Unerry Research Memo (8): Accelerate business expansion with retail DX and smart cities | Reuters

*17:38 JST UNERRY Research Memo (8): Accelerate business expansion with a focus on retail DX and smart cities
■ Short-term and medium-term growth strategies

unerry5034has formulated a short- to medium-term growth strategy with FY06/24 as the final year. In retail DX, the company plans to expand its business by acquiring new customers in existing industries (retailers and restaurants) and expanding into new industries (consumer goods manufacturers). As for smart cities, we plan to enter the global market after accumulating a track record in Japan.

(1) For retailers and restaurants
As a strategy for the retail and restaurant industry of the retail DX business, the company is poised to maximize sales and profits by “maximizing the number of customers x unit price x NRR”. Specifically, with the aim of increasing the number of recurring customers, we will strengthen our advertising activities in order to expand the partner system that functions as a sales agent and improve recognition. Regarding the improvement of the annual unit price of recurring customers, it is possible to increase the customer’s ROI by hiring DX experts with deep knowledge of the customer industry and expanding the in-house training system to develop staff who can play an active role in a short period of time. The policy is to strengthen the system. In addition, by sharing successful cases within the company, we aim to further raise the overall proposal capability of the company. As for maximizing NRR, we aim to realize it by further improving the value provided by AI and automation technology and building multi-layered customer relationships. In order to improve the value provided by AI and automation technology, it is assumed that AI will be used to automate consulting work for customers on how to use analysis results. This will further enhance the convenience of customers when using the company’s solutions.

(2) For consumer goods manufacturers
We aim to expand the solutions we are currently developing for retailers and restaurants to consumer goods manufacturers, who are our upstream customers, and to secure marketing costs. To that end, the company plans to strengthen the accumulation of data required by consumer goods manufacturers. In addition, we plan to customize the items presented in the analysis report (trade area, number of store visits, frequency, etc.) to the items required by consumer goods manufacturers and enhance their appeal to customers.

(3) Smart city
Currently, we apply for smart city public offering projects of the national and local governments, and earn profits by implementing analysis and measures according to the requirements. In the future, we will earn commissions by providing “analysis/visualization services,” “behavior modification services,” and “one to one services” that are compatible with City OS, which will be launched in the future. Furthermore, as the number of players developing smart city-related businesses increases and the market scale expands, we aim to steadily incorporate it into our business performance and expand our business performance. Ultimately, the idea is to localize the model established in Japan for the global market and then expand it to the global market, greatly expanding TAM. According to company data, the global smart city IoT market is expected to expand to 171 trillion yen by 2030. By entering a huge market, it is expected that the speed of business expansion will be accelerated.

(Written by FISCO Visiting Analyst Yoichiro Shimizu)

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