Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

Seven & i Holdings Co., Ltd. is a holding company which was established through the merger of Ito-Yokado Co., Seven Eleven Japan Co., and Denny's Japan. The Company plans, manages, and operates mainly convenience stores, supermarkets, and department stores.

<ul>
<li>Seven &amp; I's plans to consolidate its supermarket operations and list in 2027 remain speculative but the timing shows that management was swayed more by the founder's death than activists.</li>
<li>It will need to bring Ito-Yokado (IY) back to profit first and, although it wants to keep at least a 15% stake, there is the strong possibility of a sale.</li>
<li>What matters more is not IY stores but the new SIP format. With CVS saturated, SIP is only way to grow within Japan but this depends on Ito-Yokado supply chains.</li>
</ul>


Seven &amp; I's plans to consolidate its supermarket operations and list in 2027 remain speculative but the timing shows that management was swayed more by the founder's death than activists.
It will need to bring Ito-Yokado (IY) back to profit first and, although it wants to keep at least a 15% stake, there is the strong possibility of a sale.
What matters more is not IY stores but the new SIP format. With CVS saturated, SIP is only way to grow within Japan but this depends on Ito-Yokado supply chains.


Seven & I Letting Go of Ito-Yokado at Last?

Thematic (Sector/Industry)

<ul>
<li>The rebound in tourist numbers to Japan after Covid was inevitable given the latent demand and ongoing popularity of the country as a destination.</li>
<li>But more surprising has been the huge diversity of nationalities, making up for the lag in Chinese visitors, boosting traffic at key retailers (as listed below).</li>
<li>Also new is the higher spend per visitor thanks to the cheap Yen, boosting retailers across the spectrum. Data from Google and Qunar suggests much more growth to come.</li>
</ul>


The rebound in tourist numbers to Japan after Covid was inevitable given the latent demand and ongoing popularity of the country as a destination.
But more surprising has been the huge diversity of nationalities, making up for the lag in Chinese visitors, boosting traffic at key retailers (as listed below).
Also new is the higher spend per visitor thanks to the cheap Yen, boosting retailers across the spectrum. Data from Google and Qunar suggests much more growth to come.


Japan Tourist Spending Per Head up 50% on 2019 Amid Record Arrivals

<ul>
<li>This in-depth analysis of consumption data shows the level of caution among consumers caused by inflation and fears of more price rises to come. </li>
<li>Food expenditure has risen to a record high due to higher prices and this has curtailed spending in other categories like fashion for most income classes.</li>
<li>Savings rates are at record levels, however, boosting opportunities for the better brands and retailers. If wages rise in real-terms, then consumer confidence is likely to rebound.</li>
</ul>


This in-depth analysis of consumption data shows the level of caution among consumers caused by inflation and fears of more price rises to come. 
Food expenditure has risen to a record high due to higher prices and this has curtailed spending in other categories like fashion for most income classes.
Savings rates are at record levels, however, boosting opportunities for the better brands and retailers. If wages rise in real-terms, then consumer confidence is likely to rebound.


Japan Consumers: Still Cautious Spending but Big Savings Will Unlock when Real Wages Rise

<ul>
<li>After a bumper bonus during Covid, the fashion sector saw calmer spending in the last 18 months as the big return to shops led to more muted growth online. </li>
<li>The overall EC fashion market grew around 4-7% depending on how you measure it, but online market share actually fell as people went back to shops.</li>
<li>This in-depth review highlights the key trends in the sector as well as the winners by sales growth among retailers and fashion brands.</li>
</ul>


After a bumper bonus during Covid, the fashion sector saw calmer spending in the last 18 months as the big return to shops led to more muted growth online. 
The overall EC fashion market grew around 4-7% depending on how you measure it, but online market share actually fell as people went back to shops.
This in-depth review highlights the key trends in the sector as well as the winners by sales growth among retailers and fashion brands.


Fashion E-Commerce: Physical Stores Grow Faster than Online in Japan

Nitori Holdings Co., Ltd., is based in Hokkaido and operates a furniture retail chain.  The Company sells living room furniture, storage furniture, dining furniture, office furniture, beds, and interior goods.  Nitori Holdings also sells original brand merchandise and imported merchandise.

<ul>
<li>Leading furniture retailer Nitori recently announced it would work with French platform developer Mirakl to build an online marketplace. The site will be available late 2024 or early 2025. </li>
<li>Nitori wants the mall to contribute 20% of revenues by 2032 within a sales target of ¥3 trillion, when overseas store numbers are expected to be double those in Japan.</li>
<li>But, founder Akio Nitori says he wants to see overseas sales much higher than official targets and may well get there through close targeting of the rising Asian middle class.</li>
</ul>


Leading furniture retailer Nitori recently announced it would work with French platform developer Mirakl to build an online marketplace. The site will be available late 2024 or early 2025. 
Nitori wants the mall to contribute 20% of revenues by 2032 within a sales target of ¥3 trillion, when overseas store numbers are expected to be double those in Japan.
But, founder Akio Nitori says he wants to see overseas sales much higher than official targets and may well get there through close targeting of the rising Asian middle class.


Nitori: One of the Best Bets in Japan Consumer Markets