NITORI HOLDINGS CORPORATE PROFILE
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The NITORI Group To provide the foundation of prosperous home living to the global community. Based on the dream, the NITORI Group has outlined a long-term vision and is devoting all of its energy to achieving this Dream The NITORI Group comprises several companies, including: Nitori Co., Ltd., which deals in the planning and sale of home [Mission Statement] To provide the foundation of prosperous home living to the global community. furnishings and home décor; NITORI FURNITURE Co., Ltd., with manufacturing subsidiaries in Indonesia and Vietnam; our logistics arm Home Logistics Co., Ltd.; Nitori Public Co., Ltd. for advertising and publicity, and insurance provider Nitori Facility Co., Ltd. By clarifying the functional roles and responsibilities within the group, we are able to deliver more agile and flexible management and enhance our continuing corporate value in this rapidly changing business environment. [Vision Statement] 2017 500 stores $ 5.5 billion in sales Transformation of Japanese lifestyles. Full-scale launch of global retail chain development. [Import Agent Companies] NITORI CHINA CO., LTD. 1,000 stores $10 billion in sales Nitori Taicang Trading & Logistics Co., Ltd. HUIZHOU NITORI CO., LTD. Trading, Planning & Development, NITORI TRADING VIETNAM COMPANY LIMITED and Logistics Functions NITORI (MALAYSIA) SDN. BHD. Nitori Trading (Thailand) Co., Ltd. 2022 NITORI INDIA PRIVATE LIMITED Revolutionize home living by expanding on areas with high market share. 3,000 stores $30 billion in sales [Logistics Company] Home Logistics Co., Ltd. Advertising and 2032 Manufacturing Publicity Functions To become the company known for promoting a more prosperous living Functions [Advertising Agency] to the global community. Nitori Public Co., Ltd. Nitori ホーム・デコ [Welcome Message] “Enriching the homes of Japanese people in the same way as America does” HOME DECO Holdings Co., Ltd. The United States I saw with my own eyes in 1972 left me amazed and deeply impressed. [Holding Company] [Facility Management] [Insurance Agent Business] Prices were a third of what they were in Japan, quality was considered from the users’ perspective, Nitori Facility Co., Ltd. product lines were coordinated by color and style, and to make all of this a reality were thousands of Facility chain stores supporting “everyday living” for the general public. “Someday, I want to build stores Management like that”, “I want a company which can contribute to enriching people’s daily life”. The NITORI Functions [Store Management Companies] Group is driving its business based on those original ideas of passion, empathy and determination. Nitori Co., Ltd. And now, rooted in the dream of “providing the foundation of prosperous home living to the global ∙ HOME FURNISHING STORE ∙ HOME FASHION STORE community”, we are extending that ∙ NITORI MALL ∙ DECOHOME challenge towards the world. Regardless of ∙ Online Shopping Business industry practice or successful past ∙ Renovation Business Sales Activities ∙ Corporate Sales Business etc. experiences, the meaning of our company’s existence is to repeatedly refuse to be satisfied with the status quo and to continue to provide a sense of richness to [Overseas Sales Companies] our customers. In order to keep “Offering Nitori Taiwan Co., Ltd. NITORI USA, INC. the Unexpected”, not only for our [Curtain Manufacturing Factory] NITORI (CHINA) HOLDINGS CO., LTD. customers, but also for all of our NITORI (SHANGHAI) HOME FURNISHING CO., LTD. HOME DECO CO., LTD. stakeholders, we will continually challenge Nitori Holdings Co., Ltd. Nitori Holdings Co., Ltd. ourselves to improve and innovate for Chairman and CEO President and COO [Overseas Manufacturing Companies] many more years to come. PT. NITORI FURNITURE INDONESIA NITORI FURNITURE VIETNAM EPE Akio Nitori Toshiyuki Shirai Nitori Furniture Ba Ria-Vung Tau Co., Ltd. 1 NITORI HOLDINGS CORPORATE PROFILE NITORI HOLDINGS CORPORATE PROFILE 2
The NITORI Group Businesses Positioning ourselves as a true Our Manufacturing Our Logistics “LIFE STYLE SUGGESTION COMPANY,” utilizing a wide range of business fields Furniture manufacturing which supports the ideas of “Product Power” and “Offering the Unexpected” Japan’s largest distribution center and advanced distribution system We are manufacturing furniture in our fully-owned factories in Indonesia and Home Logistics creates an efficient distribution network which aims for the The NITORI Group has developed a range of businesses so customers can style their homes the way they like Vietnam using materials sourced from places such as Europe, New Zealand, fast delivery of products to the vast network of retail shops throughout the and enjoy a prosperous life. In order to deliver a true luxurious lifestyle for all people in a variety of ways, Chile and the Association of South-East Asian Nations (ASEAN). Work at the country, reduction of delivery costs, and warehousing of products developed we endeavor to expand our range for the future too. factories builds on the overseas. By helping to know-how acquired from years reduce these costs between of OEM furniture production in the point of manufacture and China and Thailand. end-user, Home Logistics In order to provide even better contributes to NITORI’s Our Stores products at even better prices affordable prices. Our aim is we are proactively developing to give value back to the overseas strategies for the customer by fully optimizing sourcing of materials and the distribution process on a skills training. global perspective. Aggressive store expansion in urban areas Interior Renovation Business Business to Other Businesses to meet all our customers’ needs Handling everything from goods to construction work Penetrating the B2B market, by making effective use of Since the opening of the NITORI Printemps Ginza store (now Marronnier Gate our product development capability NITORI has launched an interior renovation business for homes, stores and Ginza) in 2015, we have opened outlets in new locations such as department other facilities. This business is focused on providing a complete overhaul of We keep expanding our B2B business with these five main business areas stores in Shinjuku and Ikebukuro, opening new stores every year both at home any space. This total renovation service, with a focus on our proprietary as pillars. and abroad. There is a heavy emphasis on in-store coordination, and with the products such as integrated kitchen systems and restroom sink units, is a ● Office Business ● Commercial / Educational Business most fashionable products being carefully selected from our regular NITORI holistic service from the initial proposal right through to construction work for ● Nursing / Medical Facility Business ● Hotels and Living Conditions Business product range we are developing a sales floor with a fresh, new lifestyle system-baths, toilets, and other indoor renovation. The service is not simply ● Model Home Business approach. We will continue to revolutionize and make improvements so that about replacing existing units, but rather about offering added value through Recently more and more corporate clients have been looking to lower the those not already familiar with our brand can experience and feel the joy of a total coordination service using NITORI’s furniture and home ware to fully cost of installations in their offices and facilities. We are developing NITORI’s total home coordination. complement the renovation. NITORI’s business model of doing everything products that meet such needs for corporate clients, utilizing the SPA in-house gives rise to our new know-how which NITORI has way of doing business. acquired through its home furniture sales business. The corporate sales business market has been expanding rapidly over the past few years, and we are aiming at further growth in this market. Showroom Example of NITORI products in use: Office Development of a brand new store format, and advancement Home goods, fashion and food services: into new markets, in line with our future store-opening strategy a shopping center designed from customers’ point of view NITORI has been opening its stores in locations with a population of Any good-quality product that enhances people’s lives can be bought NITORI PUBLIC NITORI FACILITY 200,000~400,000 in the area. However, in order to encourage customers conveniently with “one-stop shopping”: this is NITORI’s idea of a shopping to visit our stores more frequently, there was a need to create a new and center that is designed from a customer/user-centric perspective. smaller store format that would work for areas with smaller populations. The “Power Center,” a type of shopping center that anchors fast-growing “DECO∙HOME” is our home-fashion model which carries frequently stores from each retail model is very common in the U.S., but in Japan, it purchased everyday goods. This represents a brand new concept in product is rare, especially GMC or realtor-operated shopping centers. Making a As an advertising company, NITORI PUBLIC has developed From creating spaces for stores to insurance assortment and store design, as well as in the operation of the stores. contribution to enhancing people’s lives in the areas where they live by a wide range of businesses that extend beyond the boundary of NITORI FACILITY handles maintenance duties in order to keep the stores promoting “NITORI MALL” is NITORI’s new “DREAM”. the NITORI Group and offices of the NITORI Group in an optimal condition, and pursues the NITORI PUBLIC is an integrated advertising agency which provides a variety goal of creating an ideal space where our customers can feel comfortable, of services, including strategic communication planning, advertising and while reducing the maintenance cost at the same time. Furthermore, as an sales promotion. We currently insurance agency dealing with both life insurance and liability insurance, conduct marketing work for several we support our customers and employees to design their future in a way clients, including a real estate that is both satisfactory and reliable. company and a travel agency. We have recently also been putting efforts into developing novelty goods. Through learning more from its dealings with a wide range of different enterprises, NITORI PUBLIC aims to play a role in enhancing the value of the entire NITORI Group. Examples of novelty goods In-store insurance shop: “NITORI no hoken + Life salon” (at NITORI Minami-suna store) 3 NITORI HOLDINGS CORPORATE PROFILE NITORI HOLDINGS CORPORATE PROFILE 4
The NITORI Way Our way to keep “Offering the Unexpected” By establishing our own distinctive “Manufacturing, Logistics and Retail Sales” business model, we are able to offer products that improve the quality of life of our customers. Meeting our customers’ expectations is our pleasure. That is why we keep offering products with highly consistent quality at prices that are easily within reach for everybody. Our manufacturing is always based All parts are managed individually in-house, on the customer’s perspective Coordination Proposal Raw material procurement from all over the world from the parts manufacturing stage onwards To create a better Products coordinated We do not leave raw We direct and manage everyday life for our by color, pattern, and material procurement manufacturing all the customers, we develop style are developed to others. We collect way through produc- products by undertak- from scratch. NITORI is information about tion. NITORI’s system ing research from the able to offer fresh, new potential sourcing creates products with customer’s perspective. styles with these areas and then visit consistent quality. natural designs. the areas before we begin procurement. Market Research Product Planning Product Raw Material Manufacturing Development Procurement In order to offer the “Unexpected” in our products, we place emphasis on the following 3 key elements: We do everything in-house, from product planning, 1 Affordability prices that make products easily obtainable. Components of manufacturing and logistics through to retail sales: “Offering the Unexpected” 2 Quality and Functionality use-appropriate quality and functionality. All of our products provide “Unexpected Value”. 3 Coordination 1) a full range of products to support each usage scenario. 2) the above are linked by style and color. Import and Call Center Sales Quality Check Logistics Enjoy shopping without having to worry Improving customer satisfaction too much about the price Even our logistics is self-run Quality responsibility for all items By swiftly sharing customer By streamlining We have built our own For our customers to be feedback to relevant operations NITORI distribution network, able to use our products departments it enables us creates an enjoyable from product with peace of mind, we to provide an even better shopping experience for importation to delivery evaluate safety and service, improve our all its customers. to customers. Using the quality from every latest systems, NITORI angle. Products will hit products and increase is streamlining its customer satisfaction. the store shelves only if operations and they conform to our lowering costs. strict standards. 5 NITORI HOLDINGS CORPORATE PROFILE NITORI HOLDINGS CORPORATE PROFILE 6
NITORI Group’s Global Expansion Our Manufacturing system behind Stores that match Our Stores “Offering the Unexpected” our customers’ lifestyles Manufacturing In order to bring “prosperous home living” to our customers, we are continually NITORI has launched various different types of stores to make sure that working to improve manufacturing efficiency, enhance quality, and deliver products our customers can freely coordinate their living space and enjoy prosperous home living. that will satisfy their needs. Overseas Subcontracting ● China ● By 2032: 3,000 ● Japan Factories South Korea ● Pakistan ● Bangladesh ● India Hong Kong ● ● Taiwan Stores ● France ● Thailand Cambodia ● ● ● Philippines ● Spain ● Turkey China Vietnam ● Malaysia ● Egypt ● Singapore ● Indonesia In order to offer even better products, we will continue to expand our own NITORI’s manufacturing system, transcending boundaries and regions. Taiwan U.S.A. Offering “Total Coordination” to help customers enjoy Change in Ratio of Stores between Domestic and Overseas (Planned) ● Factory of NITORI FURNITURE in Indonesia ● Factory of NITORI FURNITURE in Vietnam a more fulfilling lifestyle Domestic Overseas This factory, with an area of over 21,000 tsubo (over 752,000 square feet), is located This factory, with an area of over 48,000 tsubo (over 1.7 million square feet), is in the capital of North Sumatra, Indonesia. Over 1,500 local employees work in this located in the Quang Minh Industrial Zone in Me Linh District near Hanoi, the capital. 2016 large scale factory, of whom 40% are women and 60% are men. This percentage The average age of the employees is in the early 20’s, and 90% are women aged Not only do NITORI’s products offer a variety of colors, patterns and (Actual) 91% 9% shows that women play an active role in the factory. In order to improve productivity, around 20. materials for customers to choose from according to their particular we apply two Japanese-style methods thoroughly: “Mieruka” (identifying problems lifestyle, they are also designed to easily coordinate with other and bringing them to the foreground) and “5S” (Sort, Straighten, Shine, Standardize, products. To make it easier and more convenient for our customers to 2022 and Sustain). Our key source of competitive advantage is the manufacturing process (Planned) 74% 26% that eliminates “Muda, Mura, Muri” (Muda: Waste, Mura: Unevenness or irregularity select the products they want, NITORI explores new locations and opens in operations, Muri: Overburdening of people and equipment). new stores every year. Also, in order to deliver our products into the hands of customers overseas, we are aggressively moving forward with 2032 Please visit the website for more details on NITORI’s global expansion. opening new stores outside Japan. (Planned) 33% 67% TOP > Our Business > Report on Global Business Front Line: Dream toward the world http://www.nitorihd.co.jp/division/special/ 0 20 40 60 80 100(%) 7 NITORI HOLDINGS CORPORATE PROFILE NITORI HOLDINGS CORPORATE PROFILE 8
NITORI Group’s Corporate Social Responsibility Please visit the website for more information. TOP > CSR http://www.nitorihd.co.jp/csr/ Shaping a brighter future, together with society NITORI is able to work towards its “Dream” and “Vision”, not just because of the Group’s employees but also down to the support it gets from its customers and clients, and from all the people in the various communities around the world. Building on this important partnership we have with many different people, NITORI continues to work towards achieving “prosperous home living”. Together with our customers The NITORI organization Partnership with Our Clients Protecting the environment ● Product safety & quality control ● Awards for product safety ● Organizational rules ● Fair & just dealings ● Protecting the environment ● Courses on Skills / quality, guidance, open house Received Minster’s Award from the Ministry of Economy, A structure which brings out the most ● Partnership with Logistics Society Developing products with less impact Complete quality control throughout the product’s life-cycle Trade and Industry for Best Contributor to Product Safety in the individual on the environment In NITORI, where approximately 90% of our products are developed and imported by Since the introduction of our Quality control management division in 2005 we have In partnership with our clients us (private brand), we set our own original quality standards and work on improving been continually making efforts to improve on quality. Through collaboration with our There are only 3 levels within the NITORI company The NITORI Group is implementing environmental structure; senior management (top), managers, and for fair and just dealings measures at every stage from manufacturing through quality on a daily basis. We carry out a rigorous in-house quality inspection before production suppliers we have been working on ensuring safety, establishing rigorous each new product launch and, if a problem is discovered, we send it back to the technical evaluation and measures against accidents in the workplace, and education staff. Because of this, it is relatively easy for ideas and to logistics and retail sales. Through developing improvements to flow up to the top from the work We believe that eliminating injustice, unfairness, or products made from more environmentally friendly manufacturer with a request for improvement. The process is repeated until the high in management around the production site. floor, and conversely it is easy for senior management opaqueness and building trust with clients will lead to materials, the simplification of product packaging, standard for quality is met. Due to these efforts we were awarded the Minister of Economy, Trade and Industry to share instructions and give direction to everyone in a sustainable business, as we strive to establish a efforts to develop products using waste wood and Additionally, when a defect is detected in a product, we do not simply hand off the issue Award at the 10th METI Minister’s Awards in the Large Retailer Category. So that we the company. NITORI ensures that every member more “genuine partnership”. plastic, and smaller packaging sizes, we have been to the factory. We are involved at every step of the way, including in-house investigation can offer not only affordable products but also products that are “Offering the of the cause, development of a remedial action plan, and providing training to support Unexpected”, NITORI continues to make efforts to deliver safe and reliable products shares the same company aim and that each able to increase efficiencies in transportation and implementation of the corrective measure at the factory. NITORI develops the most embracing new skills and technologies. employee realizes their full potential within their own contribute to large reductions in CO2 emissions. affordable products while always maintaining the highest level of quality, and we bear area of work within the company. And as an responsibility for our products from beginning to end. We believe these two things are organization, NITORI brings out abilities in the necessary to truly help customers achieve a prosperous lifestyle. individual which they Awards received never knew they had. Company structure Large Retailer Category We believe that the (3 levels) 2008 constant turning of these Silver Award “structural” wheels Large Retailer Category 2011 Director-General helps us create our Top for Commerce and Distribution Award “organizational rules”. Manager Large Retailer Category (Specialist) 2013 Director-General for Commerce, Distribution and Industrial Safety Policy’s Award Large Manufacturer and Importer Category 2016 Staff 2014 Director-General for Commerce, Award for Best Contributor In partnership with our clients Quality improvement Product development Distribution and Industrial Safety Policy’s Award to Product Safety Interaction with Society Together with our employees ● Natural disaster relief aid ● Hokkaido aid fund ● Hokkaido tree planting project ● University lectures ● Recruitment & fair treatment ● Promoting diversity ● Personnel training ● Health & safety in the workplace ● Sports sponsorship ● Cultural sponsorship ● NITORI International Scholarship Foundation ● NITORI Culture Foundation A system of education to cultivate true specialists Public Interest Incorporated Foundation Supporting culture – Benefiting sport to benefit society Aiming towards a vibrant working environment “NITORI International Scholarship Foundation” NITORI Otaru Art Base The NITORI Women’s Running Team The amount invested for the training of one NITORI employee is approximately 2,600 Today, the world is changing and there are many ways in which we can work. At The NITORI Group has received a great deal of support As a part of our initiatives in giving back to the society In April 2015, we created the NITORI Women’s Track dollars per year. The reason for focusing as much as this on staff training is because NITORI, we are making efforts to create a system in which employees from various from Asian countries in relation to several business and contributing to a better growth of Hokkaido’s and Field Team with the aim of promoting a healthy we at NITORI believe that in order to maximize growth of the business, nurturing the backgrounds can realize their own capabilities. Regardless of gender or nationality, activities, such as product supply. Hoping to “return tourism, we turned 4 historical buildings right in the lifestyle through marathon running, and contributing to growth potential of each and every employee is more important than anything else. we aim to be a company which brings out the best in everyone. In order to achieve the favor to Asian countries”, NITORI International heart of Otaru city into an art gallery and opened a better society. From February 2016, we changed the Each year approximately 1,000 people take part in our training seminars in the U.S. 3,000 stores by 2032 we are proactively looking to hire new recruits on a global scale. Scholarship Foundation was established in March NITORI Otaru Art Base. It records more than 100,000 name to the NITORI Women’s Running Team and now Beginning with theoretical training, trainees visit various locations and get to know Our aim is to create a workplace where it’s easy to work and everyone can share the 2005 with a monetary donation from its Representa- visitors yearly and has been very well received by the we are focusing strongly on doing well at future products first hand. Each person should experience for themselves the NITORI mission same dream and vision. tive Director. Foundation activities continue to expand public. Through this place, we aim to spread the international marathon events. of a prosperous life and by immersing themselves in the American way of life and each year with financial assistance awarded to beauty of art and culture to the whole world. visiting the large chain stores, students coming to Japan from all over the world, not employees will be able to just those from Asia. From this time forth we are going reconnect with the NITORI dream to expand further our support not just for those and vision. From training courses students coming to Japan but also for Japanese for new recruits to top level students studying at universities overseas. management courses, curriculums are structured around the various stages of employee development to energize improvements in every department. Seminars in the U.S. NJ meeting (NITORI women’s meeting) Museum of Modern Art Stained Glass Museum The NITORI Women’s Running Team 9 NITORI HOLDINGS CORPORATE PROFILE NITORI HOLDINGS CORPORATE PROFILE 10
http://www.nitorihd.co.jp/en/ Nitori Holdings Co., Ltd. [Sapporo Head Office] 1-2-39 Shinkotoni 7-jo, Kita-ku, Sapporo, Hokkaido 001-0907 [Tokyo Head Quarter] 3-6-20, Kamiya, Kita-ku, Tokyo 115-0043 [Osaka Head Quarter] 1-1, Kamisu-cho, Toyonaka, Osaka 561-0823 Published April, 2017
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