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Book s tore Business. APM 1 st Year student Yumiko OSADA. Agenda. 1、 Recent t rend of bookstores 2、 Comparing bookstores - Comparing sales - Features of each bookstores - Index of investment - Future strategy 3、 Let’s forecast future stocks of bookstores.
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Bookstore Business APM 1st Year student Yumiko OSADA
Agenda 1、Recent trend of bookstores 2、Comparing bookstores -Comparing sales -Features of each bookstores -Index of investment -Future strategy 3、Let’s forecast future stocks of bookstores
Recent trend:Decreasing reading rate remarkable decrease in the reading rate 参照:全国農村読書調査 2005年度版
Change of Press business Sales of press business are decreasing for 7 consecutive years! 参照:成美堂出版「今がわかる業界地図06’-07’年版
Different types of three bookstores ●Maruzen →A long standing bookstore (From 1870) →2nd place in bookstore sales ranking ●Village Vanguard →Compound bookstore (Selling books and sundries) →Keyword is “A Enjoying Bookstore” ●Book-Off →Major “new” used bookstore company
What’s Maruzen? ●Major bookstore chain (Main office: Tokyo) (Number of stores: 38 stores) ●Est. 1870●Listing exchange:Tokyo stock exchange ●Known as bookstores which sell imported books ●Except bookstore, they deal with broad business, such as publishing, supplying academic information, outsourcing of library service, partnering with on-line bookstore etc… 参照:丸善HP
By the way・・・ ●There are various views about first stock company in Japan・・・ Maruzen manages stores with dividing stockholders and staffs, so in effect, Maruzen is said to be as the first Japanese stock company. 参照:フリー百科事典『ウィキペディア(Wikipedia)』
What’s Village Vanguard? ●Compound bookstore (Main office: Aichi) (Number of stores:191stores) ●Est.:1986 ●Listing exchange:JASDAQ (Japan Securities Dealers Association Quotations) (April, 2003) ●Selling books, sundries, CD/DVD etc ●Keyword is “An Enjoyable Bookstore” 参照:ヴィレッジヴァンガードHP
What’s Book-Off? ●New Used Bookstore (Main Office: Kanagawa) (Number of stores:800stores) ●Est.1991 ●Listing Exchange:Tokyo Exchange Market (March, 2004) ●1stplace in used bookstore sales ranking 9th place in total bookstore sales ranking 参照:ブックオフHP 「今がわかる業界地図06’-07’年版
Comparing Sales NIKKEINEThttp://ir.nikkei.co.jp/chart/CreateChartHTML02.asp?chk=1&comp_graph01=1&comp_graph02=1&nkcode=00030706%2C00022480%2C00001656
Comparing three company・・・ ●Maruzen→ Doing diversification of business and partnership with other companies, but cannot make profit!! Why?? It is because of the differences in three bookstores business.
Features of Village Vanguard ●Selling sundries→ High profit ●Original POP ●No employment of regular staff →start from part-time job →understand everything about service, stock, layout, and management ●Make a choice of stock and sales in the field ●Stores decorated with tastes of the staff→ no competitors
Book-Off is said to be a new used bookstore・・・What’s a “new used bookstore”? ●The bookstore which buys new used books from consumers, and organize them into selling condition, then sell them with cheaper prices than new books. ●They have a big and bright shop, so customers can go into the shop without constraint. 参照:中央三井信託銀行、調査報告「新古書店チェーン業界の行方」
How they mark price?? ●Generally, a price of used book is marked based on the original price when the book was brand new. ●Price of buying from customers is set to 10% of price ●Price of selling to customers is set to 50% of price The strength of Book-Off!!
Actually, bookstores are・・・ ●Normal bookstores have high cost price →Low profit ●But, Village Vanguard and Book-Off have high cost price →That is why they are successful!! 参照:夕刊フジ、「おカネでわかる話題の真相」
Index of investment ●What’s index of investment?? →The index which leads to investment
What’s PER(Price Earning Ratio)?? →By comparing the price of stocks to the profit made by each individual stock, it is possible to find out if the value of that stock is relatively low or high. ●Village Vanguard: 34.20 times ●Book-Off : 27.18 times ★PER of Book-Off is small→ stock price is cheap →high profit → Everyone will buy →Deserve to invest??
What’s ROE (Return on Equity)?? →How effectively the company uses the investment they have received to generate profit. ●Village Vanguard:18.14% ●Book-Off :19.33% ★ROE of Book-Off is high →Judge on efficient investment in assets → Deserve to invest??
What’s ROA (Return on Assets)?? →Looking at the company’s total capital to how much profit was generated by the company. ●Village Vanguard:7.5% ●Book-Off : 8.0% ★High ROA companies are liked by investors →Village Vanguard and Book-Off deserve to invest??
Future strategy of Village Vanguard Future Vision ●Improvement of POP ×Normal POP like a book review ○Hot POP with “hot” message!!
Other future visions ●Restaurant business Development of hamburger shops where customers can drink beer ●Mobile business Open Village Vanguard・Yahoo! (May, 2005) 参照:ヴィレッジヴァンガードHP
Future Strategy of Book-Off ●Development of new business →Develop reusing shops which sells children’s goods, sporting goods, women cloths, noble metal, watch, household utensils etc ●Embarkation to overseas →Shops in Hawaii, New York and Los Angeles →Plan to expand into other principal cities 参照:ブックオフHP
☆ Let’s forecast future stocks of bookstores ☆ ●Maruzen→ If they still cannot get high profit, their records will get worse!? → But they still have brand power → Therefore・・・ Stock Prices
Stock prices ●Village Vanguard →Stability with selling sundries →Unique line & positioning →No outside competition!! →So, in the future・・・ ●Book-Off →Stability business →Next business strategy →Already proven with PER・ROE・ROA →So, of course・・・ Stock prices
ご清聴ありがとうございました ~Thank you for listening~