Sumitomo : Change in Shareholder Composition at Belle Maison Logisco Co., Ltd.

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President & CEO: Kuniharu Nakamura) , Sumisho Global Logistics Co., Ltd. (Head Office: Chuo-ku, Tokyo; President & Representative Director: Yuichi Hibio; hereinafter, 'SGL'), a wholly-owned subsidiary of Sumitomo Corporation and Senshukai Co., Ltd. (Head Office: Osaka, Osaka Prefecture, President & Representative Director: Hiroyuki Hoshino; hereinafter, 'Senshukai'), have reached a consensus on SGL acquiring 51% of the outstanding shares of Belle Maison Logisco Co., Ltd. (Head Office: Kani, Gifu Prefecture; President & CEO: Wataru Kawase; hereinafter, 'BML'), a wholly-owned logistics subsidiary of Senshukai. SGL concluded a share transfer agreement with Senshukai on July 27th, 2017.
Pursuing a corporate vision of being a 'Women's Smiles Company,' Senshukai is a major mail-order sales company whose core business is 'Belle Maison' general mail-order sales via catalogs and online shops. BML's primary responsibility is the shipping of Belle Maison products handled by Senshukai, and it operates two distribution centers (DC) in Kani, Gifu Prefecture and Minokamo, Gifu Prefecture. Sumitomo Corporation and SGL will provide know-how on operation and system administration to BML's two logistics centers to improve productivity, enable even higher-quality logistics services, and help boost competitiveness and enhance customer convenience.
Sumitomo Corporation and SGL have been operating DC for mail-order companies in the Tokyo region for many years. One of these is the Akanehama Center in Narashino, Chiba Prefecture, which performs logistics functions for such customers as the Shop Channel, Japan's number one TV shopping channel. By investing in BML, which runs large-scale mail-order logistics centers in the Chubu region, to fill in a gap in its area coverage, Sumitomo Corporation and SGL will be seeking to secure still more orders.
Japan's consumer EC market in 2016 was valued at 15.1 trillion yen, representing a 9.9%year-on-year increase, and it has nearly doubled since 2010. The EC rate (Note 1) was 5.43%, topping 5% for the first time, but, with more room to grow compared to the US (EC rate: 7%) and China (EC rate: 15%), future market expansion is anticipated. In response to changes in the buying environment, Senshukai is striving to pivot from conventional catalog-centered sales to EC and bolster EC sales. In working with Sumitomo Corporation and SGL to make its logistics more efficient, Senshukai will be enhancing the competitiveness of in-Group logistics such as Belle Maison mail-order business as well as arranging the administrative structure in order to focus on its core business.

(Note 1) Percentage of EC market within all commercial transactions, including sales by telephone, by FAX, and in person
■ Reference
① Exterior views of BML's Kani DC and Minokamo DC

② SGL's domestic network