itamiarts inc. (168A) Stock Price

Itami Art operates a business combining "IT and Manufacturing." The company plans and manufactures promotional materials such as banner flags, horizontal banners, and booklets in-house, and sells them primarily to corporate customers through the internet. The company manages the entire process from order to production and shipment using its proprietary system, aiming to provide short lead times, competitive pricing, and consistent quality.

Primary customers are corporations such as restaurants, retail stores, and advertising agencies. The business is characterized by frequent small-volume orders and repeat purchases from these customers. The company's revenue composition consists of approximately 67% from EC (e-commerce) sales and approximately 33% from wholesale sales (as of January 2025). On its main sites, repeat orders from existing customers account for approximately 75%, establishing a stable revenue base.

The business operates as a single segment focused on planning, production, and sales of SP materials (sales promotion materials). The company operates 18 EC sites in total, including flagship sites such as "Nobori King," "Horizontal Banner King," and "Booklet Binding King." The company combines its proprietary order management and manufacturing management systems with customer acquisition through search optimization and web advertising. It pursues business expansion through small-lot production starting from a single unit, short lead time shipping, and operational efficiency via automation.

The company operates under the mission "Japan's #1 business support company" and is pursuing growth by expanding its promotional materials (SP) offerings specialized for e-commerce (EC). Currently, EC sales account for approximately 67% of revenue and wholesale sales for approximately 33%, with repeat customers representing approximately 75% of transactions, providing a stable revenue base. The B2B EC market is expanding rapidly (approximately 465 trillion yen in 2023 with a 40% e-commerce penetration rate), while the print distribution sector where the company operates has only achieved approximately 7.8% e-commerce penetration, leaving significant room for growth. The company aims to expand market share by increasing two key metrics: transaction volume and average customer spending.

The company's priority investment areas are product lineup expansion and customer acquisition strengthening. It is developing new products including banners, streamers, booklets, and novelty items, and promoting cross-selling across its 18 operating websites to increase purchase value per customer. For customer acquisition, the company is improving conversion and repeat rates through search optimization, web advertising, and targeted email and direct marketing campaigns using its proprietary customer database. It is differentiating itself through "affordable and fast" delivery—offering small quantities, diverse product types, and short lead times.

New market development focuses on approaching mid-sized and large enterprises while improving convenience. The company is expanding its browser-based system that enables customers to complete design creation through order placement in a single interface, and is implementing measures such as automatic data verification and campaigns to reduce data errors and delivery concerns. This strategy aims to acquire a broad customer base from small businesses to large corporations, and expand business scale through increased repeat orders and higher transaction values. The company is also considering capital procurement options, including equity issuance, for equipment upgrades and talent acquisition as needed.

For technological innovation, the company has positioned its proprietary manufacturing management system "i-backyard" as its core, advancing automation in processes including cutting, sewing, folding, and packing. By systematizing the entire process from order receipt to shipment, the company enables accurate and fast-turnaround responses to high-volume, small-batch orders while controlling operational costs. The company continues investing in system stability, server capacity expansion, information management infrastructure strengthening, and employee training to establish an operational foundation capable of supporting business expansion.