In this interview, learn how KeePer Technical Laboratory specializes in advanced automotive surface protection, innovative car coatings, and premium auto detailing services.
In 2024, the push toward EV adoption accelerated, with global sales rising 25%, driven primarily by China and steady growth in the EU. At the same time, car maintenance costs increased by 6.5%, leading vehicle owners to seek solutions that reduce long-term repair expenses. Your company is at the forefront of this shift, offering advanced coating solutions that provide lasting protection while enhancing aesthetics—delivering a showroom-quality finish that meets modern consumer expectations. How is the growing demand for solutions that preserve both vehicle value and appearance shaping the automotive aftermarket industry?
In Japan, the maintenance cycle for EVs has significantly shortened. While car owners remain willing to spend on upkeep, the challenge lies in deciding where to allocate those expenses. As a result, more EV owners are prioritizing aesthetics, driving growth in this segment. Given our company’s specialization in this field, we are seeing expanding opportunities.
As you know, vehicle lifespans are increasing—not only due to advancements in performance but also as part of broader sustainability goals. Japanese consumers, in particular, value preserving their possessions and using them for extended periods.
Our services are unique in Japan. While body coatings are commonly applied to new cars, most owners rely solely on regular washing afterward. KeePer fills this gap by offering solutions not just for new vehicles but also for used cars. Demand for our services is growing, supported by our network of 15,000 trained professionals and 18 training centers across Japan. Maintaining a car’s aesthetics can be challenging for owners, which is why domestic demand for our expertise continues to rise.
You mentioned your washing services, which are unique to your company. Could you elaborate on the details of this service and highlight some of the other key services you offer?
Coatings are one of our core offerings, and we provide a full range of services tailored to our customers' needs.
Our coating services, for example, are typically applied every three to six years, with maintenance treatments scheduled every one to two years. Our washing service is performed entirely by hand, with pricing ranging from JPY 3,000 to JPY 10,000, depending on the level of care and detail required.
Beyond body coatings, we also offer services for wheels and windows, providing comprehensive protection and enhancement. I like to think of it as a beauty salon for cars—where customers can choose one, two, or multiple services from our menu based on their specific needs and preferences.
Earlier, you mentioned a growing demand for your services, which contrasts with the challenges many companies face in Japan’s shrinking domestic market. You also noted that you train 20,000 technicians annually across 21 training centers. One of the major challenges in Japan’s automotive industry is the intense competition for skilled technicians. How are you addressing the challenge of attracting and securing more trainees? Are you considering bringing in foreign talent for training in Japan as part of your strategy?
While Japan faces a labor shortage, we have found that many young people are still eager to pursue this career, so securing talent has not been a challenge for us. When trainees learn KeePer’s technology and provide services to customers, they often experience a deep sense of satisfaction—far greater than they initially expected.
I believe the pursuit of happy customers is something deeply valued in Japanese culture. There is a strong appreciation for praise and recognition, yet finding a career that consistently offers this kind of fulfillment can be difficult. At KeePer, our work naturally provides that opportunity, which is why we continue to attract motivated trainees.
KeePer is committed to providing a premium, fully hand-performed service. What led you to adopt this high-end business model, and why do you believe it is the right approach for your company?
We are open to incorporating machines, but it remains a challenge because customer satisfaction tends to be lower compared to our hand-washed service. As I mentioned earlier with the beauty salon analogy, when customers bring their cars to us, they expect a salon-level experience—personalized, meticulous, and handled with care. This level of service is something machines simply cannot replicate, which is why we remain committed to our hands-on, premium approach.
Recent statistics show that the average age of vehicles is increasing. In 1988, the average vehicle age was 5.5 years, but by 2025, it has risen to over nine years. This trend presents challenges in achieving carbon neutrality and maintaining SDG commitments. Your company helps address this issue by extending vehicle lifespans through innovative coatings that incorporate biodegradable surfactants, as well as offering a waterless car wash. How do biodegradable surfactants contribute to the challenge of achieving carbon neutrality?
Simply put, manufacturing a car has an environmental impact. By extending a vehicle’s lifespan and keeping it in good condition for longer, we contribute to achieving SDG goals.
Coating also plays a crucial role. When a coated car is exposed to rain, the water naturally helps clean the surface, reducing the need for traditional car washes that consume tap water, shampoo, and labor—each carrying its own environmental costs. Since rain is a natural resource, leveraging it as a cleaning method benefits both vehicle longevity and sustainability.
A 2019 study found that Americans wash their cars an average of 12 to 13 times per year, consuming approximately 1,800 liters of water per vehicle annually. Acknowledging the environmental impact of traditional car washing, last year you launched your first B2C venture in Singapore, centered around the Dry Car Wash—a waterless car cleaning solution. What are the key advantages of the Dry Car Wash, and how does it compare to traditional methods in terms of effectiveness and sustainability?
We pursued the Dry Car Wash because many locations in Singapore have restrictions on outdoor water use. Ideally, we would prefer to use water in Japan, but given Singapore’s regulations, we developed the Dry Car Wash as a market-specific solution.
We established our Singapore subsidiary in February 2024 and opened our first store in August. However, in the first six months, sales have not met expectations. At this stage, we need to assess whether the challenge lies in the service itself, pricing, or a lack of market awareness. Identifying these factors will be key to refining our approach and ensuring the success of the Dry Car Wash in Singapore.
What are the key differences between a Dry Car Wash and a traditional car wash?
The fundamental difference lies in the wiping process. We use specially formulated chemicals combined with unique materials designed specifically for this purpose. These elements ensure that the Dry Car Wash effectively cleans the vehicle without water while preserving the car’s finish and preventing scratches.
Your business is built on two key pillars. The first is KeePer LABO, which provides premium beautification services, including coating and hand-washing. The second is KeePer Products, which operates similarly to a franchise model, supplying chemicals, tools, training, and a network of 6,600 PRO SHOPs—contributing to roughly 30% of your total sales. Looking ahead, which of these areas do you see as the primary driver of your company’s future growth? Do you plan to expand one pillar more aggressively than the other?
We are focused on expanding KeePer LABO. Currently, we operate 127 direct shops and 15 franchises, but our goal is to scale up to targeting 250 direct shops and 250 franchises. By growing KeePer LABO, we will expand our direct B2C business while simultaneously driving growth through the franchise model by supplying materials and technology to these locations.
On the B2B side, KeePer PRO SHOPs play a crucial role in our business model. These shops utilize our proprietary technology and products, operating under a membership system that allows businesses to make purchases. Gas stations are the primary operators of these franchise-run shops. Last year, we successfully onboarded more than 50 new companies to operate these franchises, further strengthening our B2B presence.
Is KeePer LABO exclusively focused on the domestic market, or are you open to partnerships with overseas companies looking to bring your business model to international markets?
Currently, KeePer LABO operates exclusively in Japan. Our goal is to expand to approximately 1,000 locations over the next ten years, maintaining a 50/50 split between direct shops and franchises. For now, our primary focus remains on domestic growth.
Do you see potential for growth overseas, and are you considering expansion into other regions or countries?
Since opening in Singapore, we have received inquiries from five companies interested in franchising, with interest coming from both Singapore and Malaysia. However, we have not yet made a decision on these opportunities.
As a Japanese company specializing in automotive services, how has your reception been in markets outside Japan? Do you see Japan’s strong automotive industry heritage as a competitive advantage that sets you apart from local service providers?
We chose Singapore as the base for our Southeast Asian operations due to its central location. From this strategic hub, we see strong potential for KeePer to grow and expand across the region.
What sets KeePer apart from local service providers in Malaysia and Singapore? What unique advantages or differentiators does your company offer that local competitors may not?
At its core, automotive beautification is about polishing and protecting a vehicle’s surface. Traditional coating methods achieve this by grinding the surface to create a smooth finish. However, at KeePer, we take a different approach—we don’t grind; we fill. This method requires advanced technology and comes at a higher cost, but it delivers superior results without compromising the integrity of the vehicle’s surface.
Even in Singapore, where costs are generally lower than in Japan, we maintain the same high-quality standards. Our technology and expertise ensure that we stand apart from local service providers.
During our research, we compared your coating process with vehicle vinyl wrapping. Vinyl wraps provide both customization and a protective layer, making them an appealing choice for car owners who prioritize aesthetics over long-term protection. Why should car owners choose KeePer coatings over vinyl wrapping? What advantages does your technology offer that make it a superior option?
In Japan, vinyl wrapping is not considered a competitor to KeePer. However, in overseas markets where wrapping is more popular, I do see it as competition. In some regions, such as China, KeePer may not perform as well against vinyl wrapping. In Southeast Asia, we observe a split market—some customers prefer wrapping, while others choose KeePer.
One key difference is that vinyl wrapping involves applying a film to the vehicle’s surface. Over time, dirt and debris can accumulate along the edges of the film, affecting both its appearance and longevity. KeePer coatings, on the other hand, do not have this issue and provide long-lasting protection, which is why more car owners are opting for our coatings over film wrapping.
Another major distinction is that vinyl wrapping does not contribute to keeping the car clean, whereas KeePer coatings actively repel water and dirt, helping maintain the vehicle’s cleanliness and safety for a much longer period. While the two options may seem similar, the underlying approach is entirely different—KeePer focuses on both beautification and long-term vehicle protection.
During our research, we discovered that KeePer’s coating technology extends beyond automobiles, including Sign KeePer—an advanced coating with self-cleaning properties designed to preserve signboards. Can you explain the chemistry behind Sign KeePer and how it achieves its self-cleaning effects? What makes this coating effective in maintaining the cleanliness and longevity of signboards?
Sign KeePer has not been selling well, and I’m unsure whether there is a strong market for it. When it comes to signboards, the prevailing mindset seems to be that they should be replaced once they become old or worn, rather than maintained for long-term use.
Is there a segment beyond cars that you could see yourselves expanding into?
One area we want to explore is expanding our coatings into homes, specifically for bathtubs and sinks. In Japan, our vehicle-focused branding is My Car, and for this new venture, we plan to introduce My Home. We see significant opportunities in this sector, as our coatings can enhance cleanliness, durability, and ease of maintenance for home surfaces—just as they do for automobiles.
Your company has established partnerships with Toyota, Honda, and Mazda, including the launch of co-branded coatings for Honda vehicles, alongside many other collaborations. Looking ahead, what is your strategy for business expansion both domestically and globally? Are you seeking additional partnerships, particularly in overseas markets?
Many manufacturers are interested in collaborating with us, and I believe this interest will continue to grow. To support our international expansion, we have established partnerships with select Japanese brands to help facilitate that transition.
Are you actively seeking partnerships with overseas companies?
At this stage, we can’t say definitively yes or no, as we are still evaluating our approach. Ideally, we are looking for overseas partners with experience in B2B services, such as local car wash operators or detailers.
Is there a need to specialize your products to cater to local overseas markets?
Our approach is primarily to introduce products from Japan, but we recognize the need to tailor our services to the specific needs of each market.
If we were to interview you again in ten years, what goals or aspirations would you hope to have achieved by then?
While we partner with major automakers like Toyota and Honda, they use our products and services but not our branding. Over the next 10 years, I hope to expand the number of KeePer franchises and PRO SHOPs in Southeast Asia to 1,000 or even 2,000.
For more information, please visit their website at: https://keepergiken.co.jp/en
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