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

<ul>
<li>With three food deliveries a day, convenience stores need to optimise stocks to sell unsold items, most of which have only been on shelves for a few hours.</li>
<li>Most chains deal with this problem manually by offloading the burden of optimal ordering and the cost of unsold stock onto franchisees,</li>
<li>Lawson has a new AI system that can automatically apply markdowns on any item without the need for skilled labour in the store. Gross margins rose 1% in test stores.</li>
</ul>


With three food deliveries a day, convenience stores need to optimise stocks to sell unsold items, most of which have only been on shelves for a few hours.
Most chains deal with this problem manually by offloading the burden of optimal ordering and the cost of unsold stock onto franchisees,
Lawson has a new AI system that can automatically apply markdowns on any item without the need for skilled labour in the store. Gross margins rose 1% in test stores.


Thematic (Sector/Industry)

<ul>
<li>With convenience stores at saturation, the question is how the big 3 chains, Seven Eleven, <a href="https://www.smartkarma.com/entities/lawson-inc" target="_blank" data-smartkarma-citation="entities:1040:1" rel="noopener">Lawson Inc (2651 JP)</a> and Familymart can grow.</li>
<li>Their long-standing reputation for innovation is deserved and they continue to adjust quickly to new realities, including during Covid. </li>
<li>They are also now creating new events, hybrid stores and even advertising revenue streams. The following is a review of the key strategies of the big 3 chains.</li>
</ul>


With convenience stores at saturation, the question is how the big 3 chains, Seven Eleven, Lawson Inc (2651 JP) and Familymart can grow.
Their long-standing reputation for innovation is deserved and they continue to adjust quickly to new realities, including during Covid. 
They are also now creating new events, hybrid stores and even advertising revenue streams. The following is a review of the key strategies of the big 3 chains.


Japan's Big 3 Convenience Stores Try to Innovate Out of Saturation

<ul>
<li>Convenience store retailing was one of the worst hit retail sectors during Covid as commuters and students stayed at home. Recovery has taken time but is on track. </li>
<li>Recovery aside, however, the sector has reached saturation, so the only way to grow is to maximise traffic to stores and the amount each customer spends.</li>
<li>This is forcing unprecedented innovation on a sector already famous for it but it won't be enough to generate the growth rates of the past.</li>
</ul>


Convenience store retailing was one of the worst hit retail sectors during Covid as commuters and students stayed at home. Recovery has taken time but is on track. 
Recovery aside, however, the sector has reached saturation, so the only way to grow is to maximise traffic to stores and the amount each customer spends.
This is forcing unprecedented innovation on a sector already famous for it but it won't be enough to generate the growth rates of the past.


Japanese Convenience Stores Recover but Where Will Future Growth Come From?

<ul>
<li>Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad. </li>
<li>This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.</li>
<li>Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.</li>
</ul>


Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad. 
This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.
Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.


Muji 500: The Missing Key to Plans for 2,000 Stores

<ul>
<li>Quick (Q)-commerce continues to grow, with rapid home delivery providing a new level of convenience to meet demand from busy, urban consumers.  </li>
<li>Z Holdings’ team of Yahoo, Askul and Demae-can have run what is now called Yahoo Mart since 2020 which has opened its first three retail stores, a new omnichannel model.</li>
<li>Given the data analysis and supply chain power of its backers, these stores could quickly become a thorn in the side of the big convenience store chains.</li>
</ul>


Quick (Q)-commerce continues to grow, with rapid home delivery providing a new level of convenience to meet demand from busy, urban consumers.  
Z Holdings’ team of Yahoo, Askul and Demae-can have run what is now called Yahoo Mart since 2020 which has opened its first three retail stores, a new omnichannel model.
Given the data analysis and supply chain power of its backers, these stores could quickly become a thorn in the side of the big convenience store chains.


Yahoo Mart's Q-Conbini Stores: A Potential Competitor to the Big 3 CVS?

Japan

LAWSON, INC. operates a chain of convenience stores in Japan. The Company sells a variety of products including fast food, beverages, snacks, magazines, newspapers, and sundry goods.

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Lawson Inc (2651 JP)

Lawson: More Efficiencies

The convenience store sector may be saturated but more efficiencies should lead to higher margins. Lawson is leading the way with a new AI-based...

Michael Causton

Japan's Big 3 Convenience Stores Try to Innovate Out of Saturation

The big 3 Japanese convenience stores are continuing to innovate in an effort to offset saturation and changing work patterns. They will remain...

Michael Causton

Japanese Convenience Stores Recover but Where Will Future Growth Come From?

Japanese convenience stores are innovative, relentless competitors. It is just a shame the sector is at saturation. While there is growth potential...

Michael Causton

Muji 500: The Missing Key to Plans for 2,000 Stores

Muji has been suffering of late but a new format focusing on prices below ¥500 could solve multiple problems both at home and overseas.

Michael Causton

Yahoo Mart's Q-Conbini Stores: A Potential Competitor to the Big 3 CVS?

All big 3 e-commerce firms in Japan now have an omnichannel model to win out in the next big fight for share: FMCG. Z Holdings' has been slower...

Michael Causton

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