■Business description of Good Life ＜3796＞

2. Characteristics and strengths of the business model

The company's strengths can be broadly divided into 5 categories. The first is that they are developing vertical market-specific SaaS (vertical SaaS) specialized in specific industries. With this approach, it is possible to provide products that deeply respond to industry-specific needs. The second is a “SaaS-only” strategy, which makes it possible to concentrate on cloud-based services and provide efficient services to customers. Third, since we have adopted a multi-product strategy, we are able to provide a wide range of necessary systems in-house. The fourth point is that by focusing on rental management companies in particular, they provide services specific to the needs of specific segments, and various services are integrated onto a single SaaS platform, and seamless collaboration has been realized. Fifth, products developed in-house are supported by engineers and sales teams familiar with the real estate industry. Thus, understanding of actual industry problems is deepened, and solutions suitable for customers can be proposed. It is thought to be a major differentiating factor against other companies in the same industry that develop real estate tech, such as Japan Information Creation ＜4054＞, GA Technologies ＜3491＞, and SRE Holdings ＜2980＞.

Conventional systems in the real estate industry have seen situations where the effects of IT have not been sufficiently demonstrated, such as individual web advertisement media and systems being used independently and information linkage is performed manually. In particular, confirmation of vacancy information for rental properties required individual confirmation with the management company, which took time, and there was a problem that it was difficult to guarantee the accuracy of the information. In contrast to this, the company's cloud-based service is fully linked to the rental management system, and seamless information use is realized while updating property information in real time. Through this system, rental management companies and brokerage companies can immediately grasp vacancy status, improving the accuracy and convenience of information between traders. With this technology, disadvantages faced by consumers have also been drastically reduced, and the company's services have become a differentiating factor in the real estate industry.

3. Competitive advantage through positioning

The company's services are also characterized by positioning, and while developing vertical market-specific services specialized in the real estate area, it covers all business areas in real estate by adopting a multi-product strategy. Since each service is on the cloud, it has taken a unique position that high overall optimality can be provided to client companies through seamlessly linked services. Looking at this characteristic from the viewpoint of stable business performance, it can be said that the company's strength is that it has a profit structure that is relatively difficult to be affected even in a phase where the economy declines, since all various operations corresponding to real estate transaction forms are developed as business areas.

Not only is know-how accumulated within the company by providing services, but it is a system where it is possible to share that know-how with the entire company and dig deeper, and it is an environment where it is easy to develop new services. A cycle has also been established for client companies, leading to proposals for better services and improvements in quality. Furthermore, through feedback and requests from many user companies, various know-how is accumulated in-house, making it possible to make proposals with high added value, and it is also a differentiating factor from competitors.

4. market environment

While rapid progress in DX is expected in the real estate industry, digitalization efforts are required, particularly against the backdrop of the “2025 cliff” issue (from the “DX Report” announced by the Ministry of Economy, Trade and Industry in 2018). The company responds to market needs by utilizing digitalization promotion policies and developing new DX tools and providing consulting services, and while business growth is expected, economic and population declines are market risks, the company is responding to this through a multi-product strategy. Also, the real estate market is currently booming, and high interest from overseas investors is also a tailwind, making it an opportunity for the company to expand its business.

Additionally, it is predicted that the introduction of SaaS in the real estate market will continue to expand in the future. The introduction of SaaS in the real estate market provides remarkable advantages in the current situation where quick response to law revisions is required. As on-premise systems become obsolete, unlike these systems where responses to law revisions tend to be delayed, SaaS is automatically updated, so operation based on the latest laws and regulations is always possible. Also, there are approximately 0.13 million residential land and building traders in the community-based fragmented market, and while these small to medium businesses have restrictions on IT investment, SaaS, which can be introduced at low cost, brings great advantages. Furthermore, since SaaS can automatically respond to changes in essential master information due to municipal mergers, etc., the trouble of individual system updates can be eliminated. Since various stakeholders are involved in real estate transactions, data collaboration using SaaS leads to improved work efficiency. Additionally, as user companies have limited human resources necessary for system maintenance and operation, it is expected that demand for maintenance-free SaaS will further increase.

(Written by FISCO Visiting Analyst Hiroshi Nakayama)