Corporate Profile[PDF:2.71MB]

on Quijote Holdings
Corporate
Profile
“Valuing the customer as our
utmost priority” —
A philosophy dating back to our earliest days in
business like a key building block of our corporate
DNA
Corporate
Philosophy
“Valuing the customer as our utmost priority.” This is a corporate
philosophy that infuses all activities and decisions executed by the
Don Quijote Group, from corporate management to store operation.
Reverse Pyramid Structure
with Customers as Starting Point
Customers
Frontline (store) staff
Authority
Delegation of Authority
Adhering to the philosophy of “valuing the customer
as our utmost priority,” the Don Quijote Group places
frontline personnel—that is, store staff—at the top of
the in-house structure as they have more opportunities
Headquarters
than anyone else for direct contact with customers, and
management delegates considerable authority to these
employees for store operations, from purchasing and pricing
to decisions on the merchandise mix and displays.
01
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
te
Quijo
n
o
D
p’s
Grou
SP
Enduring pursuit of
corporate philosophy
“valuing the customer as
our utmost priority” —
tarting
oint
“Thieves’
Market”
— Precursor to
Don Quijote
A corporate philosophy
that has infused the
Don Quijote Group
since its earliest days
in business
In 1978, Takao Yasuda, now Don Quijote
Holdings’ chairman, poured his entire savings into
the establishment of a general merchandise store
called “Thieves’ Market.” It was a small store, with
floor space of about 60 m2, and Mr. Yasuda would
restock shelves and arrange displays late at night,
after business hours. Naturally, the lights attracted
people who mistakenly assumed that the store was
still open. Mr. Yasuda saw this indication of latent
night-time demand. In those days, convenience
stores closed at 11 p.m., so a general merchandise
store that was open until midnight proved to be
quite popular. Instantly, the store was a thriving
success, pulling in ¥200 million in annual sales.
Unique store concepts—starting with late-night
operations and extending to a wide-ranging
merchandise mix featuring everything from daily
commodities to luxury brands as well as display
techniques providing customers with the fun of
searching for products and discovering a great find,
like being on a treasure hunt—are part of the
corporate DNA that has infused our corporate
being since our earliest days.
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
02
G
Net sales
(Consolidated,
billions of yen)
800
Operating income
(right axis)
700
Business development
inevitable through
accumulation of results
from fine-tuned
strategies matched to
customer needs
Net sales (left axis)
Number of stores
600
500
400
Trivia
Named after
Don Quixote,
a Spanish novel
by Miguel
de Cervantes
300
rowth
Don Quijote Fuchu store
(first location)
200
The first store of the network what would
become the Don Quijote Group opened in
1980. Now, with the loyal support of an
extensive customer base, the Group is gearing
up to celebrate its 36th anniversary in 2016.
Guided by the corporate philosophy
“valuing the customer as our utmost priority,”
we have constantly fine-tuned business
methods to address customer needs and adapt
to changing market conditions. Building on
the results of daily improvements, we have
evolved as never imagined and charted steady
growth in the process.
100
10
1
stores
store
0
1989
1990
1991
1992
1993
1994
1995
1996
1998
1999
2000
2001
2002
Multi-Store Operation
in Metropolitan Tokyo
Shaping a Business Concept
Don Quijote was the architect of the “consumable time” store format, a novel
approach to retailing that integrates original ideas in store operation—such as
compression displays—and product strategies emphasizing a unique merchandise
mix, low prices and high added value. Under this unconventional business model,
stores are not only places where people buy what they need when they need it but
also places where shopping itself is an enjoyable activity.
Sep. 1980 Just Co., Ltd. (predecessor of Don Quijote Holdings)
established to conduct wholesale and retail operations
Mar. 1989 First Don Quijote store opened, in Fuchu, western Tokyo
Dec. 1996 Stock registered for trading on OTC market
Jun. 1998 Stock listed on Second Section of Tokyo Stock Exchange
J u l . 2000 Stock listing upgraded to First Section of Tokyo Stock Exchange
Jun. 2001 First Picasso small-scale discount store opened, in
Yokohama, Kanagawa
Dec. 2001 Store-opening in Fukuoka marked first step in
nationwide expansion of store network
Apr. 2002 First PAW multi-business commercial complex opened, in
Kawasaki, Kanagawa
1997
In 1997, we opened a store in Shinjuku, in the center of Tokyo.
Subsequently, we concentrated store development in the
metropolitan Tokyo area, seeking to capitalize on night market
demand and maximize advantages afforded through enhanced
distribution efficiency and a rising profile in this region.
Feb. 2006 Don Quijote (USA) Co., Ltd. brought into the Group as
consolidated subsidiary to operate stores in Hawaii
Jan. 2007 Do-it-yourself business Doit Co., Ltd. brought into the
Group as consolidated subsidiary
Oct. 2007 General merchandise store operator Nagasakiya Co.,
Ltd. brought into the Group as consolidated subsidiary
Jun. 2008 First MEGA Don Quijote store opened (converted from
Nagasakiya store), in Yotsukaido, Chiba
Oct. 2008 Discount store operator BIG1 CO., LTD. brought into
the Group as consolidated subsidiary
J u l . 2009 BIG1 absorbed in merger
Oct. 2009 Private brand Jonetsu Kakaku launched
03
300
Operating income
(Consolidated,
billions of yen)
stores
40
35
30
25
200
stores
20
Number of
customers tops
100
15
200 million
annually
stores
Number of
customers tops
10
100 million
annually
5
2003
2004
2005
2006
2007
Nationwide Development
In 2001, we began to expand the scope of store
development nationwide. We applied know-how
accumulated through operations in the Tokyo
metropolitan area and pursued an energetic
store-opening strategy focused on cities designated
by government ordinance.
2008
2009
2010
2011
2012
Expansion through M&As
2013
2015
0
Toward a New Stage
In 2006, we kicked off merger and acquisition activity with the
purchase of stores in Hawaii and then brought Doit, a well-established
chain of do-it-yourself stores, and Nagasakiya, a chain of general
merchandise stores, under the corporate umbrella in 2007, followed by
BIG1, a chain of discount stores prominent in the Chukyo region, the
following year. These additions to the Don Quijote Group dramatically
transformed operations into those of a general retailing group.
Jan. 2011 Fidec Corporation (now Accretive Co., Ltd.) brought
into the Group as consolidated subsidiary involved in
financial and outsourcing services
J u l . 2011 First Essence store—small operations suited to small
shopping districts—opened in Kawaguchi, Saitama
Apr. 2013 The Earth CO. (now Japan Asset Marketing Co., Ltd.)
brought into the Group as consolidated subsidiary
providing social media content
Jun. 2013 First Kyōyasudō store opened in Suginami-ku, Tokyo
J u l . 2013 Pan Pacific International Holdings Ptd. Ltd. established
in Singapore as holding company for overseas
operations
2014
Through the transition to a pure holding
company structure, we have created a group
operating platform that facilitates adaptive,
flexible management decision making. We will
continue to implement approaches targeting
maximum customer satisfaction while
ensuring sustained growth and stability.
Sep. 2013 MARUKAI CORPORATION, operating supermarkets in Hawaii
and California, brought into the Group as subsidiary
Dec. 2013 Changed name to Don Quijote Holdings Co., Ltd., and
transitioned to pure holding company structure
Mar. 2014 Original e-money payment system “majica” debuted
Jan. 2015 Opened first TOKYO CENTRAL store in the United States, in
California
Feb. 2015 First in Japan to accept foreign currency at the cash register
May 2015 Don Quijote Group store network hit 300 mark
First Platinum Don Quijote store opened in Minato-ku, Tokyo
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
04
A Message from Management
Koji Oohara
President and CEO
We will fully demonstrate our ability to respond to change and
strive to create stores where as many people as possible love to shop
The first Don Quijote store opened in
Fuchu, western Tokyo, in March 1989.
Since then, consolidated sales and
operating income have increased each
year, for 26 consecutive years. But the
course we traveled has certainly not been
smooth sailing. An analogy closer to our
reality of constant trial and error would
be riding out stormy seas to get where we
are now.
To put it another way, we have
survived during the turbulent times that
have characterized the past quartercentury precisely because we embraced
the idea of operations responsive to
change—what retailing is really all
about—and applied simple and original
05
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
strategies to grow our business.
It really goes without saying but this
change is, essentially, none other than the
persistent shift in customer-based needs
and wants. Such change has come in two
formats: obvious, visible shifts, as well as
latent shifts, which require quick
identification of underlying customer
preferences to bring these not-so-obvious
trends to the surface. By pinpointing
these shifts, we can deliver true
satisfaction. Sustained, single-minded
attention to prevailing demands and a
challenging spirit is an endless process. It
is exactly what shapes operations
responsive to change and describes our
entrepreneurial attitude perfectly.
As management, we are very pleased
with the growth that the Group has
achieved in the retailing industry,
substantiated by a network of 306 stores,
as of July 1, 2015, in Japan and the
United States. But we are only half-way to
our goal. The next stage of our journey
begins now, as we ramp up our presence
on the world stage.
We will faithfully adhere to our
corporate philosophy of “valuing the
customer as our utmost priority” and
strive to deliver to customers at home
and abroad the true advantages of
operations responsive to change as well as
the appeal and enjoyment of shopping
the Don Quijote way.
To be an organization capable of taking Group
strengths beyond the next generation to a more
distant point in the future
Our goal: To be a visionary company
that is enduring and sustainable.
A collection of corporate ideals,
dubbed Genryu (“The Source”), was
published in 2011 on the initiative of
Don Quijote founding chairman and
supreme advisor, Takao Yasuda, laying
out corporate principles and a corporate
philosophy that employees and
members of management throughout
the Don Quijote Group are to uphold.
Genryu is the written form of
universal and lasting ideals that
permeate the Group, underpinning a
management structure that is based on a
clear-cut vision for the future and a
sound philosophy, rather than around a
“charismatic leader.” To be an
organization capable of taking Group
strengths beyond even the next
generation to a more distant point in the
future, all employees—without
exception—use Genryu as their credo
and as a personal inner guide.
Genryu (“The Source”):
Collection of corporate ideals
Don Quijote Group’s Business Fields
PPI HD
Marukai
Don Quijote USA
REALIT
Japan Inbound Solutions
Overseas retail business
Overseas Retail Division
Advertising and sales
promotion services
広告・
プロモーション部門
Advertising
and
Promotions Division
Doit
Nagasakiya
Don Quijote
Holdings
DRM
Domestic
retail business
Don Quijote
Justneo
Human Motivation Delight
Don Quijote Shared Service
Import and wholesale business
Administrative
functions business
Japan Commercial Establishment
Tenant leasing business
D-ONE
Real estate investment,
planning and brokerage business
Japan Asset Marketing
Building operation and
management services
Accretive
Domestic Distribution
and Retail Division
Financial services
Operation Support Division
Real Estate Division
Financial Services Division
PPI: Pan Pacific International
DRM: Don Quijote Holdings Retail Management
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
06
Source of Growth
01
Original
Business Model
Don Quijote Holdings maintains a unique store concept—Cv+D+A—that offers
customers convenience (Cv), discounts (D) and amusement (A) as part of their
shopping experience. Store operations and merchandise strategies based on this
concept are the foundation of our business model—the “consumable time” store
format—which not only allows customers to find what they want when they want it
but also turns the routine chore of shopping into a fun and exciting experience.
Cv+D+A concept is essential
to our corporate philosophy of
“valuing the customer
as our utmost priority”
Convenience
Business hours
and days
Product assortment
Store location
Business hours and days,
Cv
Convenience...... Product assortment, Store location
We strive to create stores emphasizing convenience and a diverse
assortment of products, from daily necessities to electrical appliances and luxury brands.
Reasonable prices, Comfortable feeling,
D
Discount...... High expectations
We always work hard to maintain our promise of offering incredibly low-priced products* so that customers can enjoy shopping
with the knowledge that they are getting the lowest possible
prices in any area.
* Incredibly low-priced products that thrill and excite
customers through great savings
07
D iscount
Amusement
Reasonable prices
Comfortable feeling
High expectations
New discoveries
Surprises
News
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
A
Amusement...... New discoveries, Surprises, News
In the pursuit of enjoyable shopping, we came up with a business
model—the “consumable time” store format—that uses
smile-inducing handwritten POP (point-of-purchase) cards as markers
on a treasure hunt through a jungle of different products.
Source of Growth
02
Store Design Bursting with
Entertainment
Appeal
Handwritten POP cards, compression displays, huge storefront
aquariums, distinctive exteriors that become local landmarks and
other aspects of our unique approach to store design create an
entertainment space and transform the typically routine chore of
shopping into an enjoyable experience.
The underlying originality in store presentations like this clearly
separates our stores from ordinary discount stores and big general
supermarkets, and infuses sales areas with entertainment appeal.
This amusement factor is a key advantage for the Don Quijote Group.
Trivia
A dozen or more
types of fish swim in huge
aquariums at the entrances
of flagship stores around
the country, notably,
the Nakameguro,
Asakusa and Umeda stores.
Don Quijote Nakameguro store
Compression Displays
Handwritten POP Cards
Spot Products
Trumping conventional retailing wisdom of
“easy to see, easy to buy,” our unique product display technique that evokes a sense of
overwhelming volume, with an immense
quantity and huge variety of products piled
high throughout each store.
Colorful, handwritten cards bursting with
entertainment appeal fill every available
space inside stores. They highlight product
features in a way that customers find amusing and easy to understand.
This term refers mainly to surplus products
in the distribution market as well as highly
seasonal items and incredibly low-priced or
rather unusual items. The merchandise mix
is always changing, offering customers
something new on every visit and thus functioning as a vital ace in the hole.
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
08
Source of Growth
03
Delegating
Authority
to Store Staff
At stores operated by Group companies, management delegates substantial authority
to store staff on a good number of merchandise-related tasks, from purchasing to
pricing and displays. In addition, a merit-based personnel evaluation structure assesses
individuals on their current performance and has no basis in age, sex, nationality or
seniority, so store staff can try as many times as needed to produce the desired results
without fear of failure. The delegation of authority, in a corporate culture that
encourages people to experiment their way to success, sustains a high level of
motivation among store staff who then actively embrace new challenges and steadily
develop their skills.
Individual Store Operations Promote High Level of Customer Affinity
Guided by the corporate philosophy of “valuing the customer as our
utmost priority,” the companies under the Group umbrella delegate
considerable authority for sales floor design to store staff who have a
strong affinity for specific customer groups. That is, they share similar
sensibilities and lifestyles and are generally of the same generation as
the target customer base. These people plan out sales areas from a
customer’s perspective because they have a knack for accurately
grasping constantly evolving customer needs while demonstrating a
responsiveness to change that facilitates a fast and flexible approach
toward ascertaining the right merchandise mix for specific customer
groups. This idea of individual store operations, made possible by the
independence of store staff, permeates the entire organization, and
it is for this reason that store design from a customer’s point of view,
realized by store staff, is possible. This is a huge advantage for the
Don Quijote Group.
09
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
Source of Growth
04
Diverse Store Formats
Flexible Approach
to Store Openings
Facilitate
The Don Quijote Group has expanded its presence nationwide through the
development of diverse store formats, such as Don Quijote, MEGA Don Quijote,
New MEGA Don Quijote, Picasso and Doit, which feature sales areas ranging in size
from 300 m2 to 10,000 m2.
Going forward, we will utilize accumulated know-how in store design and, without
a care for conventional store size and layout, we will continue to open stores all over
Japan using whatever format is most appropriate to the geographical location and
catchment demand.
Solution Stores
A solution store is a tenant-ready space filled by a Group store at the request
of the operator of a multiuse commercial complex, like a shopping center,
and represents a new option in store development that the Don Quijote
Group will actively pursue. This type of store-opening option presents merits
for both the Group and the commercial complex. For us, the solution store
format is a faster and lower-cost approach to store development than other
formats. The level of capital investment is considerably less than it would be
if everything had to be installed from scratch because vacated space* already
has the requisite fittings and fixtures. In addition, since the request for
occupancy comes from the operator of that particular commercial complex,
the store can be opened at conditions favorable to the overseeing Group
company. For example, the company has the leverage to negotiate cheaper
rent. For the facility operator, the high profile of a Don Quijote Group store
creates customer-drawing potential that extends to other tenants as well and
invigorates the shopping environment.
Don Quijote Kita Ageo PAPA store (Saitama Prefecture)
*Opening stores in buildings that were formerly occupied by other stores
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
10
Store Formats
MEGA
Don Quijote
New MEGA
Don Quijote
As a smaller version of MEGA Don Quijote, New
MEGA Don Quijote features an average sales floor
area of about 4,000 m2 and a merchandise mix of
40,000 to 80,000 items. This format emphasizes
profi tabi l i ty and effi c i enc y , wi th a r educed
percentage of perishables and more daily necessities
and processed foods.
Don Quijote
Don Quijote, the flagship format of the Group, is a
general discount store combining the three
concepts of convenience, discounts and amusement
(Cv+D+A). The merchandise mix comprises around
40,000 to 60,000 items, ranging from food and
daily necessities to sundries, clothing, electrical
appliances, brand-name products and hobby items.
Small-Scale
Picasso
Essence
Kyōyasudō
Doit
11
MEGA Don Quijote is Japan’s first family-oriented
general discount store. It incorporates all the
strengths of the Don Quijote Group into a concept
showcasing a rich merchandise mix and deep
discounts. Stores have an average sales floor area of
about 9,000 m2 and offer between 60,000 and
100,000 items. The format is popular with
customers across a wide range of age groups.
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
The small-scale store format is a condensed version
of the Don Quijote format, designed with a
streamlined merchandise mix to cater to demand in
the smaller catchment areas of metropolitan Tokyo.
These stores are a little bit drugstore, convenience
store and mini-grocery store, and the goal is to create
shopping venues that fit well into the surroundings
and into the daily routines of customers.
Doit, a full-fledged home center with the motto “We
will meet your needs with all our heart,”offers a
spectrum of products that meet wide-ranging customer
needs, from professional-use items for contractors to the
weekend do-it-yourselfer. These stores are putting more
effort into renovation services as well. New approaches
in business include development of Town Doit, an
urban-styled home center located near train stations.
Store Concept (As of July 1, 2015)
Number of Items
Products Featured
Target Customer
Groups
60,000~100,000
Clothing, food and
household necessities;
Mainly food items and
daily necessities
Housewives,
families +
2
3,000 m ~5,000 m
40,000~80,000
Food:
Fewer perishables
Clothing:
Mainly everyday wear
Housewives,
families +
1,000 m2~3,000 m2
40,000~60,000
Amusement and
variety shops
Singles +
300 m2~1,000 m2
10,000~20,000
Emphasis on specialty
products (drugstore/
convenience store/
mini-grocery)
Singles +
2,000 m2~7,000 m2
40,000~80,000
Do-it-yourself-related
and home products
Craftsmen,
do-it-yourselfers
and families +
Store Type
Sales Floor
MEGA
Don Quijote
8,000 m ~10,000 m
New MEGA
Don Quijote
Don Quijote
2
2
2
Small-Scale
Picasso
Essence
Kyōyasudō
Doit
Composition of Net Sales
by Store Format
Merchandise Mix by Store Format
(For the fiscal year ended June 30, 2015)
(For the fiscal year ended June 30, 2015)
(%)
Electrical
Daily
appliances commodities
Doit
2.6%
Nagasakiya
0.2%
New MEGA
Don Quijote
13.2%
201 stores
New MEGA
Don Quijote
36 stores
Don Quijote
(including small-scale)
60.5%
Watches
and
fashion
Sporting
goods and
leisure
Others
Don Quijote
(including small-scale)
MEGA
Don Quijote
41 stores
MEGA
Don Quijote
23.5%
Foods
Nagasakiya
2 stores
Total
11.3
27.3
27.0
25.9
6.9 1.6
3.2
6.9
18.8
10.8
54.0
26.1
15.2
32.3
22.2
3.7
23.0
10.2
2.8
25.1
7.0 1.6
1.4
0.7
68.4
34.2
1.9
22.9
6.0 1.6
Note: Except Doit
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
12
Store Network
Number of Stores by Format
(Total: 306 stores) (As of July 1, 2015)
189
Don Quijote
12
Picasso
Don Quijote (Hawaii)
11
Marukai
Doit
3
12
MEGA Don Quijote
Nagasakiya
41
Chubu region
Don Quijote 29
MEGA Don Quijote 12
77
2
Hokkaido /
Tohoku region
Don Quijote 15
MEGA Don Quijote 12
Doit 1
Nagasakiya 2
Notes: 1. Essence and Kyōyasudō are included
under Don Quijote.
2. TOKYO CENTRAL is included under Marukai.
Chugoku/
Shikoku region
12
Don Quijote 10
MEGA Don Quijote 2
Kyushu/
Okinawa region
Kanto region
24
Kansai region
Don Quijote 18
MEGA Don Quijote 6
Don Quijote 32
MEGA Don Quijote 13
http://www.marukai-market.com/
http://www.marukaihawaii.com/
http://www.tokyocentral.com/
Marukai stores
TOKYO CENTRAL stores
DQ stores (in Hawaii)
Beverly Hills
San Francisco
M
TC
M
M Los Angeles
MM
M San Jose
Anaheim
California
Island of
Oahu
M
Honolulu M
13
TC
Monterey
Hawaii
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
140
Don Quijote 85
MEGA Don Quijote 32
Picasso 12
Doit 11
45
Since January 2015,
some Marukai stores have been converted
to the TOKYO CENTRAL format.
M
TC
D
30
San Luis Obispo
Los Angeles
San Diego M
LA area
Number of Stores by Format
Number of Stores by Region
(As of July 1, 2015)
(As of July 1, 2015)
(Stores)
306
300
283
220 228
242
255
■ Nagasakiya
■ New MEGA Don Quijote
■ MEGA Don Quijote
■ Doit
■ Marukai
200
■ Don Quijote (Hawaii)
■ Picasso
■ Don Quijote
100
Note: Essence and Kyōyasudō are
included under Don Quijote.
Chugoku /
Shikoku
12
Kyushu /
Okinawa
24
U.S.A.
14
Total
Hokkaido /
Tohoku
30
306
Kanto
140
Chubu
41
0
6/’10 6/’11 6/’12 6/’13 6/’14 6/’15
Kansai
45
Community-based Stores Loved by Local Customers
Don Quijote Asakusa store
Since the first Don Quijote store opened in Fuchu, western Tokyo, in
March 1989, we have attracted an immense customer following as we
grew our business and expanded our presence. The domestic store
network has expanded to nearly 300 locations. In opening stores, we
select the format best suited to local characteristics, based on meticulous
analysis of the catchment area. For example, the Don Quijote Asakusa
store, which opened in December 2013, addresses three business
factors: community criteria, tourist-oriented demand, and place of
entertainment. To promote a local feel, we worked to capture the
unique characteristics of Asakusa with vibrant décor evoking the image
of an entertainment hall, and we have addressed requests from local
residents, including fresh produce and meat sections. The store also
caters to tourist demand, offering a wonderful assortment of typically
Japanese items popular with foreign tourists as well as well-known Tokyo
items for domestic tourists. The store complex also features a family
restaurant, a karaoke lounge and a theater, and meets our goal to
provide a spot for entertainment popular with lots of people and
perfectly in sync with lively Asakusa Rokku, one of Tokyo’s go-to
entertainment districts.
Stores opened under this approach, with the format and size just
right for each commercial neighborhood, receive further fine-tuning after
opening to perfectly align the merchandise mix and store layout to
constantly evolving customer needs. Ongoing improvements ensure that
as many customers as possible have a great shopping experience.
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
14
Branches and Headquarters
Overview of Branches and Headquarters
Products
Hokkaido
Branch
18 Branches in Japan
Central Tokyo
Branch
Osaka
Branch
Store
Store
Store
Store
Store
店舗
Store
Store
Store
Store
[Composition] Spot products: About 40%
[Composition] Regular products: About 60%
Spot Items
Merchandise Development
Headquarters
Independent purchasing
Matched to customer demand in
catchment area by each store
Independent purchasing
Matched to customer demand in
catchment area by each store
Independent purchasing
Matched to customer demand in
catchment area by each store
Establishes allocation of shelf space for
staple items in about 150 categories
Selection
Allocation of staple items matched
to shopping district
Selection
Allocation of staple items matched
to shopping district
Selection
Allocation of staple items matched
to shopping district
Matrix Management Balancing Trade-Off Between Store
Network Expansion and Individual Store Operations
Products are divided into about 150 categories, and store managers
have the authority to make purchases matched to area and
store-specific strategies that create a unique store environment. From
a network expansion perspective, stores are encouraged to sell
products by capitalizing on economies of scale. But from the
perspective of individual store operations, it is essential for each store
to offer a merchandise mix matched to customer demand in the
catchment area. Store staff with purchasing responsibilities for the
seven core product categories make independent purchasing
decisions in conjunction with other staff in corresponding positions,
under the direction of the store manager, to create a merchandise mix
that meets local needs. Through matrix management, which balances
two factors prone to a trade-off situation—network expansion,
intended to generate economies of scale, and individual store
operations, enjoying store-level benefits—each store can address the
constantly evolving preferences of customers in its own catchment
area.
15
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
Products
Electrical Appliances
General household appliances, audio-visual
equipment, seasonal household appliances,
telecommunications equipment, music / movie
titles, gaming gear, bicycles
Sundries & Interior Goods
Household sundries, stationery, do-it-yourself
products, beauty and health care products,
sporting goods, outdoor goods, interior
goods, furniture, garden supplies
Watches & Brand-Name
Products
Watches, jewelry, shoes,
brand-name products, fashion accessories,
sunglasses
Fashion
Apparel (men’s, ladies’, kids’),
animal suits, bags, suitcases
Daily Essentials
Toys & Hobby Items
Paper products, cleaning supplies, detergent,
cosmetics, medical supplies, pet products
Toys, educational / early childhood toys,
character figures, hobby items, games,
novelties, costumes, automotive accessories
Foods
Processed food, beverages, snacks, noodles,
bread, dairy products, frozen food, liquor,
gifts, perishables
Digging Up Incredibly Low-priced Products
That Make Shopping Fun and Exciting
Trivia
Donpen—the Don Quijote mascot.
He wears a nightcap on his head
and his body is midnight blue.
He rides on a crescent moon,
lighting up dark city nights.
Area-based Spot Product
Discussion Group
Spot products* are essential components of the sales floor and
keep the merchandise mix fresh and new for customers
whenever they visit the store. The Area-based Spot Product
Discussion Group was established to carefully consider products
matched to each catchment area, boost the ratio of spot
products within the overall merchandise mix, and promote
store-specific strategies. Each area has its own spot product
manager. The goal is to add a quality of distinctiveness to the
merchandise carried by Group stores and separate these stores
from competitors. Another objective is to introduce locally made
products throughout the country and spur regional business
activities.
* Please see page 8.
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
16
Private Brand: Jonetsu Kakaku
Concept
Turning Customer Feedback
into Products
Customers asked for good quality
at low prices... Achieved!
The Don Quijote private brand—Jonetsu Kakaku (“passionate
price”)—debuted in October 2009 under a concept of turning
customer input into products. Factors that make Jonetsu
Kakaku so appealing are a level of quality quite unlike typical
private brands, which are simply about low price and
you-get-what-you-pay-for quality, as well as a sense of fun
and discovery associated with Don Quijote. The brand features
more than 3,000 items so far, and it is very popular with
customers.
Designed with the principle of “valuing the customer as
our utmost priority” in mind, the products under the Jonetsu
Kakaku label address obvious market needs, of course, as well
as underlying desires that customers themselves may not even
realize they have. We are meticulous in our approach to
product development, carefully considering such aspects as
container shape and design as well as ease-of-use from a
customer perspective.
Trends in Original
Product Performance
The Jonetsu Kakaku Promise
Customer
feedback
Strive to provide
product range
that attracts as
many customers
as possible
Customers
Passionate
(jonetsu)
supporters
Don Quijote
Group
Jonetsu
Kakaku
lineup
Passionate
(jonetsu)
retailer
Partner
companies
Strive to provide
good quality
at low prices
Strive to develop
products that
exceed customer
expectations
Passionate
(jonetsu)
partners
Sales Breakdown by Original
Product Category
(For the fiscal year ended June 30, 2015)
■ OEM
Net sales (Billions of yen)
■ PB
100
75
(Jonetsu Kakaku)
Sporting goods
and leisure
equipment
8.6%
Watches
and fashion
merchandise
29.6%
50
25
Others 0.9%
Electrical
appliances
14.4%
Daily
commodities
25.4%
0
Jun 2013
17
Jun 2014
Jun 2015
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
Foods 21.1%
Product Categories
Foods
Household Items
Kitchen Goods
Frozen food,
processed food,
dry goods, seasonings,
noodles, beverages,
snacks, liquor
Cleaning supplies,
laundry supplies, bath
and toilet products,
sanitary products,
stationery
Pots, cutting boards,
kettles, thermoses,
kitchen soap
Beauty and Health
Care Products
Clothing,
Bags and Shoes
Electrical
Appliances
Skincare and haircare items,
facial massagers,
health equipment
Men’s and
ladies’ clothing,
briefcases, suitcases
Humidifiers, vacuum
cleaners, televisions,
audio-visual equipment,
cooking appliances,
curling/straightening iron
Interior Goods,
Furniture, Bedding
Sporting Goods &
Outdoor Equipment
Auto Accessories
& Bicycles
Sofas, cushions,
mattresses, pillows,
cabinets
Yoga products,
weight training products,
barbecue sets,
folding chairs
Automotive cleaning
products,
seat cushions,
bicycles
Pet Supplies
Hobby Items
Dog food, cat food,
cat towers,
pet toilet products
Games, magic goods,
dartboards
For product details,
please visit our website
Don Quijote
private brand product
Search
http://www.donki.com/
j-kakaku/
Original Product Development Structure
A dedicated team is in charge of original product development through
cooperation with other divisions across the organization. The team seeks to
expand sales of original products—a combination of private brand (Jonetsu
Kakaku) and OEM-made items (merchandise sold only at Don Quijote)—and is
constantly engaged in product development. The Company delegates authority
to store staff to engage in sales activities and market research. We maintain a
bottom-up structure that carefully draws on customer feedback, gleaned by
store staff, and reflects customer input in the creation of new products. The
project team focuses solely on product planning and directs concerted efforts
into the kind of merchandising for which Don Quijote is so well known.
Project
Team
• Planning and
development
• Sales
promotions
• Quality control
Policy
Committee
(Receives and consolidates
customer feedback)
Stores
Customer
feedback
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
18
Group Information
Note: Don Quijote, Nagasakiya and Doit are presented separately.
Name
Japan Commercial Establishment Co., Ltd.
Representatives Chairman of the Board: Koji Oohara
President: Takeshi Haga
Business
Construction, management and operation of
Activities
commercial facilities, tenant leasing business
Head Office
4-14-1, Kitakasai, Edogawa-ku, Tokyo
134-0081
Paid-in Capital ¥1.6 billion (as of June 30, 2015)
Name
Representatives
Business
Activities
Head Office
REALIT Co., Ltd.
President: Hiroshi Abe
Internet services provider
4-14-1, Kitakasai, Edogawa-ku, Tokyo
134-0081
Paid-in Capital ¥100 million (as of June 30, 2015)
Name
Representative
Business
Activities
Japan Inbound Solutions Co., Ltd.
President: Yoshiaki Nakamura
Multi-language services, including
international communications and translation,
and global personnel placement services
Head Office
Don Quijote Kameido Office, 4th Floor,
1-40-2, Kameido, Koto-ku, Tokyo 136-0071
Paid-in Capital ¥10 million (as of June 30, 2015)
Name
Representative
Business
Activities
Head Office
D-ONE Co., Ltd.
President: Mitsuaki Shirahama
Real estate developer
2-19-10, Aobadai, Meguro-ku, Tokyo
153-0042
Paid-in Capital ¥48 million (as of June 30, 2015)
Name
Representative
Business
Activities
Head Office
Accretive Co., Ltd.
President: Takeshi Sugahara
Financial services mainly in early financing of
accounts receivable and outsourcing services
1-28-44, Shinkawa, Chuo-ku, Tokyo
104-0033
Paid-in Capital ¥1,224 million (as of March 31, 2015)
Main
Sun Assort Co., Ltd.
Subsidiaries
STORECREWS Co., Ltd.
19
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
Name
Representative
Business
Activities
Head Office
Japan Asset Marketing Co., Ltd.
President: Takayuki Koshizuka
Property rental and management, building
maintenance
4-14-1, Kitakasai, Edogawa-ku, Tokyo
134-0081
Paid-in Capital ¥4,097 million (as of March 31, 2015)
Name
Representative
Business
Activities
Head Office
Paid-in Capital
Don Quijote (USA) Co., Ltd.
President: Kenji Sekiguchi
General discount store operations in Hawaii
801 Kaheka Street, Honolulu, HI 96814
US$92 million (as of March 31, 2015)
Name
Representative
Business
Activities
MARUKAI CORPORATION
President: Kenji Sekiguchi
Membership and non-membership
supermarket operations (groceries and
household items)
Head Offices Los Angeles
1740 West Artesia Blvd., Gardena, CA 90248
Hawaii
2310 Kamehameha Hwy., Honolulu, HI 96819
Paid-in Capital US$318,930 (as of March 31, 2015)
Name
Representative
Business
Activities
Justneo Co., Ltd.
President: Tetsuro Baba
Product development, procurement, and
production control overseas, and contracted
sales order management in Japan
Head Office
2-19-10, Aobadai, Meguro-ku, Tokyo
153-0042
Paid-in Capital ¥10 million (as of June 30, 2015)
Name
Representative
Business
Activities
Human Motivation Delight Co., Ltd.
President: Mami Tanaka
Provides cash register operations, contracted store
operation services, staff recruitment and talent
sourcing, and personnel placement (all part time)
Head Office
2-19-10, Aobadai, Meguro-ku, Tokyo
153-0042
Paid-in Capital ¥10 million (as of July 31, 2015)
Office Information
Don Quijote Dotonbori store tax-free counter
Domestic Offices
(Business Headquarters and Branches) (As of July 1, 2015)
Nakameguro Head Office
2-19-10, Aobadai, Meguro-ku, Tokyo 153-0042
Horinouchi Headquarters
34-11, Matsugi, Hachioji, Tokyo 192-0362
Koganei Headquarters
5-11-2, Honcho, Koganei, Tokyo 184-0004
Kasai Office
4-14-1, Kitakasai, Edogawa-ku, Tokyo 134-0081
Kameido Office
1-40-2, Kameido, Koto-ku, Tokyo 136-0071
Hokkaido Branches
3-6, Minami-Nijo-nishi, Chuo-ku, Sapporo, Hokkaido 060-0062
Tohoku Branch
1-7-40, Dainohara, Aoba-ku, Sendai, Miyagi 981-0911
Gunma / Nagano Branch
2-4-17, Tonyamachi-nishi, Takasaki, Gunma 370-0007
2-19-5, Inaho, Otaru, Hokkaido 047-0032
Kanto MEGA Nagasakiya Branch
1-1-1, Satsukidaira, Misato, Saitama 341-0021
Saikyo Branch
1-7-26, Hachioji, Chuo-ku, Saitama, Saitama 338-0006
Keiyo Branch
474-1, Hongocho, Funabashi, Chiba 273-0033
Central Tokyo Branch
2-19-10, Aobadai, Meguro-ku, Tokyo 153-0042
West Tokyo Branch
5-11-2, Honncho, Koganei, Tokyo 184-0004
East Kanagawa Branch
1-2-8, Shinyamashita, Naka-ku, Yokohama, Kanagawa 231-0801
Central Kanagawa Branch
2-4-37, Minowacho, Kohoku-ku, Yokohama, Kanagawa 223-0051
Fuji / Shonan Branch
2-8-12 Tsumadaminami, Atsugi, Kanagawa 243-0814
Hokuriku Branch
4-11, Nishi-izumi, Kanazawa, Ishikawa 921-8043
Tokai Branch
234-1, Genbacho, Kita-ku, Nagoya, Aichi 462-0018
Osaka Branch
1-24, Uenomiyacho, Tennoji-ku, Osaka, Osaka 543-0037
Keihanshin Branch
3-13-1, Benten, Minato-ku, Osaka, Osaka 552-0007
Chugoku / Shikoku Branch
344-106, Shimonakano, Kita-ku, Okayama, Okayama 700-0973
Kyushu Branch
3-7-24, Nakasu, Hakata-ku, Fukuoka, Fukuoka 810-0801
Okinawa Branch
2-8-19, Matsuo, Naha, Okinawa 900-0014
Doit Yono Sales Division
1-6-18, Hachioji, Chuo-ku, Saitama, Saitama 338-0006
Overseas Offices (As of July 1, 2015)
Don Quijote Imp. & Exp. (Shanghai) Co., Ltd.
Shanghai Head Office
KYMS Building Unit Office 630, 555 Wu Ding Road,
Jingan District, Shanghai 200040
Phone: +86-21-5879-3241 Fax: +86-21-5879-4109
Guangzhou Branch
Office 1906, 11 Yiying Street, Xinggang Middle Road,
Haizhu District, Guangzhou 510310
Phone: +86-20-3880-6617 Fax: +86-20-3881-5476
Yiwu Branch
Building A, Jinfuyuan, Office 1115,
800 Chouzhou North Road, Yiwu, Zhejiang 322000
Phone: +86-579-8565-8005 Fax: +86-579-8564-5635
Toward
th
w
o
r
G
r
Furthe traction
top At apan
S
t
s
u
M sitors to J
for Vi
As of June 2015,
about 95% of all the domestic stores in
the Don Quijote Group were licensed for tax-free
shopping. This, along with late-night operations and
an extensive selection of merchandise, has made our
stores hugely popular with tourists to Japan who see
our stores as fun, exciting and entertaining, and as
shopping venues unlike anything anywhere else in the
world. Tourists are particularly keen to go shopping
after dinner, and many drop by our stores to spend
time browsing around.
In October 2014, coinciding with the expansion of
our tax-free product list, we reinforced our structure to
support tourists’ purchasing activity. We set up a call
center “welcome desk” catering to foreign visitors. The
call center is staffed by multilingual employees who
provide customer assistance in four languages
(English, Chinese, Korean and Thai). The team uses
iPads to videochat with customers at stores
throughout the Don Quijote Group in Japan and
answer questions and offer advice to customers in
their native language. The service is available around
the clock, except in Thai (10 am to 10 pm only).
Tax-free counters have been set up at flagship
stores that attract large numbers of tourists from
abroad. These counters are staffed by full-time
personnel, “the welcome crew,” who also provide
customer assistance in multiple languages. Now,
several foreign currencies are accepted at the cash
register. In addition, the domestic network has
installed free Wi-Fi access to make it even more
convenient for customers who have made a trip to one
of our stores as part of their travel experience.
Looking ahead to the 2020 Olympic and
Paralympic Games in Tokyo, we expect to see more
visitors to Japan and a parallel increase in purchasing
activity by foreign tourists. We will be working hard to
capitalize on anticipated growth in demand from this
customer group.
Business Activities Overseas import and export, product inspections, quality
control, production control, product planning and
information disclosure
The multi-language call center ”welcome desk” for foreign visitors
Corporate Prof i le 2015 • Don Quijote Holdings Co., Ltd.
20
Company Overview
1
Don Quijote Holdings
Co., Ltd.
Name
Don Quijote Holdings Co., Ltd.
Representatives
President and CEO: Koji Oohara
Business
Activities
Corporate planning for and management of Group companies
through the holding of shares in such companies, contracted
administrative operation of subsidiaries, and real estate
management
Head Office
2-19-10, Aobadai, Meguro-ku, Tokyo 153-0042, Japan
Phone: +81-3-5725-7532 Fax: +81-3-5725-7322
Date
Established
September 5, 1980
Paid-in Capital
¥22,227 million (as of June 30, 2015)
Fiscal Year-end
June 30
Board of
Directors and
Audit &
Supervisory
Board
President and CEO: Koji Oohara
Senior Managing Director and CFO: Mitsuo Takahashi
Senior Managing Director and CCO: Naoki Yoshida
Outside Director: Yukihiko Inoue
Outside Director: Yasunori Yoshimura
Standing Audit & Supervisory Board Member: Koichi Otoshi
Standing Audit & Supervisory Board Member: Shoji Wada
Outside Audit & Supervisory Board Member: Tomiaki Fukuda
Outside Audit & Supervisory Board Member: Yoshihiro Hongo
(as of September 25, 2015)
Founder
Founding Chairman and Supreme Advisor: Takao Yasuda
Number of
Employees
6,029 (Consolidated, as of June 30, 2015)
Main Banks
Resona Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Yokohama, Ltd.
The Chiba Bank, Ltd.
Home Page
http://www.donki-hd.co.jp/en/
Affiliated
Companies
Don Quijote Co., Ltd.
Nagasakiya Co., Ltd.
Doit Co., Ltd.
Japan Commercial Establishment Co., Ltd.
REALIT Co., Ltd.
D-ONE Co., Ltd.
Don Quijote Shared Services Co., Ltd.
Japan Inbound Solutions Co., Ltd.
Don Quijote (USA) Co., Ltd.
Accretive Co., Ltd.
Japan Asset Marketing Co., Ltd.
MARUKAI CORPORATION
Justneo Co., Ltd.
Human Motivation Delight Co., Ltd.
Company Overview
2
Don Quijote Co., Ltd.
Name
Don Quijote Co., Ltd.
Representatives
President: Koji Oohara
Business
Activities
Operation of big convenience and discount stores, focusing on
sales of electrical appliances, daily commodities, foods, watches
and fashion merchandise, and sporting goods and leisure
equipment
Head Office
2-19-10, Aobadai, Meguro-ku, Tokyo 153-0042, Japan
Phone: +81-3-5725-7532 Fax: +81-3-5725-7322
For store details, please visit the store information pages on our
website at http://www.donki.com/index_en.php
Date
Established
August 14, 2013 (originally established as Don Quijote,
September 5, 1980)
Paid-in Capital
¥100 million (as of June 30, 2015)
Fiscal Year-end
June 30
Merchandise
Categories
• Electrical appliances: Audio-visual equipment, general
household appliances, seasonal household appliances,
telecommunications equipment, etc.
• Daily commodities: Household sundries, paper products,
stationery, do-it-yourself products, medical supplies, garden
supplies, interior goods, etc.
• Foods: Processed food, beverages, snacks, noodles, bread,
dairy products, frozen food, liquor, etc.
• Watches and fashion merchandise: Watches, jewelry, bags,
cigarette-related goods, clothing, brand-name products,
sunglasses, etc.
• Sporting goods and leisure equipment: Sporting goods,
bicycles, auto accessories, outdoor goods, etc.
• Other: Pet supplies
Main Suppliers
ARATA CORPORATION
YAMABOSHIYA Co., Ltd.
Nihon Shurui Hanbai Co., LTD.
Ueni Trading Co., Ltd.
Shutoken Kokubu Co., Ltd.
KOKUBU & CO., LTD.
PALTAC CORPORATION
DOSHISHA CORPORATION
SANYO BUSSAN CORPORATION
OHKI CO., LTD.
Main
Subsidiaries
Lirack Co., Ltd.
Fujiya Shoji Co., Ltd.
Company Overview
3
Nagasakiya Co., Ltd.
Name
Nagasakiya Co., Ltd.
Representative
President: Nobuharu Ohashi
Business
Activities
Operation of general merchandise stores
Head Office
2-19-10, Aobadai, Meguro-ku, Tokyo 153-0042, Japan
Phone: +81-47-700-2100
For store details, please visit the store information pages on our
website at http://www.nagasakiya.co.jp/ (Japanese only)
Date
Established
January 31, 1948
Paid-in Capital
¥100 million (as of June 30, 2015)
Fiscal Year-end
June 30
History
1948: Predecessor company, Nagasakiya Futon, established in
Hiratsuka, Kanagawa
1952: Changed name to Nagasakiya Co., Ltd.
2007: Became consolidated subsidiary of Don Quijote Co., Ltd.
Merchandise
Categories
• Clothing: Men’s, ladies’ and children’s apparel, underwear and
socks, bedding and drapery, fashion accessories, etc.
• Foods: Perishables, processed food, grocery items, beverages,
liquor, etc.
• Home-related products: Electrical appliances, interior goods,
household products, toys, leisure goods, etc.
Business
Summary
Nagasakiya is a prominent, well-established company in Japan’s
distribution sector, where it develops GMS operations with a
focus on food and clothing. In 2007, the company became part
of the Don Quijote Group and, along with Don Quijote, upholds
the idea of “valuing the customer as our utmost priority,” and
fully maximizes Group synergies, mainly through shared
procurement and development of private brand products. The
company operates the MEGA Don Quijote chain of familyoriented general discount stores as well as LAPARK shopping
centers, and will continue to create stores that local customers
love to visit.
Company Overview
4
Doit Co., Ltd.
Name
Doit Co., Ltd.
Representative
President: Mitsuo Takahashi
Business
Activities
Operation of Doit home centers
Operation of Hananoki garden centers
Renovation and remodeling business
Head Office
1-6-18, Hachioji, Chuo-ku, Saitama, Saitama 338-0006, Japan
Phone: +81-48-853-9700 Fax: +81-48-854-1854
For store details, please visit the store information pages on our
website at http://www.doit.co.jp/ (Japanese only)
Date
Established
January 31, 2007 (First store opened on December 1, 1972)
Paid-in Capital
¥100 million (as of March 31, 2015)
Fiscal Year-end
March 31
History
1972: Japan’s first do-it-yourself (DIY) store Doit opened in city
of Yono (now amalgamated into city of Saitama), in
Saitama Prefecture
1978: Won “Home Center of the Year” in the United States, for
the third consecutive year
2007: Became consolidated subsidiary of Don Quijote
Merchandise
Categories
• DIY goods: Lumber, building materials, tools, hardware, paint,
housing supplies and fixtures, interior items, household
products, automotive products, pet supplies, etc.
• Home and garden supplies: Garden flowers and flowering
trees and shrubs, fertilizer, gardening tools and supplies,
exterior materials, etc.
• Other services: Renovation/remodeling advice and services,
material construction and assembly, tool and equipment rental
(including truck rental, as necessary), on-site consultation
services, etc.
Business
Summary
Doit debuted in 1972 as Japan’s first full-fledged DIY store.
In 2007, the company was reestablished as a consolidated
subsidiary of Don Quijote Co., Ltd. (now Don Quijote Holdings
Co., Ltd.). On the theme of “Use your own hands to create the
way you live,” Doit carries an extensive assortment of materials,
tools and other products useful to customers—professionals and
do-it-yourselfers alike—who are keen to take a hands-on
approach to creating a comfortable living space. The company
operates large Doit home centers as well as small Town Doit
home centers near train stations.
Don Quijote Holdings Co., Ltd.
2-19-10, Aobadai, Meguro-ku, Tokyo 153-0042, Japan
Phone: +81-3-5725-7532 Fax: +81-3-5725-7322
http://www.donki-hd.co.jp/en/