Is dialogue with the field something special?

In an era where finding the "right answer" for a company is difficult, there are vibrant companies demonstrating originality. What exactly is their secret? This ongoing column series shares insights gathered by Dentsu Inc.'s "Company Design" team from key figures at these companies.

The fifth and final installment features the case of Terada Warehouse in Tennozu, Tokyo.

Read the full Web Dentsu Inc. News "Company Design" series here.

 

Terada Warehouse
Transforming from a long-established warehouse business to a company that disseminates culture

Terada Warehouse has transformed into a company developing sophisticated BtoC businesses. Founded in 1950, it operates based on the philosophy of "storing not just goods, but value," focusing on wine, art, and media storage. It continues to pioneer niche markets that influence individual lifestyles and contribute to cultural creation.

Speaker: Masanori Tsukimori (Senior Managing Executive Officer, Terada Warehouse)
Interviewer: Tasuke Yoshimori (Dentsu Inc., Creative Planning Division 1)

Staying true to its essence, it succeeded in transforming in just 10 years

The catalyst for transformation was Mr. Tsukimori's 2012 launch of "minikura," a personal storage service. Customers simply send in packed cardboard boxes to store items starting at ¥250 per month. Its selling point was the meticulous usability, leveraging expertise cultivated in the warehousing business. Each stored item was photographed individually and managed online. Users could also add or remove items one by one and even list them for auction. This innovative service quickly became a hot topic at the time.

Masanori Tsukimori (Executive Managing Director, Terada Warehouse)

Inspired by this, frontline employees continuously proposed new ventures. Within just ten years, the company transformed into one that disseminates diverse cultures, even undertaking urban development in Tennozu, where it owns numerous properties. According to Tsukimori, "We focus on businesses only we can do." Behind Terada Warehouse's success lay various ingenious efforts to foster genuine communication among employees.

Tasuke Yoshimori (Dentsu Inc., First CR Planning Bureau)

Face-to-face communication improves internal transparency

When asked about the environment that fosters mutual inspiration within the company, Mr. Tsukimori explained, "For example, each team holds a monthly brainstorming session with the president." He described the benefits: "When you share ideas you want to try, it gets everyone excited, and you get all sorts of hints from the president and your colleagues." Furthermore, there are no dedicated president's or executive offices. Tsukimori notes, "I'm just one of the crowd, buried among the younger employees (laughs), and I often have casual chats like, 'What's trending lately?'" Other initiatives abound within the company, such as the "Coin System" designed to boost employee communication, and the four annual onboarding ceremonies for mid-career hires, which facilitate networking with all employees. These are just some of the strategies that have successfully driven transformation. Tsukimori's innocent smile as he says, "I enjoy talking about silly things with all kinds of people," truly embodies the open atmosphere at Terada Warehouse.

Terada Warehouse Senior Managing Executive Officer Masanori Tsukimori (left) and Dentsu Inc. First CR Planning Bureau Taisuke Yoshimori (right). "At 'PIGMENT TOKYO,' the art supply store operated by Terada Warehouse, active artists work as staff. Their philosophy of contributing to cultural creation is embodied in this real-world setting – I take my hat off to them," says Yoshimori.

Editor's View: "Company Design Techniques" #05

What stands out about Terada Warehouse is how they transformed a passive, "static" business of receiving and storing into a "dynamic" business of receiving and managing. That very concept is already creative and innovative. Future historians will likely say they transformed a B2B business into a B2C one. Indeed, even now, Terada Warehouse's miracle is often discussed in that context. However, as we can infer from Mr. Tsukimori's comments, they didn't initially rely on individual demand for art or wine.

How could they get this stubborn, immovable warehouse moving? How could they force the warehouse into the fast-moving industries of distribution and new media, into the very flow of the world? Not just push it "into" the warehouse. How could they force the warehouse "into" the flow of the world, twist it "into" the flow? The origin of the idea must have been like Columbus's egg. As a result, what started as a simple real estate business renting space gradually transformed into a distribution business.

But this isn't just any distribution business. It provides the environment and opportunities to further enhance the value of the "precious things" stored there. Terada Warehouse's business is a continuous series of innovations. When we hear "startup," we often imagine something built on an incredible idea and technology no one has ever possessed. But that's not the case here. How could we make the vast, completely immobile space right before our eyes move? The moment that idea came, the future had already begun to move. Moving space. That concept, which made even our interviewer, Mr. Yoshimori, take off his hat – a trademark gesture – truly leaves us in awe.

Back issues of this series, "The Secret of Why Some Companies Stay Vibrant," can be found here.

The project site for "Company Design" is here.