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Just Energy Group Inc. JE announced the launch of Just Energy Brand in Japan, taking a step further in its ambitions to expand globally. Just Energy is an electricity and natural gas commodities, energy efficiency solutions, and renewable energy options provider with over 1.5 million customers across North America, U.K. and Germany.

Global Expansion Plan

As a leader in the retail energy space, the company intends to take strategic initiatives to further international operation, expand retail sales channels along with investing in newer products and geographies. In fact, Just Energy has been undertaking steps toward fulfilling its strategy of delivering value services to its customers through energy management solutions. Additionally, its growth plans centre around increasing customer base, geographic expansion, channel augmentation, strategic acquisitions, new products and structures.

Notably, the company began expansion in U.K. under the Hudson Energy brand in 2012, followed by the launch of Green Star Energy in 2013. Further, it expanded presence by venturing into Germany in 2016.In the month of September, the company launched its brand in Ireland. (Read More: Just Energy Launches Brand in Ireland, Expands Globally)

With the company’s foray in Japan, management believes that it is well poised with core competencies and product offerings to serve the high-growth market of over 85 million customers in Japan.

The company witnessed gross retail channel expansions (RCEs) additions of 310,000, an increase of 58% year over year and 27% sequentially. It witnessed growth in Net RCE additions of 11,000, reflecting an increase of 86,000 RCEs year over year and 146,000 RCEs sequentially. Further, the company observed record low 11% attrition for trailing 12 months with improvements in both consumer and commercial attrition. The company’s total customer count increased 7% to nearly 1.6 million total customers since fiscal 2017 year end during the second quarter of fiscal 2018.

Our View

The launch of Just Energy’s brand in Japan marks the company’s first foray into Asia, and third geographic venture outside North America in the past 12 months. Toward this, it has made significant investments during the second quarter of fiscal 2018 to support its strategy of pursuing growth through better products and expansion. Toward this, it spent approximately $8 million in new markets and channel development during the quarter. The company also intends to penetrate newer geographies, as evidenced by its expanding global operations.