Shosuke Yasuda Representative Director, President and CEO Sangetsu Corporation

The Sangetsu Group Will Enter a New Stage Using Its Potential for Sustained Growth

I would first like to share my deepest gratitude to all of you for your understanding and support of Sangetsu Group activities.
My name is Yasumasa Kondo and I have recently assumed the position of President and CEO of Sangetsu Corporation on April 1, 2024.

The history of the Sangetsu Group dates back to 1849 when Yasuke Hibi opened a framing business for sliding doors and folding screens not far from Nagoya Castle. Later in 1953, Yoshiaki Hibi founded Sangetsudo Shoten Co., Ltd. and worked to expand the business along with his three younger brothers. We started selling wallcoverings ahead of other companies and have expanded our lineup to include flooring materials, fabrics, and other items by leveraging wallcoverings to expand sales of our interior products nationwide. We have always had a frontier spirit driving us to take on new challenges and the energy to overcome difficulties and move forward, which is a part of the founding philosophy that has been passed down through the company to today.

In 2014, Shosuke Yasuda took over as President of the Company, succeeding Yuichi Hibi, Yoshiaki Hibi’s younger brother who took over management from Yoshiaki. Since that time, we have formulated and completed the implementation of three medium-term business plans. Through the steady implementation of those plans, we have strengthened our business foundation, expanded through M&As in Japan and overseas, raised employee awareness, and carried out other initiatives to promote fundamental reform of the Group. In 2020, we announced the Long-term Vision [DESIGN 2030], which outlines our goal to transform into a “Space Creation Company” by the year 2030. In becoming a Space Creation Company, we aim to design spaces as well as create and provide spaces, without stopping at just providing interior products and other products as “things.” Currently, based on our fourth Medium-term Business Plan [BX 2025], we are implementing measures to realize the corporate vision we aim to achieve.

In addition to the corporate brand, reliability, and frontier spirit that have been built and inherited since the Company was founded, Sangetsu has expanded its business scale and scope over the past decade. Therefore, I believe that the foundation for further growth has been steadily established. On the other hand, the business environment surrounding the Group is changing and becoming more sophisticated at a very rapid pace and will further accelerate. Based on the premise that what we take for granted today will not work in the next five or ten years, we need to further accelerate the transformation of the Group and draw up a long-term growth strategy from a higher perspective.
Therefore, in addition to unveiling the previously mentioned Medium-term Business Plan [BX 2025] in May 2023, we re-clarified the meaning of “Space Creation Company,” which was presented in the Long-term Vision [DESIGN 2030]. The meaning is as defined below.

We will utilize design capabilities and creativity based on human and digital capital to organically integrate four functions, which are

  1. Attractive space design proposals based on the best concept for each market
  2. Space material provision that proposes a wide range of products with advanced planning, development, and procurement capabilities
  3. Inventory, shipping, and logistics that enable immediate delivery over a wide area without running out of stock
  4. Swift, large-scale, integrated construction through a variety of businesses, personal relationships, and corporate partnerships

and transform into a company that provides high value in space creation globally.

In addition, as a further business prospect after becoming a Space Creation Company, we are looking at the possibility of developing a space operation business. In addition to proposing solutions based on a "spatial dimension" for creating better spaces, this business also proposes solutions based on the "temporal dimension" of how the people who will use the spaces spend their time and what value they derive from their experience. This is a transformation toward a new stage of providing longer-term value through services, a very big challenge for the Sangetsu Group as a whole.
As the pace of change in the business environment accelerates and advances drastically, we will not miss opportunities such as industry restructuring and the birth of new businesses, and will proactively engage in new businesses not limited to space operations and take on challenges.

I believe that the most important thing for achieving these challenges is human resources. People are the cornerstone of a company, and the major premise for a company to become strong that all employees are highly motivated and push forward in the correct direction with strength. As President, I will work together with all Group employees to realize this challenge by motivating each employee and helping, complementing, and supporting them.

In January 2024, the Sangetsu Group announced its new Corporate Philosophy “With all people we collaborate to create peaceful and inspirational spaces.” As a “Space Creation Company” that designs and provides various spaces with creative sensibilities, we are committed to the sustainable creation of economic and social value, and aim for a world in which all people can talk about their dreams for a bright future.
I would like to ask for your continued support in the future.

Yasumasa Kondo
President and CEO
Sangetsu Corporation