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 may have discovered home decoration and DIY later than some markets but it has made up for this with a convert’s enthusiasm. </li>
<li>In the last decade, the market has grown around 50% and a host of brands and retailers have flourished.</li>
<li>These include <a href="https://www.smartkarma.com/entities/nitori-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20386:1" rel="noopener">Nitori Holdings (9843 JP)</a>, <a href="https://www.smartkarma.com/entities/ryohin-keikaku-co-ltd" target="_blank" data-smartkarma-citation="entities:2765:1" rel="noopener">Ryohin Keikaku (7453 JP)</a> and the home centres like Cainz and <a href="https://www.smartkarma.com/entities/dcm-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13042:1" rel="noopener">DCM Holdings (3050 JP). </a> The long-term outlook remains positive.</li>
</ul>


Japan may have discovered home decoration and DIY later than some markets but it has made up for this with a convert’s enthusiasm. 
In the last decade, the market has grown around 50% and a host of brands and retailers have flourished.
These include Nitori Holdings (9843 JP), Ryohin Keikaku (7453 JP) and the home centres like Cainz and DCM Holdings (3050 JP).  The long-term outlook remains positive.


Nitori, Muji Still Benefitting from a Flourishing Japan Home Decor Market

<ul>
<li>The latest figures show that Japanese incomes fell for the first time in five years in 2021. </li>
<li>But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth</li>
<li>We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.</li>
</ul>


The latest figures show that Japanese incomes fell for the first time in five years in 2021. 
But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth
We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.


Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

<ul>
<li>This is an in-depth review of Japanese e-commerce in the last 18 months, a time when e-commerce expanded rapidly and by 2023, e-commerce will be Japan’s single biggest retail channel.</li>
<li>We are now riding a wave of change as retailers integrate the e-commerce channel into their businesses, increasingly approaching a true omnichannel model.</li>
<li>And this is important in Japan because, although e-commerce penetration appears low, this overlooks the importance, convenience and ease of access to physical shops and integration with online.</li>
</ul>


This is an in-depth review of Japanese e-commerce in the last 18 months, a time when e-commerce expanded rapidly and by 2023, e-commerce will be Japan’s single biggest retail channel.
We are now riding a wave of change as retailers integrate the e-commerce channel into their businesses, increasingly approaching a true omnichannel model.
And this is important in Japan because, although e-commerce penetration appears low, this overlooks the importance, convenience and ease of access to physical shops and integration with online.


Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a> and <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a> are in a battle for share in online fashion with both companies increasingly aping the other to attract both merchants and consumers. </li>
<li>
<a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> and <a href="https://www.smartkarma.com/entities/z-holdings-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Z Holdings (4689 JP)</a> aren’t standing still either but the competitive pressures between Rakuten and Zozo may put them ahead of their rivals.</li>
<li>This competitive edge now encompasses both physical stores and online platforms for physical retailers, with the aim to bind them ever closer to the platform.</li>
</ul>



Rakuten Inc (4755 JP) and ZOZO Inc (3092 JP) are in a battle for share in online fashion with both companies increasingly aping the other to attract both merchants and consumers. 

Amazon.com Inc (AMZN US) and Z Holdings (4689 JP) aren’t standing still either but the competitive pressures between Rakuten and Zozo may put them ahead of their rivals.
This competitive edge now encompasses both physical stores and online platforms for physical retailers, with the aim to bind them ever closer to the platform.


Platforms Add Merchant Support as Japan's Online Fashion Wars Move Offline

Event-Driven

<ul>
<li>For a decade <a href="https://www.smartkarma.com/entities/adastria-co-ltd" target="_blank" data-smartkarma-citation="entities:11895:1" rel="noopener">Adastria Co Ltd (2685 JP)</a> was the fastest growing fashion retailer but, as it matured and the apparel market stagnated, growth rates declined.</li>
<li>The company now wants to become a diversified lifestyle retailer with food as a major element so, to speed things along, it will acquire restaurant business <a href="https://www.smartkarma.com/entities/zetton-inc" target="_blank" data-smartkarma-citation="entities:18552:1" rel="noopener">Zetton Inc (3057 JP)</a>.</li>
<li>It is also investing in overseas retailers to spearhead expansion abroad, a strategy that will include Zetton's leading chain, Aloha Table.</li>
</ul>


For a decade Adastria Co Ltd (2685 JP) was the fastest growing fashion retailer but, as it matured and the apparel market stagnated, growth rates declined.
The company now wants to become a diversified lifestyle retailer with food as a major element so, to speed things along, it will acquire restaurant business Zetton Inc (3057 JP).
It is also investing in overseas retailers to spearhead expansion abroad, a strategy that will include Zetton's leading chain, Aloha Table.


Adastria to Expand Beyond Fashion with Zetton Acquisition

Japan

Adastria Co., Ltd. operates a chain of clothing stores in Japan. The Company also operates stores in China, Taiwan, Hong Kong and Korea.

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Adastria Co Ltd (2685 JP)

Nitori, Muji Still Benefitting from a Flourishing Japan Home Decor Market

Japan's home decoration market grew fast in the pandemic but has been growing for 10 years and will continue to outperform other consumer...

Michael Causton

Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

Japanese spent more on homes and less on clothes in the last two years but they also added to their savings. This insight analyses the key...

Michael Causton

E-Commerce in Japan: The Big Review

Japan's e-commerce sector expanded rapidly in the last 18 months. The following is a complete review and analysis of the major trends as well as...

Michael Causton

Platforms Add Merchant Support as Japan's Online Fashion Wars Move Offline

Zozo has had a good run during the pandemic and we continue to remain bullish about its growth thanks to many recent innovations but the biggest...

Michael Causton

Adastria to Expand Beyond Fashion with Zetton Acquisition

Japanese apparel retailers are struggling against a contracting market. Adastria is seeking growth at home through diversification and is buying...

Michael Causton

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