Have you heard of Matsukan Kogyo Co., Ltd., a long-established kendo manufacturer founded 111 years ago? This manufacturer developed the hit "Kammuri" series of protective gear bags. In addition to kendo, judo, and arrest techniques, the company is also known for manufacturing baseballs. In this interview, we bring you stories about how they started producing baseballs, their ability to generate new ideas, and the management theories of their current representative, all of which go beyond kendo. (April 2017) profile Matsukan Kogyo Co., Ltd. President and CEO Shingo Ando Born in 1974. After graduating from university, he studied in the United States for two years before joining ASICS Corporation, where he was involved in shoe planning, development, and marketing. In 2003, he joined Matsukan Kogyo, becoming its president and representative director in 2009. A kendo manufacturer producing baseballs? -First of all...in addition to kendo, your company also makes baseballs, right? President Shingo Ando Ando: " That's right (laughs). Most people don't associate kendo with baseball. Our company was founded in 1907, so it has a very long history, and this year marks its 111th anniversary. We've been in business since before the war, and it was during that time that we became involved with baseball. Our company's hardballs are called "pineballs," which comes from the English word for pine." A retro baseball box that follows the design of the time. After the war, he started a baseball business to protect his craftsmen. Craftsman making baseballs Ando: " After the Second World War, Japan was declared a defeated nation. At that time, martial arts were banned under orders from GHQ. We thought that if things continued as they were, our company's craftsmen would be left out in the cold, so we decided to make baseball equipment to prevent that from happening." —So you started this to protect the artisans. Ando : "That's right. Back then, leather wasn't readily available. Our company became a government-certified manufacturer and began making gloves and baseballs. Even now, we hold a 70-80% share of the Kanto region's high school baseball market." -People who practice kendo are surprised because they don't imagine your company making baseballs. Are you currently only making baseballs? Ando : Yes. In fact, we were once the exclusive distributor for Nike in the Kanto region. This was before Nike Japan was even available in Japan. We also produced gloves and cleats. About 20 years ago, we narrowed our focus to just balls. M&A that shocked the kendo world Ando : "Matsukan Kogyo was in a very bad financial situation during the third generation of the company. It was a time when the company was a distributor for Nike, and they lost out to selling a lot of products at low profit margins. My father was friends with the previous president, and he and I personally bought Matsukan Kogyo. It was a friendly M&A that kept the name." —M&A has become commonplace now, but was there a lot of criticism at the time? Ando : "At the time, the term M&A had just started to appear in the market, so it was a shock in the kendo world, and there was a lot of talk about it (laughs). I was originally working for Asics. At the time, I felt that distribution was undergoing major changes. Manufacturer-owned stores were very unpopular in the industry..." The three main reasons why a kendo manufacturer has its own directly managed store Directly managed store located within Kazo Head Office -Your company also has three directly managed stores. When you opened the stores, did you receive any feedback from retailers? Ando : "There are other martial arts equipment stores in Saitama Prefecture, but I thought that in order to do business comfortably in the local area, I needed to be well-received locally, so I quickly opened a store. However, at the time, I made it clear that the directly managed store would only be in Saitama Prefecture, and that I would not be selling online. I received their approval, and I have been doing business ever since." —I think there are many manufacturers that don't have their own directly managed stores, but are there any benefits to having a directly managed store? Ando : "There are three main reasons why we run our own stores. First, as a manufacturer, we have to release new products every year. To do this, some products have to be discontinued. If we rely solely on retail stores as our sales channel, it would be difficult to determine which products to discontinue. By communicating directly with customers, we can quickly grasp their needs." -It's important to decide what not to do. Ando : The second point is to disseminate information. It's like an antenna shop or flagship store. The last point is to collect information. When you're in the wholesale business, information can only come in through the filter of retailers. And they don't necessarily sell what we want them to sell. This creates bias in the information we receive. That's why we wanted to create a place where we could hear the opinions of our users directly." —Have you gained any benefits from absorbing information directly from users? Ando : "I feel like we're two or three steps ahead of other manufacturers. We've built up our business over 10 or 15 years, and now we have what we are today. There are various management styles, such as direct factory connections or brokerages, but I think the reason we've been able to keep our feet on the ground is because all of our employees have a strong awareness of the importance of understanding user needs." I want to utilize the talent I have now without laying off employees. Ando : "In terms of salespeople, most kendo manufacturers have two or three. We have 15. Rather than just a few people traveling around the country, we have three or four times as many salespeople in charge of our clients." -That's a lot. Ando : "I hear directly from prefectural police and interact with the special training personnel. This is how it was set up even before I joined the company, so naturally there are personnel costs. There are expenses as well. In that situation, how can we continue without laying off employees? How can we make the most of this system? Those were the first things I thought about." -So you were always thinking about making use of it. Ando : "When I joined Shokan, the average age of employees was around 52. I never thought about making people quit because I joined. I thought about how we could get people to work until retirement. Shokan is nothing. I kept thinking about what it means to be Shokan." Rather than focusing on low profits and high volume, come up with ideas and establish a unique line Ando : "To achieve this, we decided to create our own unique line as a manufacturer. We particularly focused on building relationships with police officers. We provided them with products, received feedback, and continued to make better and better products. I don't think there are many manufacturers that have dealings with top players in each prefectural police force." -The quickest way to create your own unique style is to ask top players. Ando : "Rather than buying cheap and selling cheap, we wanted to make the most of the Matsukan brand image. We wanted to maintain the image of high quality, but not cheap, while also shifting to a more user-friendly and unique product, and that's how we created our own unique brand. Over the past 10 years, I feel that recognition of Matsukan has increased among young people through Kanmuri, Katsujin, and Sen." The Sen series is a favorite among famous athletes Each salesperson is an idea man —The strengths of Matsukan's products are clearly evident. Ando : "I always say that each and every salesperson should become an idea person. Over the past 15 years, we have also made our employees younger. Currently, the average age is under 40. We have decided to do business on a broad scale, rather than on a point-by-point basis. We are creating series such as "Kamukura," "Sen," and "Katsujin," and are going to create and target each segment (group of customers). We are going to create fans for each series. For example, the "Kamukura" series is a concept that focuses on materials and targets the top segment. The "Katsujin" series was born from the desire to dispel the image of kendo as it gets closer to summer." Ando: "With Sen, we're not pushing the name 'Matsukan'. Some people say it's easier to sell if it doesn't have the Matsukan name attached..." -It's also important to respect retailers. Ando: "We can't see all users. To get as many users as possible to use the service, we need to get the help of stores across the country." Inspection work for shipping to retail stores Ando : "I wanted to make products that were affordable at wholesale prices and that users could easily afford. That's how the Sen series was born. It's not very well known yet, but one-third of the players competing in the All Japan Championships use it." -That's amazing. Ando : "There are many manufacturers that simply offer cheap products, so I want to continue developing products that will please those who actually use them." Quality is guaranteed by local and Japanese craftsmen Scenery of the workshop —Are your products made both in Japan and overseas? Ando : "That's right. In addition to our five in-house craftsmen, we also have a factory in Vietnam. We have one Japanese employee stationed there as a resident. This does incur some expenses. In return, we can deliver custom-made and original products with short lead times and minimal mistakes. In addition, when it comes to inspection, the items inspected at the Vietnam factory are then re-inspected by craftsmen in Japan, so we have a sense of stability in quality." Inspection. The light entering the room is also taken into consideration. Ando : "The cost is higher because it takes so much effort, but I think it's a necessary cost to earn the trust of our customers." -So to gain trust, you need to make a certain amount of investment. Ando : "It takes many years to build trust. Being able to respond instantly when a problem occurs is vital. Bad rumors spread quickly, but good rumors are slow to spread. That's why I think it's important to build up as much good rumors as possible." The secret to creating hit products -I understand that your sales team interviews police officers when developing products, but do you actually practice kendo? Ando : "Not many. Some join the company because they love baseball, and some don't do either kendo or baseball. Matsukan also sells gym clothes for classes at nearby schools. Our three main pillars are selling martial arts, baseballs, and school supplies. So, compared to manufacturers that only sell martial arts products, we may have a slightly broader perspective." -What realizations have you gained from manufacturing products other than martial arts equipment? Ando : "For example, we released our 'Kammuri' backpack-style protective gear bag last year. It's been a bigger hit this year than it was last year. I noticed something about three years ago at the Koshien Summer Tournament: the bags used by baseball players were starting to change from shoulder bags to backpacks. About half of the participating schools were using backpacks. I thought this might be popular in the martial arts world, so I made a backpack specifically for kendo." Armor bag from the hugely popular "Kanmuri" series. The first place you make is strong Ando : "This may be true for many industries, but the first to create something is the strongest. When something good and sellable is created, it will be quickly copied, but even so, the first to create something is always the strongest. As you make something, you will find more and more areas for improvement, so you make minor changes each time. If you make something and sell it, you can make more and more changes. For example, you can fix parts that break easily right away. If you try to copy something later, you will fall behind. That's why you have to work quickly. It's a race against time." -Your company's strength is its ability to quickly create something from nothing. What's more, your broad perspective allows you to come up with a variety of ideas. A product is born from casual conversation —Do all the sales staff get together to hold product development meetings? Ando: "We're a small-to-medium-sized company, so we don't do anything that ambitious (laughs). When we're eating, we might say, 'President, by the way... I've been seeing a lot of backpacks lately.' We do have product development meetings, but most of the ideas are born out of casual conversation. It's my job to bring them to life, and I develop the ideas through interactions with the sales department." -You're always on the lookout for new things, aren't you? Ando : "I arrive at the office earlier than anyone else and stay until the sales people leave. Speed ​​is important, so I listen to what everyone has to say, and if something resonates, I go ahead and create it. We also have a sales meeting once a month, and about half of it is free talk. During that meeting, we often hear about what kind of things we should create." I don't mind if others copy me, so I'll make a catalogue quickly. Ando : "In the kendo industry, catalogs can be completed in March at the earliest, and April at the latest. We are conscious of making them as quickly as possible. If we make a catalog too early, it is easy for others to copy it, which is a disadvantage, but we make them early because we want people to examine them before things get busy." -Product planning must be done early. Ando : "That's why we have to come up with product plans by summer at the latest. For that reason, while we're selling, we think about what to make next and what people need. This includes everything from protective gear to small accessories. Each salesperson is an idea man. It's a lot of fun because the things you come up with become products." If the market is right, the product will sell. —May I ask about the criteria for commercialization? Ando : "The criteria for commercialization vary depending on the product, but if all four marketing Ps (price, product, distribution, and promotion) are not met, the product won't sell. That's the basic principle. We also consider the time axis." -Please tell me more. Ando: "Even great products won't sell if they don't fit with the trends of the time. Products that don't sell well may sell if they are released five years later. Good products can sell even if they are expensive. As long as the market is right. There are all kinds of kendo practitioners, so if you can match the market, segment, time frame, and product quality, good products will definitely sell." Selling products through market-in and product-out Ando : "There are two terms: market-in and product-out. Market-in is the idea of ​​creating something by absorbing customer feedback. I'm sure this will sell, but it's not exciting (laughs). Product-out products have the potential to be one-of-a-kind. We, the manufacturers, are the ones who create the market." —It's like Sony in the past or Apple today. Ando : "That's exactly right. Take our jersey uniforms, for example. At first I didn't think they would sell. But I thought they would be absolutely necessary in the world of the future. So I made them. With product-out, you can decide your own prices and become a leader in the market. It's important not to be too biased towards either market-in or product-out." -It was a great opportunity to hear valuable management theory from a kendo manufacturer that we don't usually get to hear about. Thank you for today. At Matsukan Kogyo Co., Ltd. Head Office Click here to see the product page of Matsukan Kogyo, the company we interviewed this time! interviewer ◎ Representative Director: Go Ueshima Born in Sendai in 1987, he has 24 years of experience in kendo. While on the Sendai High School Kendo Club, he made it to the top eight at the Inter-High School Championships. After graduating from university, he worked as the business development manager for a restaurant chain with 200 stores across the US. He worked in sales at a foreign internet advertising company and as the head of the sales department and president's office at Innova Co., Ltd., before founding Bushizo Inc. in January 2017. ◎ Director Yusuke Kudo Born in Hokkaido in 1984. Graduated from Rikkyo University's Faculty of Law. While in school, he launched a free magazine and provided marketing support for an apparel brand. In 2008, he joined Yahoo Japan Corporation, where he worked in sales of advertising products such as search advertising and display advertising. In January 2017, he founded Bushizo Inc. He began practicing kendo at the age of six and continues to practice it to this day.