About Book Stores

Bookstore Business
APM １st Year student
Yumiko OSADA
Agenda
１、Recent trend of bookstores
２、Comparing bookstores
－Comparing sales
－Features of each bookstores
－Index of investment
－Future strategy
３、Let’s forecast future stocks of bookstores
Recent trend：
Decreasing reading rate
remarkable
decrease in the
reading rate
参照：全国農村読書調査２００５年度版
Change of Press business
Sales of press business
are decreasing for 7
consecutive years!
1998
Dist r ibu t io n
2000
Dir e c t sale s
2002
Oth e rs
2004
0
2
4
6
trillion
参照：成美堂出版「今がわかる業界地図06’-07’年版
Different types of three bookstores
●Maruzen
→A long standing bookstore
(From 1870)
→2nd place in bookstore sales
ranking
●Village Vanguard
→Compound bookstore
(Selling books and sundries)
→Keyword is “A Enjoying
Bookstore”
●Book-Off
→Major “new” used bookstore
company
What’s Maruzen?
●Major bookstore chain (Main office: Tokyo)
（Number of stores: 38 stores）
●Est. 1870
●Listing exchange：Tokyo stock exchange
●Known as bookstores which sell imported books
●Except bookstore, they deal with broad business, such
as publishing, supplying academic information,
outsourcing of library service, partnering with on-line
bookstore etc…
参照：丸善HP
By the way・・・
●There are various views about first stock
company in Japan・・・
Maruzen manages stores with dividing
stockholders and staffs, so in effect, Maruzen is
said to be as the first Japanese stock company.
参照：フリー百科事典『ウィキペディア（Wikipedia）』
What’s Village Vanguard?
●Compound bookstore (Main office: Aichi)
（Number of stores：１９１stores）
●Est.：1986
●Listing exchange：JASDAQ (Japan Securities
Dealers Association Quotations) （April, 2003）
●Selling books, sundries, CD/DVD etc
● Keyword is “An Enjoyable Bookstore”
参照：ヴィレッジヴァンガードHP
What’s Book-Off？
●New Used Bookstore (Main Office: Kanagawa)
（Number of stores：８００stores）
●Est.1991
●Listing Exchange：Tokyo Exchange Market
（March, 2004）
●1st place in used bookstore sales ranking
9th place in total bookstore sales ranking
参照：ブックオフHP
「今がわかる業界地図06’-07’年版
Comparing Sales
120,000
100,000
80,000
Maruzen
60,000
Book-Off
40,000
Village
Vanguard
20,000
0
2003
2004
2005
NIKKEI NET
http://ir.nikkei.co.jp/chart/CreateChartHTML02.asp?chk=1&comp_graph0
1=1&comp_graph02=1&nkcode=00030706%2C00022480%2C00001656
Comparing three company・・・
●Maruzen→ Doing diversification of business and
partnership with other companies,
but cannot make profit!!
Wｈｙ？？
It is because of the differences in
three bookstores business.
Why
Village Vanguard and Book-Off are
successful??
Features of Village
Vanguard
●Selling sundries→ High profit
●Original POP
●No employment of regular staff
→start from part-time job
→understand everything about
service, stock, layout, and
management
●Make a choice of stock and
sales in the field
●Stores decorated with tastes of
the staff→ no competitors
Book-Off is said to be a new used bookstore・・・
What’s
a “new used bookstore”？
●The bookstore which buys new used books from
consumers, and organize them into selling
condition, then sell them with cheaper prices
than new books.
●They have a big and bright shop, so customers
can go into the shop without constraint.
参照：中央三井信託銀行、調査報告「新古書店チェーン業界の行方」
How they mark price??
●Generally, a price of used book is marked based
on the original price when the book was brand new.
●Price of buying from customers is set to 10% of
price
●Price of selling to customers is set to 50% of price
The strength of Book-Off!!
Actually, bookstores are・・・
100%
●Normal bookstores have
high cost price
→Low profit
90%
80%
70%
Cost pric e
60%
Se llin g &
se rvic e c h arge
Ope ratin g
profit
50%
40%
30%
●But, Village Vanguard
and Book-Off have high
cost price
20%
10%
V
V
ill
ag
e
O
koo
B
B
un
ky
od
ff
o
0%
→That is why they are
successful!!
参照：夕刊フジ、「おカネでわかる話題の真相」
Index of investment
●What’s index of investment？？
→The index which leads to investment
What’s PER(Price Earning Ratio)??
→By comparing the price of stocks to the profit made
by each individual stock, it is possible to find out if
the value of that stock is relatively low or high.
●Village Vanguard： 34.20 times
●Book-Off
： 27.18 times
★PER of Book-Off is small→ stock price is
cheap →high profit → Everyone will buy
→Deserve to invest??
What’s ROE (Return on Equity)??
→How effectively the company uses the
investment they have received to generate profit.
●Village Vanguard：18.14％
●Book-Off
：19.33％
★ROE of Book-Off is high
→Judge on efficient investment in assets
→ Deserve to invest??
What’s ROA (Return on Assets)??
→Looking at the company’s total capital to how much
profit was generated by the company.
●Village Vanguard：７．５％
●Book-Off
：８．０％
★High ROA companies are liked by investors
→Village Vanguard and Book-Off deserve to
invest??
Future strategy of Village Vanguard
Future Vision
●Improvement of POP
×Normal POP like a book review
○Hot POP with “hot” message!!
Other future visions
●Restaurant business
Development of hamburger shops where
customers can drink beer
●Mobile business
Open Village Vanguard・Yahoo!
（May, 2005）
参照：ヴィレッジヴァンガードHP
Future Strategy of Book-Off
●Development of new business
→Develop reusing shops which sells children’s
goods, sporting goods, women cloths, noble
metal, watch, household utensils etc
●Embarkation to overseas
→Shops in Hawaii, New York and Los Angeles
→Plan to expand into other principal cities
参照：ブックオフHP
☆ Let’s forecast future stocks of
bookstores ☆
●Maruzen→ If they still cannot get high profit,
their records will get worse!?
→ But they still have brand power
→ Therefore・・・
Stock Prices
●Village Vanguard
→Stability with selling sundries
→Unique line & positioning
→No outside competition!!
Stock prices
→So, in the future・・・
●Book-Off
→Stability business
→Next business strategy
→Already proven with PER・ROE・ROA
→So, of course・・・
Stock prices
ご清聴ありがとうございました
~Thank you for listening~

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