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>Warning China not to invade Taiwan might sit well with voters but since November, Japan has lost just under ¥150 billion in sales from mainland Chinese tourists alone. </li>
<li>So far, the top department stores have proven resilient but since recent profit growth has been so dependent on duty-free sales, international tensions are a worry.</li>
<li>With luxury brands also warning about the impact of the US-Iran situation, the outlook may well be less rosy than some executives imagine.</li>
</ul>


Warning China not to invade Taiwan might sit well with voters but since November, Japan has lost just under ¥150 billion in sales from mainland Chinese tourists alone. 
So far, the top department stores have proven resilient but since recent profit growth has been so dependent on duty-free sales, international tensions are a worry.
With luxury brands also warning about the impact of the US-Iran situation, the outlook may well be less rosy than some executives imagine.


Profit Worries at Japanese Department Stores on Inbound Dependence

<ul>
<li>Record tourism in Japan is feeding the coffers of hotels, holiday lets and restaurants but retailers are benefiting less because Chinese make up a declining proportion. </li>
<li>This is a huge problem because Chinese spend more than double other nations on shopping despite spending fewer days there on holiday.</li>
<li>With the Chinese government recommending its citizens stay away from Japan, the outlook for duty-free shopping is not as rosy as it could be.</li>
</ul>


Record tourism in Japan is feeding the coffers of hotels, holiday lets and restaurants but retailers are benefiting less because Chinese make up a declining proportion. 
This is a huge problem because Chinese spend more than double other nations on shopping despite spending fewer days there on holiday.
With the Chinese government recommending its citizens stay away from Japan, the outlook for duty-free shopping is not as rosy as it could be.


Record Tourism Not Boosting Japanese Retailers as Chinese Stay Away

Japan Specialist

Mark Chadwick

<ul>
<li>
 Election victory solidifies reflationary agenda: Polls project decisive 300+ seat supermajority for Takaichi's coalition, enabling aggressive fiscal expansion. Equities trade near records; exporters and industrial policy beneficiaries poised to gain.</li>
<li>
 Power generation emerges as critical bottleneck: AI capex cycles constrained by grid capacity, not capital. Record order intake from infrastructure players signals urgent demand for electrification.</li>
<li>
 Global software rout spares few in Japan: Software stocks have plummeted 15%+ globally, with Japanese names also hit hard. This divergence underscores importance of diversified sector selection as AI matures.</li>
</ul>



 Election victory solidifies reflationary agenda: Polls project decisive 300+ seat supermajority for Takaichi's coalition, enabling aggressive fiscal expansion. Equities trade near records; exporters and industrial policy beneficiaries poised to gain.

 Power generation emerges as critical bottleneck: AI capex cycles constrained by grid capacity, not capital. Record order intake from infrastructure players signals urgent demand for electrification.

 Global software rout spares few in Japan: Software stocks have plummeted 15%+ globally, with Japanese names also hit hard. This divergence underscores importance of diversified sector selection as AI matures.


Japan Strategy Weekly | Takaichi's Landslide Mandate Arrives

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jx-advanced-metals-corporation" target="_blank" data-smartkarma-citation="entities:44346:1" rel="noopener">JX Advanced Metals (5016)</a>, <a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525)</a> and <a href="https://www.smartkarma.com/entities/capcom-co-ltd" target="_blank" data-smartkarma-citation="entities:1459:1" rel="noopener">Capcom Co Ltd (9697)</a> replace <a href="https://www.smartkarma.com/entities/konica-minolta-inc" target="_blank" data-smartkarma-citation="entities:17287:1" rel="noopener">Konica Minolta (4902)</a>, <a href="https://www.smartkarma.com/entities/archion-corporation" target="_blank" data-smartkarma-citation="entities:47577:1" rel="noopener">Archion (543A)</a> and <a href="https://www.smartkarma.com/entities/kanadevia-corporation" target="_blank" data-smartkarma-citation="entities:14969:1" rel="noopener">Kanadevia (7004)</a> in the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 Index</a>.</li>
<li>With the new methodology, the index committee appears to be focused on adding stocks with high liquidity and restoring sector balance to align the index with the methodology.</li>
<li>With sector imbalance still rife, there could be 3 more changes for the index in March with more inclusions from the Information and Communications sector likely.</li>
</ul>



JX Advanced Metals (5016), Kokusai Electric (6525) and Capcom Co Ltd (9697) replace Konica Minolta (4902), Archion (543A) and Kanadevia (7004) in the Nikkei 225 Index.
With the new methodology, the index committee appears to be focused on adding stocks with high liquidity and restoring sector balance to align the index with the methodology.
With sector imbalance still rife, there could be 3 more changes for the index in March with more inclusions from the Information and Communications sector likely.


Nikkei 225 Index Rebalance: Capcom (9697 JP) Gets a Boss-Level Upgrade

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>Tension between China and Japan look set to rise further with talks failing to ease frictions.</li>
<li>Travel names remain vulnerable despite Govt. run tour groups having less clout than they used to.</li>
<li>Medtech may do better on defensive bid and Medtronic, but Sysmex continues to slide.</li>
</ul>


Tension between China and Japan look set to rise further with talks failing to ease frictions.
Travel names remain vulnerable despite Govt. run tour groups having less clout than they used to.
Medtech may do better on defensive bid and Medtronic, but Sysmex continues to slide.


Japan Morning Connection: More AI and Tech Pain Ahead of NVDA Tomorrow

Japan

Isetan Mitsukoshi Holdings Ltd. is a holding company established through a merger of Mitsukoshi and Isetan. The group operates department stores nationwide, selling clothing, foods, household goods, cosmetics and general merchandise.

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Isetan Mitsukoshi Holdings Ltd (3099 JP)

Profit Worries at Japanese Department Stores on Inbound Dependence

Japan's economy is feeling the impact of international tensions, with losses from Chinese tourists and warnings from luxury brands about US-Iran...

Michael Causton

Record Tourism Not Boosting Japanese Retailers as Chinese Stay Away

Record tourism in Japan is boosting services, but retailers are suffering as Chinese tourists, who spend the most on shopping, are declining due...

Michael Causton

Japan Strategy Weekly | Takaichi's Landslide Mandate Arrives

Election victory boosts reflationary agenda; power generation bottleneck hinders AI capex; global software rout hits Japanese stocks hard.

Mark Chadwick

Nikkei 225 Index Rebalance: Capcom (9697 JP) Gets a Boss-Level Upgrade

The Nikkei225 Index rebalances at the close today. Positioning has increased in nearly all adds/deletes since announcement of the changes. JX...

Brian Freitas

Japan Morning Connection: More AI and Tech Pain Ahead of NVDA Tomorrow

Some big moves down for SPE and AI related. Diplomatic tensions continue between Japan and China. JP Medtech names may get a lift from Medtronic's...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Profit Worries at Japanese Department Stores on Inbound Dependence

​Japan's economy is feeling the impact of international tensions, with losses from Chinese tourists and warnings from luxury brands about US-Iran...

Michael Causton

Record Tourism Not Boosting Japanese Retailers as Chinese Stay Away

​Record tourism in Japan is boosting services, but retailers are suffering as Chinese tourists, who spend the most on shopping, are declining due...

Michael Causton

Japan Strategy Weekly | Takaichi's Landslide Mandate Arrives

​Election victory boosts reflationary agenda; power generation bottleneck hinders AI capex; global software rout hits Japanese stocks hard.

Mark Chadwick

Nikkei 225 Index Rebalance: Capcom (9697 JP) Gets a Boss-Level Upgrade

The Nikkei225 Index rebalances at the close today. Positioning has increased in nearly all adds/deletes since announcement of the changes. JX...

Brian Freitas

Japan Morning Connection: More AI and Tech Pain Ahead of NVDA Tomorrow

Some big moves down for SPE and AI related. Diplomatic tensions continue between Japan and China. JP Medtech names may get a lift from Medtronic's...

Andrew Jackson

Japan's economy is feeling the impact of international tensions, with losses from Chinese tourists and warnings from luxury brands about US-Iran...

Record tourism in Japan is boosting services, but retailers are suffering as Chinese tourists, who spend the most on shopping, are declining due...

Election victory boosts reflationary agenda; power generation bottleneck hinders AI capex; global software rout hits Japanese stocks hard.