[Sumasapo <9342>] Renowned investor DAIBOUCHOU is expanding the questions with President Oda! Continuation of Vol.2

●DAIBOUCHOU

Next, what kind of synergy effects exist between "Thank You Call" and "totono".

■Oda

Until now, when trying to increase sales with Thank You Call, it inevitably leaned towards increasing the number of commodities, which made the call time with one tenant longer and required tenants to allocate their time. By collaborating with our "totono", it is possible to first guide the tenant through applications and then provide services via phone, or conversely, explain via phone first and have them sign contracts on the app; both are feasible. In this way, the number of sales commodities is continuously increasing.

●DAIBOUCHOU

I see. It's challenging to convey addresses or phone numbers only through a call. So, it's possible to do that via an app, or conversely, to receive support and explanations over the phone.

■Oda

For some commodities, it is easier to watch a video rather than relying solely on words to convey the information.

●DAIBOUCHOU

There are times when it's more convenient to use the phone and times when the app is more convenient. This allows us to respond according to the customer's needs and the specifics of the situation.

■Oda

That's right.

●DAIBOUCHOU

Understood. Thank you. I think there are still many management companies that have not implemented 'totono' even though companies that have introduced the 'thank you call' service exist. Could you please explain the circumstances under which 'totono' has not been adopted? It would be helpful to know about the necessity or if other companies' tenant apps are already in place.

■Oda

"Thank you call" is a very light service. Property service companies incur no costs when introducing it; they just need to facilitate the customer referral, and we will properly conduct the "Thank you call" so that the property service can earn revenue, making it a service with a very low barrier. In a sense, this is a service that could see entries from other companies, making it a so-called red ocean service where competitors exist.

On the other hand, "totono" is a service that transforms communication with existing residents from analog to digital. Existing property service companies have databases. The question of how to integrate or download with this database system may lead to significant changes in the traditional operational scheme. There may be specialized teams or dedicated personnel handling resident interactions, and with the introduction of "totono," the things that were previously easily resolved over the phone will now incorporate the digital aspect of "totono," so the decision-making hurdle for changing operations is indeed high.

The know-how and effort involved in these areas are where we have accumulated and can provide as our greatest strength, making this a barrier to entry that is difficult for other companies to breach. By combining this blue ocean and red ocean, we are able to offer services that cannot be provided by anyone else, and we expect to see a rapid increase in our offerings moving forward.

●DAIBOUCHOU

I see. Indeed, since "Thank you call" occurs before the resident has moved in, it acts as an ancillary service for property service companies. After the resident moves in, the main activities of the property service company are already in operation, and various databases and systems are established. Therefore, introducing "totono" requires significant changes to the operational format. This incurs costs, and running both will double the costs. Such factors become the hurdle for implementation. However, once implemented, it seems that it is quite hard to stop using it.

■Oda

Once operations are fully on track, our service is one that can definitely recover costs and contribute to profits overall. The more residents use the service, the more the property service company's operational costs will decrease, but actually taking that first step to get started is indeed quite challenging.

●DAIBOUCHOU

It seems that there is a bit of an initial cost. Even if it is said that future cost reductions can recover the initial investment, the initial cost becomes a hurdle for management companies.

■Oda

That's right.

●DAIBOUCHOU

I understand. In addition, I think that major companies can develop their own "thank you calls" and tenant apps, but what are the reasons for using your company instead of managing them in-house?

■Oda

As you mentioned, large companies tend to have their own development resources and costs, and they actually value their brand. However, the teams that directly face tenants, regardless of whether they are large or small, experience high stress in communication with tenants. Besides, there are frequent cases where troubles arise, and with the declining birthrate and aging population, most of the 10,000 property service companies do not have abundant human resources and are struggling to hire. Instead of utilizing the hired personnel for high-stress tenant responses, if there were something like an owner support team that deals with owners, they could visit owners and offer asset restructuring or renovation proposals, leading to better work.

In particular, how to renovate old rooms to please tenants and raise rent is one of the many tasks of management companies, and tenant response is one of them. This tends to become a cost center, and the stress is inevitably high, making it a task that management companies of any size want to outsource. We believe that regarding tenants, everything should be entrusted to us triggered by "totono," and this will remain a highly valued service regardless of scale in the future.

●DAIBOUCHOU

When dealing directly with tenants, it would be very appreciated if your company could mediate, from the perspective of a property service company.

■Oda

Yes, I think tenants are often frustrated when issues arise.

●DAIBOUCHOU

Yes, they are often angry.

■Oda

That's right. It's a matter of how to digitalize those situations where we have to apologize over the phone or when we can't connect through our contact, and I think this will be an important challenge moving forward.

●DAIBOUCHOU

Understood. In that sense, if digitalization leads to communication with tenants through an app, and if it can be quickly coordinated with construction companies, it would make tenants happy, and it would also reduce stress for the property service.

■Oda

Yes.

●DAIBOUCHOU

Understood. Thank you. I believe there are competitors who provide similar services, but I would like to know the advantages of your service. Additionally, if possible, please share information about your market share and evaluation within the industry.

■Oda

Thank you. There are many services from companies referred to as property tech. However, there are not many applications similar to our 'totono'. Our company is staffed by management with experience in property service operations, so we are keenly aware of the pain points for property service companies, including ways to make the work interesting for them or how to become more profitable, etc. The service we offer was born from this understanding, and since we have members who know the field well, I believe our service is fundamentally different from those created by typical service companies or system companies.

● DAIBOUCHOU

Rather than being created by a system company, it feels like it was made by executives with experience in field property service, making it easier to use for management companies.

■ Oda

That's right. I believe the number of management companies that have implemented this and its market share are probably the highest.

● DAIBOUCHOU

In fact, while there are many companies, I think there is a commonality in what they are doing, so in that sense, the system feels like it can be standardized.

■ Oda

That's right. As you said, for example, even taking the issue of water leaks, whether it's a leak that occurred in Sapporo, Tokyo, or Osaka, the response afterward is almost the same. There isn't anything unique to a particular location, and if that’s the case, our company can take care of everything with 'totono,' and we are currently implementing the subsequent process with our operation BPO, so that will come to fruition.

●DAIBOUCHOU

So, it means that it can handle a certain degree of customization with standard functions without needing too much customization for each company.

■Oda

Yes. Our company is a completely packaged application, and we do not undertake customized development for individual companies. However, even so, the largest management company we have implemented for manages 90,000 units, while the smallest manages around 50 units, and the same application operates across both.

●DAIBOUCHOU

So, everything is fine then.

■Oda

It's fine.

[Suma Support] Famous investor DAIBOUCHOU questions CEO Oda! Continuing from Vol. 4.