[Company analysis] Aoyama Trading Co., Ltd. (青山商事)

「Aoyama Trading Co., Ltd. (青山商事)」is headquartered in Hiroshima Prefecture, and operates「Aoyama Tailor(洋服の青山)」, a chain for men's clothing manufacturing and sales in Japan. This company includes the "trading" in its name, but it is rather a clothes manufacturer than a trading company.  In the men's wear market, it is the largest company and the only company that has stores in all prefectures of Japan with more than 800 stores. The number of consolidated employees is approximately 12,633.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	AOYAMA TRADING Co., Ltd.
Company name (Japanese)	青山商事
Date of establishment	Wednesday, May 6, 1964
Headquarters location	〒721-8556 広島県福山市王子町1-3-5
Capital	62,504
Consolidated sales	250,300
Consolidated operating profit	14,629
Consolidated total assets	390,340
Consolidated capital	224,170
Capital adequacy ratio	57.4%
Consolidated number of employees	12,633

 

 

 

2. Summary and Features

 
「Aoyama Shoji(青山商事)」which was established in May 1964, originally handled mainly food, beverages and special products of Hiroshima prefecture and of course, men's clothing. Then in 1974, this company opened the industry's first men's clothing specialty store in the suburbs, and created the image of current "Aoyama Tailor". In other words, they initiated the first large-scale suburban store in the industry, which is the basis of the current business format of suit mass retailers.

 

As for the product of「Aoyama」, their suits are relatively cheap and of good quality. Therefore, when purchasing a suit in the appropriate price range, there is an image that「Aoyama」might be a reasonable choice. Based on this image, this company continued to open new stores in all prefectures of Japan, now, they acheived the top share in the suit mass retailer industry.

Apart from the above suits business, they are also in charge of Japanese market for「Levi Strauss & Co.」and 「American Eagle Outfitters」in Japan. In addition, they are expanding the nationwide chain of「Daiso & Aoyama 100YEN PLAZA」through collaboration with「Daiso Industries Co., Ltd.(大創産業)」.

Particularly recently,「Aoyama」has been focusing on expanding sales of women's clothing as their new main business. Currently, the share of「Aoyama Tailor」in the women's suit market is less than 10%. To overcome this, they are trying to utilize their sales force, store development ability, product procurement ability, quality management that they have accumulated in men's clothing market, in order to strengthen the lineup of women's suits.

 

 

 

3. Major Business

 

■ Business wear business
This company has the No. 1 sales record in the men's clothing specialty store industry, centering on「Aoyama Tailor」. They carry not only men's products such as suits, pains and casual clothes, but also women's suits and accessories.

■ Casual business
They are in charge of Japanese market of「Levi Strauss & Co.」and「American Eagle Outfitters」.

■ Card business
It is a business to support sales promotion of business wear business. They carry out membership card "AOYAMA" card issuance, member management, and financial services.

■ Print media business
They provide various sales promotion services such as promotions and leaflets to retail companies.

■ Miscellaneous goods sales business
They are developing a nationwide chain of「Daiso & Aoyama 100YEN PLAZA」in collaboration with「Daiso」.

■ General repair service business
This business is conducted under the name of「MISTER MINIT」which was born in Belgium in 1957. Through this, they provide shoe repair services, keypad manufacturing, bag repair, and smartphone repair services at stations and downtown areas.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		252,777	254,846	250,300
Consolidated operating profit		20,210	20,591	14,629
Consolidated total assets		391,369	397,381	390,340
Consolidated net assets		233,666	230,518	224,170
Breakdown of sales	Business wear business	188,426	188,728	184,405
	Casual business	16,684	15,145	13,608
	Card business	4,554	4,905	5,065
	Print・Media business	11,430	11,602	12,394
	Miscellaneous goods sales business	15,822	15,939	15,816
	General repair service business	11,815	12,525	12,849
	Others	7,754	9,972	10,351
	Adjustments	-3,710	-3,973	-4,191