Escurito and Novarese Unite to Create Major Bridal Group

In a significant development within the bridal industry, Escurito Inc., based in Tokyo, and Novarese, also headquartered in the capital, have announced their decision to merge. This strategic integration is set to create one of the largest bridal groups in Japan, with projected consolidated revenues reaching an impressive 45 billion yen.

Background of the Merger

Founded in 2003, Escurito has established a strong presence by offering a diverse range of wedding facilities primarily in Tokyo and major cities. The company has expanded its operations to include construction and real estate, enhancing its capability in the bridal market. On the other hand, Novarese, established in 2000, has built a reputation for its elegantly designed wedding venues, particularly in regional cities, under the motto "Rock your life," which emphasizes bringing joy to people's lives through impactful events.

Novarese has successfully internalized various wedding-related services, such as dresses and gifts, ensuring high-quality service and customer satisfaction. The merger, supported by their major shareholder, TKP Corp.—a leader in conference room rentals—aims to leverage the strengths of both companies and respond proactively to evolving market dynamics while creating new value in the bridal industry.

Synergies from the Merger

1. Nationwide Wedding Network Development

The merger will combine Escurito's urban venue presence with Novarese's facilities in regional areas, creating a robust bridal network that spans the entire nation. This collaboration will boost the number of self-operated wedding venues to 68 across 1 metropolitan area, 2 prefectures, and 28 additional prefectures, solidifying their position in the industry. Increased visibility and competitiveness will be a primary outcome of this integration.

2. Enhanced Internal Production and Profit Margins

Both companies have internalized critical wedding components, including dresses and floral arrangements. By sharing resources such as Novarese's direct dress shops and Escurito's construction subsidiary, they aim to improve product and service value while reducing construction and operational costs. This synergy is expected to enhance profit margins and standardize quality across offerings.

3. Cost Reduction and Economies of Scale

Consolidating advertising, procurement, system functions, and human resource acquisition will lead to improved operational efficiency. The new strategy will shift reliance from traditional print advertisement models to innovative social media-driven marketing techniques, promoting more cost-effective advertising. Additionally, the merger allows for joint purchasing agreements to cut procurement costs and streamline corporate functions, building a stable business foundation.

4. Talent and Knowledge Integration

The joint educational and training programs will enhance staff skills in customer service and proposal development, fostering a culture of excellence within the organization. By promoting hiring and employee exchanges across the group, both companies aim to elevate service quality and explore new business areas, leveraging TKP's real estate and M&A expertise to enhance offerings such as restaurants, honeymoon services, and photo weddings, thus supporting customers through all life events.

Leadership Insights

Morio Shibuya, CEO of Escurito, emphasized the cultural significance of weddings, stating, "A wedding is not just a ceremony; it is a connector of people and a hope for the future, where new communities are formed, reinforcing ties within society." As the industry adapts to changing demographics and values, he believes in the power of weddings to bring warmth and positivity to society.

Vision for the Future

With wedding ceremonies declining, there is a need to redefine the utility of bridal facilities. Escurito and Novarese are committed to enhancing weekday occupancy by expanding corporate usage of these venues. Elegant and unique spaces can now host corporate events, award ceremonies, and anniversaries. Leveraging TKP's extensive corporate customer base, the strategy aims to bolster the weekday business model to create special spaces beyond just weddings.

As the two companies join forces, they aspire to evolve into a comprehensive brand that supports life celebrations, from proposals and anniversaries to family gatherings, aiming to connect individuals, communities, and futures effectively. The projected revenue of 45 billion yen post-merger will not only position them as industry leaders but will also pioneer new values in the bridal market, fundamentally reshaping the landscape.