Copa Corporation Inc.
7689・Growth Market・Wholesale Trade
Business
Copa Corporation was established in October 1998. Guided by its management philosophy of "selling kindness and excitement to bring smiles to people," the company's core business is "live demonstration sales," in which live demonstration salespeople directly appeal to the practical value of products in front of consumers. Its flagship products are household items such as the peeling towel "Gomu Pon Tsurutsuru," the cleaning cloth "Pulse Cloth," and the mold remover "Spider Gel." The company operates sales through five channels: TV Shopping Channel, Vendor Sales Channel, Internet Shopping Channel, Sales Promotion, and Demo Kau (directly-operated stores), and listed on the Tokyo Stock Exchange Growth Market in June 2020. It operates under a single segment, the Live Demonstration Sales-Related Business (Copa Corporation single segment).
Business Model
The company employs its proprietary "3D Marketing Sales Strategy." Live demonstration salespeople appear on TV Shopping Channel programs to stimulate demand, and this ripple effect is extended to other channels such as the Vendor Sales Channel, Internet Shopping Channel, and directly-operated Demo Kau (directly-operated stores). By focusing primarily on PB and exclusively distributed products, the company prevents price erosion and eliminates free-riding on its advertising effects. It has also been reducing costs through direct procurement of overseas products, resulting in an improved gross profit margin of 43.3% in FY2025 (ending February 2025), up from 37.0% in the previous fiscal year.
Company Strengths
"Uri no Gokui Juku" (Sales Mastery School), launched in February 2007, offers a 9-day training program covering fundamentals, laws and regulations, and practical skills, enabling trainees to acquire demonstration know-how based on the latest psychology and neuroscience as well as legal knowledge. Graduates are certified as live demonstration sales specialists, with further training provided to develop them into "demonstration anchormen" capable of product planning. The accumulated database of demonstration scripts is also leveraged to strengthen product planning capabilities.
By focusing on handling its own private-brand (PB) or exclusively distributed products, the company has built a mechanism to prevent free-riding on its advertising effects by competitors and to curb price erosion of products. This has increased the effectiveness of capturing, through its own sales channels, the demand cultivated by live demonstration sales. In FY2025 (ending February 2025), the gross profit margin improved by 6.3 percentage points year on year to 43.3%.
Whereas procurement had traditionally relied mainly on domestic and local trading companies as intermediaries, the shift to direct procurement from local trading companies and overseas factories has achieved a reduction in the cost ratio. In FY2025 (ending February 2025), the gross profit margin rose from 37.0% in the previous fiscal year to 43.3%, and despite a decline in net sales, gross profit increased 8.9% year on year to ¥889 million.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥3,866 million in FY2022 and declined for four consecutive periods, falling to ¥1,780 million in FY2026, but turned to growth in Q1 FY2027 (ending March 2027) at ¥402 million (up 4.1% year on year). Internet Shopping Channel (up 28.3% year on year), Sales Promotion (up 58.1%), and Demo Kau (directly-operated stores) (up 7.8%) drove the increase. Operating loss narrowed sharply from ¥94 million in the same period last year to ¥26 million, with gross margin improvement (38.2% → 43.8%) and SG&A expense reduction (¥241 million → ¥202 million) occurring simultaneously. This improvement came against an external backdrop of continued consumer frugality amid rising prices and rising logistics costs, drawing attention as a sign of structural earnings recovery. Against the full-year forecast (revenue of ¥1,802 million and operating profit of ¥1 million), the Q1 progress rate was 22.3% for revenue, while operating profit/loss remained in the red; accumulating earnings in the second half will be key to achieving full-year profitability.
Growth Strategy
Rebuilding the earnings structure and achieving full-year profitability through live demonstration salesperson development, EC channel enhancement, and cost optimization
Expand the number of live demonstration salespeople to increase in-store demonstration frequency, thereby growing Vendor Sales Channel and Sales Promotion revenue. In the first quarter, Sales Promotion revenue increased 58.1% year-on-year, reflecting the effects of these measures.
Continued improvement of product page UI/UX aimed at increasing traffic, conversion rates, and average purchase value within each mall. First-quarter EC revenue rose a notable 28.3% year-on-year, driven by strong performance of core products such as the "Gomupon Series" and "Air Conditioner Cleaner Ag Deodorizing Plus".
Optimization of advertising expenses and strengthened SNS communication reduced SG&A expenses by approximately ¥39 million year-on-year. The simultaneous progress of revenue growth and cost reduction has significantly narrowed the operating loss, with the aim of reaching the break-even point on a full-year basis.
The promotion of direct overseas procurement reduced cost of sales from ¥239 million to ¥226 million year-on-year, improving the gross profit margin to 43.8%. Cost ratio improvement has been achieved even amid external headwinds such as geopolitical risk and rising logistics costs.
The crowdfunding service "Wakutan" was temporarily suspended during the first quarter, resulting in a 23.2% year-on-year decline in revenue from the Wakutan channel. Sales of products such as "Pulse Cross" have been strong on the proprietary EC site "Wakutan Market", and a recovery in earnings is expected upon resumption of the service.
Last updated: July 17, 2026