ZOZO, Inc. (3092) Stock Price

ZOZO primarily operates the fashion e-commerce site "ZOZOTOWN" and the fashion media platform "WEAR." The ZOZO Group consists of four consolidated subsidiaries: ZOZO NEXT, ZOZO Apparel USA, Inc., ZOZO NEW ZEALAND LIMITED, and Nantong Zhuoteng Information Technology Co., Ltd.

ZOZO's business is a single segment focused on e-commerce, which is divided into five areas: ZOZOTOWN operations, LINE Yahoo Commerce, B2B operations, advertising operations, and other operations. Each area provides fashion-related services in different formats.

ZOZOTOWN operations consist of three models: purchase and resale, consignment sales, and used goods sales. In the purchase and resale model, ZOZO bears inventory risk by purchasing products from brands and selling them. In the consignment model, brands operate as tenants while ZOZO handles logistics. Used goods sales involve purchasing and reselling secondhand fashion items.

In LINE Yahoo Commerce, ZOZOTOWN operates on Yahoo! Shopping and ZOZUSED operates on Yahoo! Auctions. This allows ZOZO to leverage the platforms operated by LINE Yahoo to sell products.

In B2B operations, ZOZO provides apparel manufacturers with e-commerce system development, design services, logistics outsourcing, and marketing support. This supports manufacturers' e-commerce operations and generates fee-based revenue.

In advertising operations, ZOZO monetizes its user base on ZOZOTOWN and WEAR by offering advertising space to partner brands, generating advertising revenue.

Other operations include shipping fees, payment processing fees, customer referrals to offline stores through ZOZOMO, and sales of ZOZOSUIT. These operations complement ZOZOTOWN operations and generate additional revenue.

ZOZO operates under the corporate mission of "Making the world stylish, bringing smiles to the world." The company has adopted a growth strategy that fuses fashion and technology. ZOZO is actively engaged in ESG (environmental, social, and governance) initiatives and is committed to building a sustainable future. In particular, the company aims to unlock individual potential and address social and environmental challenges through the power of fashion and technology.

ZOZO's medium-term management plan centers on the theme of "MORE FASHION" × "FASHION TECH," advancing the integration of fashion and technology. Through this approach, the company seeks to enhance corporate value by pursuing fashion further and leveraging technology. The company also prioritizes growth in its e-commerce business, with merchandise transaction value as a key performance indicator.

ZOZO has set a return on equity (ROE) target of 30% or higher, aiming for capital-efficient management. In fiscal year 2023, ROE reached 49.4%, maintaining a high level and significantly exceeding the target. As a shareholder return policy, the company has set a dividend payout ratio of 70.1% and aims for a total payout ratio exceeding 80%, including share buybacks.

ZOZO's priority areas include growth of ZOZOTOWN, collaboration with LINE Yahoo, diversification of profit structure, and strengthening of fulfillment and e-commerce systems. In particular, ZOZOTOWN's growth strategy focuses on expanding the user base through the pursuit of fashion and cosmetics. The company also aims to deepen collaboration with LINE Yahoo and maximize synergies.