Retail & Lifestyle Business Division – Main Businesses & Vision –

Business Overview

Engaged in diverse businesses in Japan and abroad, including food distribution, operation of shopping centers, the brand business, consumer goods distribution, textiles and forest products.

【Main Businesses】

▶  Food logistics: Logistics and wholesale foods business in Japan and overseas, overseas retail business
▶  Operation of commercial facilities: Operation of commercial facilities in Japan and overseas
▶  Brand business: Apparel, shoes
▶  Consumer goods distribution logistics business
▶  Textile business: OEM apparel, textile sales
▶  Forest products: Wood products, plywood imports, import and sale of raw materials for papermaking, overseas afforestation, woodchip production

Food Logistics

A City Mart store in Myanmar

Meet the needs of the ASEAN market, which continues to show remarkable growth thanks to the modernization of distribution channels.



Ministop store in Vietnam
[Major Business Activities] Food Distribution Business in Vietnam
[Major Business Activities] Domestic Food Distribution Business

Operation of Commercial Facilities

Mallage Saga shopping center in Japan
Contributing to the local economy by operating shopping centers in the region
[Project Story] Shopping Center Project

Brands

McGREGOR brand
Sojitz capitalizes on its experience and know-how in the brand business, primarily through its subsidiaries.
[Major Business Activities] General Merchandise Brands Business







Consumer Goods Distribution Logistics

Nike shoes
Contributing to the global expansion of the ‘NIKE’ brand since the company’s founding
[Major Business Activities] Nike Business

Textile Sales

The ample fabric stock of Japanese independent brand, VANCET®
Providing timely, affordable products which match a variety of consumer needs.
[Major Business Activities] Textiles Business

Forest Materials

Business Overview and Vision

Creating function-oriented businesses to develop local infrastructure that supports daily life

  • ▶ Our division concentrates its resources on food and retail businesses, as well as on businesses providing lifestylerelated goods and services that meet consumer needs, mainly in Japan and the rapidly growing ASEAN region.
  • ▶ In our shopping center business, we build retail platforms in the ASEAN region that incorporate Japanese expertise in tenant and logistics management, Japanese food culture, and other uniquely Japanese aspects.
  • ▶ In the textile business, we provide production support for major domestic specialty retailers in the apparel OEM business.
  • ▶ In the forest products business, as the industry’s leading seller of plywood in Japan, we mainly handle plywood, lumber and building materials.
  • ▶ To build business bases both in Japan and overseas, we apply the success model we have cultivated in Japan to develop initiatives outside the country, mainly in the ASEAN region.

Strengths That Drive Value Creation

  • ▶ A network and customer base in ASEAN countries established over many years
  • ▶ A top-level position in imported plywood and textile sales in the Japanese market
  • ▶ Project management expertise for overall coordination of value-added shopping center investment projects/ other projects associated with the shift in consumer trends from tangible (product-oriented) to intangible (experience-oriented) elements
  • ▶ Establishment of food and retail business value chains in the ASEAN region

Strategies and Initiatives

This division integrates the food and retail businesses and investment management business with the former Lifestyle Commodities & Materials Division, which consists of the forest products business, general commodities and lifestyle business, and textile business. This integration brings together an organization that leverages a long history and reliable and customer bases with businesses that have been working to build a platform in sectors closer to retailing. The objective in doing so is to accelerate the expansion of our activities and business fields with focus on consumers.

I fully intend to make this division a function-oriented organization. What I mean is, a management concept based on the idea of not simply selling goods, but utilizing our comprehensive functions to create spaces that offer a way for visitors to spend their time or give them an intangible experience – and moreover, doing this in a way that speedily, steadily and naturally generates profit.

The division has established a solid foundation with its businesses in Japan, including a textile business centered on OEM, lumber-related businesses, commodities and shopping centers, as well as domestic sales of products imported from overseas. We intend to extend that foundation into the ASEAN region in the future. This will not be simply to export Japanese goods, but to roll out to ASEAN and other regions the same business models and success stories we have cultivated in Japan, in areas such as shopping centers and the meat business. With this rollout, we believe we can offer value by creating jobs, building enjoyable places and contributing to regional revitalization.

We will make new investments for future growth directly linked to clusters of profit-generating businesses. We will take a well-balanced approach that includes both projects that can contribute to earnings from day- one, such as investment in shopping centers to build added value, as well as projects that will become profitable over a medium to long-term period of two to three years.

In expanding earnings as a division, our core approach will be to optimize the portfolio balance between earnings and risk-taking. We have three types of revenue patterns: trade, business investment, and fee businesses that do not entail investment of risk capital. We intend to create an earnings portfolio that mixes these patterns at an optimal ratio. In the retail and lifestyle business, which is a sector with a broad scope, I believe the most important aspect of managing our division will be finding the optimal combination of risk-taking and profit-taking.

Having the right human resources is crucial for conducting business investment, but business investment skills cannot be taught by simply sitting at a desk; they can only be learned through extensive on-the-job training, by making deals in person. Therefore, we will create more and more opportunities for new investment projects and train young employees by letting them experience hardships and difficulties. To provide those opportunities, we will need to be proactive in unearthing new investment projects.

PENDLETON® brand products handled by Sojitz General Merchandise Corporation

Our operations are directly linked to resolving social issues in ASEAN and Japan, such as regional development, job creation and environmental problems. Whether businesses truly generate value in those respects depends on whether they can continue for the medium to long term, rather than ending after two or three years. To achieve both social significance and profitability, we endeavor to be a division with integrity, one which provides trustworthy solutions to stakeholders inside and outside the Company by demonstrating high aspirations, sharp technical expertise and an ability to act quickly. Moreover, we intend to increase the skill level of our employees with thorough on-the-job training and to expand our clusters of businesses that generate revenue over the medium and long term, creating significant value for society.

Opportunities

▶  Diversification of consumer tastes accompanying growing internal demand as a result of economic development in ASEAN countries
▶  More opportunities to introduce Japanese expertise and other uniquely Japanese aspects due to increasing tourist and business traffic to Japan
▶  Demand for Japanese technologies that help improve productivity
▶  Increase in volume of products that respond to growing environmental awareness

Risks

▶  Revisions to legal and other regulatory systems in ASEAN countries
▶  Cost increases due to stricter food quality control in ASEAN countries
▶  Increasing social risks (human rights and environmental issues) in manufacturing countries


>>Column


>>Column

Organization

TOP

Search