ending in March 2017
The corporate plan for FY2016 is, 195,000 million yen for Total Transaction Value (+22.3％ Y/y), 69,000 million yen for Net Sales (+26.8％ Y/y), 22,140 million yen for Operating Profit (+24.7％ Y/y), 22,150million yen for Recurring Profit (+23.9％ Y/y), and 15,260 million yen for Net Profit (+27.3％ Y/y). The payout ratio for each dividend is planned to be 40%, at \60.
Breaking down the total transaction value, the ZOZOTOWN business is planned to be185,000 million yen (+26.6％ Y/y), the BtoB business is planned to be 5,000million yen (-62.4％ Y/y), and the ZOZOFURIMA business is planned to be 5,000million yen (to 43.5 times of what it was for FY2015).
Within the ZOZOTOWN business, the consignment model is planned to be 17,280 million yen (+25.7％ Y/y), the purchase stock model is planned to be 200 million yen (-71.2％ Y/y), and ZOZOUSED is planned to be 12,000 million yen (+50.8％ Y/y).
The ZOZOTOWN business will continue to be the leading force in the business for FY2016. Welcoming new brands at a fast pace, working together with our brands on the point campaigns, will be the key factors, helping us achieve the higher growth. We will also seek for this higher growth by begin new
projects, in order to keep the strong growth momentum we have achieved during the second half of FY 2015.
For our high growth business ZOZOUSED, we plan to strengthen purchase amount and quality, as well as optimize the business flow.
For the BtoB business, FY2016 will also be an off-crops season. We cannot share detailed plans of opening and closing shops, though have included the information within the plan.
For the ZOZOFURIMA business which was launched in December, 2015, we would like to expand the second hand market itself, using the item database of ZOZOTOWN and WEAR, differentiating it from competitors.
For profitability, we are aiming towards an 11.4% Operating profit margin (0.3 points increase Y/y). Startup costs for the ZOZOFURIMA business
are included within the plan, which will make the improvement in profitability limited, though the OPM for the ZOZOTOWN business shall improve
based on the advantageous usage of marginal profit. The budget for promotional activities shall be up to 2% of the total transaction value, and will be spent on activating new businesses.
Keeping ZOZOTOWN as our growth driver in order to promote the business, we are also looking for new pillars. Some of our ideas are, the button shaped beacon, expanding overseas, and selling our private brand.
We would like to announce details to our investors, once we are able to estimate the amount of effect the businesses will cause towards our performance.
Anyhow, our target has not changed, it has always been “Achieving 500 billion yen in Total Transaction Value”. To accomplish this target,
we will keep on working towards this as one body.
|Business Plan for FY2016||YoY change (%)|
|Transaction value (¥million)||195,000||22.3|
|Net sales (¥million)||69,000||26.8|
|Operating profit (¥million)||22,140||24.7|
|Recurring profit (¥million)||22,150||23.9|
|Net income (¥million)||15,260||27.3|
|Earnings per share (¥)||146.9||–|
|Estimated dividends per share（Forecast） (¥)||62.0||–|
We estimate the total size of the apparel and accessories market in Japan as of the fiscal year ending in March 2014, will reach 15 trillion yen. And the size of apparel e-commerce market in a broad sense accounts for approximately 880 billion yen among the whole market. (In-company estimation based on the statistics such as the Current Survey of Commerce provided by Ministry of Economy, Trade and Industry). However,when we talk about the “trend zone fashion market”, it is accountable for respectively 300 billion yen, where the “whole fashion market” is about 9 trillion yen.
(Both figures are derived from in-company estimation). The effective countermeasure we believe to achieve for our mid-to-long term goal, the domestic total transaction value should be 500 billion yen, by enhancing the penetration rate of apparel and accessories e-commerce market as a whole. Therefor, we believe building an even more convenient infrastructure for our users and brand suppliers, is essential.
Further expansion of ZOZOTOWN Business in the fashion e-commerce market.
Covering several fashion categories by offering e-commerce consulting services.