How to keep an affordable price?
Why? Why can we make 100 yen products in Japan?
We are succeeded in manufacturing products for 100 Yen Shops in Japan.
Those products must be produced with quite high efficiency.
Why can we do this? We spend much money for the initial cost, then we can reduce the manufacturing cost and improve the productivity.
We can make 100 yen products in Japan without depending on low labor cost countries.
We have to manufacture millions of products every year to lower prices. We need durable but expensive moulds for products. We usually prepare multicavity moulds for mass production. And we use hot runner systems for some moulds to improve the product quality and production efficiency. That means we spend much money for the initial cost, so we have many products from which we can’t get profits for a few years. This is the salto mortale that Marx referred.
We have designers in the head office in Higashiosaka. They design both products and packages. They can use 3D CAD and plastic injection molding simulation software in designing.
The characteristics of our transportation method is to send products directly to the 100 Yen Shops. We make assortment boxes of inner packs and prepare for the shipping. We have about 10 products in the inner pack. This is also the characteristics of our industry. When you supply products to the other retailers, you need to send products to distribution centers. Then those products are picked up one by one for each store. You can expect highly accurate inventory control, but the system leads to high cost. In the 100 Yen Shop industry, shops and manufacturers share the inventory risk, and we are constructing the structure in which we can supply the products at a low price.
All the Staff are Planners
The proposals about the product development are made not only by the planning department but also by each department. We have “Idea Proposal System”. All staff can get a small cash bonus for each proposal. Some ideas are not good, but they are also accepted as proposals.
Quality Guaranteed Raw Materials
All of our products are made in Japan.
Even the raw materials of most kitchen products such as food containers are supplied by the major chemical companies in Japan.
Recently we have started to use foreign origin raw materials. They are special and are not manufactured in Japan.
The safety of those materials are confirmed by not only Japan Hygienic Olefin And Styrene Plastics Association, but also U.S. Food and Drug Administration.
We do not rely only on low prices. We believe that keeping a good relationship with chemical companies and securing stable supply will reduce the production costs.