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>After stellar growth in 2020, the e-commerce market grew much slower in 2021 but still outpaced all other channels and set the second highest increase in four years.</li>
<li>At this rate, by 2025 e-commerce should become the largest retail channel, overtaking chain stores.</li>
<li>Japan’s easy access to retail stores means shops aren’t about to disappear anytime soon and Japan will become a model for omnichannel retailing with stores still playing a key role.</li>
</ul>


After stellar growth in 2020, the e-commerce market grew much slower in 2021 but still outpaced all other channels and set the second highest increase in four years.
At this rate, by 2025 e-commerce should become the largest retail channel, overtaking chain stores.
Japan’s easy access to retail stores means shops aren’t about to disappear anytime soon and Japan will become a model for omnichannel retailing with stores still playing a key role.


Japanese E-Commerce Big Review: Still Taking Market Share as Omnichannel Becomes the Norm

Equity Bottom-Up

<ul>
<li>Growth in the Japanese home interiors and furniture markets is set to continue long-term. </li>
<li>At present, just a handful of brands have any major presence led by <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> which continues to expand market share.</li>
<li>With multiple formats, Nitori looks set to continue to dominate but faces competition from unlikely quarters, especially <a href="https://www.smartkarma.com/entities/yamada-denki-co-ltd" target="_blank" data-smartkarma-citation="entities:641:1" rel="noopener">Yamada Denki (9831 JP).</a>
</li>
</ul>


Growth in the Japanese home interiors and furniture markets is set to continue long-term. 
At present, just a handful of brands have any major presence led by Nitori Holdings (9843 JP) which continues to expand market share.
With multiple formats, Nitori looks set to continue to dominate but faces competition from unlikely quarters, especially Yamada Denki (9831 JP).



Interiors Long-Term Growth in Japan a Plus for Nitori

Private Capital Markets

<ul>
<li>Although there are some points to iron out, Fortress Investment is in the final stages of negotiation to purchase Sogo Seibu from Seven &amp; I, with Yodobashi Camera as partner. </li>
<li>This is an exciting move for Yodobashi as it should be an excellent choice to leverage Sogo Seibu’s better locations and create more competition for rivals like Bic Camera.</li>
<li>Even so, some stores will no longer have a future under their existing banners and the acquisition will mark the final demise of a 170 year old brand and company.</li>
</ul>


Although there are some points to iron out, Fortress Investment is in the final stages of negotiation to purchase Sogo Seibu from Seven &amp; I, with Yodobashi Camera as partner. 
This is an exciting move for Yodobashi as it should be an excellent choice to leverage Sogo Seibu’s better locations and create more competition for rivals like Bic Camera.
Even so, some stores will no longer have a future under their existing banners and the acquisition will mark the final demise of a 170 year old brand and company.


Yodobashi to Become Top 10 Retailer in Sogo Seibu Deal with Fortress

<ul>
<li>Consumer electronics retailers and producers benefited a lot from the pandemic, supplying customers stuck at home with kit for work and play. </li>
<li>The Olympics also encouraged people to update their TVs and entertainment systems.</li>
<li>Now, sales are falling to pre-2020 levels due to saturation. Inflationary pressures also mean more people are turning to second-hand options or simply not replacing old appliances at all.</li>
</ul>


Consumer electronics retailers and producers benefited a lot from the pandemic, supplying customers stuck at home with kit for work and play. 
The Olympics also encouraged people to update their TVs and entertainment systems.
Now, sales are falling to pre-2020 levels due to saturation. Inflationary pressures also mean more people are turning to second-hand options or simply not replacing old appliances at all.


Japan's Consumer Electronics Retailers Face Tough Outlook

Japan

BIC CAMERA INC. operates electronic retail stores throughout Japan focusing on the Tokyo metropolitan area.  The Company sells audio and video equipments, electrical home appliances and telecommunication equipments.  Bic Camera also runs an Internet shopping site.

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

Bic Camera Inc (3048 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

Interiors Long-Term Growth in Japan a Plus for Nitori

Japan's interiors consumption has been one of the few categories to grow consistently and will continue to grow steadily as Japanese appetite for...

Michael Causton

Yodobashi to Become Top 10 Retailer in Sogo Seibu Deal with Fortress

The sale of Sogo Seibu won't make much difference to Seven & I but if the sale to Fortress goes ahead will make Yodobashi Camera into one of...

Michael Causton

Japan's Consumer Electronics Retailers Face Tough Outlook

Don't expect much growth from Japan's consumer electronics retailers. With market saturation and waning demand, there is trouble ahead and possibly...

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

Japanese E-Commerce Big Review: Still Taking Market Share as Omnichannel Becomes the Norm

Japanese e-commerce continues to take more share from other retail channels but Japan is developing a sophisticated omnichannel model where stores...

Michael Causton

Interiors Long-Term Growth in Japan a Plus for Nitori

Japan's interiors consumption has been one of the few categories to grow consistently and will continue to grow steadily as Japanese appetite for...

Michael Causton

Yodobashi to Become Top 10 Retailer in Sogo Seibu Deal with Fortress

The sale of Sogo Seibu won't make much difference to Seven & I but if the sale to Fortress goes ahead will make Yodobashi Camera into one of...

Michael Causton

Japan's Consumer Electronics Retailers Face Tough Outlook

Don't expect much growth from Japan's consumer electronics retailers. With market saturation and waning demand, there is trouble ahead and possibly...

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...