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

<a href="https://www.smartkarma.com/entities/oisix-ra-daichi-inc" target="_blank" data-smartkarma-citation="entities:10145:1" rel="noopener">Oisix ra daichi (3182 JP)</a> has managed to grow rapidly during the pandemic and make a much improved profit at the same time. The business remains small compared to supermarkets, but has a unique position as the only pureplay retailer for fresh foods. This has attracted new partners, the latest of which are Ootoya and Ebay's Qoo10.
Given current momentum to buy food online, even if competitors are also expanding, Oisix has now updated its forecasts, expecting sales to hit ¥90 billion, a 15.4% increase with operating profit coming in at ¥5 billion.

Oisix ra daichi (3182 JP) has managed to grow rapidly during the pandemic and make a much improved profit at the same time. The business remains small compared to supermarkets, but has a unique position as the only pureplay retailer for fresh foods. This has attracted new partners, the latest of which are Ootoya and Ebay's Qoo10.
Given current momentum to buy food online, even if competitors are also expanding, Oisix has now updated its forecasts, expecting sales to hit ¥90 billion, a 15.4% increase with operating profit coming in at ¥5 billion.

Oisix Thrives in Crisis, Ties with Ootoya

Telco/Internet specialist

Kirk Boodry

Redex Research

Softbank Corp. posted a solid Q2 helped by Internet upside, a one-time gain from how it accounts for handset instalment plans and solid upside in enterprise sales as telework/WFH trends boost sales. The company kept FY guidance intact despite H1 outperformance as there could be headwinds from mobile pricing changes and higher spending at Z Holdings but management confidence on the analyst call was high.  Importantly, the company also provided reassurance on the dividend and reduced regulatory exposure.

Softbank Corp. posted a solid Q2 helped by Internet upside, a one-time gain from how it accounts for handset instalment plans and solid upside in enterprise sales as telework/WFH trends boost sales. The company kept FY guidance intact despite H1 outperformance as there could be headwinds from mobile pricing changes and higher spending at Z Holdings but management confidence on the analyst call was high.  Importantly, the company also provided reassurance on the dividend and reduced regulatory exposure. 

Softbank Corp - Q2 20 Results: Positive Financial Report and Dividend Reassurance

Rakuten provided an update on the mobile business today including the long-awaited introduction of eKYC (know your customer) and further reductions in fees but network coverage remains its largest challenge and this is unlikely to change in the near- to mid-term. The company also announced that 5G services would not be priced at a premium, in-line with campaign pricing from the incumbents and further evidence that the tech cycle upgrade is not going to generate consumer revenue growth.

Rakuten provided an update on the mobile business today including the long-awaited introduction of eKYC (know your customer) and further reductions in fees but network coverage remains its largest challenge and this is unlikely to change in the near- to mid-term. The company also announced that 5G services would not be priced at a premium, in-line with campaign pricing from the incumbents and further evidence that the tech cycle upgrade is not going to generate consumer revenue growth.   

Rakuten - Mobile Update: E-KYC Enables Faster Migration but Network Coverage Challenging

This was an interesting (and busy) report. KDDI addressed recent industry trends like new revenue streams (Toyota agreement), regulatory change (a new, eSIM focused MVNO), and new technology (all 5G handset lineup). Meanwhile, confirmation it will buy back shares (c. ¥150bn net) boosts its shareholder return profile vs NTT and signals regulatory pressure is easing. As with DoCoMo, user churn was near record lows highlighting the relatively soft impact from Rakuten’s network launch on the incumbents.

This was an interesting (and busy) report. KDDI addressed recent industry trends like new revenue streams (Toyota agreement), regulatory change (a new, eSIM focused MVNO), and new technology (all 5G handset lineup). Meanwhile, confirmation it will buy back shares (c. ¥150bn net) boosts its shareholder return profile vs NTT and signals regulatory pressure is easing. As with DoCoMo, user churn was near record lows highlighting the relatively soft impact from Rakuten’s network launch on the incumbents.  

KDDI - Q2 20 Results: Embracing the Industry’s New Look

NTT DoCoMo posted results ahead of consensus expectations boosted by steady improvement in mobile service revenue and record profits in its non-telco Smart Life business. The solid quarter provides some relief for parent NTT which is buying in minority shareholders at a premium although concerns on whether DoCoMo will need to aggressively respond to pressure for price reductions will linger.  Continued low churn rates read positively across to fellow incumbents Softbank and KDDI but less so for Rakuten whose impact on the industry has been muted so far.

NTT DoCoMo posted results ahead of consensus expectations boosted by steady improvement in mobile service revenue and record profits in its non-telco Smart Life business. The solid quarter provides some relief for parent NTT which is buying in minority shareholders at a premium although concerns on whether DoCoMo will need to aggressively respond to pressure for price reductions will linger.  Continued low churn rates read positively across to fellow incumbents Softbank and KDDI but less so for Rakuten whose impact on the industry has been muted so far.  

NTT DoCoMo Q2 20 Results: Last Public Report Ends on a Relative High Note

Japan

NTT DOCOMO, INC. provides various types of telecommunication services including cellular phones, satellite mobile communication, and wireless LAN Network. The Company also sells cellular phones, and other equipment.

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NTT Docomo Inc (9437 JP)

Oisix Thrives in Crisis, Ties with Ootoya

Oisix Ra Daichi is a quality brand in a nascent market: online food retailing where e-commerce has less than 3% share. It is a huge prize and...

Michael Causton

Softbank Corp - Q2 20 Results: Positive Financial Report and Dividend Reassurance

For Q2 20, Softbank beat financial expectations, reassured on the dividend and highlighted how diversification has lowered regulatory exposure.

Kirk Boodry

Rakuten - Mobile Update: E-KYC Enables Faster Migration but Network Coverage Challenging

Rakuten provided an update on the mobile business including the launch of eKYC functionality but comments on network coverage clearly show this...

Kirk Boodry

KDDI - Q2 20 Results: Embracing the Industry’s New Look

At Q2 results, KDDI addressed recent industry trends like new revenue streams, regulatory change, and new technology. A share buyback boosts...

Kirk Boodry

NTT DoCoMo Q2 20 Results: Last Public Report Ends on a Relative High Note

DoCoMo results were ahead of expectations in its last report as a public company. That's good for NTT and there is a positive read across to...

Kirk Boodry

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