Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

<ul>
<li>The Japan telecom and Internet companies in our coverage universe held ¥1,253bn in public equities as of Q2(Sep) largely built through capital alliances tied to business collaboration</li>
<li>NTT has the largest portfolio at c. ¥958bn (7% of market cap) followed by KDDI. Toyota (¥354bn) and JTower (three strategic telcos) are the largest and most widely held </li>
<li>The P&amp;L impact of valuation changes in Q2 should be muted. We have included tables for all the companies in our coverage</li>
</ul>


The Japan telecom and Internet companies in our coverage universe held ¥1,253bn in public equities as of Q2(Sep) largely built through capital alliances tied to business collaboration
NTT has the largest portfolio at c. ¥958bn (7% of market cap) followed by KDDI. Toyota (¥354bn) and JTower (three strategic telcos) are the largest and most widely held 
The P&amp;L impact of valuation changes in Q2 should be muted. We have included tables for all the companies in our coverage


Japan Telecoms/Internet - A Quick Look at Public Equity Portfolios

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. 

<ul>
<li>Amazon Japan continues to lead in online merchandise sales, with GTVs rising faster than Rakuten in 2021 and far ahead of Z Holdings. </li>
<li>Nevertheless both the domestic incumbents are fighting hard to overcome their weaknesses and use their strengths in mobile networks, loyalty points and cashless payments to win share.</li>
<li>Rakuten is also now making it possible to consolidate orders from multiple merchants and plans to open this service to any online merchant – a game changer for online platforms. </li>
</ul>


Amazon Japan continues to lead in online merchandise sales, with GTVs rising faster than Rakuten in 2021 and far ahead of Z Holdings. 
Nevertheless both the domestic incumbents are fighting hard to overcome their weaknesses and use their strengths in mobile networks, loyalty points and cashless payments to win share.
Rakuten is also now making it possible to consolidate orders from multiple merchants and plans to open this service to any online merchant – a game changer for online platforms. 


Japan E-Commerce Wars Intensify Among the Big 3 Online Platforms

<ul>
<li>OniGo only opened its first dark store in the middle of last year and along with competitors is expanding rapidly.</li>
<li>But it also recently signed up to deliver orders from Lawson Store 100 and is running a trial from Comfort Market, Seven &amp; I’s concept store in Setagaya.  </li>
<li>In both cases, online orders are picked, not by store staff, but by OniGo’s own staff, to increase the speed of order preparation and to tie to store’s inventory systems.</li>
</ul>


OniGo only opened its first dark store in the middle of last year and along with competitors is expanding rapidly.
But it also recently signed up to deliver orders from Lawson Store 100 and is running a trial from Comfort Market, Seven &amp; I’s concept store in Setagaya.  
In both cases, online orders are picked, not by store staff, but by OniGo’s own staff, to increase the speed of order preparation and to tie to store’s inventory systems.


Dark Store Delivery in Japan Takes Off – Collaborating with Retailers

<ul>
<li>As we have been tracking in recent months, the market for rapid home delivery of FMCG and food is hotting up, with much of the action at convenience stores.</li>
<li>The CVS sector was one of the hardest hit by the pandemic but with a network of 56,000 stores, there is an opportunity to use these stores as supply points.</li>
<li>CVS need to engage with delivery services given the growing number of firms creating their own dark store networks which compete with local supermarkets and CVS.</li>
</ul>


As we have been tracking in recent months, the market for rapid home delivery of FMCG and food is hotting up, with much of the action at convenience stores.
The CVS sector was one of the hardest hit by the pandemic but with a network of 56,000 stores, there is an opportunity to use these stores as supply points.
CVS need to engage with delivery services given the growing number of firms creating their own dark store networks which compete with local supermarkets and CVS.


Quick Commerce and Unmanned Stores Challenge Japanese Convenience Retailing

<ul>
<li>Convenience stores are bouncing back after a difficult 18 months, aided by efforts to find new ways to meet demand for home deliveries.</li>
<li>While conbini are ideally placed to do this, their less flexible business model means that competitors like food delivery companies are making the first moves.</li>
<li>These firms are already setting up dark stores for local deliveries and could grow into a new form of competition for convenience stores and local supermarkets.</li>
</ul>


Convenience stores are bouncing back after a difficult 18 months, aided by efforts to find new ways to meet demand for home deliveries.
While conbini are ideally placed to do this, their less flexible business model means that competitors like food delivery companies are making the first moves.
These firms are already setting up dark stores for local deliveries and could grow into a new form of competition for convenience stores and local supermarkets.


Home Delivery Next Evolution for Japan's Conbini Sector?

Japan

Demae-can Co., Ltd. operates websites offering comprehensive delivery services.  The Company's websites allow users to order food, dry cleaning, and repair and recycling services through the Internet.

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Demae-Can Co., Ltd. (2484 JP)

Japan Telecoms/Internet - A Quick Look at Public Equity Portfolios

Public equity portfolios in our coverage represent 3% of total market cap, driven by capital alliances tied to business collaboration. We thought...

Kirk Boodry

Japan E-Commerce Wars Intensify Among the Big 3 Online Platforms

The intensity of competition between the big 3 in e-commerce (Amazon, Rakuten, Z Holdings) means that all are investing heavily. Amazon leads but...

Michael Causton

Dark Store Delivery in Japan Takes Off – Collaborating with Retailers

Dark stores are taking off, set up by delivery firms to ship food and basic daily use products. Some are competing with retailers but others are...

Michael Causton

Quick Commerce and Unmanned Stores Challenge Japanese Convenience Retailing

As we have been tracking in recent months, the market for rapid home delivery of FMCG and food is hotting up, with much of the action at...

Michael Causton

Home Delivery Next Evolution for Japan's Conbini Sector?

Food delivery is evolving fast in Japan but not just for takeaways. Local delivery of essentials by food delivery firms is becoming a new source of...

Michael Causton

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