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Business Model – Manufacturing, Distribution and Retail Sales
“To offer the affluence of western homes to the Japanese people.” Nitori must fulfill all of the following conditions:
- ・Achieve “prices” that many people can afford
- ・Achieve a “store network” that many people can access conveniently
- ・Achieve “appropriate quality” that many people can use comfortably
- ・Achieve “coordination of various materials” and help more people to enjoy the pleasures of creating a home
As its response to achieve these goals, Nitori has created a “manufacturing, distribution and retail sales model” that takes the traditional “specialty store, private brand apparel (SPA)” approach to the next evolutionary level. By handling every process in-house, from product planning to final delivery, we will achieve our goal of offering the affluence of western homes.
After visiting overseas exhibitions and observing domestic competitors’ stores to identify products that will be enjoy vigorous future demand, we ascertain the functions required and prepare specifications to achieve the appropriate balance of price, performance and quality.
We then reverse-calculate from the retail prices customers demand, procure materials from around the world to satisfy the cost requirement and offer the appropriate quality, and turn the designs into products at factories that can manufacture according to Nitori’s quality specifications and schedule.
For Nitori, which purchases more than 70% of the products it develops in-house from overseas, our trading and logistics strategy is one of our highest priority issues.
Firms in the retail industry typically consign most logistics activities to other companies. By being involved in every logistics process, from other countries to the end market in Japan including establishment of import letters of credit for specific transactions with overseas manufacturers, preparation and handling of customs documentation, ocean transport, customs clearance arrangements and the transport of containers to Nitori’s domestic logistics centers, Nitori can exercise its leadership as it seeks to further “achievement of affordable prices.”
「To pledge “quality that can be used safely and with peace of mind” to its customers, Nitori strives to maintain and improve the quality of its products and manufacturing processes by examining product quality, providing guidance to improve manufacturing processes at overseas factories and performing product inspections when it receives goods.
By keeping a watchful eye on such details, and always giving its full attention to products from “a use and purchase perspective,” Nitori achieves product quality that ensures customers always realize “value more than its price.”
In our drive to ensure customers can shop comfortably and enjoy a pleasant shopping experience, our “front line” is to respond to our customers by changing sales displays and arranging and exhibiting products according to season, and to manage all of our stores ourselves.
At Nitori we strive to achieve even greater affordability through low-cost operations aimed at realizing even lower prices, and by seeking to locate stores so they are closer to our customers.
Offering affordably priced furniture would be pointless if charges for delivery to the customer’s home merely drove up the cost.
At Nitori, we use a delivery network created by Nitori and affiliated companies to deliver completed furniture to homes and moving destinations within company specified areas free of charge (certain products are excluded). We also handle the unpacking and installation or assembly at the time of delivery and remove all packing materials, all at no cost.
