Mobilizing Japan's $37 Trillion "Hidden Assets"! BuySell Tackles Global Challenges Through Reuse (Part 2)

This series shares how entrepreneurs, executives, investors, CMOs, and others at startups overcame challenges encountered during the growth of their companies and businesses.

Continuing from last time, we present a conversation between Kyohei Iwata, President and CEO of BuySell Technologies (hereafter BuySell), a rapidly growing company in the reuse industry, and Business Producer Fumiaki Takatsuka.

While the first part covered BuySell's strategy for transforming the reuse market, this second part focuses on the challenges faced during their growth phase and how they overcame them.

(From right) BuySell President and CEO Kyohei Iwata, Dentsu Inc. Startup Growth Partners Team Leader Fumiaki Takatsuka

Investing Upfront in Building a Good Compliance Framework

Takatsuka: After you became CEO, Mr. Iwata, could you tell us what specific challenges you tackled and what transformations you pursued?

Iwata: First and foremost, we thoroughly implemented a mindset shift around compliance. In the reuse industry, many people fundamentally believe that "how cheaply you can buy high-value items" is the right approach. But a business with that mindset can't be sustainable. So, we rigorously instilled the principle of "providing value for our customers, making them happy, and receiving fair compensation in return."

Takatsuka: But in a way, changing what was previously considered "just" isn't easy, is it?

Iwata: Of course, persistently advocating "Good Compliance is Good Business" is crucial. Simultaneously, creating systems that prevent dishonesty and unethical practices is equally vital. This includes restructuring our operational framework and implementing detailed measures like storing purchased stamps in tamper-proof bags to prevent swapping. We thoroughly built systems that eliminate opportunities for misconduct.

All these measures come at a cost, but by continuously refining them, we've improved customer satisfaction and trust, which ultimately translates into profits.

Takatsuka: I see. That's one reason why it's difficult for other companies to imitate BuySell's business model, isn't it?

Iwata: Yes, precisely because they are purely cost-driven measures, I believe they are impossible to implement if you're only chasing short-term profits. Of course, we don't consider our system perfect yet; it's an area we continue to refine on an ongoing basis.

Mr. Iwata Kyohei

Implemented Salesforce-inspired organizational reform, significantly improving CPA!

Iwata: Next, we tackled sales enablement (improving and strengthening sales capabilities). Actually, I wanted to learn how to build an organization that keeps growing, so I actually visited Salesforce and observed their operations (laughs). We incorporated what we learned there and created an evaluation system for our assessment staff based on a 67-item checklist.

As a result, we identified several items where there was a clear difference between top-performing salespeople and lower-performing ones. So, we used role-playing to spread the work habits of the top performers to the rest of the staff.

Takatsuka: I see. What were the most significant differences in those items?

Iwata: For example, knowledge about kimono. Top performers never treat kimono carelessly—they understand the sentimental value customers attach to them. It's precisely because these staff members possess deep knowledge, understand the value of kimono, and handle them with care that customers open up to them. Quantifying how this difference directly impacts sales performance was a major discovery.

Takatsuka: Indeed, the idea that kimono knowledge influences sales performance is a challenge you might not discover without actually investigating.

Iwata: There are various other differences that only become apparent through analysis. By repeating the cycle of "identifying gaps → disseminating top performers' methods → evaluating → identifying new gaps," we've succeeded in significantly improving gross profit per visit.

Fumiaki Takatsuka

Developing New Lead Acquisition Channels Through TV Commercials × Physical Stores

Takatsuka: Another distinctive feature is your company's strong focus on TV commercial placements.

Iwata: That's right. The very fact that we can sustain TV commercials represents a major transformation. Awareness has indeed skyrocketed, and thanks to the reforms mentioned earlier, we've been able to continue mass marketing while maintaining ROI (Return on Investment). I believe this is an indispensable point for growth. I'm grateful for your efforts in this area, Mr. Takatsuka.

Takatsuka: Thank you. Hearing that is truly encouraging.

Iwata: Coming from an advertising agency background myself, I understand this well. It was incredibly reassuring that you dedicated your energy not just to big accounts, but also to companies like ours with limited resources.

Takatsuka: That's because I deeply resonated with BuySell's vision and roadmap. I genuinely felt its potential and wanted to commit as deeply as possible. BuySell has recently opened several physical stores, right? How has the store expansion been going?

Iwata: Thanks to you, they're going extremely well. Initially, we anticipated younger customers bringing in brand-name goods and jewelry, but we've had many seniors coming in with items like kimonos, stamps, and old coins. We feel this is also a result of the TV commercials.

Incidentally, when we asked why they chose to visit the store in person, many said, "I feel uneasy letting strangers into my home." This means our stores are a valuable channel for lead generation. We're actually seeing more cases where store visits lead to home visits.

TV Commercial: 'Kimono Fairy' Edition

Takatsuka: You currently have five stores open, and I'm very excited about future developments. Finally, could you tell us about Buycell's "dream"?

Iwata: I believe there is intrinsic value in "connecting rather than discarding." We aim to amplify that impact and elevate it to a level that contributes to the Japanese economy. I think every industry has companies where people say, "The world is like this today because of this company." Baisel aspires to be that kind of presence in the reuse industry. We also envision collaborating with other players to invigorate Japan's reuse market.

Takatsuka: This time, we heard many insights that will be helpful hints for startups, from formulating business strategies to overcoming the "growing pains" of the growth phase. I personally learned a great deal. We look forward to your continued support!