To remain unchanged, we must continue to change – 90 years in business. What we feel now.

When you hear that a company has been in business for 90 years, it's often described using terms like "old-fashioned" or "traditional."

Of course, that's not wrong.

However, I personally don't think the reason it lasted for 90 years was because "it never changed."

Rather, I feel that the present is the result of repeatedly making small changes and adapting to the atmosphere of each era.

To be honest, I don't know the details of the time when my grandfather, the founder, was in charge.

However, I think my grandfather's time was a time when goods themselves were still scarce.

From there, Japan experienced a period of rapid economic growth, followed by the bubble economy, and the entire country grew steadily upward.

Under the leadership of the second generation, the situation took a sudden turn, and the country entered an era of deflation.

We live in an era where goods are abundant, low prices are in demand, and price competition has become the norm.

Amidst this, many companies sought scale.

Mass production, mass sales, price competition.

I think there was definitely an atmosphere where it was difficult to make a profit unless you increased the scale of operations.

However, looking back, I think our company has always been one that hasn't engaged in extreme price cutting or taken big risks.

Of course, one could also say that they lacked the power to expand significantly.

But in the end, I feel that the fact that I didn't push myself too hard has led me to where I am today.

And now, Japan is about to undergo another major transformation.

I sense a gradual shift towards inflation after a long period of deflation.

However, the current situation is still more characterized by cost-push inflation, mainly in energy and food products, rather than genuine demand-driven inflation.

Raw materials, packaging materials, logistics, and utility costs.

The situation regarding costs, especially those related to manufacturing, has clearly changed from what it used to be.

In that case, the "size" that was a strength during the deflationary era will increasingly become a burden on management.

Fixed costs are high.

Maintaining the equipment is a heavy burden.

It won't work unless we mass-produce.

In other words, I feel that there are beginning to be situations where scaling itself becomes a risk.

That's why the value of being "small but strong" is greater now than ever before.

It's easy to maneuver.

Things are changing quickly.

It can be corrected.

We can change direction immediately if necessary.

I believe this kind of flexibility will become a great asset for small and medium-sized enterprises.

Of course, this doesn't mean that it's okay to keep it small.

However, I feel that the times have changed somewhat, and the approach is no longer simply about "simply expanding the scale of operations domestically," as was common in the past.

Japan is currently experiencing a fundamental shift in its demographics.

Instead of the population growth model of the past, we have shifted to an "inverted pyramid" structure due to a declining birthrate and an aging population.

In other words, it's becoming more difficult than ever to grow a company solely based on the domestic market.

On the other hand, thanks to the development of the internet, logistics, social media, and AI, even small companies can now reach out to the world.

Considering this, it seems that the very concept of scale is changing.

Previously, "scaling" meant increasing the number of stores, increasing production volume, and expanding the scale of operations within Japan.

But it's different now.

Even for a small company, if you look at things globally, the market itself is incomparably larger than it used to be within Japan.

In other words, growth is not solely about mass production domestically while bearing huge fixed costs.

Even if small, we will maintain our uniqueness and deliver our value to the world.

I think we've entered an era where things can scale up sufficiently even in that form.

That's why now,

Rather than focusing on "how big it is,"

"How unique it is" is becoming more important.

I believe there is still plenty of potential even for a small company like ours.

Established 90 years ago.

Although we are a company that has been around for a long time, as times change, so do our strategies.

That's why, in order to remain unchanged, we must continue to change.

We want to continue taking on challenges in our own way.