T.KAWABE & CO., LTD.JP:8123Stock Price

Market cap
¥2.8B
P/E ratio
12.1x
Kawabe sells personal accessories like handkerchiefs, scarves, and towels alongside fragrances through its own stores and wholesale channels in Japan and China.

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Business Overview

Kawabe operates two main business segments: personal accessories and fragrances. In the personal accessories business, the company handles handkerchiefs, scarves, mufflers, towels, and miscellaneous goods, which are sold through directly operated stores and wholesale channels. In the fragrance business, the company focuses on perfumes, distributed through directly operated stores and wholesale operations.

Kawabe's parent company, Ichihiro Co., Ltd., manufactures towels for Kawabe's personal accessories business and supplies them to Kawabe. The subsidiary Rainbow World Co., Ltd. handles the dyeing and printing manufacturing of handkerchiefs and scarves. Additionally, Salty Co., Ltd. manufactures handkerchiefs, scarves, towels, and miscellaneous goods, which it sells to Kawabe.

Furthermore, Kawabe (Shanghai) Trading Co., Ltd. engages in wholesale distribution of Kawabe's personal accessories products, including handkerchiefs and miscellaneous goods, in the Chinese market. Through these operations, Kawabe strengthens its business presence both domestically and internationally, meeting diverse customer needs.

Management Policy

Kawabe aims to provide joy and satisfaction to society by incorporating innovative thinking based on customer-first principles. The company envisions itself as a "value-proposal company that cherishes human connections" and strives to be a business that moves hearts.

Under the medium-term management plan "2023 NEXT," the company targets net sales of 14.55 billion yen, ordinary income of 300 million yen, and a dividend payout ratio of 40% or higher. These targets aim to improve profitability and establish a strong management foundation.

Kawabe's basic strategy centers on manufacturing and sales through group-wide collaboration. The company delivers unique value through new product development, new sales channel expansion, productivity improvements, and revenue generation.

Key strategic priorities include revitalizing and growing existing businesses, leveraging the print factory for manufacturing, strengthening OMO (Online-Merge-Offline) to enable seamless customer communication, and enhancing the fragrance business.

Company-wide strategies strengthen the foundation for growth through human resource development, financial reinforcement, and improved corporate governance. This approach aims to establish a stable revenue structure.

Kawabe is strengthening its business operations in both B2B and B2C segments. The company leverages digital marketing to connect directly-operated stores with e-commerce operations, driving revenue expansion. Through value transfer initiatives, the company pursues enhanced corporate value.