Media, Network & Lifestyle Retail - Topics
Sumitomo Corporation entered the cable television business during the 1980s, noting the growth of the business at that time. In 1995, Sumitomo Corporation established Jupiter Telecommunications Co., Ltd. (J:COM), a cable television Multiple System Operator. Since then, Sumitomo has expanded the breadth and depth of its broadcast businesses, conducting aggressive M&A and opening new stations. As a result of these activities, J:COM has grown to include 21 companies and 41 stations (2.73 million total household subscribers) as of September 30, 2007, becoming the largest cable television company in Japan at a 35% share of the market. J:COM has also expanded into the high-speed Internet, fixed line telephone and mobile telephone segments, offering high-quality services in these multiple areas, as well as unique services tied closely to the local community, creating a competitive advantage over the competition.
Sumitomo Corporation entered the multi-channel programming distribution business at about the same time we entered the CATV business. In 1996, Sumitomo Corporation established Jupiter Programming Co., Ltd. (changed to Jupiter TV Co., Ltd. ("JTV") in 2006), a Multi-Channel Operator. The company expanded movies, sports, documentaries, animation, and television shopping programming, providing content to satellite broadcasting companies and cable television companies including Jupiter Telecommunications Co., Ltd.(J:COM). The company has grown into the largest multi-channel operator in Japan, owning 17 channels. The company continues to aggressively pursue expansion into other business fields, including the first video on demand business in Japan for CATV and providing programming for Internet broadcasters.
Sumitomo Corporation introduced a major reorganization of the Jupiter Telecom (J:COM) and Jupiter TV (JTV) businesses in May 2007. The goal of this reorganization was to create programming distribution that is more attractive to viewers, establish a stronger foundation for the CATV and programming distribution businesses, and maximize profits. In July 2007, the Jupiter Shop Channel Co., ltd. was spun out from JTV, while other programming distribution businesses were merged/ integrated into J:COM in September.
Over the last few years, television shopping has become very popular in Japan. Sumitomo Corporation's Jupiter Shop Channel Co., Ltd. (JSC) has continued to grow dramatically, offering live 24/7/365 broadcasts selling valuable, quality products to general consumers. JSC has also become the focus of much attention both from within and without the market. Sales for 2006 reached 100 billion yen, winning the number one spot in the television shopping market with a 30% share. In July 2007, JSC was brought in as a consolidated subsidiary in order to offer more attractive products and services, and to further maximize profitability through integration with Sumitomo's retail and Web businesses.
Soukai Drug Co., Ltd., of which Sumitomo Corporation holds 93.8% of equity shares, is an Internet sales company that provides general everyday merchandise, health food items, and over-the-counter drugs. In October 2004, Sumitomo Corporation invested in the company and provided its expertise in e-Commerce business, allowing the site to increase the number of products it offers. Soukai Drug has continued its trend of steady growth.
In January 2009, Soukai Drug's mobile website was certified as NTT DOCOMO's official i-mode site. In March 2009, the company moved and expanded its logistics warehouse, strengthening its foundation as a central figure in the Sumitomo Corporation's Internet business initiative. Soukai Drug aims for further growth in the future.
Sumitomo Corporation has been responsible for the development of several different brands, including "Barneys," a specialty store handling high-end fashion items, as well as the German "FEILER" brand, dealing in luxury fabric. Sumitomo acquired the "NARA CAMICIE," a luxury women's shirt brand in September 2007. Sumitomo believes in the power that the brand has nurtured over the years, and that the brand will benefit from group synergies that will lead to a steady increase in the value of the business. In all, Sumitomo Corporation expects to continue to select and/ or pioneer a total of 10 fashion brands.
