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

<ul>
<li>After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.</li>
<li>To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.</li>
<li>The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.</li>
</ul>


After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.
To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.
The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.


Event-Driven

<ul>
<li>Through all the upheavals in discretionary product distribution in the last decade, <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)'s</a> Itochu Textile subsidiary has managed to maintain huge power in the channel.</li>
<li>While the trading firm has traditionally focused on premium fashion brands, in the last few years it has invested heavily in the sports market, including its growing investment in Descente.</li>
<li>The move is part of wider plans to take lead share in sports, footwear and department store brands.</li>
</ul>


Through all the upheavals in discretionary product distribution in the last decade, Itochu Corp (8001 JP)'s Itochu Textile subsidiary has managed to maintain huge power in the channel.
While the trading firm has traditionally focused on premium fashion brands, in the last few years it has invested heavily in the sports market, including its growing investment in Descente.
The move is part of wider plans to take lead share in sports, footwear and department store brands.


Descente a Key Part of Itochu's Plans in Sports

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Four years after Itochu got to 40.0% of votes in Descente (8114) in a hostile Tender Offer, Descente partner ANTA, which supported Itochu at the time started selling its stake.</li>
<li>A few months later, Itochu started buying shares of Descente in the market. As of 7 Sep, Itochu had bought Descente shares 81 days straight (9.7% of ADV).</li>
<li>This begs the question: Is Itochu ensuring they maintain voting control as ANTA sells? Or are they buying to lift their stake prior to another bid?</li>
</ul>


Four years after Itochu got to 40.0% of votes in Descente (8114) in a hostile Tender Offer, Descente partner ANTA, which supported Itochu at the time started selling its stake.
A few months later, Itochu started buying shares of Descente in the market. As of 7 Sep, Itochu had bought Descente shares 81 days straight (9.7% of ADV).
This begs the question: Is Itochu ensuring they maintain voting control as ANTA sells? Or are they buying to lift their stake prior to another bid?


Itochu Buying Descente (8114) - ANTA Selldown Offset Or Creeping Takeover?

<ul>
<li>FY2022 was the best year in a decade for Japan’s big apparel firms. Brands benefitted from the return to shops, particularly department stores.</li>
<li>Some of the leaders used the pandemic to make further progress in rationalisation, diversification and omnichannel, creating solid foundations for further growth in market share.</li>
<li>Sanyo Shokai finally made a profit but has stuck to what it knows, which may lead to problems once the rebound dividend wanes.</li>
</ul>


FY2022 was the best year in a decade for Japan’s big apparel firms. Brands benefitted from the return to shops, particularly department stores.
Some of the leaders used the pandemic to make further progress in rationalisation, diversification and omnichannel, creating solid foundations for further growth in market share.
Sanyo Shokai finally made a profit but has stuck to what it knows, which may lead to problems once the rebound dividend wanes.


Big Apparel Revival: Onward up Again, Sanyo Finally Makes a Profit

Thematic (Sector/Industry)

<ul>
<li>After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. </li>
<li>Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.</li>
<li>This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. </li>
</ul>


After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. 
Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.
This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. 


Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan

GOLDWIN INC. manufactures and markets sportswear for skiing, snowboarding, soccer, tennis, swimming, and other outdoor activities.

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Goldwin Inc (8111 JP)

Asics: Aiming for No. 1

Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Michael Causton

Descente a Key Part of Itochu's Plans in Sports

Itochu Corp wants to grow its share of discretionary product distribution in Japan and the rest of Asia, particularly in the sports market, and...

Michael Causton

Itochu Buying Descente (8114) - ANTA Selldown Offset Or Creeping Takeover?

ANTA went below 5% in Descente in April. Itochu started buying in May. As of 7 Sep, they had bought 81 days straight, accumulating 3.1%. There are...

Travis Lundy

Big Apparel Revival: Onward up Again, Sanyo Finally Makes a Profit

Japanese are buying clothing again which should boost even the major apparel firms but some are performing better than others, notably Onward and...

Michael Causton

Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan's fashion e-commerce sector offers major growth stories among both online malls and physical retailers making a successful transition to...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asics: Aiming for No. 1

​Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Michael Causton

Descente a Key Part of Itochu's Plans in Sports

​Itochu Corp wants to grow its share of discretionary product distribution in Japan and the rest of Asia, particularly in the sports market, and...

Michael Causton

Itochu Buying Descente (8114) - ANTA Selldown Offset Or Creeping Takeover?

ANTA went below 5% in Descente in April. Itochu started buying in May. As of 7 Sep, they had bought 81 days straight, accumulating 3.1%. There are...

Travis Lundy

Big Apparel Revival: Onward up Again, Sanyo Finally Makes a Profit

Japanese are buying clothing again which should boost even the major apparel firms but some are performing better than others, notably Onward and...

Michael Causton

Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan's fashion e-commerce sector offers major growth stories among both online malls and physical retailers making a successful transition to...

Michael Causton

Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Itochu Corp wants to grow its share of discretionary product distribution in Japan and the rest of Asia, particularly in the sports market, and...