History of Value Creation
The Yamada Denki Group considers the time when it commenced business and then developed into a community-based general store as the first start-up period, and the time when it changed itself into a mass merchandiser as the second start-up period. It is now in the third start-up period with a long-term vision of aiming to be an IoT company with the largest service network in Japan. The Yamada Denki Group has maintained growth by promoting a proactive business approach while envisaging future development, strengthening financial structure through steady implementation of capital policies, and reinforcing business infrastructure. In a rapidly changing distribution market, the Yamada Denki Group is the only home appliance merchandiser in Japan that has directly operated stores in all 47 prefectures. Making the most of its high-density service network close to customers' living areas, the Yamada Denki Group has been promoting the cultivation of new businesses such as various solution businesses to broaden and deepen its business range, in addition to its existing businesses centered on the sale of home appliances.
With a business approach based on its management philosophy, "Creation and Challenge" and "Appreciation and Trust," the Yamada Denki Group is committed to making an overall effort for sustainable growth and development as a company group and continually taking on challenges for the creation of social value.
Chairperson Noboru Yamada, who is the founder of Yamada Denki, joined Victor Company of Japan, Limited, and worked at its Maebashi Plant, where he learned about quality control. In 1973, he opened a private electric goods store "Yamada Denka Service." This is the very start of the Yamada Denki Group. Chairperson Yamada and his wife started a business as a small local electric goods store having a floor area of only 8 tsubo (approx. 26.4 ㎡). From the time of the foundation, "Creation and Challenge" was set up as its management philosophy.
The period from the foundation to the early 1980s, when Yamada Denka Service had developed into a community-based general store, is considered to be the "first start-up period." This is the period during which oil shocks that started in 1973 and in 1979 and the introduction of the floating rate system caused the appreciation of the yen. During this period, the business expanded, and in 1978, five years after the foundation, five stores were operating and annual sales of 600 million yen were achieved. This is the "foundation period" of the Yamada Denki Group.
Yamada Denka Service founded
The period of business change from a community-based general store to a mass merchandiser is considered to be the "second start-up period." This is the period during which the business boom after overcoming the oil shocks led to an economic bubble and then the economic bubble burst. The internet and other digital technologies started to spread rapidly. The second start-up period is from the early 1980s to early 2010s.
After the shift from an affiliated store to a retailer dealing with products from multiple manufacturers, mass retailing stores were opened, and YAMADA DENKI CO., LTD. was established in 1983. Yamada Denki expanded business through the development of franchise chains, the opening of a large-scale general home appliance store called Tecc Land, the introduction of low price strategies, the establishment of a delivery center, etc. Over-the-counter trading for shares started in 1989. The company achieved a turnover of 100 billion yen in 1997 and the largest turnover among domestic home appliance merchandisers in 2002. In 2005, Yamada Denki became the first home appliance merchandiser in Japan that has achieved the establishment of a national chain covering the whole country, with directly operated stores in all 47 prefectures. Through the development of urban large scale store "LABI", a turnover of 1 trillion yen was achieved for the first time in Japan as a home appliance merchandiser, and a turnover of 2 trillion yen in 2010. Additionally, overseas store expansion was also promoted.
In the meantime, in the 1990s onward, corporate social responsibility (CSR) came to draw people's attention and the Yamada Denki Group also endeavored to build a relationship of trust with local communities and other diverse stakeholders. In 1994, it started comprehensive maintenance service "The Anshin," and in 1997, it established CIC Corporation, an entity that gives due consideration to environmental issues. The Yamada Denki Group actively carried out activities aiming to improve customer satisfaction by designating 2003 as the first year to commence relevant efforts. In 2004, a training institution "Soseijuku" was opened as a facility for employees. Recognizing the significance of responding to the expectations of society that had increased along with the growth and expansion of the company, the Yamada Denki Group newly added "Appreciation and Trust" as its management philosophy in 2007 and set up the CSR Office in the same year.
This is the "period of business expansion" through the shift to a mass merchandizer, the "period of upheaval" due to the burst of the bubble economy, and the "period of dramatic development" during which the Yamada Denki Group climbed up to the top of the home appliance merchandisers in Japan.
First Tecc Land store
Suburban type store (Tecc Land)
Urban large scale store (LABI)
For the "third start-up period," which started from the early 2010s, the Yamada Denki Group established a long-term vision of aiming to be an IoT company with the largest service network in Japan. Amid a rapidly changing market environment, in which proper responses are required with regard to such problems as the declining birthrate and the aging of society, population decrease, and development of the internet society, the Yamada Denki Group, as the only home appliance merchandiser in Japan that has directly operated stores in all 47 prefectures, has been strengthening collaboration among its group companies, making the most of its high-density service network. The Yamada Denki Group will further endeavor to broaden and deepen its business potential, with the sale of home appliances as the core of its business, and expand solution businesses and other businesses in an innovative manner from the customers' viewpoint and based on a downstream perspective, thereby actively making efforts for enhancing corporate value sustainably in the medium to long term to achieve the goal of being an IoT company with the largest service network in Japan.
Specifically, the Yamada Denki Group acquired BEST DENKI CO., LTD., which has a large market share in Kyushu, as a subsidiary in 2012, opened "Concept LABI", a base to transmit information on the latest concept, in 2015, and opened "LABI LIFE SELECT Senri", an experience-based store exhibiting model houses, in 2017. As a means to fully utilize the network,
we acquired SxL Co., Ltd. and Housetec Inc. as subsidiaries in 2011 and 2012, respectively, and established YamadaWoodHouse Co., Ltd. in 2013, thereby strengthening housing business. Additionally, we also opened a shopping website and reuse & outlet specialty stores. In 2015, we formulated a Medium-term Business Plan and have been promoting the structural reform for cultivating new markets and strengthening existing businesses. Under this plan, we are carrying out proactive initiatives for continuously enhancing corporate value from the medium- and long-term perspectives.
Furthermore, from 2018, under a management slogan, "Challenge towards a New Stage," we have been promoting a shift from the existing businesses only focused on home appliances to a new business model of offering total housing services covering not only home appliances but also houses (new construction and renovation) and interior goods. Specifically, we will further expand a new type of stores, "Kaden Sumairu Kan" in which interior goods and furniture are dealt with together with home appliances, to increase demand.
As a leading company in the home appliance distributin industry, the Yamada Denki Group will also continue its CSR (ESG) activities proactively.
LABI LIFE SELECT
Reuse & outlet specialty store
Kaden Sumairu Kan