Message from the President

  1. TOP
  2. Corporate Information
  3. Top Message
  4. Message from the President
K’s Holdings Corporation Representative Director, President and Chief Executive Officer Yuji Yoshihara

Learning about the interesting aspects of customer service through experience working in the stores

Q. You assumed position as the President with effect from the General Meeting of Shareholders held in June 2024. Could you tell us about your career history prior to this?
Yoshihara: Before I joined K’s Denki, I worked in the service industry for a short period of time. That was where I first stepped out into society and started serving customers. I left the job after that, and as I was wondering what kind of work I should take up next, my older brother, who had already started working in K’s Denki, asked if I wanted to try working here as well. I decided to give it a try.
Q. What kind of work were you engaged in at first?
Yoshihara: I joined the company as a member of the staff working on a newly opened store, so I started with work related to setting up a store, such as assembling furniture and displaying products. After the store was launched, I became involved in in-store sales. I was young at the time, and there was no clear division of roles then as there are in store operations today. For this reason, I was tasked with the heavy lifting, such as the delivery of large products and assisting with the installation of air-conditioners. In the end, I did everything. I built up experience from there, and subsequently was appointed as the manager of several stores.
Q. Without any prior experience, were you able to sell home appliances/electronics quickly?
Yoshihara: At the time, VCRs were at the height of their popularity. Air-conditioners had not yet become common in many households. The functions on home appliances/electronics were simple then, and there were not as many product varieties as there are today, so I would first learn about the products by reading the catalogs. After serving a customer and getting a feel of the product, I was then able to apply the same explanations to the next customer, and then steadily continue selling after that. For example, if you played a video on a VCR and pushed the “pause” button, it would result in image distortion in some models and not in others. This was the reason behind the difference in prices. I would explain this to the customers. I had a few ideas like that, which I used to attract the interest of customers.
Q. I see, that is how you steadily improved your skills while serving customers.
I understand that in your youth, you did not initially have a particular interest in home appliances/electronics, is that right?
Yoshihara: That is right. I loved music when I was a student, and I would place a cassette recorder in front of the TV to record music programs so I naturally became more familiar with home appliances/electronics in this way, but I was not particularly an “electronics geek.” As a child, I loved animals, and I kept all sorts of pets. I even went through a stage of wanting to become a veterinarian.
Q. Why do you think you have been able to continue working at K’s Denki for such a long time?
Yoshihara: When a customer who had bought something from me returned to the store, I would ask them how they found the product they had previously purchased. When they told me it was working well and thanked me, I felt happy, and this naturally propelled me to continue working here. In this way, I became so engrossed in selling that I had become the top-seller in the store even before I realized it. In my previous job, I did not have the opportunity to engage in such deep communication with customers, so I had resigned before I truly understood the interesting aspects of customer service. It was only after joining K’s Denki that I first learned about the interesting aspects of customer service, and discovered the joy and satisfaction of receiving thanks from customers.

Appointment as President

Q. Did you feel any fear or hesitation when you were appointed as the President?
Yoshihara: After gaining experience as the store manager at several stores, I began working at the Headquarters. That was the period when K’ s Denki was expanding its operations as a franchise chain (hereafter, “FC”) and actively recruiting franchisees, so I was travelling across all parts of Japan to meet with potential owners who were interested in the FC. For me, the most memorable aspect of that job was conveying K’s Denki’s ideas and philosophy, and welcoming those who shared these ideas to become a part of our team. Some of the colleagues at our subsidiaries today are also people whom I began working with at that time. After that, I was promoted to Manager of the Sales Promotion Department. My job was to increase in-store sales, enhance operational efficiency, and address any problems that cropped up in the stores. I then became the Manager of Human Resources and General Affairs Department. During this period, I was constantly thinking about how to enhance employees’ satisfaction with the company. After that, I served as Supervisor of Administration Division and Supervisor of Marketing Division until most recently, and I have been involved in all areas of work other than product purchasing and store development. Since I have strong knowledge of on-site work, I was not worried about leading more than 550 stores. However, when it comes to managing a company, I believe I still have much to learn even going forward. The Chairman has long been involved in store development, so I am certain that we will complement one another as we carry out management of the company, and I will steadily absorb all the things that I should.
Q. What do you want to work on as President?
Yoshihara: I think there are things that should be changed, and things that must be changed. K’s Denki has set out “Gambaranai Keiei” as our management policy. This means that even if you were to push yourself to achieve good results in the short term, it would be meaningless for the long-term management of the company. Trying to do more than you are capable of may cause you to overdo it, and it will not last long. In some cases, a company may attempt to make customers buy products they do not want in order to make profits. This is why we do not impose sales quotas on our employees. While we have established targets, those who surpass the targets will be highly appraised, but even those who fail to achieve them will not be reprimanded. What a store manager should consider is how to create an environment where the employees of the store can work with enjoyment and a smile. The same applies to the President of the company. I have to create an environment where all employees can work with enjoyment.
K's Denki has put in place a system to survey employees' career aspirations in order to assign, transfer, and educate employees based on their individual autonomy. The survey sheet also includes a section for writing down what employees seek from the company. When I was the head of human resources, I called every employee who had written that they were dissatisfied about the company or the system, and listened carefully to what they had to say. It took a year to contact everyone, but I think it was a meaningful exercise. It is not acceptable to simply say, “Yes, we will consider it” as an excuse on the spot to get away from something that we will not actually do. If we have considered it but do not communicate the results properly, we will lose the trust of people. This is something that I have continued to do earnestly. It may be difficult to take time to respond to such requests as President, but I hope to continue paying attention to feedback from everyone as far as possible. Furthermore, I believe that my mission is to continue to uphold the concept of “Gambaranai Keiei” as it is, and to convey it to employees.
Q. Are there any areas that you would like to change?
Yoshihara: “Gambaranai Keiei” does not mean that we do not have to make any effort. When I became President, we released our three-year Medium-term Management Plan 2027 (from FY2025 to FY2027)*1, in which we established the aim of generating stable profits by specializing in home appliance/electronics as the first pillar. Furthermore, we have set the goal of improving labor productivity as a priority under this pillar. Specifically, we aim to increase per capita sales and profit by selling high value-added goods. We listen carefully to our customers and do not coerce them to buy products that the company will profit from. This stance will remain completely unchanged in the future, but on the other hand, analysis has shown that we have weaknesses in our recommendation and proposal capabilities to customers compared to other home appliances/electronics retailers. Until now, I have always said that there is still room for growth, but we must not let this potential for growth end as just potential. If we do not recommend consumables or other related products that enhance convenience when used in a set with the product, it may in turn cause inconvenience to our customers. We will improve labor productivity by organizing more in-house sales contests and online training, and by increasing the average purchase price and number of items purchased per person.
*1 Principles of the Medium-term Management Plan 2027: Lay the foundations for medium- to long-term growth by re-examining existing store efficiency and boosting their customer service [Pillars of the Medium-term Management Plan 2027] 1. Generate stable profits by specializing in home appliances/electronics. 2. Streamline business processes and increase sales through DX. 3. Increase corporate value of the company through enhanced capital efficiency. [Generate stable profits by specializing in home electronics] Key Measures: Improve labor productivity by investing in human capital ・Sell high value-added merchandise to improve per capita sales and profit ・Investing in human capital / Strive to enhance sales skills and expertise by strengthening online training and increasing the number of qualified Home Appliance Advisors

(Extracted from the Medium-term Management Plan 2027 announced on May 9, 2024)

Toward achieving the Medium-term Management Plan 2027, and looking beyond that

Q. Last but not least, could you tell us about the initiatives for the future?
Yoshihara: I had some time between being asked about being the President and actually assuming the position. Since I had time to think about it, I re-examined my weaknesses. Going forward, I would like to broaden my perspective while acquiring a wide range of knowledge necessary for management. Of course, I would also like to increase the number of female managers, and we must also promote thorough compliance with laws and regulations to prevent company scandals. Other than leading the sales aspects, there are many things I need to do on the management side as well. However, by tackling each measure without overdoing it, I aim to achieve the Medium-term Management Plan by FY2027.
Another important theme is that in Japan, where the population is declining, the competitive environment with other companies is expected to become even more severe in the future. Lifestyles and purchasing methods, including online shopping, are also likely to change rapidly. Over the three years of our Medium-term Management Plan, we will first steadily restore ROE to around 8% and work to secure the foundation of the Company. During that time, I feel that we must also discuss the future of the home appliances/electronics industry.