Message from the PresidentMessage from the President

President and Representative DirectorKumiko Otsuka

*Last Updated : March 2019

On March 7, 2019, Otsuka Kagu, Ltd. reached the 50th anniversary of our foundation. Please allow me to express my heartfelt gratitude for your support and patronage, without which this achievement would not have been possible.

Since our foundation in 1969, as an integrated interior provider, our goal has been to offer richer living spaces to customers. In order to achieve this, we has upheld the quality standards for durable consumer goods that are not seen as “disposable”, as well as our vision of being a service provider that offers solutions for realizing high-quality lifestyles, while promoting a revolution in Japanese distribution. Furthermore, since the 1990s, we have worked on revolutionizing the distribution of Western imported furniture, and have also focused on supplying outstanding products in collaboration with manufacturers around the world at reasonable prices and with excellent customer service.

We are undergoing rapid changes to our management environment, including a shrinking housing market and growing internet use. Under these circumstances, this year we will be continuing to accelerate policies built on the “four pillars” set out under the management vision we announced in 2017, as we seek to rebuild our business model to respond to these changes. At the same time, we will seek to improve our results by building alliances with external partners and actively making investments.

As we seek to build next-generation store networks, in addition to optimizing floor space, which is one of the policies set out under our management vision, through a business tie-up with TKP Corporation we have been utilizing redundant areas by outsourcing their operation as event spaces or letting them out as meeting rooms.

Second, we have many interior professionals and we work hard to commercialize our service business. Amid in an increase in the number of requests we receive for interior planning to create more comfortable living spaces, and repairs that will allow customers to continue using their furniture in the long term, we will provide a carefully-tailored service to meet the needs of each and every customer, based on our reliable technology. In addition, we recently announced a business alliance with YAMADA DENKI CO., LTD. As one of the initiatives for sharing know-how with each other, we have launched a trial through which we have dispatched our professionals to the “Kaden Sumairu Kan” furnishing and interior departments of Yamada Denki’s stores.

Third, as a measure aimed at strengthening our e-commerce business to respond to changes in consumer behavior as a result of the spread of the internet, we have worked to improve the usability of our EC site by improving key features of its product information and layout, developing the content of case studies, and strengthening the mutual links between the EC site and our corporate website. Furthermore, by increasing the number of customers on external EC sites we have significantly out-performed last year’s e-commerce sales figures.
In February 2019, we concluded a business and capital alliance with High-Lines Co., Ltd. In cooperation with High-Lines, we will launch new cross-border e-commerce business and promote our participation in the Chinese market.

Fourth, in our RE-WORTH (previously called “reused”) business, we will seek to incorporate potential replacement demand by promoting trade-ins and purchases, while continuing to create new markets with the aim of helping to realize a genuine recycling society where “good items continue being used”.

In the current fiscal year, we will strengthen our efforts to incorporate corporate demand by rebuilding sales partnerships with housing companies. Alongside our cross-border e-commerce business, we will promote the opening of new business through Easyhome Co., Ltd., which is a leading Chinese furniture sales company. In doing so, we will accelerate the speed with which our results recover by trying to capture overseas sales channels.

We will continue to fully utilize the strengths of our company, in terms of both our high-quality furniture and outstanding concierge service, while working harder than ever to contribute to richer lives for our customers as we help them to tackle the challenges faced in their lives.

As we move forward, your ongoing support and patronage will be more important to us than ever.


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