Thanks & Service: Arigato Makes it Happen

To start, I’d like to talk about Japan’s retail and resale sector. Japan’s reuse market has grown into a dynamic space that blends traditional craftsmanship with modern technology. Consumers around the world are increasingly drawn to sustainable, high-quality products, and Japanese companies are responding through innovation and global expansion. How has your company evolved to meet these changing needs and expectations?

Our reuse business has two main pillars. One is our franchise operations with HARD OFF CORPORATION (HARD OFF) and BOOKOFF CORPRATION (BOOKOFF), and the other is deriverd from “Mottainai World”. As franchisees, we follow the strategic direction set by “HARD OFF” and “BOOKOFF”. Under our agreements, we cannot create independent strategies for the reuse business. However, we can build new ventures that extend naturally from our franchise activities—and that’s how “Mottainai World” was born.

Japan has become a very affluent country, perhaps too much so. Many people discard items that are still perfectly usable—is called the 'mottainai' phenomenon. In the reuse business, we see this clearly—goods that are still functional arrive at our stores. We sell most of them, but there are always some that, despite being in good condition, do not sell domestically. Those items we export overseas, where they find new life. We currently sell them through our own stores in Thailand and Cambodia.

What are your future plans for this overseas business?

Our next goal is to open around 200 HARD OFF stores. As franchisees, our main territories are Ehime Prefecture, Kyushu, and Okinawa—together representing about 10% of Japan’s population. HARD OFF’s  group goal is to reach 2,000 stores nationwide, so our target of 200 is proportionate and realistic. I can’t give an exact deadline yet, but it’s not far off.

Beyond Japan, how do you envision your business model developing internationally?

We plan to expand further in Thailand and Cambodia, where we already operate. Currently, we mainly sell secondhand goods exported from Japan, but as one option we’re also considering sourcing used clothing and other items from the U.S. and Europe. In the future, our stores will be places where Japanese and international secondhand products coexist.

MOTTAINAI WORLD Co., Ltd. (Cambodia) 5th store Tep Phan store

Japanese secondhand goods are widely considered to be of higher quality. Are you concerned that expanding your sourcing network might affect that reputation?

I believe the reuse industry is entering a new era, one defined by AI-based appraisal systems. High-value items like watches and luxury handbags will increasingly be assessed by AI, and large corporations with substantial capital will dominate that segment—both in Japan and globally. We don’t intend to compete there. Our strength lies in categories that AI can’t easily quantify—used clothing, furniture, and everyday items that may not be designer goods but hold genuine value. We want to capture global market share in those human-centered categories.

We’re now forming relationships with suppliers. These are key points in the global flow of used clothing, and understanding those networks will help us build sustainable partnerships. We are at the stage of carefully considering where to source from and which relationships to build. Also, as living standards rise in Southeast Asia, our next logical frontier could be Africa or India.

You’ve mentioned partnerships several times. What kinds of partners are you looking for internationally—both for sourcing and for expansion?

Whether it’s sourcing or sales, trust is the foundation. In business, success and difficulty come in cycles. We don’t want relationships that exist only when times are good. We look for partners who share our values, who stand together through challenges as well as success. That’s the kind of long-term, trust-based partnership we value most.

As you expand globally, which countries do you currently see as offering the greatest potential for your business?

Thailand and Cambodia remain our main focus for now. Southeast Asia is an exciting market—there’s a strong appetite there for Japanese products—but in some countries, the import of used goods is restricted by law. Because we’re a listed company of Japan, we must of course comply strictly with local regulations. Some countries, however, have relatively few such restrictions, which is why I plan to visit soon for research. We’re also studying possibilities in Sri Lanka, Georgia, France, and several African countries. But before making any commitments, we must carefully examine each country’s import laws for used goods.

NATURE HOTEL NARUKAWA cottage soaking in an open-air bath flowing hot spring water, find a special place to reconnect with youself in silence of nature.

You’ve touched on the growing use of recycled materials and traceability initiatives. I understand you’re collaborating with JEPLAN to establish a traceable textile supply chain that launched in Cambodia in 2024 and will expand to Thailand in 2025. Could you explain the significance of this project?

Yes. In addition to the HARD OFF network, we’re now receiving products through JEPLAN’s channels. These are typically higher-quality items, so they’ll likely enhance our reputation in Thailand and Cambodia. However, many other companies are also trying to access the same supply sources, so it’s uncertain how much inventory we’ll receive through those routes. That’s why we’re also approaching suppliers from other countires, such as the United States to establish an alternative international pipeline.

As you continue to grow internationally, how do you select partners such as JEPLAN, and what qualities do you value in those collaborations?

Whether we’re sourcing or selling, the common denominator is trust. In business, things go well sometimes and poorly at other times. We don’t want relationships that exist only when things are going smoothly. We value partners who stay committed through both success and struggle—those with whom we can build true mutual trust.

You mentioned Africa and India earlier as potential new markets. Among all these countries, where do you see the greatest opportunity in the next few years?

Our current focus remains Southeast Asia—Thailand, Cambodia, and possibly Malaysia. After that, Africa and India are potential frontiers. Some countries in Southeast Asia have strong demand but strict import laws for used goods, so, at this point in time,  it’s not feasible for us. Every market is different. Some allow used imports; others don’t. That’s why we study regulations carefully before making any moves.

Looking at Japan’s domestic outlook—by 2040 the labor force is expected to shrink by 12%, and the population may decline by 30% by 2060. How will your company adapt to Japan’s aging population and changing consumer behavior?

There are two ways to look at this. First, while Japan’s population is declining, the world’s population continues to grow. So even if the domestic market shrinks, the global market is expanding. Second, our core businesses—food, reuse, and wellness—address fundamental human needs. People will always need to eat, and humanity must learn to reuse resources wisely. These are universal and timeless needs, and our business is built around them.

Our onsen and wellness businesses also meet an important need: rest and rejuvenation. Many people are exhausted. I believe there’s a growing desire to slow down, reconnect with nature, and find peace of mind. I live in the countryside myself. It’s not urban or flashy, but it’s rich in natural beauty. On a clear night with a full moon, soaking in a natural hot spring under the stars—that’s something money can’t buy. I think more people are starting to appreciate that kind of experience. Additionally, I feel that this kind of "living in harmony with nature" is gaining increasing attention.

Japan is experiencing a tourism boom—nearly 37 million visitors last year, and the government is targeting 60 million by 2030. What role can regional destinations play in that growth, and what places would you personally recommend?

There’s a small town in southern Ehime called “Kihoku”, written with the characters for “demon” and “north”. We operate a hotel there called the “Nature Hotel NARUKAWA”. It’s surrounded by untouched forests, clear rivers, and star-filled skies. There’s nothing artificial about it—just peace and nature. A special place that heals you from the heart.I truly believe it’s one of Japan’s most beautiful hidden places.

Tsumugi offer sweets that combine high-quality chocolate with ingredients sourced from Ehime.

What kind of experience can guests expect there?

It’s a place to reconnect with yourself. Guests can spend time in silence, reflect, and rediscover what really matters. It’s not about luxury—it’s about simplicity and self-awareness.

That deeply connects with your company’s philosophy of gratitude, learning, and giving back. Could you elaborate on how these values guide your business decisions and long-term goals?

For me, regional revitalization means creating communities where people truly want to live. It’s not about building things for the sake of it—it’s about relationships. Here’s an example: imagine you’re invited to two picnics. One is hosted by someone you don’t like with luxury food, and the other by someone you love with simple sandwiches. Which one will you choose? Even if the sandwiches aren’t perfect, you’d choose the second one. That’s how I think about our company. Before asking what we make or sell, we ask who we are. We want to be company others naturally want to spend time with and work alongside.

Let’s talk about your company’s journey. ARIGATOU SERVICES was founded in 2000 and listed in 2012. What’s the next stage of your growth—expanding existing businesses or exploring new fields?

The most important thing is cultivating people—developing employees with a strong sense of purpose, flexibility, and a sense of gratitude. I don’t believe in rigid five- or ten-year plans. Everything significant in our company’s history has come through human connection—through meeting people. So instead of chasing big projections, I focus on nurturing people and building an environment where ideas and opportunities can naturally take shape.

The soccer family in Imabari, who have been coaching youth football for many years, celebrate the completion of the stadium.

Earlier you mentioned food as a possible new direction. Do you plan to develop food-related businesses abroad?

Not at the moment, but we’re open to it. It could be Japanese sake, regional sweets, something that showcases the Setouchi area’s unique flavor. If the opportunity arises, I’d love to introduce our local food culture in domestic and international regions.

You’ve also had a long relationship with FC Imabari. You were instrumental in supporting the team and building soccer stadium in 2017. Could you tell us how that partnership began and what it has meant to you personally?

That story goes back to my relationship with Mr. Takeshi Okada, who’s one year my junior from university. Japan team had a disappointing exit from the 2014 World Cup in Brazil, we were both there watching the matches. Mr. Okada was deeply frustrated. After that, he said he wanted to take on a new challenge—to bring FC Imabari from the lower divisions up to J1 within ten years. At that time, I was already running a listed company, but his passion moved me. Imabari is a small town, and having someone of his stature take on a dream project there meant a lot, not just for Imabari but for regional Japan as a whole. Initially, I held 100% of the club’s shares, but I transferred 51% of the club’s shares to him so he could assume full responsibility. We started with the hope that ARIGATOU SERVICES would support the team up to the J3 level, after which larger local corporations would also participate. It was never about business. It was about trust, community, and creating something that inspires people.

Finally, if we were to meet again five years from now, what kind of leader would you like to be, and what do you envision for ARIGATOU SERVICES?

I hope that five years from now, I’ll be someone who loves humanity and our planet even more deeply. That’s the kind of leader I aspire to be—and the kind of company I want ARIGATOU SERVICES to remain.

For more information, visit their website at: https://arigatou-s.com/