Captivating the world with manga, anime, and events

TORICO Co., Ltd. (TORICO) wants to “captivate” both Japan and the world, not just “please” them, and offer more fun and excitement to everyone. What began as a company manufacturing customized sneakers soon expanded its business to selling complete manga series (a business one would expect in Japan but did not exist yet), launching manga apps, and operating manga/anime-themed event spaces. It became a listed company on the Tokyo Stock Exchange Mothers market in March 2022 and is now taking steps toward its long-awaited dream of entering the global market. Mr. Takuro Ando, Founder and CEO of TORICO, describes its relationship with Mitsubishi UFJ Capital (MUCAP), and future prospects.

Background

—From customized sneakers to manga

I was keen on playing baseball as a kid, and that was how I first got into sneakers. I bothered my parents by refusing to wear anything other than my favorite brand. Traveling around the world after graduating from university, I was amazed and inspired by the diversity of the people I encountered. This experience ignited my desire to do business with the world.
My love of sneakers endured even after I started working, and eventually, I asked a factory in China to produce an original pair I had designed. The factory required a minimum order of 100 pairs. I kept a few pairs for myself and auctioned off the rest on the internet. To my surprise, they sold well. I saw this as a business opportunity and set up a company under the TORICO brand name, only to hit a brick wall. The sneakers did not sell at all. Initially, sneaker fanatics bought them for their rarity value, but the momentum quickly died. Still, I told myself I would only give up after I had exhausted all my ideas.
I established TORICO as a sneakers manufacturer, so of course, sneakers were its tangible product, but my business model was also about delivering the “excitement” one feels from thinking about putting on the sneakers the next day. I began exploring other avenues to offer this excitement. It was then that I came up with the idea to sell complete manga series, and in just one week, I set up Mangazenkan.com, an e-commerce website.
I had little expectation of the business, but we received an order on the first day of the launch. I remember being astounded but also extremely happy. After the launch, I spent my days running around searching second-hand bookstores to fulfill orders. And before I knew it, TORICO was transforming into a manga company.

Encounter with Mitsubishi UFJ Capital

—MUCAP made us realize the source of our strengths

I first met Mr. Hashimoto with MUCAP in 2015, when TORICO was in its tenth year. Although our business of selling complete manga series had gained momentum, we faced challenges from emerging players such as digital books and comic apps and had to develop a counter-plan. For that, we were looking into securing funds, eventually leading us to Mr. Hashimoto.
From my previous experience, I had a biased opinion that mega bank-affiliated VCs were conservative, but Mr. Hashimoto proved otherwise. He was liberal in his views and very knowledgeable about manga and anime, and we had a very frank and candid conversation.
Back then, I did not know precisely where our strength was. I understood that growth came from our sales initiatives, such as campaigns and point rewards, but Mr. Hashimoto wanted to dig deeper. While other VC would cut the conversation short after commenting on the favorable sales growth, he did, for the lack of a better word, pester me to explain what was behind our growth.
He pointed to our low rate of returned books as we searched for the answer together. The average return rate for the book industry is 40%, but ours was 1%, a single digit. This gave us an advantage when dealing with publishers and distributors and ensured a stable supply. This was the source of our strength. Mr. Hashimoto made me see the powerful strength we possessed.

Relationship with Mitsubishi UFJ Capital

—Their trust and guidance give us reassurance

In 2016, we secured funding with the help of MUCAP, but a week later, a distributor who was our biggest supplier and major shareholder declared bankruptcy. Just when we were set to venture into a new business, we found ourselves scrambling to bring the situation under control and find new suppliers, in total confusion. It goes without saying that other VC rebuked us for the turn of events, but MUCAP trusted and stood by us without criticism or interference.
They contacted us every two weeks, and we would update them and seek advice. There actually were times when we had nothing much to discuss (laugh), but their approach of making themselves available whenever we needed help continued even after we had everything under control and has never changed to this day.
Many VCs would contact you regularly only when contact persons are replaced, but the number of calls and visits dwindle over time. However, MUCAP contacted us periodically and even provided helpful advice from a third-party perspective when preparing for our listing. I hope they will continue to support us in the same manner, helping us in ways only a mega bank-affiliated VC with an extensive network can, such as by introducing companies with whom we can partner.

Future Prospects

—My world vision embedded in the company name

At a publisher's request, we once hosted an autograph session for a manga artist in the corner of our office. I was incredibly moved by the passion displayed by the fans who attended the session. There are few opportunities to meet customers in person in the internet business, but at that event, the fans not only bought manga but even thanked us, with tears in their eyes, for providing an opportunity to meet the artist. This experience led to the start of our event business, which we want to grow moving forward. This fall, we are launching an event space in Taiwan, our first step into the global market.
The company name in the Roman alphabet symbolizes my vision to “captivate (torico) the world” so that people all over the world can read it. Much time has passed since I founded the company, but I believe the time is finally ripe for me to take that step forward.

To all aspiring entrepreneurs

It all started when my sneakers business was struggling, and I thought that perhaps selling complete manga series could bring happiness to about 100 people who enjoyed reading entire series of manga like I did. To this day, I do not think this was such a great idea; how we were able to get this far is an amazing. But conversely, you can make it this far even with a mediocre idea. I think it comes down to whether you follow through with an idea or not. That is why I believe budding entrepreneurs should try out their ideas without hesitation. Eventually, your business will gain added value and attract various people who will accelerate the business further.

Interviewed in August 2022

Company

TORICO Co., Ltd.
https://www.torico-corp.com/

Primary business activities

E-commerce, media digital services, event services, manga publishing, bookstore management

Company History