AUCNET Opens Foreign Locations in United States and Europe to Broaden Its Pre-owned Luxury Goods Business

TOKYO,Nov. 14,2022 -- AUCNET INC. (hereinafter "AUCNET"),an online auction company headquartered inTokyo,will be expanding its subsidiary -- AUCNET CONSUMER PRODUCTS INC.(hereinafter "ACP") -- globally,opening up two new international branches,onein Los Angeles,California,the United States,and the other in Copenhagen,Denmark,starting this November. Each branch respectively represents ACP'spresence in North America and Europe. The U.S. branch will be run by COO AyakoYamazaki,and the European branch by COO Masaaki Furukawa,with Yasuto Saitoremaining as CEO of both branches. By expanding its physical business intoNorth America and Europe,ACP hopes to secure more suppliers of second-handluxury goods,which its buyers can purchase with ease.

The expansion coincides with the growth of the global resale market,which,forclothing,including luxury brand-name items,was valued at about 35 billion USDin 2021 and which is expected to exceed 82 billion USD by 2026 (*). While thisresale industry contains products that offer profitable gains globally,theseitems are often supplied by individuals who choose to consign. Obtaining theseitems with a stable flow,while an essential part of the process,continues tobe an uphill battle.

To help combat the supply issue,AUCNET founded its subsidiary ACP in 2015.Based in Tokyo and run by President and CEO Yasuto Saito,it currently has over3,400 users worldwide. ACP conducts a luxury brand auction -- selling over657,000 items yearly -- and is praised for being one of the top B2B second-handluxury auctions in Japan,with a yearly Gross Merchandise Value (GMV) of over219 million USD*.

By increasing the number of buyers in the target areas and following up withacquisition of more sellers,ACP plans to further expand its growth abroad andcreate circular distribution of its products worldwide.

References:

(*) thredUP "2022 Fashion Resale Market and Trend Report"

https://www.thredup.com/resale/

*JPY to USD conversion based on the following rate: 147 JPY = 1 USD (as ofNovember 2,2022).

A message from the COO of AUCNET CONSUMER PRODUCTS USA,LLC,Ayako Yamazaki

Photo:

https://kyodonewsprwire.jp/prwfile/release/M105709/202211109597/_prw_PI1fl_Hd1Bq451.jpg

"AUCNET's B2B auction platform has been a great success with our overseas userswho have a deep understanding of the value of pre-owned luxury items. I amhonored to be heading the launch of our new branch,which will be located inLos Angeles -- a city where many people enjoy fashion by freely incorporatingvintage and pre-owned items into their everyday lifestyle. We look forward togrowing not only in California but in the United States as a whole with thegoal to further expand recognition of our company among business executives whoare interested in sustainability and the luxury fashion industry."

- North American Entity

Company name: AUCNET CONSUMER PRODUCTS USA,LLC

Address: 222 Pacific Coast Highway El Segundo (23rd Floor),CA 90245,USA

Representatives: CEO Yasuto Saito,COO Ayako Yamazaki

- European Entity

Company name: AUCNET EUROPE ApS

Address: Gothersgade 11,1123,Koebenhavn K

Representatives: CEO Yasuto Saito,COO Masaaki Furukawa

- Overview of AUCNET CONSUMER PRODUCTS INC.

Company name: AUCNET CONSUMER PRODUCTS INC.

Headquarters: Aoyama OM Square,Kita-Aoyama 2-chome 5-8,Minato-ku,Tokyo107-8349,Japan

Representative: President & CEO Yasuto Saito

Date of establishment: January 5,2015

Capital: 30 million yen (as of December 31,2021)

Business description: Operation of pre-owned luxury brand auctions

- Overview of AUCNET INC.

Company name: AUCNET INC.

Headquarters: Aoyama OM Square,Japan

Representatives: Chairman & CEO Kiyotaka Fujisaki,President & COO ShinichiroFujisaki

Date of establishment: June 29,1985

Capital: 1,806 million yen (as of December 31,2021)

Consolidated net sales: 36,710 million yen (for the year of 2021)

Number of employees (consolidated): 858 (as of December 31,2021)

Business description: Information distribution support services business,including the organization and operation of online auctions

Listing: Tokyo Stock Exchange Prime Market (Securities code: 3964)

URL: https://www.aucnet.co.jp/en/

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