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>Convenience stores in Japan aren't known for their fashion prowess although most sell the odd sock and underwear.</li>
<li>
<a href="https://www.smartkarma.com/entities/familymart-co-ltd" target="_blank" data-smartkarma-citation="entities:320:1" rel="noopener">FamilyMart Co Ltd (8028 JP)</a> sees an opportunity to both expand sales categories and increase margins with higher value fashion basics supplied by its new parent <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP).</a>
</li>
<li>Itochu is a leading fashion supplier and has created a hit product range for Familymart as well as another in cosmetics.</li>
</ul>


Convenience stores in Japan aren't known for their fashion prowess although most sell the odd sock and underwear.

FamilyMart Co Ltd (8028 JP) sees an opportunity to both expand sales categories and increase margins with higher value fashion basics supplied by its new parent Itochu Corp (8001 JP).

Itochu is a leading fashion supplier and has created a hit product range for Familymart as well as another in cosmetics.


Familymart to Double Space for Hit Clothing Range

Thematic (Sector/Industry)

<ul>
<li>The convenience store sector returned to growth last year but the outlook remains uncertain.</li>
<li>The big 3 chains still have a way to go to adjust to a new era of slower growth and the need for new ideas.</li>
<li>Even with new ideas on merchandising and services, the CVS sector remains saturated and the only real growth is overseas or in other formats.</li>
</ul>


The convenience store sector returned to growth last year but the outlook remains uncertain.
The big 3 chains still have a way to go to adjust to a new era of slower growth and the need for new ideas.
Even with new ideas on merchandising and services, the CVS sector remains saturated and the only real growth is overseas or in other formats.


Top Japanese Convenience Store Chains Rebound in FY2021

<ul>
<li>Poplar is one of the few remaining small CVS chains in Japan and is struggling.</li>
<li>It is now trying a new format of mini stores to take merchandise to the customer.</li>
<li>This may not be enough and it will likely cede more of its stores to Lawson.</li>
</ul>


Poplar is one of the few remaining small CVS chains in Japan and is struggling.
It is now trying a new format of mini stores to take merchandise to the customer.
This may not be enough and it will likely cede more of its stores to Lawson.


Poplar Launches Unmanned Stores but Independence Still Under Threat

<ul>
<li>Lawson will begin offering made-on-demand meals direct from its convenience stores. </li>
<li>Suitable stores are being renovated to include in-store kitchens, with 100 planned for this time next year and 1,000 by 2025, with delivery handled by companies like Uber Eats.</li>
<li>Most other chains offering made-to-order meals are small, so Lawson could well take a large share of this growing market.</li>
</ul>


Lawson will begin offering made-on-demand meals direct from its convenience stores. 
Suitable stores are being renovated to include in-store kitchens, with 100 planned for this time next year and 1,000 by 2025, with delivery handled by companies like Uber Eats.
Most other chains offering made-to-order meals are small, so Lawson could well take a large share of this growing market.


<ul>
<li>Thanks to the huge supply chain capabilities of its parent <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a>, <a href="https://www.smartkarma.com/entities/familymart-co-ltd" target="_blank" data-smartkarma-citation="entities:320:1" rel="noopener">FamilyMart Co Ltd (8028 JP)</a> is moving into new categories of private label product.</li>
<li>These are not the traditional staples of the convenience store but new types of more fashionable lifestyle products in clothing and cosmetics.</li>
<li>Recent results show successful collaboration with Noin for cosmetics and with Hiromichi Ochiai from Facetasm for clothing basics, selling more than 1 million items each.</li>
</ul>


Thanks to the huge supply chain capabilities of its parent Itochu Corp (8001 JP), FamilyMart Co Ltd (8028 JP) is moving into new categories of private label product.
These are not the traditional staples of the convenience store but new types of more fashionable lifestyle products in clothing and cosmetics.
Recent results show successful collaboration with Noin for cosmetics and with Hiromichi Ochiai from Facetasm for clothing basics, selling more than 1 million items each.


Japan

FamilyMart Co., Ltd. operates convenience store chains. The Company provides rice balls, hot snacks, stews, beverages, and other products. FamilyMart conducts businesses in China, Taiwan, South Korea, Thailand, and other countries and regions.

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FamilyMart Co Ltd (8028 JP)

Familymart to Double Space for Hit Clothing Range

Familymart is seeing a revival in merchandising since the takeover by Itochu. The latter has experience in sourcing fashion, cosmetics, home as...

Michael Causton

Top Japanese Convenience Store Chains Rebound in FY2021

Japanese convenience store chains posted higher sales in 2021 after a tough 2020 but the outlook remains uncertain given saturation and new forms...

Michael Causton

Poplar Launches Unmanned Stores but Independence Still Under Threat

Poplar has been struggling to remain independent and has already ceded 30% of its chain to Lawson. With losses mounting, it is trying new unmanned...

Michael Causton

Lawson Expands into Takeaways

Finding ways to increase same-store sales is a problem for Japan's convenience stores given that saturation has resulted in more stores competing...

Michael Causton

Familymart, the Lifestyle Store

Itochu always intended to make better use of its vast network of suppliers to improve both the merchandise mix at Familymart and also gross...

Michael Causton

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