PA R A D I G M S H I F T
OUTLOOK FOR THE NEXT DECADEThree Paradigm Shifts Envisioned by MARUI GROUP
Replacement of the current work-age generation with younger generations
Transition from the introduction of digital technologies to their full-scale deployment
Long-term shift from tangible to intangible assets
MARUI GROUP projects that the next decade will represent a major turning point characterized by the aforementioned three paradigm shifts.
We pledge to respond to the resulting changes to the operating environment through swift action.

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Work-Age Population

PA R A D I G M S H I F T

Future Shaped by Younger Generations

Values of Younger
Generations

Younger generations

Digital transformation
Sustainability
Well-being

61%(Born in or after 1981)

Surpass

It is projected that the portion of the workforce represented by people born in or after
1981 will surpass that of people born in or before 1980 in 2024. This change in demographic means that companies unable to conform to the values of these younger
generations will fail to maintain the support of consumers. MARUI GROUP is diligently

50%

contributing to the resolution of social issues by promoting digital transformation,
sustainability, and well-being. At the same time, we aspire to grow the happiness andinterests of our stakeholders together with members of younger generations as well as
those of older generations who share our ideals.

45%
Older generations(Born in or before 1980)

2021


2024

2030
Source: Population statistics released by the Statistics Bureau04

PA R A D I G M S H I F T

Penetration

Digital Technology Innovation

Full-Fledged Deployment ofDigital Technologies
In the past, digital technologies have primarily been deployed in relation to software

Introductionand the internet. Going forward, however, it can be expected that digital technologies

Deployment

will come to permeate our physical world, giving rise to a merger of online and offlinespaces. This trend will create a need for companies to develop new digital platforms.
MARUI GROUP is aggressively taking part in co-creation with start-up companies thatwere born on the internet in order to evolve into a platform holder that marries online
and offline spaces through its retailing and fintech businesses.

Software, Internet2020

Physical, offline spaces

TimeSource: Takaaki Umada, Mirai wo Jisso Suru (“Implementing the Future”), Eiji Press Inc., 2021; Carlota Perez, Technological Revolutions
and Financial Capital: The Dynamics of Bubbles and Golden Ages, Edward Elgar Publishing, 200205

Average Ratio of Intangible Assets to Tangible Assets

Slow progress in

PA R A D I G M S H I F TJapan compared tothe rest of the world

Shift Toward Investment
1.6 times(United States)in Intangible Assets
The recent shift in investment from tangible assets to intangible assets, such as thoseof major tech companies—namely, Alphabet Inc.; Amazon.com, Inc.; Meta Platforms,

1.2 times(United Kingdom)Inc.; Apple Inc.; and Microsoft Corporation—could be said to be the world’s greatest
economic trend. Japan, however, is behind when it comes to this trend, and the results

1.0 timesof this slow progress are manifesting in the form of low corporate value when judged
based on market capitalization. It is therefore probable that Japan will see a rapid

0.7 times(Germany)

shift in investment from tangible assets to intangible assets over the long term.
MARUI GROUP has been proactive in investing in intangible assets, including human

0.5 times(Japan)resources and software as well as new businesses and co-creation. Through thisapproach, we aim to evolve MARUI GROUP from a labor-intensive company saddledwith tangible assets to an intellectual creation company rich in intangible assets.
Market capitalization of Tokyo Stock ExchangeFirst Section companies

Approx.

¥720 trillion(2,186 companies)

Market capitalization ofmajor tech companies

Approx.

¥850 trillion

1995–2000

2001–2011
Source: Tsutomu Miyagawa and others, The Role of Intangible Investment on Economic Growth in Japan,
Research Institute of Economy, Trade and Industry, 2015

March 31, 2021

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