PRINTNET INC. (7805) Stock Price

PrintNet operates an online printing mail-order business that accepts orders for printed materials through the internet and handles printing, finishing, delivery, and shipping as an integrated service. The company's core model involves displaying specifications and pricing on its website, then beginning production once it receives complete data files from customers.

The majority of orders come through the company's website, with customers primarily consisting of B2B clients such as corporate business users, printing companies, and design agencies. Revenue is driven by high-volume orders through the website and business outsourcing services such as fulfillment operations.

The company operates multiple websites tailored to customer needs: "PrintNet," which offers comprehensive support through a call center; "PrintPro," which specializes in low-cost printing; and "PrintNet Wear," which handles custom apparel. On the production side, the company reduces costs through ganging—combining multiple jobs onto a single printing plate—and maintains quality by holding Japan Color certification. In addition to printing operations, the company also operates a pharmacy business.

The company aims for sustained growth in its online printing business, positioning year-over-year sales growth rate and operating profit margin as key performance indicators. While the market is becoming increasingly concentrated with the top few companies controlling approximately three-quarters of the market, the internet-based print-on-demand market is expected to continue expanding. The company therefore aims to achieve both profit margin improvement and sales expansion. Its execution plan focuses on controlling fixed costs and reviewing product mix, with a policy of pursuing growth investments with limited capital.

Priority investment areas focus on two pillars: strengthening purchasing power and marketing. The company is reinforcing procurement management in its purchasing division and promoting fair competition among suppliers to reduce material cost ratios, while advancing its proprietary product strategy, web-centered promotion, and customer acquisition through trade show participation. On the production side, the company reduces costs through ganging—consolidating multiple jobs—and differentiates through quality, including obtaining Japan Color certification in July 2012. On the quality front, it has obtained Japan Color certification as of July 2012 to strengthen differentiation.

For new market development and business expansion, the company employs a strategy of broadening its customer base through operating multiple sites combined with outsourced services. It uses "PrintNet" for large corporate orders, "PrintPro" for price-sensitive segments, and "PrintNet Wear" for custom apparel to capture demand across segments. By expanding fulfillment and outsourced services, it strengthens revenue streams beyond printing alone. Going forward, the company aims to increase transaction value per customer through cross-selling between channels and expanding ancillary services.

Technology innovation and organizational development are also key initiatives. The company is building a next-generation core system to achieve integrated management of online operations and is pursuing productivity improvements through production automation, labor savings, and more accurate inventory management. For information security, it has obtained Privacy Mark and ISMS certification and is improving operational standards. For talent development, it is building a flexible organization through training, job rotation, and career support programs.