ZOZO Group mainly develops two businesses; ZOZOTOWN business which operates the fashion e-commerce site “ZOZOTOWN” and BtoB business which supports the management of brands’ own e-commerce sites. In addition, we also operate a fashion media “WEAR” to revitalize the entire fashion industry. In the future, we will further enhance our earnings base by initiating the advertising business utilizing attractiveness of ZOZOTOWN and WEAR, and the full-scale launch of the private brand “ZOZO”.
1. ZOZOTOWN Business
ZOZOTOWN business consists 3 business forms: Consignment shop, purchased stock shop and ZOZOUSED. The consignment shop is a business form where each brand’s products are stocked in our logistics bases as consigned inventory, and brands open their shops in ZOZOTOWN as tenant form. As of March 2019, there are 1,240 shops (excluding the private brand shop) on ZOZOTOWN. Of products price settled on ZOZOTOWN, consignment sales commission from each brand will be recorded as the net sales.
The purchased stock shop is a business form where ZOZOTOWN purchases products from multiple brands and sells the products at shops operated by the company. As of March 2019, there are 5 shops on ZOZOTOWN. Products price settled on ZOZOTOWN directly becomes the net sales.
ZOZOUSED a business form where it purchases second-hand fashion goods from individual users and others as its own inventory, and sell products at the shop in ZOZOTOWN Products price settled on ZOZOUSED directly become the net sales.
From Q4 of FY2018, we have started to operate a marketplace business in addition to the existing purchase business. For the marketplace business, of products prices settled on ZOZOUSED, consignment sales commission from each shop will be recorded as the net sales.
2. BtoB Business
The BtoB is a business form where the company is entrusted various fulfillment related services of brands for their own e-commerce sites operation. As of March 2019, the company supports 23 companies’ own e-commerce site operations. Of product prices settled on own e-commerce sites, certain amount of commission from the companies will be recorded as the net sales.
3. WEAR Business
WEAR is the Japan’s largest fashion coordination app aimed at revitalizing the entire fashion market. Under the concept of “Fashion media where users can find clothes they want” and continuous introduction of contents and improvement of user interfaces etc., the number of app download exceeded 13 million as of March 2019. WEAR will contribute to group net sales by creating traffic to ZOZOTOWN through user generated contents and providing advertisement spot utilizing its value as a fashion media.
4. Advertisement Business
Advertisement business will gain advertisement income from client companies including brands by providing advertisement spots utilizing the user base of ZOZOTOWN and WEAR. Advertisement fee from client companies will be recorded as the net sales.
5. Private Brand Business
The private brand "ZOZO" is a business form that offers and sells basic items fitting each user’s body shape, from size patterns calculated based on body measurement data accumulated in the Company. The main items are basic items such as crewneck T-shirts, slim tapered denim pants, business suits (men’s only). Casual items such as T-shirts and denim pants are offered in the “Multi-size” method which suggests recommended size using height and weight information of a user. For formal items such as business suits and dress shirts, items are offered in the “custom-ordered” method which manufactures items according to the individual users’ body shape based on data measured from the “ZOZOSUIT”, a measurement bodysuit developed by the Company. Items are sold at the private brand shop “ZOZO” on ZOZOTOWN and the price of items settled is recorded as the net sales.
6. MSP Business
MSP business is a business form in which manufacture a portion of items from shops with strong user demands and sell them at ZOZOTOWN, by combining the know-how of manufacturing clothes in a variety of sizes which accumulated from the Company's business, sales capability and planning ability of shops on ZOZOTOWN. The Company can offer optimal size products to users by their height and weight data provided from users. The amount of products settled on ZOZOTOWN will be the net sales.
Updates of IR related news of ZOZO will be sent to registered individuals.