In the world of B2C , music and video streaming services, PC software and smartphone apps subscriptions are a big trend. Although there are still not many cases of subscriptions in B2B product (hardware) transactions, it is a fact that subscription is a high-interest keyword for manufacturers and suppliers. As society and the economic situation are changing at an accelerated pace, we must undertake actions for subscription now in order to provide manufacturers and suppliers with Mizuho Leasing’s know-how and functions, which create a synergy between both parties, bringing the business one step ahead, so that they select us as a partner. We contribute to the promotion of our partners'—our customers’—management and business strategies by partnering with them and playing a role in connecting them with each other.
We take subscription as an evolved form of vendor financing. We provide not only products but also accompanying services. Not just products but various services that come with the products, such as maintenance and improvement suggestions, and software upgrades, are also available to users whenever they need them, and as much as they need them. It is indeed a service that embodies the global trend of “from selling products to selling experiences,” and it can be said that it is a service transformable from a one-time sale business model to a continuous-contact-with-customer business (subscription model) . However, if a manufacturer tries to do it alone, their own assets will rapidly grow while their cash flow will deteriorate. Instead, we can jointly pursue business, with us helping with this part, so adverse effects on our partner manufacturers and suppliers can be overcome. We focus our efforts on realizing a new application of our services, through which everyone, including users, partners and Mizuho Leasing, will become winners.
It has been mainstream for conventional companies to carefully use good products for a long time and then dispose of them, i.e., the so-called linear economy. However, we believe that subscription will become a powerful advantage in the circular economy. User perspectives vary; some want to use something state-of-the-art, or balance functions and price, and others are value-oriented, and so on. Subscription enables us to provide products within a circulation system. This will lead to effective use of resources, and furthermore, improvement of social efficiency. If we get closer to a world in which a company can use what is best for them whenever they want to use it, it will lead to a variety of opimizations in the world. We continue to move forward, believing this will ultimately contribute to society.
