"Bringing themes to living spaces" – A new challenge for a facility construction company.

Since its founding in 1954, Wakabayashi Equipment Industry has long been cherished in the community as a professional undertaking the design and construction of lifeline facilities such as water, air, and gas.

Aiming for 100 years of 'triple win' management, the company formulated a new concept and business strategy. To embody this, it developed the space subscription service 'room tailor' in collaboration with Dentsu Inc. as a new venture.

What challenges and management philosophy drove Wakabayashi Equipment Industry's new venture? And what is the value of expanding corporate management through creativity?

We present a tripartite discussion featuring Mr. Yutaka Wakabayashi, President and Representative Director of Wakabayashi Equipment Industry; Mr. Tsukasa Matsukawa, the company's business consultant; and Aaron Zu, Business Development Producer at Dentsu Inc.

【What is room tailor?】

A space subscription service by Wakabayashi Equipment Industry. Users set their own unique theme for their living space. Professional advisors—creators, actresses, influencers, fitness models, and other top-tier experts—then select the necessary furniture and appliances to match that theme. After moving in, users can have regular online consultations with their advisor, enabling them to enrich their lifestyle even further.
https://roomtailor.jp
 

With a visionary leader's passion and drive, any imagination can become reality.

Aaron: First, please introduce Wakabayashi Equipment Industry.

Wakabayashi: Our company primarily handles the design and construction of various facilities like plumbing, air conditioning, and gas systems. We specialize in new condominiums and buildings, taking on projects from construction companies. In 2022, we celebrated our 68th year in business, and I am the third-generation president.

Aaron: Considering you were founded in the 1950s, not long after the war, you have a very long history. As professionals in facility design and construction, you've long contributed to the lives of people in the community. Why did you decide to challenge yourselves with a new business venture?

Wakabayashi: We take great pride in our construction and design work. However, thinking about developing the company alongside younger generations going forward, we wanted to take on new challenges that leverage our skills and expertise.

So, we started by brainstorming concepts in our spare time. Our company deals with the "housing" aspect of clothing, food, and shelter. Businesses related to "clothing and food" are close to people's daily lives; if they see clothes they like or food that looks delicious, they can easily buy them. On the other hand, "housing" often feels less accessible, with a perception of high barriers. However, whether it's a home or an office, we spend a significant amount of our lives within these built spaces. We believed that making these spaces better, and making that process more accessible, could enrich people's lives. This led to the concept proposal: " We want to make construction more accessible."

Aaron: I thought it was a very grand and challenging concept.

Wakabayashi: I've shared this concept with about 40 people—business associates, acquaintances—and Aaron was the one who really latched onto it and showed the most interest (laughs). Hearing you say, "That's fantastic!" and "I'll support you," was truly heartening.

Aaron:I believe the most crucial element in new business development is the entrepreneur's vision and passion. The Wright brothers had a strong vision and passion to fly, which is why they succeeded despite everyone telling them it was impossible. If this imagination was born from your passion, Mr. Wakabayashi, then I believed it could be shaped into a tangible business if we built it as such. That's why I really wanted to help.

Wakabayashi: As the third-generation president, carrying on what previous leaders built is important and rewarding work. But I don't think that alone excites me or the people working here. Creating something new in our generation should be the source of our team's unity and power. That's why I believe we need to create something that excites everyone, dedicate our passion to it, and take on the challenge.

Aaron: I also see significant potential in so-called "family-owned businesses." Companies where top management changes every few years tend to struggle with long-term strategic decision-making. New ventures especially take time to turn a profit, so without a long-term perspective, success is hard to achieve. Family businesses, where the same family is involved in long-term strategic planning, are well-suited for new business development.

Wakabayashi: That's right. The speed of decision-making is probably another strength of family-owned companies. Investing in new ventures means putting money into something where profitability is uncertain, so it certainly requires courage. However, the decision-making process itself is straightforward, allowing them to move forward with a sense of speed.

Wakabayashi Equipment Industry's "tangible" assets and Dentsu Inc.'s "intangible" assets. A service combining both strengths

Aaron: As part of our new business initiative, we proposed "room tailor," a space subscription service where users design their lifestyle with professional support and arrange their living spaces and daily routines.

For example, when someone wants a life surrounded by plants, the plant layout and maintenance represent "intangible" value, while the shelf to place the plants is the "tangible" value. Traditional design and construction companies handle the tangible aspects, but intangible services were outside their scope. For someone interested in beauty, their lifestyle might involve seeking not just cosmetics or a vanity, but also intangible services like advice from beauty professionals or styling at their favorite salon. Room Tailor provides both tangible and intangible value simultaneously, tailored to the user's ideal lifestyle.

Matsukawa: Exactly. Our job is to listen to clients' requests and create something that satisfies them, but we couldn't commit to their lives after handover. We couldn't help but wonder if they were achieving the lifestyle they initially sought or if there was room to enrich it further, yet we had no way to connect with them.

Fundamentally, architects and designers create living spaces like apartments based on what they believe is good. But I think we should instead create ideal living spaces starting from the lifestyle of the people who rent or buy them. Of course, achieving this in all architecture is difficult. Precisely because of that, I thought there should be a way to create homes like room tailor, combining intangible and tangible elements while incorporating feedback on lifestyle themes.

Aaron: That's right. Construction companies, house builders, and design-build firms naturally provide the tangible aspects of housing. However, the intangible elements needed to add value and enrich daily life haven't been readily offered as a package. We believed combining Wakabayashi Equipment Industry's strength in the tangible with Dentsu Inc.'s strength in the intangible could deliver new value not just to end-users, but also to construction companies and house builders.

Matsukawa: When we actually sought feedback from major house builders, they recognized the potential, saying, "Depending on how it's structured, this business model has the potential to transform the industry." That gave us real confidence, and we wanted to solidify the menu and details moving forward.

We want to nurture room tailor as a new recipe for a company that will last 100 years.

Aaron: Creating this new business, room tailor, has also been a major change—it means Wakabayashi Equipment Engineering can now build flat, equal partnerships with external companies, including us.

Matsukawa: That's another point we're incredibly grateful for. Having been in the same industry for so long, we've developed our own preconceptions. For better or worse, it's difficult for us to change our traditional ways of thinking on our own. Aaron was the one who helped us break through that.

Wakabayashi: Preserving unchanging traditions is important, but if we aim to be a 100-year company, we can't continue without changing something as times and generations shift. Even centuries-old traditional Japanese confectionery shops are said to adapt their recipes to modern tastes. So, we want to nurture this room tailor as our new recipe.

Aaron: New ventures truly become long-term projects. It was great that we could translate the concept Mr. Wakabayashi envisioned early on into a business and service, and bring it to life through the website and concept book. I'm really excited about the potential to evolve the industry structure itself by refining the service from here.

Matsukawa: That's right. New ventures often seem like unknown quantities, and since they involve entering fields different from our core business, the reputation we've built may not always apply. In those situations, the fact that we're partnering with an external firm like Dentsu Inc. offers significant advantages from a sales perspective.

Wakabayashi: Especially since we aren't creative specialists ourselves, I'm reminded of the huge potential in collaborating with companies from other industries that have creative strengths. While this project is still in its early stages, we aim to build room tailor into a viable business as quickly as possible. We look forward to your continued support.

Aaron: Likewise, thank you. Thank you for today.