Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In early July, there was a Nikkei article suggesting <a href="https://www.smartkarma.com/entities/dentsu-inc" target="_blank" data-smartkarma-citation="entities:12434:1" rel="noopener">Dentsu Inc (4324 JP)</a> had settled on possible partners to buy out the minority stakes in <a href="https://www.smartkarma.com/entities/dentsu-soken-inc" target="_blank" data-smartkarma-citation="entities:20535:1" rel="noopener">Dentsu Soken (4812 JP)</a>. </li>
<li>This would give it more scale, and a better future, and would rid Dentsu of a "dual listing" problem. There was a delay. Now 8 weeks later we have news.</li>
<li>
<a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a> has apparently decided it will buy it. The structure suits everyone. Oasis has since reported a 5% stake, but I think this gets done.</li>
</ul>


In early July, there was a Nikkei article suggesting Dentsu Inc (4324 JP) had settled on possible partners to buy out the minority stakes in Dentsu Soken (4812 JP). 
This would give it more scale, and a better future, and would rid Dentsu of a "dual listing" problem. There was a delay. Now 8 weeks later we have news.

Itochu Corp (8001 JP) has apparently decided it will buy it. The structure suits everyone. Oasis has since reported a 5% stake, but I think this gets done.


[Japan M&A] Nikkei Reports Itochu to Buy Out Dentsu Soken (4812) Minorities, Co Suggests ¥2,880

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 big 3 convenience stores in Japan control 90% of the sector and share will climb as they mop up some of the remaining chains and collaborate with the rest.</li>
<li>Seven Eleven is by far the best performer of the three but both Lawson and Familymart are innovating to create quite different retail operations.</li>
<li>All are seeing the benefits of digitisation of store and supply chain operations, which should enhance profitability, enhanced by new services and revenue streams like retail media.</li>
</ul>


The big 3 convenience stores in Japan control 90% of the sector and share will climb as they mop up some of the remaining chains and collaborate with the rest.
Seven Eleven is by far the best performer of the three but both Lawson and Familymart are innovating to create quite different retail operations.
All are seeing the benefits of digitisation of store and supply chain operations, which should enhance profitability, enhanced by new services and revenue streams like retail media.


Conbini Wars: Seven Vs Lawson Vs Familymart

<ul>
<li>Major wholesalers in food, pharmaceuticals and books continue to prosper due to their role in both serving and protecting fragmented distribution channels.</li>
<li>Profits returned last year as clients picked themselves up after Covid, but as inflation sets in, these middlemen are being squeezed by both manufacturers and retailers and profits may slump.</li>
<li>They now need to offer an ever increasing array of value-added services to continue to grow and not all have the capability. More M&amp;A may be on the cards.</li>
</ul>


Major wholesalers in food, pharmaceuticals and books continue to prosper due to their role in both serving and protecting fragmented distribution channels.
Profits returned last year as clients picked themselves up after Covid, but as inflation sets in, these middlemen are being squeezed by both manufacturers and retailers and profits may slump.
They now need to offer an ever increasing array of value-added services to continue to grow and not all have the capability. More M&amp;A may be on the cards.


Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

<ul>
<li>The following is an in-depth review of the Japanese retail sector in 2021-22 and is designed to provide a complete overview for any investor in Japanese retail/consumer markets.</li>
<li>FY2021-22 proved a rebound year for retailers at the sector level. But on a company by company basis, there has been radical divergence between the best and the rest. </li>
<li>We look at the reasons for this divergence and the implications for Japanese retail and consumer firms in the years ahead.</li>
</ul>


The following is an in-depth review of the Japanese retail sector in 2021-22 and is designed to provide a complete overview for any investor in Japanese retail/consumer markets.
FY2021-22 proved a rebound year for retailers at the sector level. But on a company by company basis, there has been radical divergence between the best and the rest. 
We look at the reasons for this divergence and the implications for Japanese retail and consumer firms in the years ahead.


Japanese Retailing 2021-22: What's Really Going on and What's Next?

<ul>
<li>The convenience store sector returned to growth last year but the outlook remains uncertain.</li>
<li>The big 3 chains still have a way to go to adjust to a new era of slower growth and the need for new ideas.</li>
<li>Even with new ideas on merchandising and services, the CVS sector remains saturated and the only real growth is overseas or in other formats.</li>
</ul>


The convenience store sector returned to growth last year but the outlook remains uncertain.
The big 3 chains still have a way to go to adjust to a new era of slower growth and the need for new ideas.
Even with new ideas on merchandising and services, the CVS sector remains saturated and the only real growth is overseas or in other formats.


Top Japanese Convenience Store Chains Rebound in FY2021

Japan

FamilyMart Co., Ltd. operates convenience store chains. The Company provides rice balls, hot snacks, stews, beverages, and other products. FamilyMart conducts businesses in China, Taiwan, South Korea, Thailand, and other countries and regions.

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FamilyMart Co Ltd (8028 JP)

[Japan M&A] Nikkei Reports Itochu to Buy Out Dentsu Soken (4812) Minorities, Co Suggests ¥2,880

It appears Itochu is the partner to Dentsu in ownership of Dentsu Soken. It probably leads to Itochu rolling it into CTC. Two activists are in but...

Travis Lundy

Conbini Wars: Seven Vs Lawson Vs Familymart

The top 3 convenience stores in Japan dominate the sector and are expected to further increase their market share. They are embracing digitization...

Michael Causton

Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

Wholesalers in Japan had a good year last year. The biggest firms like Medipal may prosper but there are challenges for the sector which could...

Michael Causton

Japanese Retailing 2021-22: What's Really Going on and What's Next?

There is increasing divergence between the winners and losers in Japanese retailing and the following in-depth review looks at performance in the...

Michael Causton

Top Japanese Convenience Store Chains Rebound in FY2021

Japanese convenience store chains posted higher sales in 2021 after a tough 2020 but the outlook remains uncertain given saturation and new forms...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Japan M&A] Nikkei Reports Itochu to Buy Out Dentsu Soken (4812) Minorities, Co Suggests ¥2,880

It appears Itochu is the partner to Dentsu in ownership of Dentsu Soken. It probably leads to Itochu rolling it into CTC. Two activists are in but...

Travis Lundy

Conbini Wars: Seven Vs Lawson Vs Familymart

​The top 3 convenience stores in Japan dominate the sector and are expected to further increase their market share. They are embracing digitization...

Michael Causton

Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

Wholesalers in Japan had a good year last year. The biggest firms like Medipal may prosper but there are challenges for the sector which could...

Michael Causton

Japanese Retailing 2021-22: What's Really Going on and What's Next?

There is increasing divergence between the winners and losers in Japanese retailing and the following in-depth review looks at performance in the...

Michael Causton

Top Japanese Convenience Store Chains Rebound in FY2021

Japanese convenience store chains posted higher sales in 2021 after a tough 2020 but the outlook remains uncertain given saturation and new forms...

Michael Causton

The top 3 convenience stores in Japan dominate the sector and are expected to further increase their market share. They are embracing digitization...