Home delivery company Yamato Holdings, which should have increased profits due to a large increase in TA-Q-BIN, is in the red. Why is the company in the red despite having raised the price by more than 20%?
¥ 6.1 billion operating deficit
The market officials were surprised at the financial results for April-June 2019 announced on July 31 by Yamato Holdings. This was because the operating loss was 6.1 billion yen, even though it was expected that profits would improve due to a significant price increase. The company is unable to handle delivery requests from large customers such as online shopping, resulting in confusion such as exhausting the site. It was necessary to secure a large amount of delivery personnel. With support from public opinion in support of work style reforms, the company has decided to raise the delivery charges for individuals, and has gradually raised the price for corporations. As a result, delivery charges rose by about 20% overall, and the company’s profit should have improved significantly.
In the fiscal year ended March 31, 2019, operating income increased by 63.5%, which was an increase in both sales and profits. The market has questioned the company’s management, “What was the price increase for?”
Is it the influence that the online mail order business reduced the handling amount?
The unit price of courier service has increased by 4.8% compared to the same period of the previous year, and sales and profits should increase accordingly. However, sales (operating revenue) were almost flat, and we couldn’t cover the costs, and the deficit fell. The company’s main cause is an increase in the costs required for work style reforms, but that doesn’t seem to be the only reason. The quantity handled by courier service is 3.6% minus, and the quantity handled by large corporations is drastically decreasing to 8.2%. Although the specific business partner is not disclosed, it is highly likely that the online sales company has reduced the amount handled.
Online mail order companies such as Amazon have become aware of the risks of relying on external shipping companies due to the turmoil of Yamato’s price increase, and some operators have become aware of their own distribution network. Embarking on construction. Since online mail order operators are becoming independent of major shipping companies, depending on the situation, there is a possibility that the volume of large transactions will not grow much in the future. Yamato has increased the number of employees by more than 20,000 to strengthen the system, but this labor cost may be a drag on business results.
Yamato seems to be in the red.
The part that should have been improved by raising the price,
It seemed disappointing.
The fact that we raised the price as an actual problem
Because profits increase,
Personnel costs increase,
The business system has improved,
Salary goes up and motivation goes up,
Some change must happen.
Was it actually a positive issue for the people on site?
Because there is Yu-Pack as a similar service,
If Yamato raises the price many times, it may not be used naturally.
As a user, the price is still important.
There is no worst as price increases | ω ・)
Don’t raise the price anymore