CEO of Daiwa parent company unveils new platform for growth

Globeride Corporation reported a 6% sales dip for its fishing tackle giant Daiwa in the last financial year, but is predicting ‘moderate growth’ in the coming years for the sector and has put in place a global strategy to aid its recovery.

The Japanese conglomerate has announced a business plan – Global 4 Block Strategy – for the fishing division’s four geographical regions which it says will maintain the brand’s world leadership of the fishing tackle market.

In its annual report, Globeride Corporation President and CEO Kazunari Suzuki, said sales were down because of a ‘stagnation’ of the outdoor sports and leisure equipment industry.

However, Globeride Corporation is bullish about the future and told investors it expected to see a step-up in demand. This includes growth in sales of all models in Japan – from entry tackle to advanced models.

It said it will steadily increase sales in its domestic market by providing ‘market dominant’ products and services for anglers and stimulating demand by creating opportunities for Daiwa fans to experience products and communicate the joy of being at one with nature through its Daiwa Young Fishing Club.

Daiwa America saw its sales return to pre-pandemic levels last year and expects revenue to recover moderately as the economy grows. However, under the Global 4 Block strategy, it will roll out more sea fishing equipment and other products as it works to expand its share of core sectors and strengthen its sales base to complement its mainstay bass fishing business.

Daiwa added that it expected European sales to remain sluggish due to a prolonged surge in commodity and energy prices. However, it expects the sector to recover gradually.

To help with that growth Daiwa intends to increase its presence in traditional fishing markets and expand sales in priority areas that will include eastern Europe.

Although demand is currently in decline due to the slowdown in the Chinese economy, Daiwa sees high potential for the Asia and Oceania sector, expecting growth in the medium term. “We expect steady growth in Southeast Asia and Australia,” it told investors.

“In addition to supplying Japanese-made products mainly in China and South Korea, we aim to expand our market share by introducing specialised products suitable for local fishing. We will also work to create a sportfishing culture to develop and nurture channels in Southeast Asia.”