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/united-arrows-ltd" target="_blank" data-smartkarma-citation="entities:4887:1" rel="noopener">United Arrows (7606 JP)</a> has created a second brand for sale solely through e-commerce which, like the first, is much cheaper than its store brands and aimed at dealing with one of its weaknesses: the difficulty in attracting more younger customers. The select shop retailer is also using digital services to try and attract and support wealthy consumers better, taking on the department stores. Last year, e-commerce sales rose 12% to ¥32 billion, around 27% of total sales.

United Arrows (7606 JP) has created a second brand for sale solely through e-commerce which, like the first, is much cheaper than its store brands and aimed at dealing with one of its weaknesses: the difficulty in attracting more younger customers. The select shop retailer is also using digital services to try and attract and support wealthy consumers better, taking on the department stores. Last year, e-commerce sales rose 12% to ¥32 billion, around 27% of total sales.

United Arrows Unveils New Online Brand, Goes After the Wealthy

Thematic (Sector/Industry)

Fashion retailers continue to rely on third-party platforms, especially <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP),</a> to sell online but the scale of investment in direct mobile and web is growing. With Baycrews alone seeing customers that shop both online and in stores hitting 52% of all customers and spending 3.7 times more than store-only customers, it is not hard to see why.While there is no likelihood of direct sales taking significant share from the major online malls anytime soon, it is also true that the biggest competitive threat to the big three malls plus Zozo isn't another mall but the determination of fashion retailers and brands to wrest more control of online. On advantage they do have is experience of running retail stores and re opening more stores branded with the online shop name to increase awareness and cross-use.With one fashion retailer seeing the average annual purchase value of cross-use users 3.7 times that of store-only users, an astonishingly high difference, it is no surprise there is momentum to invest more in direct online sales.

Fashion retailers continue to rely on third-party platforms, especially ZOZO Inc (3092 JP), to sell online but the scale of investment in direct mobile and web is growing. With Baycrews alone seeing customers that shop both online and in stores hitting 52% of all customers and spending 3.7 times more than store-only customers, it is not hard to see why.While there is no likelihood of direct sales taking significant share from the major online malls anytime soon, it is also true that the biggest competitive threat to the big three malls plus Zozo isn't another mall but the determination of fashion retailers and brands to wrest more control of online. On advantage they do have is experience of running retail stores and re opening more stores branded with the online shop name to increase awareness and cross-use.With one fashion retailer seeing the average annual purchase value of cross-use users 3.7 times that of store-only users, an astonishingly high difference, it is no surprise there is momentum to invest more in direct online sales.

Japanese Fashion Retailers Advance Online Investment

United Arrows core (and original) customer is now in their 40s and 50s with a large wallet and a willingness to spend on premium fashions. The venerable select shop retailer doesn’t want to age alongside its first customers and has unveiled a new brand targeting younger consumers with its lowest prices yet. United Arrows has faced tough trading during the pandemic but should benefit from a rebound given its strong brand and improving supply chains delivering better cost performance.

United Arrows core (and original) customer is now in their 40s and 50s with a large wallet and a willingness to spend on premium fashions. The venerable select shop retailer doesn’t want to age alongside its first customers and has unveiled a new brand targeting younger consumers with its lowest prices yet. United Arrows has faced tough trading during the pandemic but should benefit from a rebound given its strong brand and improving supply chains delivering better cost performance.

Momentum was building for fashion EC well before 2020 but the situation last year brought an overwhelming response from both consumers and merchants. As a result, market share for the online channel has spiralled upwards and, although there will be a correction once shoppers return to stores, the medium-term trajectory is clear.
The big malls continue to dominate – as Zozo’s 21.5% growth in 2020 attests – but retailers and brands are investing much more in their own online stores, creating a level of dynamism and competition not seen in other fashion retail channels.
The following is an in-depth review of the fashion e-commerce market covering:
<ul>
<li>Market Size and market growth</li>
<li>Winners and losers in the last two years</li>
<li>Ranking of the top vendors online by sales</li>
<li>Ranking of fastest growing e-commerce fashion retailers</li>
<li>Strengths and weaknesses in leading firms</li>
<li>Ranking of firms with highest ratio of online sales to offline</li>
<li>Ranking of firms with highest share of direct online sales vs 3rd party malls.</li>
<li>Review of market share of major malls vs direct sales by retailers and the momentum behind each.</li>
</ul>

Momentum was building for fashion EC well before 2020 but the situation last year brought an overwhelming response from both consumers and merchants. As a result, market share for the online channel has spiralled upwards and, although there will be a correction once shoppers return to stores, the medium-term trajectory is clear.
The big malls continue to dominate – as Zozo’s 21.5% growth in 2020 attests – but retailers and brands are investing much more in their own online stores, creating a level of dynamism and competition not seen in other fashion retail channels.
The following is an in-depth review of the fashion e-commerce market covering:

Market Size and market growth
Winners and losers in the last two years
Ranking of the top vendors online by sales
Ranking of fastest growing e-commerce fashion retailers
Strengths and weaknesses in leading firms
Ranking of firms with highest ratio of online sales to offline
Ranking of firms with highest share of direct online sales vs 3rd party malls.
Review of market share of major malls vs direct sales by retailers and the momentum behind each.


Fashion E-Commerce Has Watershed Year in 2020

Only 35 new SCs are expected to open this year, the lowest number in more than two decades and five of these will be rebuilds of other shopping facilities. At the same time, the character of new malls is changing, with dining making up 24% of new sales last year, up nine points, and merchandise tenancies accounting for only just over half. There are serious implications for the wider retail industry, particularly fashion and lifestyle specialty chains.

Only 35 new SCs are expected to open this year, the lowest number in more than two decades and five of these will be rebuilds of other shopping facilities. At the same time, the character of new malls is changing, with dining making up 24% of new sales last year, up nine points, and merchandise tenancies accounting for only just over half. There are serious implications for the wider retail industry, particularly fashion and lifestyle specialty chains.

Japan Shopping Mall Development Stalls in 2021

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)

United Arrows Unveils New Online Brand, Goes After the Wealthy

United Arrows's is a respected Japanese fashion retailer but its biggest weakness is an ageing customer base. It is now launching more brands for...

Michael Causton

Japanese Fashion Retailers Advance Online Investment

The major competitor for the major online malls in the Japanese fashion market, like Zozo and Rakuten, isn't another online mall but the growing...

Michael Causton

United Arrows Unveils Online Brand

United Arrows has had a tough time during the pandemic like all premium fashion retailers but should benefit from a rebound as well as its new...

Michael Causton

Fashion E-Commerce Has Watershed Year in 2020

A complete review of the fashion e-commerce market in Japan, including rankings by sales, fastest growing, winners and losers and reviews of the...

Michael Causton

Japan Shopping Mall Development Stalls in 2021

The collapse in new shopping mall development in Japan does not just affect real estate developers but also the wider retail industry, especially...

Michael Causton

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52-week Range

Market Cap (USDm)

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