Message from SBU Head
Media & Solution
(Media & Solution SBU)

Article for Annual Report 2018 (October, 2018)

Evolving to a More Refined Business Model

Yoshihiro Kitamura

Yoshihiro Kitamura

Managing Corporate Executive Officer Head of Media & Solution Business President and Representative Director, Recruit Co., Ltd.

No. 1 in Revenue in Main Business Fields

It would be no exaggeration to say that the history of the Media & Solutions segment is the history of Recruit Group. Since our foundation, we have developed almost all of our businesses in Japan organically, which have been built up and create our current business portfolio. From the origins of recruiting business in Japan, we diversified our businesses into Life event area in the 1980s Life which individual users experience only once or twice in a lifetime, such as entering further education, buying a home or automobile, and getting married. In the 2000s, we expanded operations into travel, dining and beauty which we call Lifestyle area.

Meanwhile, we quickly and smoothly pivoted from traditional print media to Internet media using IT and networks.

In FY2017, segment revenue totaled 679.9 billion yen and EBITDA was 156.1 billion yen while the number of employees increased up to approximately 20,000 in the Media & Solutions segment. We have taken the No. 1 position in terms of revenues in almost all of our main businesses in this segment.

Delivering New Value by Visualization and Optimization through Technology

The Internet and web services, the foundations to our main businesses, continue to evolve as infrastructure that supports change in society and business. AI, IoT and other new trends have drawn the most attention, and the rapid changes spurred by these technologies around the world are considered by some the markings of a fourth industrial revolution. My understanding is that technology is changing the very nature of industry itself and creating new industries in the process.

The working population in Japan is projected to decline. With this indisputable fact in mind, we believe it is necessary to deploy technology to improve productivity across all industries in Japan to increase its global competitiveness. We aim to provide new value to society by taking on this challenge as one of the SBUs of Recruit Holdings. Digitalization brought by fully using technologies makes things that previously could not be seen visible. Digital technology also makes it simpler to optimize what has been visualized. Visualization and optimization are the key themes in our approach to all industries and business processes.

Transformation into a Matching Platform Solutions Business

We introduce operational support software and online applications (SaaS: Software as a Service) for clients by positively using cloud-based and other Internet technologies, with the aim of establishing a robust framework for efficiently collecting large volumes of digital information.

Meanwhile, we have also introduced Recruit ID as a universal point system and have been integrating user databases that had been walled off for each service in a bid to further increase convenience for our users.

Through the heavy use of technology, the Media & Solutions segment is in the process of transitioning into a Matching Platform Solutions Business which enables both users and clients to experience higher levels of satisfaction at the same time. By providing highly satisfying media for users such as online Matching Platform and, at the same time, solutions for corporate clients such as cloud-based Operational Support Services via the Internet, our value proposition is to help our corporate clients use IT in their business operations, and realize revenue growth as well as greater business efficiency.

As we evolve toward this business model, we will continue to nurture businesses with strong potential for growth by applying the established systems to other businesses. We aim to draw new growth scenarios and realize the growth by ambitiously pursuing business opportunities in new business fields with new Operational Support Services for new clients.