Ifran Co., Ltd. operates the purchasing specialty store “Otakaraya” with 1,350 stores nationwide (as of April 2025). The company, which achieved annual sales of 84 billion yen in the fiscal year ending June 2024, will resume recruiting franchise (FC) stores for corporations in order to accelerate its growth into a “1 trillion yen company.” We asked Kikuo Watanabe, chairman of Ifran, and Takumu Tsukamoto, owner of Ambition Co., Ltd., who is expecting to achieve annual sales of 5 billion yen in their fifth year in business, about their mindset for managing a franchise.
I sympathize with the idea of “purchasing with trust”
–Owner Tsukamoto joined Otakaraya in 2020. Please tell me the background.
Takumu Tsukamoto owner
Owner: Tsukamoto: My family runs a used car sales business, and after working there as a salesman for about six years, I decided to start my own business. The initial start-up loan we received was around 10 million yen, so we looked for a business format that would allow us to start business with limited funds and utilize our sales skills. Therefore, we focused on FC, which is a buy-back format that allows for quick return on investment.
The reason we chose Otakaraya out of the many franchises of purchasing specialty stores was because it resonated with our values, in addition to its brand strength, which has the largest number of stores nationwide. I was impressed when the person in charge explained to me, “Our brand is not just about offering a high price, but also about gaining the trust of our customers before making a purchase.”
–How was the support from the headquarters?
Chairman Kikuo Watanabe
Owner Tsukamoto: I didn’t know anything about the purchasing business, so at first I was very persistent in calling the headquarters to ask about prices. I was taught everything from beginning to end, including not only product knowledge but also the composition of flyers and customer service methods. I don’t think I would be where I am today without that support. I focused on simply accepting the structure of successful directly managed stores.
Chairman Watanabe: We are happy to hear that our franchisees are enthusiastic about making inquiries. The characteristic of the purchasing business is that it is easy to enter and continue, which is important when doing business. Just as the price of gold has skyrocketed since our company was founded, if we continue to do so, our business will naturally grow.
–When was the most difficult period?
Owner Tsukamoto: The most difficult time was when we first started the business. Not only did she leave her parents to start her own business, but also the coronavirus pandemic, marriage, and childbirth all happened at the same time, making her busy both at work and in her private life. We especially struggled with financing. I made money by selling the products I bought to competitors, and I also borrowed money from friends.
–After going through such hardships, how has your business performance progressed?
Owner Tsukamoto: In 2020, when we founded the company, our sales were 200 million yen, and we had 3 stores at the time. Since then, the second term has been 500 million yen, the third term has been 800 million yen, and the company has been growing at a doubling pace. Currently in the 5th term, we are expected to reach 5 billion yen, and in the 6th term we are aiming for 10 billion yen.
Chairman Watanabe: That’s amazing. As the scale of a business grows, there are bound to be problems that need to be overcome, such as human resources and funding, but owner Tsukamoto seems to be able to overcome them with ease. I think he has a great ability to run a company. I almost want to buy Ambition stock (lol).
The reason for zero withdrawals is “keep going until it works”
――You have said that you have had zero store withdrawals so far, but are there any points to consider when choosing a property?
Owner Tsukamoto: We believe that an ideal commercial area has a population of 150,000 to 250,000 people within a 5km radius. In addition, check statistics such as average annual income and number of checkout passes, and then look at properties. I look at all the properties and trust my intuition that this place will work. However, to be honest, the market price is so good that I sometimes find myself thinking, “If I do it right, I can compete in any market area.”
Chairman Watanabe: Excellent. You have a habit of winning.
–Is there a secret to achieving zero withdrawals?
Owner Tsukamoto: “Keep doing it until it works.” Even if things don’t work out in the first few months, there’s always a store 1-2 km away that specializes in purchasing items that has been in business for 5-10 years. So we think about why we can’t win, and through trial and error, we often get better.
I think the reason I think this way is largely due to my competitive nature. I can’t accept a situation where someone else’s store is not doing well while others are doing well. This may be the driving force behind learning from and absorbing the competition.
――You have stores all over the country, but are there any improvements you can make in terms of human resources?
Owner Tsukamoto: Not relying on local recruitment. I experienced this when I expanded from Hokuriku to Kyushu, and if I only hired locally, I couldn’t communicate well and I couldn’t see the same direction as the company. It is necessary to have proper business trips and transfers, and to foster exchanges among human resources.
Chairman Watanabe: It is quite difficult to go to other prefectures, but I think owner Tsukamoto has accomplished this in a very short time. This is amazing because even the headquarters had a hard time leaving Kanagawa or Tokyo.
–Competition in the domestic market is intensifying, but is there anything you need to do to survive?
Owner Tsukamoto: We think carefully from the customer’s perspective, “What kind of response would make us want to sell?” The cleanliness of the store, the appearance and behavior of the staff, and other aspects are basic but important. We are also conscious of solidifying our foothold through cost-effective advertising and a dominant strategy of opening stores in specific areas.
Chairman Watanabe: Competitive measures really depend on the other party’s thinking, so I think it’s better to just assume that you don’t care. I think the best way to avoid competition is to focus on your own company and have the mindset that you need to stay ahead of the competition.
–What is your outlook for future demand in the purchasing industry?
Owner Tsukamoto: I think it will continue to grow. This is because the generation that benefited most from the bubble economy is reaching retirement age. The economy is in a slump, and the need for counters to convert your belongings into cash will continue. I think competition will become more intense, but we are thinking about opening more stores on the assumption that the business will continue to grow over the next 10 years.
The key to management is “momentum”
–As competition intensifies, what is the difference between success or failure in franchise management?
Owner Tsukamoto: In the first place, I think the buying business is a business with very good cash flow and low risk, which is rare. However, I don’t want it to become a matter of relying on others. I don’t think the idea that “if I put up a signboard of a famous store, I’ll just make money” doesn’t work.
When I started my own purchasing specialty store, I faithfully carried out everything the headquarters told me to do. It’s okay to do trial and error after that. There were many franchise owners in my generation, and I get the impression that many of those who quit were unable to “do what they were told.”
Chairman Watanabe: Like owner Tsukamoto, I personally value thinking about things at my own risk. When you hit a wall, unless you think, “Maybe there’s something wrong with me,” you won’t be able to move forward. Recently, we have been increasing the amount of backup from our headquarters. I believe that if you take responsibility for yourself and utilize the support of the headquarters, you will have a great chance.
Owner Tsukamoto: I would like to ask you a question, but what is the most important thing to you, Chairman Watanabe, as you aim to become a trillion yen company?
Chairman Watanabe: There is a saying in Sun Tzu’s The Art of War that says, “Those who fight well seek strength and do not blame others.” The idea is that “momentum” is the most important thing for a leader. If you have momentum, people will naturally do their best. This momentum is what I think is the most important thing in management.
Ifran has 2,000 employees, a scale that I have never experienced before, but I believe that the important thing is for the top management to show momentum.
–I would also like to ask owner Tsukamoto about his future prospects.
Owner Tsukamoto: For the past two or three years, we have been aiming for sales of 10 billion yen in fiscal 2025. All of our employees have the hope and determination to achieve this goal. We all agree on the idea of “Let’s make 10 billion,” so that is our biggest goal for the time being.
Chairman Watanabe: “10 billion” sounds easy when owner Tsukamoto says it, but I remember that it took a considerable amount of time to get there. Owner Tsukamoto is growing the company with real momentum. I see great potential in both owner Tsukamoto and Ambition, so I would like to see them grow even more together with Otakaraya.
Rafsan Zannat is a latest news reporter with 3 years of experience in covering current events and breaking news. He contributes to Takkyuudeuce.net, providing timely, accurate, and engaging news updates for readers. You can follow him on Facebook.
