Itochu eager to depart from old economy business model

January 3, 2018

Tokyo- Major Japanese trader Itochu Corp. is hurrying to expand in new business fields including the Internet of Things and artificial intelligence, in order to survive the changing times, the company's president, Masahiro Okafuji, has said.

The existing business model of trading companies is a "product of the old economy," Okafuji said in a recent interview. "Our business will be outdated unless we take action now, in response to the changing times."

"We seek evolution on a daily basis," he stressed.

Itochu is currently enjoying strong earnings, having rewritten its record fiscal first-half profit in April-September 2017.

However, Okafuji has been strongly alarmed by the ongoing social changes. "We may suddenly realize that Chinese or American companies hold supremacy," he said.

Meanwhile, the Itochu chief expressed confidence about carrying through a reform of the company's flagging general merchandise store division, including through a tie-up between its retail arm FamilyMart Uny Holdings Co. and major discount shop operator Don Quijote Holdings Co.

Okafuji, whose tenure as company chief has exceed seven years, suggested that he will decide whether to step down following a recommendation to be made in early 2018 by the company's nomination committee, including outside directors.

Since he took office in April 2010, Okafuji has focused on strengthening operations other than the natural resources business, while promoting morning-oriented work style reform for the company's employees.

Under his leadership, Itochu became the industry leader in terms of net profit in the year through March 2016. Jiji Press