With the motto "The time for change is now", we will persistently implement structural reform to overcome challenges and strive to be a "company that adds value to people's lives".
Four Business Strategies
Utilization of IT & Business model innovation
Utilizing IT to construct a new business model
Expansion into Non-Clothing & Non-Textile Fields
Creating new business through unrivaled and unique technology
Developing business on a global scale
Reformation of Corporate Culture
A strong business structure through "nobi-nobi" (self-motivation), "iki-iki" (responsibility), and "pichi-pichi" (commitment)
Throughout the time since these four basic strategies were established until the present day, we have coped with various economic environments and severe changes in social structures as well as in the distribution system, but when we assess the outcomes achieved as a result of our efforts we feel certain that these were far-sighted and solid strategies for any era.
As we work to achieve further progress, however, we have formulated our medium-term business strategy focusing on "Integration from Fibers to Finished Products, Transition from BtoB to BtoC" to promote expansion of our sales operations at a distribution position higher in added value so as to transform into a more profitable business model. In the meantime, the spread of coronavirus infections across the world is expected to result in a sharp decline in the global production of vehicles, causing the outlook for our main business segment "automotive upholstery materials" to become uncertain. We are considering promoting development investment in our electronics and medical materials segments to expand their business.
Utilization of IT & Business Model Innovation
Our goal is to accomplish our company’s vision of becoming a 21st Century business model that will realize “zero waste and loss” as the ultimate environmental countermeasures by developing “small lot, quick delivery, inventory-free, on-line, low cost, saving resources and saving energy” capabilities through the “integrated distribution functions” of planning, production and sales and an “integrated system of production” from fiber production to sewn products manufacturing, responding at 100% to consumer needs and CS (customer satisfaction). To achieve the above goal, we will:
- 1) Further improve our company’s unique digital production system “Viscotecs®” and SCM (supply-chain management) system to achieve smaller lots, quicker delivery and better on-line capabilities;
- 2) Expand the sale of the “Viscotecs Make Your Brand” personal order system by continuing to invest management resources, as well as promoting development of contents and systems to improve convenience, such as virtual trial fitting, to expand SPA (specialty store retailer of private label apparel) business based on a completely new business model which aims inventory-free retail management;, while also developing business of the same system in BtoB operations; and
- 3) Utilize our group's integrated production system from fiber to fabric to offer a larger scope of finished products and components/parts to expand BtoC business.
Expansion into Non-Clothing and Non-Textile Fields
In order to expand our business into non-clothing and non-textile fields, we will utilize, as seeds for such business expansion, textile finishing/processing technology, applied chemistry, mechanical engineering and IT derived from our accumulated textile technologies and expertise in our main business segments - automotive upholstery materials, electronics materials, environmental & life materials and medical materials specifically for the purpose of:
- 1) Expanding the market and sales for the non-textile Viscotecs® system based direct sales business, which responds to various customer needs for resource and energy saving in the fields of non-textile materials including metals, ceramics, resins/plastics, glass and concrete by achieving early commercialization of small lot, quick delivery and high-value-added goods at the SV factory which produces non-textile Viscotecs® for automotive instrument panels and interior materials, etc.;
- 2) Expanding sales of “new material surpassing leather" QUOLE® for automotive upholstery, "stain resistant material" ERASSE®, "instantaneous deodorant material" INODORE® and other highly functional differentiated products, and developing and promoting sales of high-value-added goods through the addition of new comfortable functions and high durability performance, as well as combination with non-textile Viscotecs®;
- 3) Developing applications and markets and expanding sales for PLAT®, electrically conductive material further more differentiated by our proprietary unique technology of combining textile and metal;
- 4) Developing applications and markets and expanding sales for the LCP fiber “Zxion®” and PPS fiber “Gradio®”, engineering plastic fibers of KB Seiren, Ltd.;
- 5) Developing and marketing materials for 5G optical communication devices and optical engines for ultra-compact displays in Seiren KST Corp.
- 6) Expanding sales of our original products based on silk protein “sericin”, such as cosmetic series “comoace®”, health care products and entering markets and expanding sales for other medical products originally developed based on its outstanding properties – moisture retention, skin whitening, enzyme stabilization, cellular protection and anti-oxidation; and
- 7) Expanding sales of fast-acting deodorant material “DEOEST®” (developed for use as material for underwear) and the “Inodore Quick Fast-Acting Deodorization” material series (developed for use as material for blankets, sheets, nursing care products, etc.).
Amidst expected shrinking of the domestic market due to population decline resulting from ageing and low birth rate, we will make efforts to expand earnings from markets in emerging countries expected to undergo economic growth in future years, as well as to strengthen our global group management such as optimal local production, optimal local procurement, etc. specifically by:
- 1) Augmenting our world market share in the automotive business by upgrading and expanding new overseas bases, making our new overseas business sites SEIREN INDIA PRIVATE LIMITED (India) and Seiren Viscotec México S.A. de C.V. (Mexico) become profitable as soon as possible and expanding commercial rights for European and US affiliated manufacturers;
- 2) Expanding our apparel products business based at Saha Seiren in Thailand with its stable operations for integrated apparel production from fibers to finished products centering on “Viscotecs®”; and
- 3) Expanding sales of Seiren Group's differentiated products through Seiren Shanghai Co., Ltd. based in Shanghai, China.
Strengthening of Corporate Culture
- In order to strengthen the corporate culture of our group, we will specifically:
- 1) Raise the Awareness of the Employees by:
- A) Having them understand the objectives of their assigned jobs and clarifying their roles and responsibilities in order to fulfill these objectives; and
- B) Having them carry out their assigned jobs by thoroughly following the corporate philosophy (“Nobi-nobi, Iki-iki and Pichi-pichi” meaning self-motivation, responsibility and commitment, respectively) and applying our “Five Corporate Principles (Go-gen-Shugi)” of “theoretical approach”, “observance of rules”, “field visits”, “actual product and fact-based analysis”, as well as by complying with the corporate activity systems such as “Seiryu (rectified production)”, “Mieru-ka (visualization)”, “Mitsuke-mashita-ne Undo (search activities)”, “Kakumei-teki VA katsudo” (revolutionary VA activities)”, etc.;
- 2) Enhance the Group as a Research and Development-Oriented Enterprise by:
- Proactively investing in and creating an environment for activities including technology development, facility/equipment development and software development;
- 3) Enhance the Group as a Global Enterprise by:
- A) Having a global headquarters system in place to strengthening the governance of the group companies; and
- B) Developing our human resources for our future global business expansion;
- 4) Enhance our Financial Strength and Promote our Cash Flow Management by:
- Improving the company’s capital-to-asset ratio, ROE (return on equity), ROA (return on assets), interest-bearing debt ratio and other performance indicators, as well as operating our group’s surplus funds efficiently;
- 5) Enhance our Consolidated Group Management by:
- Maximizing our group’s enterprise value through clarification of the role and responsibility of each group company and establishment of an efficient and optimal system for corporate governance, as well as reviewing, selection and concentration of each company’s businesses; and
- 6) Restructure our Headquarters by:
- Taking steps such as creating mechanisms and systems for speedy management, as well as enhancing the roles and functions of the President’s staff; and
- 7) Stabilizing the Employment of Employees by:
- (especially in the wake of the spread of coronavirus infections across the world, which has had a serious impact on the global economy, forcing our group to reduce the production volume with uncertainty about the outlook for our business) securing their employment through "work sharing" such as production adjustment shutdown and work system change.
With our motto “the time for change is now,” we will continue to vigorously push forward with our aim of being a company that “adds value to people’s lives” by steadily pursuing the tasks outlined above without relaxing the hand of reform.
- IR Library