MARKET ENVIRONMENT

Elevator Maintenance Market in Japan

Elevator maintenance in Japan is performed by manufacturer-affiliated subsidiaries, which account for about 80% of the market share. (According to our research)
We estimate that the share of manufacturer-affiliated elevator maintenance companies and independent elevator maintenance companies overseas is about the same, 50% each. This difference in domestic and international market share is due to the ties between general contractors and the elevator industry in the new elevator installation process.
After the installation of new elevators, each manufacturer has secured a monopoly share of the elevator maintenance business through its own or affiliated maintenance companies for its own products only, while avoiding price competition.
On the other hand, independent Japanese companies specializing in elevator maintenance have increased their market share by offering relatively low monthly maintenance fees as discounters.
However, independent companies have no differentiating factors other than price compared to the manufacturer-affiliated companies, and they have not been able to make up for their "brand power" and "inferior technical capabilities" with price differences, so the manufacturer-affiliated companies still hold a large share of the elevator maintenance market in Japan.

How JES Has Grown

As an independent maintenance company, Japan Elevator Sercvice Holdings Co., Ltd. and its subsidiaries (JES Group) has established a global standard business model in the elevator maintenance market in developed countries by providing high quality services at reasonable prices, taking advantage of its advanced technical capabilities to handle each model of major Japanese manufacturers and its ability to procure genuine parts.
As a result, the share of independent maintenance companies in Japan is approximately 20%, of which the JES Group holds the top share.
In order to realize service quality comparable to that of manufacturer-affiliated maintenance companies, we have focused on "procurement of genuine parts," "development of remote maintenance," and "enhancement of brand power," which independent companies had been inferior to manufacturer-affiliated companies since our establishment.
In particular, our independently developed and patented "PRIME" remote elevator inspection service (patented in 2007) has gained recognition as the only independent maintenance company that can provide remote maintenance comparable to that provided by manufacturers, setting us apart from other independent maintenance companies.
Our competitive advantage is "overwhelming price competitiveness" for manufacturers, "service capabilities based on technical capabilities" for independents, and "social recognition" of our brand as a publicly listed company, which has enabled us to continue to be selected by our customers and increase our market share.