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[Entrepreneur Interview #07] Mamoru Nagaoka (TFN) – Part 1

  • Group Companies
  • Interview
2024.12.13

Steering towards selection and focus to grow the company while refining empathy and co-creativity

D-POPS GROUP has 23 group companies that we call partners (at the time of publication).

For this article, we interviewed Mamoru Nagaoka, the CEO of TFN, which joined D-POPS GROUP in 2018.

◆Background of TFN’s Initial Establishment

Sugihara:
Today, we’re interviewing President Nagaoka, CEO of TFN. Thank you for your time. It’s been nine years since TFN was established. Could you start by briefly telling us about the circumstances surrounding TFN’s founding and your career leading up to it?

Nagaoka:
Yes. I founded TFN in 2015. Around 2011, when I was working at SoftBank C&S, I first encountered cloud SIM technology. At that time, I explored various options to launch a business, perhaps as an in-house venture, but I eventually gave up on the idea. Then, around 2013 or 2014, I came across cloud SIM again, and I had a strong desire to pursue it as a business. That, combined with my aspiration to become an entrepreneur, led me to leave my salaryman job and start my own company. So, while e-commerce is our main business now, my primary motivation for leaving my previous job wasn’t to do e-commerce, but to pursue the cloud SIM business.

Sugihara:
I see. When did TFN ask to join D-POPS GROUP?

Nagaoka:
In 2018.

Sugihara:
You mentioned that the company started out working with cloud SIM technology. When did you begin the e-commerce business?

Nagaoka:
The reason I encountered cloud SIM in the first place was that I was in charge of distribution at SoftBank C&S. During my time as a salaryman, which was quite long, I played a trading company-like role in various product sales, so many manufacturers would come to us with proposals. Encountering cloud SIM was part of that. At the same time, I was also dealing with various manufacturers of smartphone cases, PC supplies, and so on. So, while cloud SIM was the main focus, I also had a feeling that e-commerce would become popular. So I thought, “Let’s do this business too!” and launched it alongside cloud SIM.

Sugihara:
That makes sense. So, people you knew from your SoftBank days supported you, then?

Nagaoka:
That’s right. After I became independent, many business partners besides those related to cloud SIM supported me. Among them, there are still companies that I had relationships with even before I started my business nine years ago. Naturally, I could also go to China myself to manufacture products and handle direct negotiations. So while we certainly have many new vendors, whether for domestic procurement or direct purchasing from overseas, there are occasions where I get introductions through connections I made back then.

◆Business Overview

Sugihara:
That’s a huge asset, isn’t it? Next, could you briefly introduce TFN’s business overview?

Nagaoka:
Currently, it’s almost entirely focused on the e-commerce business. As for products, we’re targeting smartphone accessories. The total period we were involved in the cloud SIM business, which I mentioned at the beginning, was six to seven years, but we’ve now pivoted and are concentrating on the e-commerce business.

When we first started, we launched the company with both cloud SIM and e-commerce businesses. Operating a telecommunications business requires enormous capital. However, I was quite inexperienced as an entrepreneur, so my initial capital policy didn’t go well. At that time, I personally reached out to Mr. Watanabe, who is now a Managing Director at D-POPS GROUP, to ask him to join TFN as a director so that we could benefit from his business-related counsel. As a result, we also received an offer to join D-POPS GROUP and further grow our telecommunications business as a partner member. At that time, there were not so many group companies within D-POPS GROUP. There were a few CEOs who had originally belonged to D-POPS GROUP and then started their own group companies, but we were one of the very first companies to join from outside of D-POPS GROUP.

Sugihara:
I see. Perhaps that was one of the catalysts for the idea of a Venture Ecosystem that D-POPS GROUP is now aiming for.

Nagaoka:
That’s right. That’s how we were operating the cloud SIM business as a D-POPS GROUP company, but when we considered how to grow it further, President Goto proposed an M&A of a company that handles rental WiFi. What impressed me at the time was that he gave me three books about PMI and so on, and then I met the CEO of the M&A target company, and after that, it felt like President Goto was expecting me to make the decision myself.

Honestly, at that moment, I thought it was an unreasonable request, but I read all the books; handled the negotiations myself; drafted the contract; then, even though D-POPS GROUP had enough money, my company found our own investors; and finally, the contract was successfully concluded.

About half a year later, we took over ‘any-fi,’ a rental WiFi business that was originally part of D-POPS GROUP, and ran a rental router store on Miyamasu-zaka in Shibuya. From that point on, we gradually leaned into our WiFi business more and more.

On the other hand, the e-commerce side had steadily increased its product lineup since the company’s inception. A characteristic of our company is that we proactively incorporated DX and IT as part of our corporate culture, so we developed our e-commerce system in-house from an early stage. I feel that this has supported our growth.

Sugihara:
And then came COVID-19? I heard that your purchasing business was started during the COVID era.

Nagaoka:
Yes. Before COVID, both telecommunications and e-commerce were growing steadily, and just when we had acquired the telecommunications business through M&A and the numbers were quite steady, we entered the COVID era. It had been less than a year since the M&A, and within a month after the pandemic started, our P&L was in the red by about 40 to 50 million yen. I truly didn’t know what to do.

I still remember it now…I called President Goto and consulted with him, saying that the company was in a big deficit and we were even considering layoffs. At that time, President Goto said something like, “So you’re a president who cuts people, that’s all you can do, eh?”

No way, I was thinking about how to get TFN back into the black, for the sake of the group, and layoffs were only a part of that idea. But President Goto had a slightly different perspective. He told me, “It’s easy to lay off employees, and it would probably be easy to get back into the black immediately that way. But on the other hand, if you do that once, you will only ever be a CEO who does that. That will follow you for life…are you okay with that? And employees will also see you as a CEO who lays people off. So, maybe you should think about how to grow the company instead.”

Fortunately, the e-commerce business sold reasonably well due to the stay-at-home demand during the pandemic. So, although the telecommunications business was almost at zero, we managed to get by somehow. But it was incredibly tough.

Anyway, there was nothing else to do but start something new, and the fastest option was to drastically increase the number of products in e-commerce. At that time, Mr. Watanabe and I were trying to somehow increase our suppliers, and increasing suppliers meant handling home appliances. We focused on how to get products from famous manufacturers, but no matter how many introductions we received, no one would sell to us. I was thinking, “This is bad.”

But there are quite a few people selling home appliances in the world. So I thought there must be something to it. It was then, purely by chance at a drinking party, that someone’s words caught my ear: “I’m into ‘Poi-katsu’.” I asked, “What’s Poi-katsu?” And they replied, “It’s buying things, earning points, and then selling them on Mercari or other platforms.” I said, “That’s amazing. How much do you make a month doing that?” And they casually replied, “About 500,000 yen.” I thought, “If I had ten people like this, my company could recover!” So at that point, I started investigating.

I went directly to our current business partners and various e-commerce companies that handle home appliances, sticking around for hours, constantly observing, trying to figure out where they were getting their supplies. I realized that it wasn’t a usual supplier. From there, digging into various information on social media and elsewhere, I eventually arrived at the conclusion that they were purchasing and reselling goods. From that point, things moved fast. The website was completed in a week, and we said, “Let’s do it!”

So, we started our online purchasing business. At that time, we didn’t even have money to rent a storefront, so we started doing it in our head office. It quickly became popular, but then the owner told us that a regular rented office cannot be used as a storefront, so if we wanted to continue, we had to either move out or rent our own store. So, we immediately rented a store.

After renting the store, the purchasing business grew rapidly, reaching about 1.8 billion yen in one year, and with the support of D-POPS GROUP, we somehow managed to turn a profit. That being said, in the end, we’re actually going to close down the business in February 2025. After all, it was a low-profit business to begin with, but it carried us through the COVID era, so I can only say we were lucky to have it.

Sugihara:
I don’t think you should dismiss it as mere luck. To overcome that adversity, you practically tore apart your brain thinking over and over, observing, and quickly executing a plan to launch a business, and you managed to get through it. That’s wonderful. And then, just when one might think, “Let’s keep going with this purchasing business now that it’s on track!”, you made the bold decision to end it.

Nagaoka:
That’s right. When I look at the other entrepreneurs President Goto introduced me to, I realize that ultimately, it’s about profit more than sales. And when I thought about making TFN a good company that gives back to its employees, I figured this purchasing business definitely doesn’t belong among our services. As an example, if a business partner’s situation changes, our company will naturally be affected by that change. Ultimately, I had a personal desire to return to our own services and our own products. So, I decided our business will gradually pivot that way.

◆Development of In-House Goods

Sugihara:
Was it around that time? You’ve developed and created various things in-house, such as bicycles and suitcases, but when was it you started making your own e-commerce products?

Nagaoka:
Actually, we've been doing it since the company was founded. In the past, we developed products like scales and beauty rollers, so we’ve always been doing product development. I’ve always loved making things, so I’ve continued to do it even now. The impetus for making a bicycle was that someone in the company just happened to want one when we were deciding what to create. We made it, and it turned out to be a hit.

Sugihara:
I see! So, while working on various businesses, TFN has really accumulated a lot of experience and know-how. What would you say is TFN’s strength?

Nagaoka:
I would say it’s the way we construct our operations and flow. We are very thorough about forming a process and then implementing it into our system, so I think that’s our greatest strength.

Sugihara:
You also developed your e-commerce system in-house. Can you tell us about its features?

Nagaoka:
Certainly. We now have about 12 e-commerce stores. While there were systems out there that could instantly aggregate sales and quickly register products for operational purposes, they had both good and bad aspects. For example, with an external system, it was usable, but we could only ever achieve an 80% score. I thought it would be faster to just build everything ourselves.

From the time of our founding, we decided to do our system development in-house. Initially, rather than developing a full-fledged system, I built it myself using Microsoft Access, but it eventually couldn’t keep up, so I decided to develop our own system. I was certain that investing in our own systems and automating our processes would be beneficial in the long run for our company’s growth. And I also thought that in the future, the know-how we accumulated through in-house development could lead to various things, such as selling the software or acting as a consultant for other companies. That’s why we’ve focused on system development.

Sugihara:
So you expanded your business by leveraging your strengths. After many twists and turns, and overcoming the rough seas of the COVID era, the storm finally subsided. At that point, you thought deeply and decided to set your strategy for this year to focus solely on the e-commerce business, isn’t that right?

Nagaoka:
Yes. I personally like coming up with ideas, and when I decide to do something, I’m quick to execute. However, I had been thinking for a long time that our businesses were too dispersed. I’m more of a person who wants to think about how to turn one business into 6 billion yen, rather than creating three 2-billion-yen businesses to get 6 billion yen, or in other words, I want to do things in a Lanchester way*. That idea became stronger, and when I thought about what we are originally best at, it was e-commerce and retail. In order to concentrate on that, we decided to sell the telecommunications business for now.
(*Note: the “Lanchester” method is a well-known business strategy in Japan which focuses on concentrating resources in a single market to achieve dominance.)

 

Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.

 

TFN

Company President and CEO: Mamoru Nagaoka
Address: 1F Asano Higashi-nihonbashi Bldg., 2-27-8 Higashi-nihonbashi, Chuo-ku, Tokyo
Established: November 25, 2015
Website: https://tfnmobile.com/

 

Next, in the latter part of the interview, we discuss:
・Selling off a business
・TFN’s atmosphere and culture
・“Realizing a Venture Ecosystem”
・TFN’s 10-year vision
・And other topics

Be sure to check it out here:
https://d-pops-group.co.jp/en/column/tfn-interview-latter-part/

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[Entrepreneur Interview #13] Shoto Masuda (D-POPS Corp.) – Part 2
“Serve people and cultivate talent” Aim for further growth through developing human resources and systematization! D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Shoto Masuda, the current CEO of D-POPS Corp., the founding business of D-POPS GROUP. (This interview was conducted in March 2025.) This is the latter part of the interview. To read the first part, click here. ◆The Market Environment Sugihara: It seems that the business model of selling smartphones in physical stores is facing headwinds, given the increase in direct sales by carriers and manufacturers via e-commerce, as well as the growing market in different industries for buying and selling used devices. Could you share some aspects of your strategy in this market situation? Masuda: For about the past year, we’ve been heavily discussing our future strategy. We have many excellent existing businesses. Because they are directly connected to people’s daily lives, the products and services we handle are very attractive, I believe. However, on the other hand, when you’re in the position of an agency, control and management become incredibly difficult, so I really feel that balancing these aspects is extremely challenging. Regarding our strategy moving forward, it’s still fundamentally about telecommunications. While it’s quite broad to say telecommunications as a whole, there are many more products that we should really be selling. We will expand our product lineup to include items developed in-house and procured externally. Selling core products and cross-sellable products will be one of our first courses of action. Another plan is user life design. In essence, we are focusing our discussions on what people need for their daily lives and what problems need solving. This applies to our stores, and we’re also currently exploring if there's anything we can get involved in even without a physical store presence. Sugihara: Speaking of which, how is the “Smartphone Consultation Counter” business doing? Masuda: It’s growing steadily. It took a long time for feature phones and smartphones to penetrate into the Japanese market, but they have been fully received now. However, going forward, the products that come out, such as 5G and certainly 6G, and now even AI-equipped smartphones, are becoming so complex that many people don't know how to use them. For instance, people might not know how to use LINE, or how to link their My Number card, or how to connect IoT products to their home appliances. While devices have become widespread, many people don’t know how to use them, so we really want to address these customer needs, both in person and online. Sugihara: More and more people who are not tech-savvy, especially seniors, are finding themselves with no one to consult. Such individuals can run to a TOP1 store to address their concerns. So it seems there really are people who want to receive advice, even if they have to pay a fee. Masuda: That’s right. We used to do it on a volunteer basis, but we need to distinguish our business, and as we improve the skills of our staff, their wages also need to increase. So, we believe it’s better to charge a fee so that we can serve customers as professionals. We are also developing that service and are focused on continuously improving its quality. The third and final point is education. When I think back to what we most wanted to do since our founding, and what our strength still is today, it’s educating our human resources. The original vision of President Goto, the founder of D-POPS, was to create opportunities for young people. Although I’ve taken over as CEO, we’re still holding onto that vision, so at our core, we’re ultimately about educating people. In the end, we've committed to “cultivating talent”, so I believe that embedded in our company’s DNA is the idea of raising up “leaders equipped with both integrity and skill”, which also continues to be our human resource development policy as our business grows and evolves. In 2024, I had the opportunity to go abroad with Dr. Semmoto, the Chairman of D-POPS GROUP’s Board of Directors, and I realized that while some other countries have growing populations, the quality of Japan as a nation in various aspects is remarkably high. For example, I believe we can convey the high value of Japanese education, culture, and customer-focused service. Recently, as we’ve been brainstorming various ideas, we’ve gone back to our roots, asking: “What kind of company is D-POPS?” The answer is, “We are a company that develops human resources.” To make people genuinely excited and want to join D-POPS or work for us, I felt it was necessary to grow our business domains and to help individuals grow, making them believe that joining will lead to their personal development. ◆TOP1’s Policies for Sales and Proactivity Sugihara: Personally, when I picture mobile phone agencies in the past, I think, “Purely commission-based meritocracy!” What kind of sales and customer service policies does D-POPS’s own brand shop, TOP1, have? Masuda: Whether to compete purely on meritocracy or to prioritize meticulous sales and customer service—this is indeed the most challenging aspect. The truth is, when you chase sheer numbers, quality inevitably declines. That's why the industry as a whole has seen many compliance violations. However, no matter how good your intentions, if you don’t achieve results, you won’t get support, will you? Therefore, I believe it’s crucial to combine building a strong sales organization with education of the mind, which necessitates instilling our philosophy and vision. We believe that we are a company that properly educates its people and contributes meaningfully to those important individuals with whom we have connections, so we must continuously improve our quality. Essentially, it’s about whether we can establish a foundation of trust in human relationships and then build specialized skills and a favorable business environment upon that. There were many companies in the past that lacked this foundation. Those companies sold enormous volumes. They had high transient revenues and contributed more in terms of numbers than we did, but they no longer exist today. However, we need to increase both customer numbers and sales while simultaneously improving quality. So, we are working to strengthen this across the entire organization and aim for growth. ◆New Product “OTHEBES” Sugihara: So that’s why your philosophy-driven management and training truly come to life. It’s not just about the sales method; it’s because the staff, having gone through that philosophy training, are providing a service which enables them to support customers’ lives, lifestyle, and life design. I heard that as a future strategy, you’re launching a brand called “OTHEBES” to strengthen your customer base. Could you tell us more specifically about OTHEBES? Masuda: “OTHEBES” was launched in March. Led by Mr. Sakamaki, our Executive Officer and General Manager of Sales who is also in charge of product and business development, the first phase involves Wi-Fi rental and sales. OTHEBES is a portmanteau of “others” and “best”. While we have existing stores and products, there are still gaps where current products don't quite resonate with or contribute to end-users, and OTHEBES is designed to fill those gaps. Currently, for the first phase, we’re handling Wi-Fi. In the future, for example, some people only use their phone for calls, so we want to create our own brand of call-only mobile phones, plus develop combinations that pick the best aspects of different services. Recently, a slogan has emerged among us: “Create something new out of what already exists!” So, we are now analyzing the demands from both the field and customers, considering combinations that we believe will work. Sugihara: Both in terms of planning and on the ground, with the increasing number of products, carriers, hardware, and brands you handle, and your company’s own services appearing, there’s a risk that sales staff who lack initiative might not know what to propose to customers. Are you concerned about that? Masuda: That’s why we prioritize foundational education. In fact, D-POPS didn't have many established systems until now. So, from here on, our theme for this year is to create proper systems, and based on the premise that people forget, we aim to create systems that can convey information more simply, rather than just forcing memorization. It’s all about human resource development and systematization. If a company can just put the right people in the right places and clearly divide roles, there’s no way they can fail, ha ha. ◆Soccer Activities Sugihara: Nice! I love that kind of attitude! Changing the subject completely, I hear you are quite skilled at soccer! And that you’re active in the company’s futsal club. Could you tell us about these activities? Masuda: I’ve played soccer continuously since my school days, and I’ve kept it up as a hobby even after entering the working world. Initially, it was just an in-house club activity at D-POPS. We play about once a month internally, and since I have various connections, I also play with external members. I probably belong to about three or four main groups. When we focused only on in-house members, we were always just barely scraping by with enough players. We wanted to play but couldn’t. At that time, it suddenly occurred to me: what if we brought in people from both inside and outside the company? So, we started doing that. We organize the games, inviting our employees and other members of D-POPS GROUP to join, plus my acquaintances, some of whom are former professional players. We also forged a connection with BLUEISH Inc. through soccer, a company in which D-POPS GROUP later made a corporate investment. This made me realize that sports can create such networking opportunities. *See the full press release here: D-POPS GROUP Invests in BLUEISH Inc., Operator of Industry-Specific AI Workflow “Omni Workspace” Until now, my life has been pretty much full of those kinds of connections. I attended the Semmoto Management School run by Dr. Semmoto, and there I met another company’s board director who also played soccer. That director turned out to be a high school classmate of a former manager of mine from Germany, who had really helped me out during my time living in Beijing. I really hit it off with that director, started attending the soccer practices he participated in, and that's where I met the people from BLUEISH. But I also think this involves luck and timing. If this had happened five years earlier, I don’t think the discussion about investment would have occurred. I myself have had various experiences up to now, and being in a management position allows me to engage in various conversations, which enabled me to bring this opportunity to D-POPS GROUP. I mentioned playing with external people earlier; there are also skilled individuals among my acquaintances who are business owners, or even executives and younger employees within their companies. And typically, those people also excel at work. It’s like things just connect. That’s incredibly valuable, isn’t it? When people have good character, shared interests that foster friendship, and different expertise, skills, and networks, it leads to a wide range of connections. ◆Recruiting Students Sugihara: It’s the time of year when job hunting for students graduating next year has begun. What type of student would you like to see join D-POPS? And what aspects of D-POPS do you think are attractive points for new graduates? Masuda: Our company, first and foremost, has genuinely good people. They have high self-esteem and are very proactive. They also tend to reach out to others and have a strong sense of contribution. Furthermore, in D-POPS and D-POPS GROUP currently, we offer an environment where you can leverage support and coaching for experience, skills, and networking. I truly believe there’s no better environment than this. So, for those who want to challenge themselves quickly, gain not just knowledge but also practical skills, and refine their human qualities, ultimately, we’d like them to take on management roles. We don’t really prioritize academic background. However, it’s absolutely crucial to have high self-esteem. I think it would be difficult for both of us if an employee is consistently negative. If you think to yourself, “I can’t do this”, then you won’t be able to achieve anything. ◆“Realizing a Venture Ecosystem” Sugihara: D-POPS GROUP has the motto of “Realizing a Venture Ecosystem”. What aspects of this goal do you resonate with? Are there any activities you’re undertaking with the creation of a Venture Ecosystem in mind? Masuda: I believe this ecosystem is essential for living. The truth is, people cannot live alone, and their lives definitely change depending on who they spend time with and the differences in insights they gain. Moreover, the sooner this happens, the better. I think things can change even if it’s late, but realizing things as early as possible leads to making the right choices. Therefore, I personally feel that a Venture Ecosystem is indispensable. Within the D-POPS GROUP community, there are many people whom I’d want to meet even if it meant spending my own time and money. So, I think getting to join a Venture Ecosystem like this—and even getting paid to do it through working for the group—is quite an extraordinary opportunity. I want people to clearly recognize that it isn’t enough to simply show up. How you choose to act is up to you. It would be great if a group could form where people don’t just exist within the community, but actively initiate things themselves—whether it’s asking for guidance or contributing their own expertise. ◆Ideal Vision for D-POPS in 5 Years Sugihara: That’s wonderful! Now, could you tell us your ideal vision for D-POPS as a company and for yourself five years from now? Masuda: First and foremost, the company will have grown significantly. And I believe we will certainly have established a stage where we can better support customers’ life designs and employees’ self-realization within five years. We aim to expand this both domestically and internationally. I view this as a personal mission or message for myself: I want to ask myself, from a larger, global perspective, what do I need to do? I’m currently having various discussions while considering that. I believe the execution phase for that will be this year and next, so the company will likely undergo a significant transformation. Sugihara: That sounds promising. Now, are there any challenges you face in moving toward that future? Masuda: For Japan, it’ll definitely be the severe labor shortage. I have three children now, but when they grow up, in 20 or 30 years, the population will have decreased considerably, won’t it? When the population potentially drops to around 80 million, the question will become to what extent Japan’s culture and values, cultivated until now, can be transmitted and passed down. So, I think it’s about whether we can continue to impart education, not just to Japanese citizens, but also to foreigners. Another challenge, though it’s currently unclear, is nature itself. Among the challenges I’m currently taking on, I see existing businesses, information, and telecommunications as one aspect, then personal development for individuals as another, and finally, environmental conservation. What exactly we can do is not yet clear, but I am gathering information on it. ◆Message to Readers Visiting Our Website Sugihara: Finally, in closing, could you share a message for our online readers? Masuda: I believe our Venture Ecosystem is not just an ecosystem of startup companies, but an ecosystem containing groups of professionals driven by an intense spirit of altruism. I think there’s already something you can see and feel by simply looking at it. If you find something appealing or interesting after checking it out, I sincerely hope you’ll take the next step. We look forward to meeting you directly, and we would be delighted if you could contact us.   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   D-POPS Corp. Company President and CEO: Shoto Masuda Address: Shibuya Hikarie Bldg. 32F, 2-21-1 Shibuya, Shibuya-ku, Tokyo Established: February 1998 Website: https://d-pops.co.jp/
  • Group Companies
  • Interview
2025.05.07
[Entrepreneur Interview #13] Shoto Masuda (D-POPS Corp.) – Part 1
“Serve people and cultivate talent” Aim for further growth through developing human resources and systematization! D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Shoto Masuda, the current CEO of D-POPS Corp., the founding business of D-POPS GROUP. (This interview was conducted in March 2025.) ◆Background of Initial Employment Sugihara: President Masuda, thank you for agreeing to this interview. You joined D-POPS right after graduating in April 2012, correct? Could you tell us how you came to join the company? Masuda: During my university days, I went to Beijing to study abroad for four and a half years. I didn't really know how job hunting worked. So, during the summer break after the first semester of my senior year, July and August, I used those two months to start my job search. I think I actually interviewed with about five companies. I tried for major trading companies and such, but it didn’t work out. In the end, the companies that offered me a job were D-POPS and a large company listed in the First Section of the Tokyo Stock Exchange. I received that large company’s offer first, but my feelings changed as I went through the interviews with D-POPS. When I interviewed at D-POPS, the company atmosphere seemed bright. I could really envision its future development. Also, after speaking directly with Mr. Goto, I had a strong intuition that joining this company would change my life, or that I’d encounter a huge positive opportunity for my life. So, midway through the process, my mindset shifted to “I want to join this company”, and I was hoping they wouldn't reject me, ha ha. By the way, my final interview with Mr. Goto lasted about three hours. Sugihara: How big was D-POPS at that time? Masuda: I think the company was probably around its 15th fiscal year. Sales hadn't reached 10 billion yen yet…I think they were around 7 to 8 billion yen. At that time, the strong rallying cry throughout the company was something like, "Let's reach 10 billion yen in sales!" ◆Getting Appointed as CEO Sugihara: D-POPS is the founding business established in 1998 by President Goto, founder and CEO of D-POPS GROUP. However, you became president of D-POPS in March 2024, even though you’re only in your mid-30s. I hear you were promoted at an exceptional pace over these 12 years, becoming a general manager, executive officer, and so on. Looking back, what are your thoughts? Masuda: Well, I certainly think “luck and timing” played a role. In addition, the fact that the company was on the verge of a major transformation was a significant external factor, I believe. You see, about a year after I joined, D-POPS and Good Crew had already reached 10 billion yen in sales. From there, when President Goto envisioned further growth strategies, he shifted from D-POPS growing alone to gradually developing a group structure. At that time, President Fujita, who was my superior, left to establish Advancer, and then President Hosaka left to establish STAR CAREER. When my superiors became independent, or “graduated” in a sense—and I think this involves both external and internal factors—there was a period when the company’s performance declined, and the organization underwent a major change. I was in my third year then, still only a store manager, but at that point, what was originally a large pyramidal organization was flattened, and almost everyone became approximately the same level, directly under the president. A manager in their third year is considered young, right? Even at that level, we were given a lot of discretion. Meetings that were previously only attended by the top management became intense morning discussions involving about 20 selected individuals, which provided a great learning opportunity. It became a chance for members in their third year, like myself, to seize opportunities. We took on challenges one after another. Rather than feeling like assignments were given to us from above, it felt more like “We’re going to seize these ourselves.” It was lucky that we were presented with equal opportunities, but I believe the proactiveness to seize those chances was also incredibly important. Sugihara: As you seized opportunities and moved up the ranks, what was the area where you put in the most significant effort? Masuda: I worked the hardest at constantly reaching out to my superiors. It was also around the time Dr. Semmoto joined, and I made sure to sit next to and learn from President Goto and other surrounding business leaders and advisors—people who were significantly above me—whenever there were opportunities for dinners or study sessions. Not many people want to do that. But I knew that if I dove fully into it, there would always be something to gain. And in terms of work, from the company’s perspective, they usually ask people to take charge of areas with poor performance, right? I proactively took on such positions, driven by the desire for those areas to improve as quickly as possible. Thus, when performance picked up in those areas, I gained attention. And since they were challenging positions to begin with, even if results didn’t come immediately, I’d get words of encouragement like, “You’re doing great!” No matter what kind of challenge came my way, I made a conscious effort to tackle it head-on. Sugihara: How did President Goto approach you about becoming CEO of his company? And how did you feel at that time? Masuda: This part is a bit ambiguous. It wasn’t like President Goto called me in and said, “Okay, you’re the new boss now.” The truth is, although President Goto was still the CEO of D-POPS structurally, he had already been giving his undivided attention to managing D-POPS GROUP for several years prior to this point, and the management of D-POPS itself was basically delegated to the other top leaders. Within that context, the performance and organization of D-POPS progressively worsened. There was a very uncertain period. At that time, I was mainly in charge as the General Manager of Sales, and as I became an executive officer, and then a managing director and senior managing director, the company just wasn’t improving. I felt it was rapidly deteriorating, and I was struggling with the inability to see a clear path to recovery. President Goto and I had dinner opportunities about twice a year, just the two of us, and it was during one of those times that I asked him bluntly, “Please let me be president.” I had already decided within myself that we had no choice but to change. At that point, if President Goto were to return to operating D-POPS, it wouldn’t have been effective for all of D-POPS GROUP. So, I braced myself and thought, “I just have to do it.” Sugihara: From your perspective, were there multiple candidates for CEO at the time, or did you believe you were the only one? Masuda: The latter. I believed I was the only one. Perhaps there were others who thought differently, but I considered myself the only real possible successor. Sugihara: How many years ago did you start working with the awareness that you would be the president’s successor? Masuda: I’d say it was around when I turned 30 years old. At that time, I had become an executive officer, but I was only overseeing the Sales Division, so I wasn’t really looking at the company as a whole. However, given that President Goto was focusing on managing D-POPS GROUP, I definitely started to feel that I needed to take responsibility. From there, I started learning various things. These included encounters arranged by Dr. Semmoto, meeting people through President Goto, and even joining communities of business executives in my late 20s. The encouragement and stimulation from those around me was significant. At first, I wasn’t taken seriously at all because I lacked sufficient skill, but I somehow managed to hang in there. Over the past few years, I’ve gradually expanded my network, and I feel like I’m finally starting to see the fruits of all of my hard work and effort. ◆Business Overview Sugihara: Considering your long period of getting to where you are now, you’ve become quite the veteran. It’s been a year since you officially became the CEO of D-POPS. Could you give us a brief overview of D-POPS as a company and its current business operations? Masuda: D-POPS is now in its 27th fiscal year, and the telecommunications agent business, which was pioneered by our founder, remains our main focus today. We carry out our multi-brand store business via two lines. First, we operate under our own independent brand name, “Smartphone Consultation Desk TOP1”. These are telecommunications stores that carry all the major products and services from various manufacturers and Japanese mobile carriers, in addition to our own branded products, such as security services and insurance. Along with all of these offerings, we provide comprehensive consulting, retail sales, and after-sales support to our end-users. We currently operate over 30 stores, primarily in the Kanto region. The second line of store business is through specialty stores. As a telecommunications agency, we operate shops for the following major Japanese carriers: NTT’s docomo, KDDI’s au and UQ, and Rakuten Mobile. Furthermore, we’re involved in media operations, developing our own specialized telecommunications media called “PhonCierge”. And in PlusPass, a child company headed by President Hirai, who helped lead D-POPS alongside me, we operate a web media called “Smappy” which specializes in low-cost SIMs and smartphones. So, overall, we operate a telecommunications-focused platform that combines both real-world and online services, along with service businesses that support users. Sugihara: I believe there have been a lot of changes within telecommunications recently, especially in shop operations. What are these current industry trends? Masuda: There are various changes every year. Not just because of telecom carriers, but also because of Japan’s Ministry of Internal Affairs and Communications and other reasons. I think the biggest factor is the continuous alteration of various laws. However, D-POPS has been able to survive for over 20 years amidst all this because we’ve always really adapted to these changes. ◆What I Changed and Didn’t Change Upon Becoming President Sugihara: These past 20 years have been hectic, haven’t they? It’s been a year since you officially became CEO, in both name and reality. Can you tell us what significant changes you’ve made and what you’ve kept the same during this period? Masuda: This past year has truly been hectic and has flown by. Even before it was decided whether I’d become CEO, I had already made one firm decision. What’s truly great about D-POPS is how deeply our philosophy, vision, and human resource development were instilled as the company’s foundation by our founder, President Goto. I myself was educated through this, and it’s precisely why we’ve been able to survive. I felt that our approach to customers, employees, staff, and ultimately, society, has an excellent foundation, and all we needed to do is further refine it. Additionally, for several years, when President Goto resolved to focus solely on group management, the company was essentially without a commander. This led to a negative cycle where the upper management was adrift, mid-level employees kept leaving, and young recruits would join and then quickly depart. So, I knew we had to thoroughly rebuild from the ground up. Instead of just aiming to reduce the turnover rate in the short term, my first change was to create an environment where work is fulfilling and where both individuals and the organization can grow. To achieve this, I decided to gather all employees in person once a month for a dialogue. Partly due to the COVID-19 pandemic, but more so because our company has over 50 locations, opportunities for everyone to gather in person were limited to just a few times a year. While we do a lot of online communication now, I felt a strong sense of unease that it had become the primary mode of interaction. D-POPS has so many great qualities that I felt it was essential to convey them properly. Also, I wasn’t confident that I was adequately educating our people myself. So, I made this decision for myself around October 2023 (my appointment to the CEO position was in March 2024): to gather all our employees in person once a month. Sugihara: That’s quite an undertaking, isn’t it? Masuda: Yes, it is. Once a month, we’ll spend the entire day together, talking about our philosophy and vision at least—and even if that’s all we talk about for the day, that’s fine. I made that decision around October, prepared extensively, and then gradually rolled it out starting around February 2024. This led to our monthly all-employee group training sessions. The purpose of these sessions is, first, for employees to have proper in-person dialogue. Then, based on the theme of the day, such as how to integrate one’s personal philosophy with the company’s, we deepen our discussions. After all, work is a part of life. If it’s not engaging, or if it deviates too much from one’s personal values, there’s no reason to remain a part of the community. So, through in-person dialogue, we design an exciting future together. And since the timing for this coincided with my appointment as CEO, I decided to deliver these messages myself, rather than entrusting them to an external lecturer. Before starting these training sessions, I had been running “Masuda School” for about three years. That was for volunteers, not all employees, but it was in person, so I stopped that and shifted to involving all employees. In addition to those changes, we also renewed our company logo and website. Sugihara: That’s wonderful. It takes courage to halt a full day’s operations to make something like that happen. Is there anything you chose not to change? Masuda: I didn’t change D-POPS’s historic “Creed”. While I’ve changed many things since taking office, those guidelines teach us what’s important as human beings, so for now, I intend to keep them as they are. The aforementioned “Creed” is displayed on this wall at D-POPS GROUP’s office in the Shibuya Hikarie Building. ◆Thoughts Behind the Updated Logo Sugihara: Could you tell us about the thoughts behind the revamped website and the new logo? Masuda: The idea behind the new logo design is our aspiration to be number one in whatever we do. Our corporate vision includes contributing to our customers, providing employees with a platform for self-realization where they can control their own lives, generating profit, and continuously contributing to society. With that in mind, there’s a strong desire to be “number one” in our chosen business, even if it’s a niche market. So, when you look at the logo, you’ll see a part that looks like the numeral 1 to represent “number one,” and another part that forms the letter D for D-POPS. Our corporate colors are predominantly blue, including shades like sky blue. Blue often evokes feelings of brightness and freshness, doesn’t it? But it’s not just that; the logo also incorporates the idea of the passionate heart and composure of a blue flame into our corporate colors. That blue 1 is actually supported by a smaller gray part. This signifies that in both life and organizations, it’s not just those on the front lines who achieve results; there are also those who are on the sidelines backing them up. Therefore, we aim to create an environment of mutual support. We, as a company, are committed to providing strong support, continuously expanding our capacity to do so. Within that framework, we strive to be number one, believing in the path we’ve chosen and the mission we must accomplish. That’s the vision we poured into creating the new logo. D-POPS Corp.’s logo   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   D-POPS Corp. Company President and CEO: Shoto Masuda Address: Shibuya Hikarie Bldg. 32F, 2-21-1 Shibuya, Shibuya-ku, Tokyo Established: February 1998 Website: https://d-pops.co.jp/   Next, in the latter part of the interview, we discuss: ・Strategies in the current market conditions ・TOP1’s sales and proactive policies ・About the new product, “OTHEBES” ・Our soccer-related activities ・“Realizing a Venture Ecosystem” ・And other topics Be sure to check it out here: https://d-pops-group.co.jp/en/column/dpops-interview-latter-part/
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2025.04.30
[Entrepreneur Interview #07] Mamoru Nagaoka (TFN) – Part 2
Steering towards selection and focus to grow the company while refining empathy and co-creativity D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Mamoru Nagaoka, the CEO of TFN, which joined D-POPS GROUP in 2018. This is the latter part of the interview. To read the first part, click the link below. https://d-pops-group.co.jp/en/column/tfn-interview-first-part/ ◆Selling Off a Business Sugihara: I see. So, could you tell us more about the sale of that telecommunications business? Nagaoka: I started thinking about selling the telecommunications business around January of this year (2024). I had been re-evaluating our business and considering how to grow it, and the idea of selling the telecommunications business, as I mentioned earlier, crossed my mind. When we actually started moving on it, it was June. Actually, I had proposed the idea to President Goto once before, when the telecommunications business took a massive hit during the pandemic. I told him that the industry itself was doing poorly, and since we didn’t know when things would return to normal, simply holding on to it was a risk. At the time, he had a contrary opinion, so I figured that it probably wasn’t a good idea after all. But this year, I proposed it once again. Now, I had already made up my mind, so I decided to convey my thought process to him once more, regardless of what President Goto’s opinion would be, and he ended up saying, “That’s a good idea.” Of course, this time, my thinking wasn’t that we were selling this business simply because it was failing. Rather, we decided to sell it because we had encountered another company we felt could help grow that telecommunications business. Sugihara: Ah, so the selling of this business was about selecting your focus. What is the business you’ve decided to focus on now? Nagaoka: The mobile accessories business within e-commerce, only. We currently sell a variety of things like bicycles and suitcases, but the ultimate plan is to consolidate it all into mobile accessories. And whether it’s our company’s own products or those we procure from other companies, we intend to fully capitalize on them. Right now, what we prioritize most in the e-commerce business is customer success. It’s obvious that we need to make things quickly or create good products; I believe the ultimate goal is for the product to reach the end user and for them to become a fan of our brand. So, if we’re going to do manufacturing, it’s important to become number one in sales or the market, but I also want to move toward a mindset of delivering better products. Sugihara: Here’s one thing I find distinctive about TFN’s business: you’ve obtained the rights to create designs for some well-known places, haven’t you? Nagaoka: Yes, indeed. Currently, the companies that are cooperating with us as suppliers are the original rights holders. We collaborate with them on everything from product development to market strategy. So, our approach is not to simply keep everything within our own company, but to partner with a variety of manufacturers and suppliers. Then, going back to what I was saying earlier, since we internally develop our own tools for market research and sales analysis, we’re able to give better feedback to the manufacturers. This means that we can provide a more thorough, or different, kind of report than a typical retailer or vendor. I feel that being able to do that creates a good synergy. ◆Company Culture Sugihara: Thank you. So, my next question is, what is the culture and atmosphere like at TFN? Nagaoka: In the beginning, I was told by a then-advisor to TFN, who had previously served as an executive director at SoftBank, “Empathy and co-creation will become absolutely essential from now on. If you don’t have something that customers feel is good or that they can empathize with, you definitely won’t go anywhere.” At that time, our user reviews were honestly not very good. From that point, we decided that we would prioritize “empathy and co-creation”—in practical terms, how we would face our customers and how we would improve—and the company changed a lot. So now, within TFN’s culture, we value focusing on the customer above all else. For example, when it comes to corporate clients, we make a point of meeting with them in person and not making decisions based on assumptions. We place a lot of importance on that. Of course, we look at the data from our system that I mentioned earlier, but we are very careful to act only after making a proper judgment based on both the data and the facts we gather from meeting in person. Sugihara: That’s a wonderful culture. My next question is, could you tell us about any initiatives you've undertaken since joining D-POPS GROUP, and what benefits have come from being part of the group? Nagaoka: I think this probably varies from person to person, but for me, the biggest benefit was learning a new way of thinking. I believe this holds true within my own company as well: whether a person acts or not, or what they choose to do, ultimately depends on their own will. For example, I was the one who decided to join D-POPS GROUP. It wasn’t a decision made for me by someone else. This is a concept that I really value in my own company. By joining D-POPS GROUP, the scope of my judgment and thinking expanded. For instance, the way I now think about things when the company falls into a deficit is fundamentally different from before. But that doesn’t mean the old way of thinking was wrong; it’s just a different perspective. I believe it’s up to the individual to interpret these concepts. President Goto is quite well-known within the EO (Entrepreneurs’ Organization), and I've never heard anyone speak badly of him. With most people, there’s always at least one person who has something negative to say about them, but I’ve never met anyone who holds a grievance against him—not even once. I think that’s a bit of a miracle. I am grateful for the environment where I can learn a mindset and philosophy from someone like that. President Goto trusts my company, regardless of whether it’s in the red. But because he trusts me, there’s also a certain pressure to perform, ha ha. Having him around definitely keeps me on my toes. Also, the fact that he entrusts everything to the CEO of each group company is another merit. It’s really surprising just how rarely he visits each group company, ha ha…but nevertheless, he’s watching the numbers extremely closely. ◆“Realizing a Venture Ecosystem” Sugihara: He’s definitely watching them, ha ha. Now, D-POPS GROUP has the goal of “realizing a Venture Ecosystem”. In light of this, have you collaborated or done business with other companies in the group? Nagaoka: Not really, yet. However, just recently, someone from another group company came to our office to learn about e-commerce. Their president suddenly contacted me and said, “I’ve always wanted my company’s members to try their hands at e-commerce, so I’d like to send someone over. You wouldn’t need to worry about teaching them; instead, could you just let them learn by doing menial tasks?” So, a person came to our company, and they truly worked hard, asked our employees countless questions, and of course, I gave them advice as well. In the end, they must’ve generated about 1 million yen in sales. They didn’t conduct a formal P&L statement regarding the exchange, but their president was simply pleased to see the member’s growth. In an ordinary business partnership, we probably would’ve negotiated a service fee or something similar, but this kind of apprenticeship was made possible by both of us being a part of the same D-POPS GROUP. Also, I myself am not really the type to be taught things; I’m more of the type to just watch and learn. So, just listening to the reports at the management meetings is a great learning experience. I also make sure to keep a close eye on the same companies that President Goto is watching. Ultimately, I believe that M&A and CVC arrangements won’t succeed without a good business model. President Goto is constantly thinking about this, so I feel like if I look at the companies he chooses to invest in, I can reverse-engineer some answers to the question, “What is a good business model?” Looking at it from that perspective, you can start to figure out what kind of business models he’s currently paying attention to. Maybe it’s because of the type of person I am, but whenever I meet President Goto, he gives me a book. What’s amazing is that he always seems to choose the very book that I need at the moment. So, I always make sure to give him my thoughts on the book after reading it. I think he’s able to sense what I’m struggling with from his own experience, and he gives me those books and provides me with spot-on advice. ◆10-Year Vision Sugihara: Thank you. Now, could you tell us your ideal vision for TFN 10 years in the future? Nagaoka: Something I’d like to do someday is group management. I have a feeling that’s where I’ll end up. When I look at other entrepreneurs, some are growing their companies with just a single business, but I think it’s quite difficult to build a company worth hundreds of billions of yen with only one business. For example, even in the restaurant industry, you probably can’t create a trillion-yen company with a ramen shop. When I joined the group, D-POPS was primarily a mobile phone shop business, and now they are in a completely different place: creating a Venture Ecosystem. But when I look at the movements and developments of D-POPS GROUP, I think what President Goto is doing is probably the best possible way for a business owner to grow their company. So, while I don’t know if it will be three, two, or five companies, I’d like to create a structure where, for example, we have the e-commerce business we’re doing now at TFN, and then we branch out into corporate sales of smartphones, or make system development a separate entity, or maybe even become an e-commerce agency. That way, even if the e-commerce business doesn’t do well, we could be successful in system development, or the e-commerce agency company could be profitable, allowing us to help each other out. That’s something I want to build. I think that’s what I want to accomplish over the next 10 years. We’ve just started to draw up the blueprints for this. We recently held a training camp for our management team, and we used it as an opportunity to reconsider our mission, vision, and values, to align our perspectives, and to think about things like our compensation and benefits. If, for instance, the executives who are with me now one day were to form separate businesses and create TFN’s own unique group structure, I feel like that would be great. I’m not trying to simply imitate D-POPS GROUP, either. Honestly, when we sold the business this time, even though we were the ones selling, I couldn’t sleep properly for about two days before the money was transferred, ha ha. I was really not in good spirits in October, but after seeing President Goto face-to-face yesterday, my mood lifted. Doesn’t President Goto have such excellent fortune? I feel like just being around him makes me feel so energized; I was getting a lot of energy from him. Sugihara: President Goto really does seem to have an incredible presence flowing around him. Nagaoka: He really does. And the title of the book he gave me yesterday was Luck, so I thought, “This has  to be interesting.” It makes me think that these kinds of coincidences do happen. President Goto really does have great luck...he seems to exemplify the so-called “Law of Attraction”. ◆Message to Readers Visiting Our Website Sugihara: Finally, in closing, could you share a message for our online readers? Nagaoka: What I’m aiming for right now is definitely to build a truly good company. Although I don’t yet have a clear definition of what a “good company” is, my mission right now is to figure out how to build one, having joined the group and absorbed so many various ideas. But, I was able to get to this point because joining the group and learning new ways of thinking and so much about personal development were hugely significant for me. So, even though President Goto is incredibly busy, if you see him in town, you have to try and talk with him! Even better yet, capture him like a Pokémon. He won’t talk to you unless you catch him first, ha ha!   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   TFN Company President and CEO: Mamoru Nagaoka Address: 1F Asano Higashi-nihonbashi Bldg., 2-27-8 Higashi-nihonbashi, Chuo-ku, Tokyo Established: November 25, 2015 Website: https://tfnmobile.com/
  • Group Companies
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2024.12.17
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