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. 

Thematic (Sector/Industry)

<ul>
<li>Japan’s consumer markets had a remarkably good year in 2023, despite the spectres of inflation and negative real wage growth marring consumer confidence. </li>
<li>These fears were offset by a desire to get out and spend some of the mounting savings. Those savings still rose a cumulative average of ¥1.45 million in 2023.</li>
<li>Covid and inflation forced major change and provided a solid footing for what is expected to be a good 2024 on the back of hopes for genuine real wage growth.</li>
</ul>


Japan’s consumer markets had a remarkably good year in 2023, despite the spectres of inflation and negative real wage growth marring consumer confidence. 
These fears were offset by a desire to get out and spend some of the mounting savings. Those savings still rose a cumulative average of ¥1.45 million in 2023.
Covid and inflation forced major change and provided a solid footing for what is expected to be a good 2024 on the back of hopes for genuine real wage growth.


2023-24 Japanese Consumer Market Trends Review

<ul>
<li>Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.</li>
<li>2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.</li>
<li>While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.</li>
</ul>


Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.
2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.
While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.


Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

<ul>
<li>After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. </li>
<li>Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.</li>
<li>This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. </li>
</ul>


After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. 
Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.
This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. 


Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

<ul>
<li>Inbound tourism only got going again from October but the pent up demand to visit Japan has meant a surge in visitors. </li>
<li>Since many tourists also have stuffed wallets due to curtailed spending during the pandemic and the Yen is at very low levels, there is much higher spending. </li>
<li>Key beneficiaries are listed below among department stores, premium fashion stores and drugstores.</li>
</ul>


Inbound tourism only got going again from October but the pent up demand to visit Japan has meant a surge in visitors. 
Since many tourists also have stuffed wallets due to curtailed spending during the pandemic and the Yen is at very low levels, there is much higher spending. 
Key beneficiaries are listed below among department stores, premium fashion stores and drugstores.


Inbound Tourism up 50%, Spending Almost at 2019 Levels

Equity Bottom-Up

<ul>
<li>Zozo may be the leading online fashion mall but it has spent the last two years using its power to drive more traffic to its merchants’ physical stores. </li>
<li>Its latest service allows stores to sell stock held at Zozo’s fulfilment centre when they themselves have sold out and thus avoid lost sales opportunities.</li>
<li>Zozo itself, meanwhile, will open a physical store in Omotesando but one entirely devoted to styling services for its customers.</li>
</ul>


Zozo may be the leading online fashion mall but it has spent the last two years using its power to drive more traffic to its merchants’ physical stores. 
Its latest service allows stores to sell stock held at Zozo’s fulfilment centre when they themselves have sold out and thus avoid lost sales opportunities.
Zozo itself, meanwhile, will open a physical store in Omotesando but one entirely devoted to styling services for its customers.


Zozo Opens Store in Omotesando, to Increase Retail Ties

Japan

UNITED ARROWS LTD., operates fashion stores, specializing in casual clothing and accessory for men and women.  The Company has stores nationwide.  Main forces are United Arrows, Green Label Relaxing and Chrome Hearts.

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United Arrows (7606 JP)

2023-24 Japanese Consumer Market Trends Review

Despite concerns about inflation and negative real wage growth, Japan's consumer markets had a successful year in 2023 and sets the stage for a...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan's fashion e-commerce sector offers major growth stories among both online malls and physical retailers making a successful transition to...

Michael Causton

Inbound Tourism up 50%, Spending Almost at 2019 Levels

Of course inbound tourism will rebound in Japan in 2023 but spending per visitor may well exceed 2019 levels due to the weak Yen and full wallets....

Michael Causton

Zozo Opens Store in Omotesando, to Increase Retail Ties

Zozo has proven that it can continue to innovate in the nexus between fashion and technology even without its founder and in fact has become more...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

2023-24 Japanese Consumer Market Trends Review

​Despite concerns about inflation and negative real wage growth, Japan's consumer markets had a successful year in 2023 and sets the stage for a...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

​Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan's fashion e-commerce sector offers major growth stories among both online malls and physical retailers making a successful transition to...

Michael Causton

Inbound Tourism up 50%, Spending Almost at 2019 Levels

Of course inbound tourism will rebound in Japan in 2023 but spending per visitor may well exceed 2019 levels due to the weak Yen and full wallets....

Michael Causton

Zozo Opens Store in Omotesando, to Increase Retail Ties

Zozo has proven that it can continue to innovate in the nexus between fashion and technology even without its founder and in fact has become more...

Michael Causton

Despite concerns about inflation and negative real wage growth, Japan's consumer markets had a successful year in 2023 and sets the stage for a...

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...