AUCNET Opens Foreign Locations in United States and Europe

to Broaden Its Pre-owned Luxury Goods Business

AUCNET INC. (hereinafter "AUCNET"), an online auction company headquartered in Tokyo, will be expanding its subsidiary -- AUCNET CONSUMER PRODUCTS INC. (hereinafter "ACP") -- globally, opening up two new international branches, one in Los Angeles, California, the United States, and the other in Copenhagen, Denmark, starting this November. Each branch respectively represents ACP’s presence in North America and Europe. The U.S. branch will be run by COO Ayako Yamazaki, and the European branch by COO Masaaki Furukawa, with Yasuto Saito remaining as CEO of both branches. By expanding its physical business into North America and Europe, ACP hopes to secure more suppliers of second-hand luxury goods, which its buyers can purchase with ease.

The expansion coincides with the growth of the global resale market, which, for clothing, including luxury brand-name items, was valued at about 35 billion USD in 2021 and which is expected to exceed 82 billion USD by 2026 (*). While this resale industry contains products that offer profitable gains globally, these items are often supplied by individuals who choose to consign. Obtaining these items with a stable flow, while an essential part of the process, continues to be an uphill battle.

To help combat the supply issue, AUCNET founded its subsidiary ACP in 2015. Based in Tokyo and run by President and CEO Yasuto Saito, it currently has over 3,400 users worldwide. ACP conducts a luxury brand auction -- selling over 657,000 items yearly -- and is praised for being one of the top B2B second-hand luxury auctions in Japan, with a yearly Gross Merchandise Value (GMV) of over 219 million USD*.

By increasing the number of buyers in the target areas and following up with acquisition of more sellers, ACP plans to further expand its growth abroad and create circular distribution of its products worldwide.

References:

(*) thredUP "2022 Fashion Resale Market and Trend Report"

https://www.thredup.com/resale/

*JPY to USD conversion based on the following rate: 147 JPY = 1 USD (as of November 2, 2022).

A message from the COO of AUCNET CONSUMER PRODUCTS USA, LLC, Ayako Yamazaki

Photo: https://kyodonewsprwire.jp/prwfile/release/M105709/202211109597/_prw_PI1fl_Hd1Bq451.jpg

"AUCNET's B2B auction platform has been a great success with our overseas users who have a deep understanding of the value of pre-owned luxury items. I am honored to be heading the launch of our new branch, which will be located in Los Angeles -- a city where many people enjoy fashion by freely incorporating vintage and pre-owned items into their everyday lifestyle. We look forward to growing not only in California but in the United States as a whole with the goal to further expand recognition of our company among business executives who are interested in sustainability and the luxury fashion industry."

- North American Entity

Company name: AUCNET CONSUMER PRODUCTS USA, LLC

Address: 222 Pacific Coast Highway El Segundo (23rd Floor) , CA 90245, USA

Representatives: CEO Yasuto Saito, COO Ayako Yamazaki

- European Entity

Company name: AUCNET EUROPE ApS

Address: Gothersgade 11, 1123, Koebenhavn K

Representatives: CEO Yasuto Saito, COO Masaaki Furukawa

- Overview of AUCNET CONSUMER PRODUCTS INC.

Company name: AUCNET CONSUMER PRODUCTS INC.

Headquarters: Aoyama OM Square, Kita-Aoyama 2-chome 5-8, Minato-ku, Tokyo 107-8349, Japan

Representative: President & CEO Yasuto Saito

Date of establishment: January 5, 2015

Capital: 30 million yen (as of December 31, 2021)

Business description: Operation of pre-owned luxury brand auctions

- Overview of AUCNET INC. Company name: AUCNET INC. Headquarters: Aoyama OM Square, Kita-Aoyama 2-chome 5-8, Minato-ku, Tokyo 107-8349, Japan Representatives: Chairman & CEO Kiyotaka Fujisaki, President & COO Shinichiro Fujisaki Date of establishment: June 29, 1985 Capital: 1,806 million yen (as of December 31, 2021)

Consolidated net sales: 36,710 million yen (for the year of 2021)

Number of employees (consolidated): 858 (as of December 31, 2021) Business description: Information distribution support services business, including the organization and operation of online auctions Listing: Tokyo Stock Exchange Prime Market (Securities code: 3964)

URL: https://www.aucnet.co.jp/en/