To Individual Investors

Business Model of Carrier shops

The mobile phone industry is divided into several sectors that perform different roles. Manufacturers produce handsets, communications carriers build networks and create service plans, and sales agents sell these products and services through direct contact with customers. Carrier shops with brands like docomo, au and SoftBank are everywhere in Japan. But very few are operated directly by a carrier. Almost all of these shops belong to the networks of sales agents like Bell-Park.

business_model

Major Sources of Earnings

(1) Sales commissions

We earn a profit by selling handsets at prices below our cost and then offsetting this loss by receiving sales commissions. The amount of each sales commission depends on the category of the sale (new subscribers or replacement handsets) and the type of service plan.

(2) Renewal commissions

We receive a percentage of the monthly communication charges that customers pay as consistent source of revenue. The size of renewal commissions grows with the number of customers who use handsets we sold for a long time.

(3) Fees for various tasks

We charge fees for intermediary services such as optical line services, credit cards and electrical contracts, and follow-up services such as service plan alteration and handset repair.

(4) Other support payments

We receive support payments from carriers for marketing activities at shops and shop staff. These payments vary depending on the performance based on sales and customer satisfaction.

Strengths of Bell-Park

Focus to training employees

Recruitment and training of talented people

Personnel able to provide outstanding hospitality and consulting skills is important in carrier shops.Bell-Park group is constantly recruiting talented individuals, whether recent graduates or people with job experience. We have an extensive training program for employees. One component is a large training center that can accommodate about 200 people. There is also a high-quality on-the-job training program that includes shops for educating employees and a team of instructors.In addition, there are many programs and activities to maintain a highly motivated workforce. To maintain the proper balance between work and personal time, we have programs to reduce overtime, encourage people to take paid vacation days and give employees consecutive days off. Company trips and events like a Christmas party are other illustrations of our commitment to our employees.

* In the fiscal year ending December 31, 2020, we are conducting online group training and in-house get-togethers to prevent the spread of the COVID-19.

Bell-Park Recruitment Site
(Introduction of education and training system)

Bell-Park Recruitment Site

Improving customer service skills

In order to raise awareness of the need to improve customer satisfaction, we have established a unique in-house system to commend shop staff based on the praise they receive from customers in questionnaires.Two employees of Bell-Park have won first place and third place at the SoftBank Shop customer service contest held in February 2020 for the purpose of improving the skills of shop staff.

BMC Certification Badges

BMC(Best Mobile Concierge) Certification Badges

SoftBank Customer Service No. 1 Grand Prix in Feb,2020

SoftBank Customer Service No. 1 Grand Prix in Feb,2020

 

The NPS is a customer loyalty index that reflects how much customers like and trust a company or a brand. lustomers are asked how much they would recommend the store they visited to family and friends. lustomers are then classified as supporters, neutral or critics. The NPS is calculated by subtracting the percentage of critics from the percentage of supporters (people who recommend the store to others).

A regionally focused shop network

Bell-Park had 363 stores at the end of December 2020 and about 80% of these shops were located in the Kanto, Tokai and Kansai areas.
This high concentration of shops in three areas makes it possible to share resources as well as new ideas that were successful. The result is a highly profitable shop network.

No. of carrier shops by region (End of December 2020)

Area Direct FC Comp.
Tohoku 7 18 6.9%
Hokuriku 10 2.8%
Kanto 186 11 54.3%
Tokai 50 10 16.5%
Kansai 19 26 12.4%
Chugoku 13 3.6%
Kyushu 13 3.6%
Total 298 65 100%

Sound financial base

Net assets was 26.6 billion yen (equity ratio: 57.5%), and net cash was 17.0 billion en as of December 2020. We will maintain a stable financial base and prepare for future business expansion opportunities.

(million yen)

Fiscal years
ended December
2016
(consolid ated)
2017
(consolid ated)
2018
(consolid ated)
2019
(consolid ated)
2020
(consolid ated)
Net assets 17,921 19,655 21,335 23,889 26,661
Equity ratio 52.0% 50.9% 54.6% 54.8% 57.5%
Net cash 10,223 11,452 9,857 16,331 17,028
Cash and deposits 15,223 16,467 14,872 21,345 22,042

* Net cash = Cash and deposits – Interest-bearing debt

Many successful acquisitions of carrier shops

We have used our sound financial base to make 100 over acquisitions over the years for the purpose of enlarging our shop network.
Expertise gained from these acquisitions allows us to efficiently integrate new operations into our group and quickly improve sales and earnings.Furthermore, individuals who belonged to acquired companies and their operations are making a big contribution to our performance.