Dependence on Sales Through Distributors and Price Declines Driven by Distributor Competition
First written in FY2017. 2 of 6 entries say "Softened", first in FY2018. Latest entry: FY2024.
Nagawa moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 6 of 28 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「Approximately 75% of the sales and rental business flow to customers, primarily construction companies, through distributors, primarily construction machinery rental companies, in the fiscal year ended March 2024,」
The percentage of sales through distributors rose from the approximately 60% previously reported to approximately 75%, increasing dependence on the distributor channel. - FY2023RestatedAnnual report
「Approximately 60% of the sales and rental business flow to customers, primarily construction companies, through distributors, primarily construction machinery rental companies, in the fiscal year ended March 2023,」
Sales through distributors accounted for approximately 60%, remaining at the same level as the approximately 60% reported for the previous fiscal year. - FY2021SoftenedAnnual report
「Approximately 60% of the sales and rental business flow to customers, primarily construction companies, through distributors, primarily construction machinery rental companies, in the fiscal year ended March 2021,」
The percentage of sales through distributors declined from approximately 75% in the previous fiscal year to approximately 60%. - FY2020RestatedAnnual report
「Approximately 75% of the sales and rental business flow to customers, primarily construction companies, through distributors, primarily construction machinery rental companies, in the fiscal year ended March 2020,」
Dependence on the distributor channel, which accounts for approximately 75% of the sales flow, and the risk of declining prices due to competition among distributors and discontinued handling continue. - FY2018SoftenedAnnual report
「Approximately 75% of the sales and rental business flow to customers, primarily construction companies, through distributors, primarily construction machinery rental companies, in the fiscal year ended March 2018,」
Dependence on sales through distributors continues, although the ratio has declined from approximately 80% in the previous fiscal year to approximately 75%. - FY2017First statedAnnual report
「Approximately 80% of the sales and rental business flow in the unit-house business for customers, primarily construction companies, through distributors, primarily construction machinery rental companies, as of the fiscal year ended March 2017. Accordingly, if distributors cease handling the company's products for any reason, or if product and rental prices decline due to intensifying competition among distributors, this may affect the company's operating results and financial position.」
The disclosure specifies dependence on the sales channel, with sales through distributors accounting for approximately 80% in the fiscal year ended March 2017, and the risk of declining prices due to competition among distributors.