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>The shakeout in clothing and fashion retailing continues, with most of the good fortune spread amongst a smaller group of either very large or very small retail chains and brands. </li>
<li>In specialty, lower cost national chains largely located in the suburbs continued to increase share but premium fashion retailers also had a great year boosting profits.</li>
<li>More dramatic was the startling growth of a few department stores which helped the format increase share of the apparel market for only the 4th time in 20 years.</li>
</ul>


The shakeout in clothing and fashion retailing continues, with most of the good fortune spread amongst a smaller group of either very large or very small retail chains and brands. 
In specialty, lower cost national chains largely located in the suburbs continued to increase share but premium fashion retailers also had a great year boosting profits.
More dramatic was the startling growth of a few department stores which helped the format increase share of the apparel market for only the 4th time in 20 years.


Japan Fashion Retailing: Stores Still Popular and Profit Soars for Some

Equity Bottom-Up

<ul>
<li>Aoyama Trading leads the mass market suit sector but is suffering from changing trends: fewer working people and a devastating collapse in businesswear sales during Covid.</li>
<li>It now believes omnichannel will be the key to a profitable future, especially for custom-made suits, which it expects to account for 50% of all suit sales by 2030.</li>
<li>This is an ambitious target but stranger things of happen in Japanese apparel markets and the momentum is clearly there. If it works, profitability may finally improve.</li>
</ul>


Aoyama Trading leads the mass market suit sector but is suffering from changing trends: fewer working people and a devastating collapse in businesswear sales during Covid.
It now believes omnichannel will be the key to a profitable future, especially for custom-made suits, which it expects to account for 50% of all suit sales by 2030.
This is an ambitious target but stranger things of happen in Japanese apparel markets and the momentum is clearly there. If it works, profitability may finally improve.


Aoyama Trading: The Future Is Omnichannel and Custom Suits

<ul>
<li>If you need a quick overview of Japan's retail sectors and the winners and losers within, the following provides an update on 2023 and where things are headed in 2024.</li>
<li>Drugstore consolidation continues but so does the sector's encroachment on supermarkets while leaders in department stores are delivering record profits and lifestyle retailing is back.</li>
<li>Some of the best performers compared to initial forecasts include Matsuya, ABC Mart, Adastria, Isetan-Mitsukoshi, Takashimaya, Kintetsu, J Front Retailing and Lawson.</li>
</ul>


If you need a quick overview of Japan's retail sectors and the winners and losers within, the following provides an update on 2023 and where things are headed in 2024.
Drugstore consolidation continues but so does the sector's encroachment on supermarkets while leaders in department stores are delivering record profits and lifestyle retailing is back.
Some of the best performers compared to initial forecasts include Matsuya, ABC Mart, Adastria, Isetan-Mitsukoshi, Takashimaya, Kintetsu, J Front Retailing and Lawson.


Japan Retail Update: Winners and Losers as FY2023 Ends

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>For the month of January 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$2bn.</li>
<li>The average premium for the new transactions announced (or first discussed) in January was ~34%. </li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of January 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$2bn.
The average premium for the new transactions announced (or first discussed) in January was ~34%. 
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, Jan 2024: Newmark, Eureka, Aoki, Medley, Payroll, Kerry Express, Genetron, TDCX

<ul>
<li>Fewer people wear suits as a regular office uniform and there are also fewer working age Japanese.</li>
<li>Combined with the fact that more people work from home some days a week, this has meant a drastic decline in suit sales</li>
<li>In response, the big retailers are exploiting the growing popularity of custom and premium suits but the shift won't offset the decline.</li>
</ul>


Fewer people wear suits as a regular office uniform and there are also fewer working age Japanese.
Combined with the fact that more people work from home some days a week, this has meant a drastic decline in suit sales
In response, the big retailers are exploiting the growing popularity of custom and premium suits but the shift won't offset the decline.


Fewer but Better Suits from Aoyama and Its Competitors

Japan

AOKI Holdings Inc. operators a store chain specializing in men's suits. The Company also offers maternity and kids clothing.  Aoki International mainly operates in Tokyo metropolitan area and also operates online shopping.

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AOKI Holdings (8214 JP)

Japan Fashion Retailing: Stores Still Popular and Profit Soars for Some

A major review of Japanese clothing retail markets: the ongoing shakeout benefits large and small chains, but profit growth across the sector is...

Michael Causton

Aoyama Trading: The Future Is Omnichannel and Custom Suits

Aoyama Trading aims to boost profitability by focusing on omnichannel sales and custom-made suits, anticipating a shift in the market towards...

Michael Causton

Japan Retail Update: Winners and Losers as FY2023 Ends

Summary: Japan's retail sectors in 2023 saw drugstore consolidation and encroachment on supermarkets, while dept. stores and lifestyle retailing...

Michael Causton

(Mostly) Asia M&A, Jan 2024: Newmark, Eureka, Aoki, Medley, Payroll, Kerry Express, Genetron, TDCX

For the month of January 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of...

David Blennerhassett

Fewer but Better Suits from Aoyama and Its Competitors

Suit retailers were one of the worst affected sectors during the pandemic. But this was just an acceleration of a longer decline. Some firms will...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Fashion Retailing: Stores Still Popular and Profit Soars for Some

A major review of Japanese clothing retail markets: ​the ongoing shakeout benefits large and small chains, but profit growth across the sector is...

Michael Causton

Aoyama Trading: The Future Is Omnichannel and Custom Suits

​Aoyama Trading aims to boost profitability by focusing on omnichannel sales and custom-made suits, anticipating a shift in the market towards...

Michael Causton

Japan Retail Update: Winners and Losers as FY2023 Ends

​Summary: Japan's retail sectors in 2023 saw drugstore consolidation and encroachment on supermarkets, while dept. stores and lifestyle retailing...

Michael Causton

(Mostly) Asia M&A, Jan 2024: Newmark, Eureka, Aoki, Medley, Payroll, Kerry Express, Genetron, TDCX

For the month of January 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of...

David Blennerhassett

Fewer but Better Suits from Aoyama and Its Competitors

Suit retailers were one of the worst affected sectors during the pandemic. But this was just an acceleration of a longer decline. Some firms will...

Michael Causton

A major review of Japanese clothing retail markets: the ongoing shakeout benefits large and small chains, but profit growth across the sector is...

Aoyama Trading aims to boost profitability by focusing on omnichannel sales and custom-made suits, anticipating a shift in the market towards...

Summary: Japan's retail sectors in 2023 saw drugstore consolidation and encroachment on supermarkets, while dept. stores and lifestyle retailing...