Long-term Vision And Medium-term Management Plan
Management plan for the 10th anniversary of Smaregi
The year 2021 marks the 10th anniversary of Smaregi.
Over the past 10 years, Smaregi has grown into an unparalleled service that offers both the basic functions to accommodate stores of all types and the expandability to realize unique store operations.
We want more and more stores to use this wonderful service and its features.
We would also like to strongly support Japanese stores and contribute to Japan’s economic development.
Over the next 10 years, Smaregi will go beyond tablet POS and aim to secure the top share of the POS market in Japan.
Long-term Vision
As of 2021, hardware vendors still hold a large share of the Japanese POS market.
Smaregi was established in 2011 during the transition from the hardware to the software era. As a software and database company, we aim to lead the cloud and DX era, expand our market share, and become the top POS company in Japan within the next 10 years in order to create an environment in which everyone can easily utilize data.
Our goal is to be a POS market leader in Japan
KPI
Aiming for 300,000 active stores and a 14% market share in Japan
The target has been enlarged from the core midsize business category to include big businesses (demand for replacing conventional POS systems) and small businesses (fee income from use of the app market).
Medium-term Management Plan FY4/22 – FY4/24
Plan for Doubling ARR 2022/6/13 UPDATE
- Aggressively strengthen business investment for three years starting from FY4/22, to realize a continuous high-growth cycle, while being prepared for a decrease in profits.
- Aggressive advertising and other business investments to increase the number of active stores and raise the price per customer.
300,000 active stores
First step toward the long-term goal
The goal of the medium-term plan is ARR ¥5 billion.
Number of Customers × Sales per Customer
We will increase the number of customers by investing a large amount into sales and marketing expenses, and increase the sales per customer by cross-selling payment services, Smaregi TimeCard, etc., with an awareness of the formula “ARR = Number of Customers x Sales Per Customer”.
Medium-term Management Plan – Four Key Activities
2022/6/13 UPDATE
Increase number of customer
Improve sales per customer
* Due to subsidiary of ROYAL GATE INC., "Training for Creative Thinking" that was one of Four Key Activities when we disclosed in March 2021 was separated from medium-term plan, and changed to "Enhancement of payment service". We keep on proceeding it as our important measure to support continuous business growth.
Emphasis on Advertising/Marketing
Brand awareness/Sales leads acquisition
Proactive advertising/marketing expenditures for faster growth
Resumed marketing activities that had been suspended due to COVID-19.
Using funds raised at the time of listing, we are accelerating our efforts to raise awareness and attract new customers through aggressive activities, such as below.
Goal
- More powerful Smaregi brand by raising public awareness
- Faster pace of attracting new customers
Core Activities(As of the end of April, 2022)
- TV commercial (Target region: Kanto, Kansai, Kyushu, and Okinawa)
- Radio program “Omise radio”(InterFM897、FM Osaka)
- Owned media for store executives “Akinai LABO”
- Web ads, Affiliate marketing
- Online/offline events and exhibitions
- Cosponsored food Festival
Planned: ¥692 million (Smaregi alone)
Actual: ¥729 million (Smaregi alone), ¥92 million (ROYAL GATE INC,)
App Market Strategy
Improve the customer experience and sales per customer
Build an ecosystem by creating a large app market
- The combination of basic functions and expansion apps registered on the app market enable Smaregi to cover almost any business sector and format.
- Smaregi Ventures, a corporate venture capital business, along with Smaregi, are expanding and energizing the app market by making investments in app developers and providing support for their business and sales activities.
- Plan to significantly improve the app development environment (Smaregi developers) centered on no-code/low-code platforms.
Trends in the number of apps
Although there are still many issues to be addressed and the results from cross-selling are still small, the emergence of industry-specific apps has enabled a multifaceted approach to a wide range of industries!
App Development Partners (As of the end of April, 2022)
Corporate partners
576
Individual partners
319
Goal
- Use highly specialized functions to attract new customers
- Use expansion app utilization fees to increase sales per customer
- Improve the customer experience
Core Activities (As of the end of April, 2022)
- Launched App Market introduction site
- Launched user request site
- Held 2nd annual Smaregi App Contest
- Started “Developers Expert” certification system
Enhancement of payment services
strengthening of revenue base
Aiming to expand transaction-based sales by strengthening our payment services
We are focusing on the payment business, which is expected to have high synergy with POS services. In addition to our existing payment services, the acquisition of ROYAL GATE INC. has greatly expanded the scope of the payment business, and we aim to expand our revenue model to increase ARR.
Goal
- Provide seamless payment services integrated with POS services
- Increase ARR by cross-selling to stores with Smaregi
- Provide payment functions to App Market development partners
About ROYAL GATE INC.
| Effects of acquisition |
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| Post-acquisition strategy |
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Smaregi TimeCard
Human resources business/Cross-selling
Upgrade Smaregi TimeCard to expand from working-time-management to human-resources-management
Make Smaregi Time Card, a cloud-based working time management service, a separate business unit from the Smaregi business and build an independent infrastructure as a human resources business to aim for faster growth.
Goal
- Use a cross-selling for all Smaregi users to increase sales per customer
- Faster growth by creating an independent business unit and benefiting from synergies with other Smaregi group businesses
Core Activities (As of the end of April, 2022)
- Launched a new plan “Premium Plus” that supports sales per man-hour and the three statutory books
- Established a dedicated call center (for selected plans)
- Conducted campaigns aimed at Smaregi (POS) users
Latest Materials 2022/6/13 UPDATE
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Jun. 13,
2022
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Update History / Past Materials 2022/6/13 UPDATE
Reviewed 4 specific measures and added "enhancement of payment services”.
| Before | After |
|---|---|
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ARR plan revised upward.
| (billion yen) | FY4/22 | FY4/23 | FY4/24 |
|---|---|---|---|
| Previous Plan | 1.92 | 2.3 | 3.32 |
| Current Plan | 2.70 | 3.67 | 5.00 |