(242A) Stock Price

Replyority is a company that operates call centers for mail-order retailers and conducts in-store promotions using retail store space nationwide. Additionally, the company operates a direct-to-consumer mail-order business selling health seaweed products called Akamoku.

The company's primary customers are mail-order companies, manufacturers, and advertising firms specializing in mail-order promotion. It maintains space installation contracts with retail stores. Revenue comes from multiple sources: base compensation based on call volume, performance-based compensation tied to sales conversions and customer retention rates, and margins from retail space installations. While the company also generates revenue from its own products, this represents a relatively small portion of total revenue.

Operations are divided into two segments: mail-order support services and direct mail-order sales. The mail-order support services segment comprises the D2C Division and Retail Media Division. The D2C Division conducts high-volume calling operations across multiple locations and improves customer retention through staff training and quality control via call recording. The Retail Media Division operates contracts with approximately 14,000 stores to place catalogs and free publications in common areas such as checkout counters. The direct mail-order division focuses on stable sourcing of Akamoku and enhancing added value through broadcast-based sales.

The company aims to balance business stabilization with growth by shifting its focus from outsourced services to proprietary products, thereby building recurring revenue streams. Specifically, it is expanding sales of its own products in the mail-order support business and implementing measures to increase the subscription rate to recover customer acquisition advertising costs. The industry environment is favorable, with the overall mail-order market expanding to approximately 14.55 trillion yen in fiscal 2024 (up 7.3% year-over-year), which supports further growth potential.

The company is differentiating itself through strategic investment in customer touchpoints and store networks. It is focusing on securing and training "communicators" who handle phone operations and aims to improve retention rates through quality management using voice recordings. It is also leveraging retail media through store space partnerships with approximately 14,000 retailers to increase value delivery to manufacturers and mail-order companies. The company is executing concrete measures to enhance profitability through both human resources and operational improvements, including strengthening recruitment systems, deploying dedicated personnel, and optimizing phone list management.

For new market development and business expansion, the company is expanding its supply chain and sales channels centered on "akamoку" (sea mustard), a core product in its mail-order business. Since October 2023, it has been conducting research on cultivation possibilities through advisory contracts with university professors to advance commercialization and ensure stable procurement. The company aims to support primary industries, regional revitalization, and food security through effective use of local wild resources, while building a new revenue pillar through advertising via television and broadcasting to increase brand awareness.

The company is also advancing technological innovation and internal management strengthening, optimizing phone lists through data utilization and customer behavior analysis to improve subscription rates. Simultaneously, it is enhancing compliance regarding legal adherence, personal information protection, and labor management, while expanding management systems to accommodate workforce growth. Through these initiatives, the company aims to achieve both growth momentum and business stability.