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From Competition to Cooperation

Member: Sato Yasuhiko
Location: Japan
Industry: Used Automotive Parts
Gold Supplier member since: 2011
Gold Supplier






KAIHO INDUSTRY CO.,LTD. is a company that dismantles used cars collected in Japan and sells various parts domestically and internationally. By disassembling parts of cars that were supposed to be disposed of as garbage, they are able to reuse them. The business was set up in response to the problem of industrial waste, which continues to increase in large quantities.


The event that initiated their overseas business was when a buyer from Kuwait came directly to buy at the factory. Because the amount presented by the buyer was three times the price sold in Japan, they thought doing business overseas was a good business opportunity. From that time on until now for about 30 years, they have been doing overseas business.


In 2011, when they started steadily increasing sales after starting their overseas business and when they were planning to develop overseas sales routes, they discovered and began to use Alibaba's service, which could allow them to gather inquiries from buyers around the world. After starting the service, they were able to earn orders in the South America region, where there were previously fewer trading partners. The factor connected to the order was their procurement ability, which allowed them to respond to the buyer's required quantity, and the fact that some employees could speak the buyer's mother tongue. The company was recruiting employees with a view to expanding their business overseas in the future.


In the second-hand engine industry, unlike in other industries, the buyer side decides the value of the commodity. The president, who felt uncomfortable with this, set up a proprietary evaluation standard "PAS 777," which visualized the condition of the second-hand engine. The company's standard, which realized the digitization of quality in a way that was not possible before, has spread across the world and is now recognized overseas as a guarantee of safety.


In 2014, the president held the world's first online auction of used auto parts in the UAE. The goal is to make a market where the trading of used parts can be done at a price that everyone can be satisfied with.


The company has exported to 86 countries so far, and overseas sales account for 80% of annual sales. The company has become a global company. In the future, the company executive officer says that he wants to promote "the mindset of valuing things" and "a culture of cleaning up after oneself" all over the world through the sale of second-hand goods.