CHAIRMAN AND CEO
Maruhan Group
POWER SCORE: 955
POSITION LAST YEAR: 19
CLAIMS TO FAME
- Founded Maruhan in 1957 and still running it at age 90
- Japan’s largest pachinko operator in revenue terms
JAPAN’S PACHINKO INDUSTRY hasn’t been immune to the ravages of the COVID-19 pandemic, which has accelerated the decline of an industry already seen to be edging towards its sunset.
From a peak of 18,000 parlors in 1995 – when the number of active players was estimated at 30 million – the number of parlors had fallen to 10,060 by the end of 2018 and to 9,638 by 2019 but fell much further in 2020 to 8,302. Active players are said to be below 10 million.
For operators like Maruhan, by far the largest in Japan, this has translated into a significant fall in sales. The company reported net sales of JPY1.55 trillion (US$13.9 billion) in the 12 months to March 2019 and JPY1.51 trillion (US$13.6 billion) in FY20. In the most recent fiscal year, which was heavily impacted by the pandemic, sales had declined by another 26.5% to JPY1.11 trillion (US$9.9 billion).
Yet that hasn’t slowed the company’s founder, 90-year-old Han Chang-woo, who continues to power along, ably supported by his son and Maruhan COO Yu Han.
Founded in 1958, Maruhan reached 100 parlors in 2002, passed 200 parlors in 2006 and 300 in 2014. Its parlors – often larger and more inviting than those offered by smaller rivals – include dining and other entertainment at some suburban locations. But diversification into banking in Cambodia –MARUHAN Japan Bank became the first Japanese-owned commercial bank in the Southeast Asian nation when established in 2008 – and Myanmar have proven better bets.
For the full list of 2021 Asian Gaming Power 50 winners, click here.
