Business Environment

According to the summary of the survey results for the Scale of the domestic EC market (B2C and B2B) released by the Ministry of Economy, Trade and Industry (METI),the domestic B2C and EC market expanded significantly in 2020 and 2021, mainly in the goods sales sector, affected by the spread of the new coronavirus. And last year in 2022, the market remained firm, although the growth rate slowed slightly to 5.37%, down 3.24 percentage points year-on-year, due to consumers' return to real shops. In addition, the EC conversion rate increased by 0.35 percentage points year-on-year to 9.13%, with a further upward trend.
As the size of the e-commerce market via smartphones has further expanded, OMO has developed to improve UX by linking brick-and-mortar(in-store) and online. As such, the B2C-EC market, which is the main trading area for the EC businesses we support, is expected to continue to evolve and expand in size.

We believe that we can expect changes in consumption and corporate DX in the E-Commerce sector to which we belong, to continue to expand the needs of enterprises to handle the shift to E-Commerce. In this challenging environment, which nevertheless presents opportunities for growth, we provide an infrastructure of services required by E-Commerce businesses employing ingenuity on a daily basis to improve their operations. This consists of providing solutions to a variety of needs from the interface to the back-end.

Challenges to Address

1. Increasing the Number of Adopting Companies

   We see expanding the range of highly versatile designs for small and medium-sized businesses in Japan, and providing services that allow them to lean into their own strengths, as key. And we are striving to increase the number of companies which adopt and continue to use our solutions, by continuously developing additional features and new services in accordance with user needs.

2. Boosting Revenue Per User

   In addition to developing new products such as ”commerce creator”, we intend to work to increase revenue per user by using API integration to cross-sell related solutions and providing development options that allow a high degree of development flexibility for a user’s own business.

3. Recruitment

   We consider it a necessity to secure first-rate personnel, including engineers and sales staff. Going forward, we will work to strengthen recruiting by giving prospects confidence in our company. We will make this possible by striving to use expanded revenue to increase our brand recognition and improve our financial foundation. We will also conduct training within the Group to cultivate the kind of personnel we need.

4. Enhancing Group Governance and Business Management Systems

   As the company which oversees business management for the Group, we will take the lead in strengthening governance and ensuring adequate management oversight of each operating company, while still maintaining the business management independence of each. In doing so, the entire Group will work as one to improve shareholder value and implement our management strategy.

5. Seeking Synergy Within the Group

   We hold strategy meetings to promote joint-ownership of our strategy, have begun providing Group solutions for users through each Group company, and plan to pursue greater synergy between Group companies with a focus on cross-selling Group products.

6. Strengthening our Compliance Framework

   We take the lead in uncovering compliance issues and matters of concern within our Group, and hold regular meetings of the Compliance Committee to consider countermeasures.

Evolution as a Platform and Support for
Growth of Everyone Concerned

Our policy is to evolve our own platform and support the growth of those involved in E-Commerce, by expanding our business in the E-Commerce sphere.