#Japan #Tokyo #CLAS #Subscription Service #Showa Lease

CLAS Achieves Quarterly Profitability Through Expanded Partnership with Showa Lease

CLAS, a company focused on creating a circular economic ecosystem in the interior design sector, has achieved a significant milestone by expanding its partnership with Showa Lease, part of the SBI Shinsei Bank Group. In April 2023, they initiated a transaction concerning a furniture subscription business that has now seen its investment frame extended to a maximum of 300 million yen, with appliances also included in the offering.

A Vision of Freedom and Lightness

CLAS operates with the vision of allowing individuals to live freely and lightly, as detailed on their official service site. This encompasses various initiatives including “CLAS”, a rental and subscription model for personal furniture and appliances, and “CLAS Biz”, aimed at office and residential space design for corporate clients. Through a convenient monthly payment system, CLAS offers durable consumer goods, allowing users to choose between borrowing, returning, and purchasing, thereby providing a fresh experience that contrasts with traditional retail or rental methods. By refurbishing and recycling returned items, CLAS contributes to waste reduction and the achievement of a decarbonized society.

Sustainable Growth and Robust Operations

Utilizing a strong digital infrastructure and a commitment to improving unit economics, CLAS has successfully scaled its business while maintaining profitability. Remarkably, by May 2025, the company forecasts a revenue growth exceeding 60% compared to the previous year, having achieved six consecutive months of operating profit, culminating in quarterly net profit.

The partnership with Showa Lease has been invaluable, particularly with the asset investment scheme they proposed, providing essential equipment procurement assistance. This initiative allows CLAS to alleviate initial financial burdens associated with procuring furniture and appliances, while simultaneously offering a more diverse product lineup to customers.

Pay-per-Use Model

What sets this transaction apart is the innovative pay-per-use model employed by Showa Lease. Unlike traditional leasing contracts which require fixed payments throughout the contract period, this scheme charges based on the usage rate of the equipment, thereby minimizing upfront costs and inventory risks for CLAS.

Future Growth and Potential

Showa Lease evaluates credit based on business potential and profitability, which facilitates steady equipment procurement for CLAS. Tarou Hara, Head of Strategic Finance at CLAS, expressed excitement about the expanded credit space, highlighting its alignment with their subscription model and reflecting the company's steady growth and commitment to creating a circular ecosystem in interior design.

In comments provided during collaborative discussions, Takakazu Sakai from Showa Lease praised CLAS for its meticulous management of inventory and advanced repair techniques. The innovative systems supporting CLAS further enhance efficiency and quality within their subscription business, contributing positively to sustainable societal goals.

CLAS’s Commitment to Circular Economy

CLAS aims to revolutionize the rental and subscription market by providing flexible, eco-friendly options that appeal to modern living standards. With the ability to repair and clean returned items for reuse, the company has actively managed to avoid waste. A recent ministry project revealed a noteworthy reduction of 36% in CO2 emissions and 38% in waste generation compared to traditional sales models as of February 2023. CLAS envisions a society supportive of freedom and individualism, promoting a sustainable circular economy.

Looking Ahead

As the partnership with Showa Lease deepens, CLAS is dedicated to enhancing customer experiences through sustainable service offerings that foster freedom in living. This recent expansion not only represents a step forward for CLAS but is also a commitment to achieving a sustainable society that's within reach.

The paths forward for clients of CLAS include personalized experiences in furniture and appliance rentals, support for corporate office setups, and access to expertly curated design consultations. By continuing to adapt and evolve, CLAS will strive to remain at the forefront of eco-friendly consumer solutions.

Company Overview

• - Showa Lease Co., Ltd.

- Business Scope: Comprehensive leasing services, financing, and more.
- Established: April 2, 1969
- Headquarters: Tokyo, Japan
- Corporate Site

• - CLAS, Inc.

- Business Scope: Rental and subscription services, office revamp solutions, and more.
- Established: April 24, 2018
- Headquarters: Tokyo, Japan
- Corporate Site

In a rapidly changing landscape, CLAS stands ready to redefine personal living spaces while championing sustainable practices for a brighter future.