Our representative, Kida, will answer this one.
Is it really true that the papa-katsu boom has been declining for the past two years?
When you think of papa-katsu, Paters is probably the name that comes to mind. I have indeed heard rumors that it has been up for sale for a while now—for something like ¥10 billion, apparently.
That said, services in the “slightly questionable” category, such as paid drinking dates and papa-katsu, still seem to be going strong.
Since there aren’t any publicly traded companies in the papa-katsu industry, it’s hard to say for sure. Take DMM, for example. It’s a huge company, and even I, as an outsider, have absolutely no idea what they’re doing or how it all works—but I can somehow sense that they’re constantly evolving.
Could this idea of evolution reaching its peak and leveling off also apply to the papa-katsu industry?
As for our company, up until 2018 we were opening about three new branches and launching one new business every year. But in 2019, branch openings and the like suddenly came to a complete halt.
That’s bad.
We may have reached our peak.
I can already picture the scenario where we panic, pour money into new ventures, and end up unable to keep our core business running—which would be the end of us.
Still, things will work out—or they won’t—so I intend to focus on solving the issues right in front of me.
●Current challenges
・Expanding our team of system engineers → moving toward an in-house IT structure
・Expanding our services overseas → planning to take on the challenge starting in April
・Revitalizing the papa-katsu industry → increasing the number of new entrants, preferably serious IT companies
・Separating out gray areas such as affairs (taking a cue from DMM)
・I wonder if the Match.com Group might acquire us, like it did with Tinder and Pairs.
Maezawa answers:
I’m not sure whether the papa-katsu (compensated dating in Japan) boom has already peaked, but every boom eventually passes. We just don’t know when that will happen.
For example, if the boom suddenly bursts and disappears, that would be a serious problem. But generally speaking, if it can make a soft landing, it should be possible to adapt, wouldn’t you say?
I think LINE also peaked about two years ago, but it still exists, and it doesn’t seem like an app capable of replacing LINE has emerged yet.
(Although LINE has a low market share globally, its share in Japan is high.)
Whether the boom will simply disappear after peaking is also where the president’s leadership comes into play. It may also depend on whether the employees can work together as one, following the president’s directions.
Thinking about it that way, it’s exciting to see what happens from here—how Universe will change, and whether it will continue as it is.
While other dating clubs are struggling, will it continue to grow, or will it struggle in the same way?
I’m looking forward to finding out.
