What is Brief History of Scroll Company?

How did Scroll evolve from catalogs to e-commerce infrastructure?

Founded in 1939 in Hamamatsu as Mutow Co., Ltd., Scroll began as a mail-order catalog bridging urban fashion to regional Japan. Over decades it scaled into a national catalog retailer and, by 2025, pivoted into D2C retail and backend e-commerce services.

Scroll now blends retail and platform services—apparel, household goods, fulfillment, marketing and payments—positioning itself as both merchant and e-commerce enabler. Explore strategic frameworks like Scroll Porter's Five Forces Analysis.

Founded on October 1, 1939 as Mutow Shoji Co., Ltd. in Hamamatsu, Japan, the company began by selling textiles and household goods via mail-order catalogs to underserved regional consumers. The Muto family launched the operation to bridge urban-rural retail gaps during a period of economic transition.

Founding Story of Scroll Company

The Muto family established Mutow Shoji Co., Ltd. on October 1, 1939, pioneering catalog mail-order to reach consumers outside Tokyo and Osaka. Early focus was on textiles and essential apparel, leveraging family capital and local credit to build a reliable supply chain amid post-war challenges.

• Founded: October 1, 1939 in Hamamatsu, Japan — origin of Scroll Company history
• Founders: the Muto family — key figures in the founding of Scroll Company
• Business model: mail-order paper catalogs — innovative non-store retailing during the era
• Early product focus: textiles, apparel, household miscellaneous goods to underserved regional markets

Mutow Shoji’s catalog circulation grew steadily; by the late 1940s the company served thousands of households across regional Japan, reducing reliance on metropolitan merchants. The company’s early logistics emphasis fostered trust and repeat orders, laying groundwork for what would become the broader Scroll Company origins and evolution.

Initial funding came from family resources and local credit; operational efficiency and textile sourcing expertise helped expand catalog reach despite wartime and post-war supply constraints. Early metrics show catalog-driven repeat-purchase rates exceeding typical local retail retention benchmarks of the period.

For analysis of later growth phases and strategic shifts that built on these founding practices, see Growth Strategy of Scroll.

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During the mid-20th century, Scroll Company (then Mutow) rapidly institutionalized and expanded, transitioning from catalog retailer to diversified household brand; key listings in 1970 and 1982 underwrote logistics and product diversification aimed at Japan’s growing middle class.

Market listings and capital raises

Mutow listed on the Nagoya Stock Exchange in 1970 and achieved a First Section Tokyo Stock Exchange listing in 1982, unlocking capital for nationwide logistics expansion.

Product diversification

By the 1980s the company expanded beyond apparel into innerwear, furniture and health products, targeting urban middle-class demand and increasing average order value and basket breadth.

Digital transition and e-commerce

Recognizing catalog decline, Mutow launched its first dedicated e-commerce sites in 2002, initiating an ongoing shift toward online sales that by the 2010s accounted for a majority of direct-to-consumer revenue.

Rebranding and strategic M&A

In 2009 the company rebranded as Scroll Corporation to reflect a digital 'scrolling' experience; subsequent M&A targeted beauty and health specialists to improve D2C gross margins and product depth.

The growth phase included converting internal logistics into a commercial service: Scroll360 became a B2B arm serving hundreds of external e-commerce clients by the late 2010s, reducing logistics cost as a percentage of revenue and generating new service fees; see Revenue Streams & Business Model of Scroll for related analysis.

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Scroll Company history shows a transition from catalog retail to digital-first solutions, marked by platform launches, logistics automation, and brand pivots that preserved profitability amid industry headwinds.

Scroll360 combined OMS, WMS and CRM into a single stack, reducing fulfillment cycle times and improving customer retention. Investments in robotics at hubs like Zama lowered headcount exposure and increased throughput per shift.

Scroll360 Platform

Unified e-commerce total solution integrating order management, warehouse automation and CRM to streamline omnichannel operations.

Zama Robotics Upgrade

Deployment of advanced robotics in 2023–24 to counteract rising labor costs and driver shortages in Japan's logistics sector.

Brand Portfolio Pivot

Shift from volume cataloging to value-based brand management, emphasizing Tofu-no-Moritaya beauty and AXAS outdoor gear.

Logistics 2024 Response

Operational redesigns to handle supply-chain interruptions and maintain service levels during the 'Logistics 2024' crisis.

Margin Stability

Efficiency gains and higher-margin brand sales helped sustain an operating margin around 5.5% in 2025.

Data-Driven Merchandising

Use of customer analytics and CRM data to optimize product assortment and personalize marketing.

Challenges included intense competition from global e-commerce platforms eroding market share and yen volatility increasing import costs for apparel. The decline of catalog sales required restructuring of legacy assets and reallocation of capital to digital and niche brands.

Competition from Global Giants

Amazon and other global players pressured pricing and fulfillment expectations, forcing Scroll to upgrade logistics and value propositions.

Currency Volatility

Yen fluctuations increased the cost of imported apparel, compressing margins and requiring dynamic pricing strategies.

Catalog Business Decline

Falling catalog demand necessitated divestment and restructuring of legacy operations to free capital for digital transformation.

Labor and Driver Shortages

Shortages in logistics labor pools required automation investments to maintain service levels and control costs.

Transition Risk

Moving from volume-based cataloging to brand and solution models involved short-term revenue disruption and cultural change.

Supply-Chain Disruption

Global supply shocks required more resilient sourcing and inventory strategies to avoid stockouts and margin erosion.

For a focused market and audience analysis related to these shifts see Target Market of Scroll.

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Timeline and Future Outlook: a concise timeline traces Scroll Company history from its 1939 founding through major milestones to 2025, and outlines strategic directions for 2026+ centered on BPO, AI-driven solutions and DX to sustain growth.

BPO expansion

Leadership targets growth in Business Process Outsourcing, positioning Scroll as the operational backbone for small and medium D2C brands, leveraging existing logistics and customer-care infrastructure.

AI-driven personalization

Integration of generative AI for personalized marketing and demand forecasting aims to improve customer lifetime value and reduce inventory holding days.

Solutions segment growth

Analysts expect Solutions (Scroll360 and B2B services) to drive revenue growth and offset stagnation in traditional mail-order apparel, supported by rising outsourcing demand in Japan.

Operational efficiency gains

Automated sorting and AI logistics implemented in 2024 are projected to lower fulfillment costs and improve order-to-delivery times, reinforcing competitive positioning.

For a concise company narrative and additional milestones, see Brief History of Scroll.

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