New Business
Developing Future Key Earnings Sources
Under the new medium-term business plan, new business initiatives are an important theme for diversifying the business portfolio and achieving ongoing growth. With the used car buying, dealer, and BtoB businesses as core operations, we will build new key earnings sources in car-related fields where the AUTOBACS Group’s strengths can be applied and synergies with the domestic AUTOBACS business can be leveraged.
Used Car Buying Business
Achieve Rapid Business Expansion by Accelerating Openings of Specialist Car Purchase Stores
In the used car buying business, the specialist car purchase stores that have been developed mainly by AUTOBACS directly managed stores will be positioned as a new business and store openings will be accelerated. In metropolitan areas, properties already equipped to do business will be used to open stores at low cost, and the Company will open additional stores by leasing space within existing franchise stores. Store openings will be accelerated by deploying employees who have gained experience performing purchase appraisals at Group stores. Ready appraisal and purchasing of automobiles at customers’ homes, workplaces, or other locations will be used as a point of differentiation from the competition.
Imported Car Dealer Business
Expand Based on Earnings Growth of BMW Dealerships
The imported car dealer business, which the Company entered by acquiring a BMW dealership in Ikebukuro, Tokyo, in April 2015, was expanded to a total of seven locations through the acquisition of Motoren Tochigi Corp., a BMW dealer in Tochigi Prefecture, in December 2016. For the fiscal year ended March 31, 2017, this business recorded a profit of approximately ¥100 million. Going forward, efforts to improve the quality of management and increase earnings will continue, with a view toward adding dealerships for BMW and other imported cars.
BtoB Business
Leverage the Group’s Strengths to Wholesale Automotive Goods to Third-Party Businesses
As a new initiative under the 2017 Medium-Term Business Plan, we will strengthen our efforts to wholesale merchandise to not only franchisees but also home-improvement centers, discount stores, automobile repair businesses, used car dealers, and other retail outlets. Through this endeavor, we will create new earnings opportunities and leverage synergies with the domestic AUTOBACS business by increasing sales volume to lower the cost of goods. Cores International, Inc. and Palstar K.K., two AUTOBACS Group operating subsidiaries, are already wholesaling merchandise to customers other than AUTOBACS stores, and these channels will be used for business expansion. In addition, e-commerce will be used to develop sales of parts to BtoB customers.
