Gulliver’s Business Model
Gulliver operates in the used car distribution business. We have grown based on an original business model of selling cars purchased by our approximately 420 directly managed and franchised stores across Japan at auction rather than using showrooms, within seven to ten days of their purchase.
Formerly, used car businesses maintained showrooms and incurred the associated inventory risk and display costs. Through selling cars quickly at auction, Gulliver has been able to reduce its inventory risk and eliminate display costs. By shortening the time from purchase to sale, we have created a profitable, low cost operation where lower gross margins are offset by the large numbers of cars handled.
Currently, we are developing our operations as a used-car specialist, in our purchasing operation, and including our auction and sales businesses and subsidiaries.
Purchansing Business
Gulliver has created a new style of purchasing, which allows a favorite car to be valued as a single unit. When cars are brought in, staff check such details as the type of vehicle, year, mileage, any blemishes and the condition of the interior.
They then take into account any option parts and other factors that may increase the value and enter all this information on an evaluation form.The form is then faxed to Gulliver Head Office, where an assessor assesses the car’s value based on analysis of the latest auction prices and relays this to the outlet.
This process allows us to offer a purchase price decided on a transparent basis for all types of vehicle while eliminating price variations from store to store and to provide the same level of service across Japan.
On November 4, 2005, Gulliver patented its automated car assessment system (patent no.3738160). As the automated system was developed based on purchase prices derived from previous market data from auction sites, as well as the expertise of our assessors, comprehensive assessment can be made by head office.
Currently, Gulliver handles around 200,000 cars yearly and is aiming to reach one million.
Sales Business
Gulliver does not use showrooms to sell the cars it has purchased, but carries out on-screen sales using the Dolphinet system. Dolphinet is a system that not only shows basic information about the car, along with a picture, but also details the service history of the vehicle and any dents or scratches.
Through allowing customers to see faults, etc. and detailed information as well as view the overall evaluation the car has received, based on a system of a maximum of 100 points for the exterior and five levels for the interior, Dolphinet allows them to understand the value of the vehicle. At any time customers are able to view the details of over 6,000 cars before they are put up for auction and cars are guaranteed by G-Warranty and Gulliver Road Service following purchase.
Around 3,000 cars per month are sold on-screen and the total number sold so far is over 300,000.
Other Businesses
Overseas Business
Through G-One Financial Services Co., Ltd. we are developing a range of financial businesses such as auto-loans, insurance agency services and credit cards. With automobile finance at its root, we provide attractive products to our customers.
Financial Businesses
Through G-One Financial Services Co., Ltd. we are developing a range of financial businesses such as auto-loans, insurance agency services and credit cards. With automobile finance at its root, we provide attractive products to our customers.
