Growth Strategy

Growth strategy that captures Japan’s social trends

Facing the 'shortage of domestic workers' due to a declining population and 'global inbound' as the country becomes more internationalized

Japan is facing a major social issue: a shortage of labour due to a rapidly declining population. There are two solutions to this crisis of declining national power: IT technology and overseas human resources.
By developing and expanding our assets in IT and language education, which we have cultivated over the years, we are looking to grow our business and to take advantage of this huge market opportunity.

Market environment

Rapid population decline and aging in Japan

Source: Cabinet Office, Government of Japan, "Annual Report on the Aging Society FY2020"

According to the 'White Paper on the Aging Society' published by the Cabinet Office in 2020, the domestic population is estimated to decline to 88.08 million by 2065. Japan's total population is in the process of a long-term decline. One of the most serious aspects of this trend is the sharp decline in the working-age population (between the ages of 15 and 65), who are the core of the country's production activities. We see the solving of this social problem of a 'domestic labor shortage' as a market opportunity.

Rapid increase in the number of foreign
workers in Japan

Source: Ministry of Health, Labour and Welfare, "About the notification of the employment status of foreigners"

The number of foreign workers in the first year of the Reiwa era (2019) reached a record high since notification became mandatory in 2007. The increase can be attributed to the government's policies promoting acceptance of high quality foreign human resources and students, and this trend is expected to accelerate in the future as Japan's population continues to decline over the long term. By utilizing the twin assets of our IT and language education services, we are promoting our business in this continuously-expanding market by creating opportunities for domestic companies who seek excellent human resources to meet with talented foreigners who wish to work in Japan.

Expansion of demand for overseas IT human resources
due to shortage of domestic IT talent.

Source: Ministry of Economy, Trade and Industry

'IT technology' is a key solution to the labor shortage caused by the declining population. In order to use it, Japan needs to secure talented IT personnel. However, according to a 'Survey on IT human resources supply and demand' released by the Ministry of Economy, Trade and Industry (METI) in 2019, the gap between supply and demand for IT human resources is estimated to expand to a maximum of 790,000 people by 2030. As recruiting IT personnel in Japan becomes more difficult, the tendency to look overseas to secure such personnel will become stronger and the overseas IT human resources market is expected to become a growth market.

In response to this market opportunity,
Zenken is focusing on two business areas

IT Technology

Content Marketing Services

Developing unique content marketing for the steadily growing web advertising market

Through multifaceted web marketing, we provide one-stop marketing services - from attracting customers to production and operations.

Features
  1. Unique marketing methods
  2. Area Search Market Services
  3. Customer Attraction Services for Stores

Overseas human resources

Foreign IT talent placement

Solving the social problem of declining corporate growth potential due to the hollowing out of the domestic IT workforce through our unique talent matching services

Features
  1. High-level IT talent
  2. Japanese language education
  3. IT Solutions
Advantages of our AI Services

Medium-term Growth Strategy: Vision

Further expansion of content marketing services

Content marketing is the leading service in our IT business, and sales are continuing to grow. This service delivers high customer attraction rates through 'value proposition marketing' - by highlighting the client's competitive advantage in the target market and promoting attitudinal change in target customers. By further expanding this core service, we will achieve stable revenue generation and growth.

  • Developing new markets through expansion of services

    Leveraging our strength in meeting the needs of all types of businesses to attract customers on the web, we will further expand the range of services we offer, including BtoB, and develop new markets.

  • Expanding sales to regions other than the Tokyo metropolitan area

    Small and medium-sized businesses place increasing emphasis on differentiation and establishing their position in the internet search market. We are expanding sales to these businesses through online consultations and negotiations.

  • Strengthening inbound sales

    We manage inbound marketing media specializing in providing information on attracting customers to stores. This enables us to identify leads from managers and store owners who are facing challenges in attracting customers.

Discovering companies with IT personnel shortages and increasing the number of registered IT personnel

In 2019, we established ZENKEN INDIA LLP in Bengaluru, a city that is attracting attention thanks to its fast-growing GDP. In collaboration with a local institute of technology, we opened the Japan Career Center, the first of its kind* by a Japanese company. (An online career center will open in 2021). We have established a pipeline with top universities that produce excellent IT professionals, and are connecting local IT students and Japanese companies suffering from a shortage of IT human resources. We will continue to expand the program to companies throughout Japan, and at the same time, we will work with local partner schools to increase the number of registered overseas IT talent. *Based on Zenken’s research.

  • Maintaining recruitment results close to the previous year’s levels, despite the impact of the COVID-19 pandemic

    Since the start of our business in 2018, we have worked with a total of 41 Japanese companies. We have successfully recruited a total of 122 people, with an average of 2.9 people per company.

    In 2020, travel restrictions were imposed to prevent the spread of the COVID-19 pandemic, but we were able to achieve results close to the 2019 levels thanks to implementing online interviews.

Notes
The information contained within this page with respect to the industry trends and business activities of Zenken Corporation and Zenken Group also refers to future prospects based on plans, estimates, forecasts or projections as of the date this page was created.
▶ The future outlook is subject to a number of risks, uncertainties and other factors that may cause our actual results to differ from the information contained on this page.
▶The actual future business operations and performance of Zenken Corporation and the Zenken Group may differ from the future prospects described on this page.
▶ The statements on this page concerning the future outlook are made by Zenken Corporation based on the information available to it as of the date of this announcement.
▶ Zenken Corporation and the Zenken Group assume no obligation to update or revise any statements contained on this page, even if new information becomes available or in the event of changing circumstances that may affect these statements.

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