2005年度（2005.4～2006.3）　ワークショップ講演

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Record of Workshop/Lecture (The Forth Workshop Ⅱ)

Date: Thursday, October 27, 2005
Lecturer: Mr. Takahiro Kondo, President & CEO, BMD and Hinoki Co., Ltd.
Theme: Success in an Internet Shopping Mall:
Kaiteki Neko Seikatsu at Rakuten Ichiba
Recorded by: Sumiko Imai and Chika Morioka

1. Profile of the Lecturer

Upon graduating from Clovis High School, USA, in 1993, Mr. Kondo came home to join his mother's business, which involved the development and sale of tea and cosmetic products made from the leaves of the hinoki (Japanese cypress) trees removed in thinning operations.
After working on the manufacture of various hinoki products, all utilizing wood waste materials, at BMD, Mr. Kondo launched a pet product company, Hinoki Co., Ltd., to sell Hinoki No Nekosuna, cat litter made of hinoki chips.
This company has an online store, Kaiteki Neko Seikatsu ("Happy Cat Life"), which has been voted the best source of pet supplies in Rakuten Ichiba, Japan's largest Internet shopping mall, for the fourth year running.
With a unique, possibly revolutionary distribution system now in development, Mr. Kondo is hoping to build Hinoki Co., Ltd. into an even more successful business and, eventually, into a public company

2. Summary of the Lecture

(1) Expanding the Customer-Base
Following the success of its cypress-chip cat litter, Hinoki has diversified its earth-friendly product offering with the addition of water-degradable cat litter made of recycled paper, as well as a range of other pet supplies, including food. The company has also introduced a discount scheme that offers free delivery to all customers who order either more than one bag of cat litter or multiple items including cat litter, a move intended to encourage the users of traditional, "mineral-based" cat litter to try Hinoki's ecological alternatives.

(2) Developing a More Efficient Distribution System in Cooperation with a Wholesaler
In the conventional distribution channel, goods travel from the manufacturer to a wholesaler and then to a retailer before reaching the customers. In partnership with Mark Industry Co., Ltd., a wholesaler with distribution warehouses, Hinoki is working on the development of a system whereby the manufacturer ships goods to the wholesaler, who processes the orders received from the retailer and delivers the goods directly to the customers. The reduction in transaction and transportation costs to be achieved through the introduction of this system is expected to help lower the retail prices of products.

(3) Using the Internet to Transcend Distance and Physical Barriers
Unlike a physical store, where it is difficult even to keep record of the number of customers who have stopped in front of a particular shelf each day, an electronic store provides various data for tracking visitor behavior and gauging the popularity of each item.
Furthermore, there is a simple, proven formula for online sales success: offering a broad selection of merchandise to attract and engage potential customers, whose behavior can be measured in terms of the number of page views and the length of time spent on-site and; providing compelling value in the form of free delivery or other discounts.
Another advantage of online retailing is that it does not involve the transportation of goods except when a sale is made, which helps keep prices low.

(4) The Future
Using the Internet, which he defines as a tool for overcoming distance and physical barriers, Mr. Kondo hopes to develop a retail and distribution system that allows: 1) the wholesaler/warehouse to manage its inventory more efficiently; 2) the online store to keep a greater variety of merchandise at lower cost than a physical store can, which will contribute to greater sales, and; 3) consumers to find the largest selection of goods in the country.
He is also considering the possibility of taking his products to Canada and the United States, which have the world's biggest timber industries.

3. Comments on the Lecture

Quoting a variety of data and statistics, such as sales and profitability figures, to support his points, Mr. Kondo made a presentation that struck us as coherent, logical, and convincing. His highly logical and analytical mind as well as his habit of thinking things through and keeping careful track of his exact position in the industry seemed to have a great deal to do with his high-school education in the USA.
We were also impressed by his ever-present entrepreneurial spirit, reflected in his bold and ambitious growth strategy that involves introduction of a new distribution system.

Mr. Kondo (middle) with workshop participants

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