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

Key Points:
<a href="https://www.smartkarma.com/entities/8467" target="_blank" data-smartkarma-citation="entities:8467:1">Workman (7564 JP)</a> is a quiet success story, clothing Japan’s army of workers who need specialist work clothing and uniforms, but it also has a growing following among mainstream consumers too.
Workman is also one of the most consistent performers, with the highest operating margins among apparel-related retailers in each of the last 10 years. It is a franchise operation unlike many apparel competitors, but nevertheless, it has an unsurpassed record in maintaining those margins, while expanding sales and profits year in, year out.
Workman may be in for a more accelerated period of growth, however. Last month saw the launch of a new chain called <a href="https://www.workman.co.jp/workman-plus" target="_blank">Workman Plus</a>. This is an entirely new chain, and one that focuses on consumers buying leisurewear rather than workers buying work gear. The store mixes the best elements of its existing 800-store core chain with the wide range and price points of a sports chain like Decathlon. The first store had first day sales 3x higher than typical for the first day of a Workman store.
There are a number of major sports chains in Japan with which Workman's new chain competes in some areas, but there is no chain quite like Workman Plus. Given the rampant growth in the 'athleisure'  and outdoor-fashion markets, combined with Workman's existing reputation for cost performance, we expect the new chain to be a hit with consumers and shopping mall developers alike and a major new growth area for Workman.
<a href="https://www.smartkarma.com/profiles/2531" target="_blank" data-smartkarma-citation="accounts:2531">Campbell Gunn</a> points out <a href="https://www.smartkarma.com/insights/japan-moving-average-outliers-results-driven" target="_blank">here</a> that Workman is overbought and recommends profit taking at this point. As and when the stock/markets drop a bit, we believe Workman to be an excellent long-term growth story, and for the new chain to bring in significant new levels of operating profit.

Key Points:
Workman (7564 JP) is a quiet success story, clothing Japan’s army of workers who need specialist work clothing and uniforms, but it also has a growing following among mainstream consumers too.
Workman is also one of the most consistent performers, with the highest operating margins among apparel-related retailers in each of the last 10 years. It is a franchise operation unlike many apparel competitors, but nevertheless, it has an unsurpassed record in maintaining those margins, while expanding sales and profits year in, year out.
Workman may be in for a more accelerated period of growth, however. Last month saw the launch of a new chain called Workman Plus. This is an entirely new chain, and one that focuses on consumers buying leisurewear rather than workers buying work gear. The store mixes the best elements of its existing 800-store core chain with the wide range and price points of a sports chain like Decathlon. The first store had first day sales 3x higher than typical for the first day of a Workman store.
There are a number of major sports chains in Japan with which Workman's new chain competes in some areas, but there is no chain quite like Workman Plus. Given the rampant growth in the 'athleisure'  and outdoor-fashion markets, combined with Workman's existing reputation for cost performance, we expect the new chain to be a hit with consumers and shopping mall developers alike and a major new growth area for Workman.
Campbell Gunn points out here that Workman is overbought and recommends profit taking at this point. As and when the stock/markets drop a bit, we believe Workman to be an excellent long-term growth story, and for the new chain to bring in significant new levels of operating profit.

Workman Breaks Out of Trade Sales with New Sports/Active Chain Promising Major Growth

Late last month <a href="https://www.smartkarma.com/entities/26993" target="_blank" data-smartkarma-citation="entities:26993:1">Locondo Inc (3558 JP)</a> announced a collaboration with Magaseek, a fashion e-commerce business owned by <a href="https://www.smartkarma.com/entities/1089" target="_blank" data-smartkarma-citation="entities:1089:1">NTT Docomo Inc (9437 JP)</a>, the biggest mobile carrier in Japan.As reported recently (<a href="https://www.smartkarma.com/insights/why-are-laox-and-locondo-buying-shaddy-a-traditional-gift-direct-marketer" target="_blank" data-smartkarma-citation="insights:19420">Why Are Laox and Locondo Buying Shaddy, a Traditional Gift Direct Marketer?</a>) Locondo is on a quest to build scale fast.The background to this is CEO and founder Yusuke Tanaka's belief that he needs tie ups and acquisitions to build enough turnover to survive the tough competition in online fashion…

Late last month Locondo Inc (3558 JP) announced a collaboration with Magaseek, a fashion e-commerce business owned by NTT Docomo Inc (9437 JP), the biggest mobile carrier in Japan.As reported recently (Why Are Laox and Locondo Buying Shaddy, a Traditional Gift Direct Marketer?) Locondo is on a quest to build scale fast.The background to this is CEO and founder Yusuke Tanaka's belief that he needs tie ups and acquisitions to build enough turnover to survive the tough competition in online fashion…

3rd Tie-Up for Locondo in 3 Months Brings It Within the Purview of NTT Docomo

Japan

Alpen Co., Ltd. develops and sells sports products including golf, tennis, marine and baseball products based in Aichi.  The Company also operates ski resorts and golf courses.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Alpen Co Ltd (3028 JP)

Workman Breaks Out of Trade Sales with New Sports/Active Chain Promising Major Growth

Key Points: Workman (7564 JP) is a quiet success story, clothing Japan’s army of workers who need specialist work clothing and uniforms, but it...

Michael Causton

3rd Tie-Up for Locondo in 3 Months Brings It Within the Purview of NTT Docomo

Late last month Locondo Inc (3558 JP) announced a collaboration with Magaseek, a fashion e-commerce business owned by NTT Docomo Inc (9437 JP), the...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)