MARUHACHI HOLDINGS CO., LTD. (3504) Stock Price

Maruhachi Holdings is a holding company with two main business pillars: the manufacture and sale of bedding and living products, and real estate rental. The company operates an integrated business model covering product planning, raw material procurement, production at overseas and domestic factories, quality control, logistics, sales, and related services such as cleaning and refresh treatments.

The company serves diverse customer segments including individual direct sales and mail-order customers, wholesale channels such as mass retailers and e-commerce companies, accommodation facilities like hotels and inns, and corporate and public sector clients. Product sales form the core of revenue, supplemented by ancillary services including rental, cleaning, and storage services, as well as rental income from real estate owned by the group.

Operations are divided into two main segments: bedding and living products, and real estate rental. The bedding division offers down comforters, mattresses, and sheepskin products. The company manufactures fabric processing and mass production at overseas factories, while domestic factories handle down filling and final inspection. The company enhances added value through contract manufacturing, made-to-order production, and services including cleaning, refresh treatments, and recycling.

The company aims to achieve stable growth by leveraging its integrated manufacturing and sales capabilities. It plans to deepen relationships with existing customers and diversify sales channels. The company will expand high-value-added products through its core direct sales channel, while broadening its revenue base by strengthening wholesale, mass-market retail, hospitality sector sales, and ancillary services such as rental, leasing, and cleaning. Specifically, the company will continue recruiting and training sales staff, and consolidate the "Maruhachi Mawata" brand across non-direct sales channels to increase brand awareness and acquire new customers.

Priority investment areas are sales force enhancement and after-sales services. The company uses tablet devices to visually present products and improve sales staff proposal capabilities, while operating bedding cleaning in-house to monetize after-sales services. This differentiates the company by shifting from product sales alone to lifecycle proposals that include cleaning, storage, and refresh services, while also targeting stable orders from hotels and corporate clients.

The company pursues new market development and business expansion through channel diversification and production optimization. It strengthens proposals for wholesale, rental markets, and hospitality sectors, while reviewing the roles of domestic and overseas factories to optimize equipment and workforce, aiming to improve production capacity and cost competitiveness. Since raw materials are sourced primarily from China and Eastern Europe, the company manages procurement risks through local market monitoring, supplier stabilization, down stockpiling, and recycled down utilization.

In technological innovation, the company prioritizes material development and partnerships with medical institutions. Under the banner of "pursuing true cotton," the company develops new materials and collaborates with sleep apnea specialists and orthopedic clinics to advance bedding development based on scientific evidence. Additionally, the company invests in quality control and production efficiency improvements at manufacturing facilities, aiming to enhance product value and expand its product lineup to meet growing health-conscious consumer demand.