(288A) Laxus Technologies - New Analyst Report 12/17

Laxus Technologies, with the corporate philosophy of 'Bringing Smiles to the World,' provides a subscription-type sharing service for brand bags to the general consumers (Laxus business, the app and site are named 'Laxus'). Subscription is a mechanism where by paying a fixed fee, consumers can use products or services for a certain period. Laxus Technologies offers a monthly subscription service to use brand bags.

Founded in August 2006 in Hiroshima City, Laxus Technologies initially engaged in the sale of English conversation materials and health food. In February 2015, they started a subscription-based sharing service for brand bags, and in January 2017, they changed their current company name. They withdrew from the sale of English conversation materials and health food in July 2019.

In October 2019, the leading comprehensive apparel company, World (Stocks 3612 on the Main Board of the Tokyo Stock Exchange), acquired a majority stake in the company's stocks, becoming the parent company (initial ownership ratio at the time of listing was 44.3%). The subsidiary LAXUS TECHNOLOGIES INC., established in August 2020 to conduct test marketing in the USA, was dissolved in May 2024.

The Rakusasu business is a service where brand bags can be used unlimitedly (exchangeable) for a fixed monthly fee. In this service, they handle approximately 40,000 bags from 60 luxury brands recognized worldwide, such as Hermes, Louis Vuitton, Chanel, Gucci, Celine, and Prada. These brand bags are mainly sourced from second-hand dealers and auctions, and are maintained in good condition for a long time through careful maintenance by their own specialized staff.

When users use the service,
① Register as a member on the app (free) and select your favorite brand bags (monthly fee will be charged when the company ships the bag)
② It will be delivered to your home (round-trip shipping free, no return deadline)
③ Reserve the next bag and exchange it (put the used bag back in the delivered box for return)
This is the process.

The basic Single Plan (monthly 9,800 yen excluding tax) allows one bag to be used at a time, and for users who want to use two bags, the Double Plan (monthly 13,600 yen excluding tax) is provided (Okinawa Prefecture has an additional 4,000 yen excluding tax for both Single Plan and Double Plan). Furthermore, the use of the Double Plan is limited to members who have been using the company's service for a long time.

Users need to present identification and register a credit card at the time of membership registration, and the fees will be paid from the card. These plans have no restrictions on the usage period, and there are no cancellation fees. In addition, they have introduced scratch compensation for damages or dirt incurred from daily use, and there will be no extra charges for this.

The age group of users ranges from their 20s to 50s, with the main focus on those in their 30s and 40s (as of February 24), and the number of paid memberships at the end of September 24 is 19,847. Over 70% are women who work, often using brand bags for commuting, as well as for various other occasions such as alumni reunions, parties, and travel.

In addition to the subscription-based sharing service, they also offer the "Buyable Laxus" service where users can purchase bags they are currently renting. This service was started based on many users expressing opinions such as "want to use brand bags but hesitate to purchase due to high prices," allowing users to try out various brand bags through the sharing service and offering the option to purchase if they like.