GENERATION PASS Co.,Ltd
3195・Growth Market・Retail Trade
EC Marketing Business
Core EC sales business accounting for approximately 75% of group revenue
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (H1 FY2026, ending March 2026) | ¥7,277 million | ¥6,887 million (H1 FY2025) | ↑ |
| Segment profit (H1 FY2026, ending March 2026) | ¥125 million | ¥148 million (H1 FY2025) | ↓ |
| Segment revenue YoY change | +5.4% | — | ↑ |
| Segment profit YoY change | -15.5% | — | ↓ |
| Segment revenue (full year, FY2025) | ¥13,308 million | — | — |
| Segment profit (full year, FY2025) | ¥261 million | — | — |
Business Details
Sells furniture, home appliances, household goods, fashion items, and other products via EC malls such as Rakuten Ichiba, Yahoo! Shopping, and Amazon, as well as its own EC sites. Uses its proprietary EPO methodology to collect and analyze big data, enabling a PDCA cycle for optimizing keywords, pricing, and product pages. Primarily employs a drop-shipping model with no inventory holding, while also expanding D2C products. Operates consolidated storefronts under the "Recommendo" (Rikomendo) brand name.
Recent Overview
Revenue increased, but profit declined due to a drop in large-scale project orders at Kannart driven by AI
In H1 FY2026 (ending March 2026) (November 2025 to April 2026), the EC Marketing Business achieved revenue of ¥7,277 million (up 5.4% year on year), driven by expanded sales of D2C products, the rollout of various sales promotions, the introduction of new-life items and seasonal merchandise, and strong sales of high-priced home appliances. On the profit side, although the gross margin improved with the expansion of D2C products, segment profit declined to ¥125 million (down 15.5% year on year) due to a significant drop in large-scale project orders at subsidiary Kannart Inc. caused by the spread of AI.
Key Products
Growth Drivers
- Shift toward a higher-margin revenue mix and improved gross margin through expanded sales of D2C products
- Overall growth of the EC market driven by the continued rise in EC penetration and expanded purchasing behavior via social media and other channels
- Low-cost operations and capability to handle a wide product range through the EPO methodology, GPMS, and MIS
- Contribution to revenue growth from strong sales of high-priced home appliance products
- Cultivation of new revenue sources through the launch of the USP Business (proprietary EC site platform)
- Expansion of transaction volume through continuous rollout of various sales events, new-life items, and seasonal merchandise
Risks
- Continued decline in large-scale project orders at the EC Support Business (Kannart) due to the spread of AI, posing an ongoing risk of downward pressure on segment profit
- Risk of profit pressure during the investment recovery period, as upfront launch investment in the USP Business precedes returns
- Risk of price competition and margin decline due to intensifying competition in the EC market
- Risk of rising procurement costs due to foreign exchange fluctuations, higher crude oil prices, and rising logistics costs
- Risk of lost sales opportunities in the drop-shipping model due to stock-outs at suppliers (manufacturers and wholesalers)
Last updated: January 29, 2026