GENERATION PASS Co.,Ltd
3195・Growth Market・Retail Trade
Business
Generation Pass Co., Ltd. mainly operates an EC marketing business (approximately 80% of net sales) selling over 2.49 million products across 87 stores centered on "Recomen-do" on major EC malls such as Rakuten Ichiba, Yahoo! Shopping, and Amazon, alongside a product planning-related business utilizing production bases in China, Vietnam, and Laos across Asia. The company's strength lies in data-driven operations through its proprietary EPO methodology, GPMS, and MIS, and it is advancing an "Asian Value Chain" strategy that circulates big data accumulated through EC sales into the Asian supply chain. Its main customers are domestic EC consumers and overseas apparel and textile manufacturers. The company listed on the Tokyo Stock Exchange Mothers market (now the Growth Market) in 2014.
Business Model
In the EC Marketing business, the company primarily employs a drop-shipping model to minimize inventory risk, achieving low-cost operations by managing 2.49 million items across 87 stores with a small workforce through its proprietary GPMS and MIS systems. It is expanding D2C products to improve profit margins. In the Product Planning-related business, subsidiaries in China and Vietnam manufacture functional fibers and recovery wear for sale in Japan, Australia, Italy, and other markets, with joint development also underway with ITOCHU Corporation. The EC Support business assists external EC operators on a performance-based fee model.
Company Strengths
The Company internalized GPMS (order management system) in 2013 and MIS (marketing information system) in 2014. With a small team, it manages 87 stores, 2.49 million items, and 1,013 business partners, enabling sales forecasting prior to listing and automatic generation of optimal keywords. This serves as a barrier to entry that enables large-scale EC operations while minimizing the risk of external data leakage.
In FY2025 (ending October 2025), net sales of the Product Planning-Related Business were ¥3,230 million (up 11.4% year on year), and segment profit was ¥162 million (up 98.0% year on year), representing a substantial profit increase. This was driven by enhanced production management at Genepa Vietnam Co., Ltd., expanded orders from new overseas business partners including in Australia and Italy, and strong sales of Recovery Wear by Qingdao Xinzhanfang Trading Co., Ltd.
The Company's proprietary home appliance brand "S!mplus," launched in 2017, surpassed cumulative shipments of 500,000 units in July 2025. Expanding sales of D2C products is directly linked to a shift toward a higher-margin sales composition, contributing to improved profitability in the EC Marketing Business.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has followed a gradual expansion trend: ¥13,224 million (FY2021) → ¥15,980 million (FY2022) → ¥15,152 million (FY2023) → ¥16,235 million (FY2024) → ¥16,552 million (FY2025). Operating profit fell into the red in FY2023 before recovering to ¥82 million in FY2024 and ¥114 million in FY2025, and has since accelerated to ¥153 million (up 92.8% year on year) in the first half of FY2026 (ending March 2026). This was mainly driven by the rapid expansion of Recovery Wear in the Product Planning-Related Business and improved gross margins on D2C products. On the other hand, due to the drop-off of foreign exchange gains (¥46 million) recorded in the same period of the previous year and an increase in interest expenses (¥11 million), growth in ordinary profit was limited to 15.0%, while net profit declined 2.0%. The full-year forecast remains unchanged at revenue of ¥18,600 million (up 12.4% year on year) and operating profit of ¥250 million (up 118.6% year on year). External factors such as foreign exchange fluctuations, rising logistics costs, and uncertainty over U.S. trade policy continue to pose risk factors.
Growth Strategy
Sophistication of the revenue structure through the construction of an Asian value chain and expansion of the D2C and USP businesses
A strategy to improve gross margin by increasing the sales ratio of high-margin D2C products. In the first half of FY2026 (ending October 2026), gross margin improvement was confirmed alongside the expansion of D2C product sales, with strong sales of high-unit-price home appliance products also contributing to sales growth.
Sales of recovery wear by Qingdao Xinzhanfang Trading Co., Ltd. expanded rapidly, resulting in a 74.0% increase in product planning-related business net sales and a 120.4% increase in segment profit in the first half of FY2026 (ending October 2026). The company is also promoting the expansion into apparel of functional fibers utilizing acquired patents.
Orders and deliveries at the Vietnamese subsidiary have been progressing steadily, forming part of the Asian value chain strategy. The financial base was strengthened in the previous period through a debt-equity swap, and further expansion of production capacity and order intake is expected going forward.
Cultivation of a proprietary EC website group platform aimed at reducing dependence on EC malls. Positioned as a new revenue source, it is expected to contribute to diversifying revenue in the EC marketing business.
The company changed its market segment from the Growth Market to the Standard Market effective May 25, 2026. One-time costs associated with this change are expected to be recorded under selling, general and administrative expenses, but no continuing occurrence is anticipated in subsequent periods. The change is expected to expand the mid- to long-term investor base through improved corporate credibility and recognition.
Last updated: July 17, 2026