the condominium management market, we are working to improve profitability by promoting measures that emphasize comprehensive capabilities balanced across service quality and price in response to requests for reductions in management fees and other demands.」
The company continues to respond to price competition and requests to reduce management fees by balancing quality and price. - FY2019-Q3RestatedAnnual report
「Meanwhile, although the market for the comprehensive facilities management business is growing gradually, competition for contracts accompanying management associations' reviews of management fees remains severe,」
In the comprehensive facilities management business, the market is expanding, but competition for contracts remains severe against a backdrop of reviews of management fees. - FY2019-Q2RestatedAnnual report
「Meanwhile, in the comprehensive facilities management business, competition for contracts to acquire customers remains severe, while construction costs continue to rise due to higher labor and transportation costs, and the supply-demand conditions for skilled workers remain matters requiring close attention.」
The company continues to describe the severity of competition to acquire customers in the comprehensive facilities management business. - FY2019-Q1RestatedAnnual report
「Meanwhile, in the comprehensive facilities management business, competition for contracts to acquire customers remains severe.」
The company continues to describe the severity of competition to acquire customers in the comprehensive facilities management business. - FY2018-Q3RestatedAnnual report
「In response to sluggish supply of newly built condominiums, major property management companies are actively entering the replacement market, and competition for contracts to acquire a customer base remains severe,」
The company continues to state that competition for contracts in the comprehensive facilities management business remains severe, against a backdrop of sluggish supply of newly built condominiums and major property management companies entering the replacement market. - FY2018-Q2RestatedAnnual report
「Meanwhile, in the comprehensive facilities management business, major property management companies are actively entering the replacement market in response to sluggish supply of newly built condominiums, and competition for contracts to acquire a customer base remains severe.」
The company continues to state that competition for contracts in the comprehensive facilities management business remains severe, against a backdrop of major property management companies entering the replacement market. - FY2018-Q1RestatedAnnual report
「Competition to switch management contracts remains intense.」
The company continues to describe the intensity of competition to switch management contracts in the comprehensive facilities management business. - FY2017RestatedAnnual report
「Although the markets in which our group operates are subject to intense price competition,」
The company continues to identify price competition as an ongoing risk and states that it will respond through its distinctive service model, value-added services, and a balance between quality and price. - FY2017-Q3RestatedAnnual report
「Meanwhile, in the comprehensive facilities management business, competition to replace service providers to acquire customers is becoming increasingly intense, and difficult conditions continue.」
The disclosure continues to describe intensifying competition to replace service providers and difficult conditions in the comprehensive facilities management business. No further deterioration in stages from the risks identified previously can be confirmed. - FY2017-Q1WorsenedAnnual report
「In the comprehensive facilities management business, declining supply in the newly built condominium market has increased the tendency to seek revenue growth from contracts for existing condominiums, intensifying competition to replace service providers to acquire a customer base.」
The intensification of competition to replace service providers for existing condominium contracts was indicated in the comprehensive facilities management business. - FY2016First statedAnnual report
「Although the markets in which our group operates are subject to intense price competition,」
The company states that it will respond in company housing outsourcing through its distinctive service model and value-added services, and in condominium management through a balance between quality and price.