'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/132/350/original/2020-05-10_07-41-07.png?1589064097" class="editor-image img-responsive" data-smartkarma-image-id="132350"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>HERD IMMUNITY</strong> - The market 'herd' continues to be immune to the siren song of earnings announcements. In last week's two reporting days, aggregate trailing operating income declined by ¥400 billion, while the current year forecast was trimmed by ¥800 billion. The respective numbers for net income were ¥600 billion and ¥200 billion - the latter being flattering in its 'deception' as the figure includes three net-income 'heavy' sogo-shosha. We expect a PER 'breakout' to above 18x in the coming week.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/132/351/original/2020-05-10_08-08-43.png?1589065754" class="editor-image img-responsive" data-smartkarma-image-id="132351"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>INTERIM LEADING THE WAY</strong> - Our Results and Revisions scoring methodology tracks both Interim and Annual forecasts with the former signalling the direction of the latter. For some companies such as <a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl (4921 JP)</a>, <a href="https://www.smartkarma.com/entities/jcu-corp" target="_blank" data-smartkarma-citation="entities:16229:1" rel="noopener">JCU (4975 JP)</a> and <a href="https://www.smartkarma.com/entities/zenkoku-hosho-co-ltd" target="_blank" data-smartkarma-citation="entities:5537:1" rel="noopener">Zenkoku Hosho (7164 JP)</a>, the Interim forecast is sufficiently pessimistic as to taint the reliability of the annual forecast. Our Interim Score will reach a new ten-year low this week; the Annual Score did so last month. We do not expect the COVID-19 earnings cycle to bottom until the January/February's mostly third-quarter results announcements.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/132/366/original/2020-05-10_09-01-50.png?1589068924" class="editor-image img-responsive" data-smartkarma-image-id="132366"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/132/367/original/2020-05-10_09-00-50.png?1589068939" class="editor-image img-responsive" data-smartkarma-image-id="132367"></figure><div class="content-caption">Source • Japan Analytics</div><div class="content-caption"></div><p>In the <strong>DETAIL</strong> below, we shall review the results, revisions and initial forecast announcements made by larger-cap (¥75b+) companies on Friday. The balance between positive/neutral/negative of the 211 results announcements was<strong> 90:27:107</strong>. The average change in Score was <strong>-1</strong>. For the 131 revisions/initial forecasts, the split was <strong>43:4:84</strong>  and the average Score was<strong> -5</strong>. Of the<strong> 155 </strong>companies declaring full-year results, <strong>49%</strong> made interim and annual forecasts for the current year. Two hundred thirty-three companies will announce on Monday, the largest of which by market capitalisation will be <a href="https://www.smartkarma.com/entities/softbank-corp" target="_blank" data-smartkarma-citation="entities:27445:1" rel="noopener">Softbank Corp (9434 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-electric-corp" target="_blank" data-smartkarma-citation="entities:11171:1" rel="noopener">Mitsubishi Electric (6503 JP)</a>, and <a href="https://www.smartkarma.com/entities/bridgestone-corp" target="_blank" data-smartkarma-citation="entities:8914:1" rel="noopener">Bridgestone (5108 JP)</a>. Friday's 'best' and worst scoring results were from <a href="https://www.smartkarma.com/entities/chiyoda-corp" target="_blank" data-smartkarma-citation="entities:6232:1" rel="noopener">Chiyoda (6366 JP)</a> and <a href="https://www.smartkarma.com/entities/keihan-electric-railway-co" target="_blank" data-smartkarma-citation="entities:6120:1" rel="noopener">Keihan Electric Railway (9045 JP)</a>, although the former is below our cap cut-off for our tables below. For more, see <a href="https://www.smartkarma.com/profiles/mio-kato-cfa" target="_blank" data-smartkarma-citation="accounts:713" rel="noopener">Mio Kato</a>'s results update <a href="https://www.smartkarma.com/insights/chiyoda-gross-margin-disappoints-but-sg-a-control-continues" target="_blank" data-smartkarma-citation="insights:39166" rel="noopener">Chiyoda – Gross Margin Disappoints but SG&amp;A Control Continues</a>. </p>

Source • Japan AnalyticsHERD IMMUNITY - The market 'herd' continues to be immune to the siren song of earnings announcements. In last week's two reporting days, aggregate trailing operating income declined by ¥400 billion, while the current year forecast was trimmed by ¥800 billion. The respective numbers for net income were ¥600 billion and ¥200 billion - the latter being flattering in its 'deception' as the figure includes three net-income 'heavy' sogo-shosha. We expect a PER 'breakout' to above 18x in the coming week.Source • Japan AnalyticsINTERIM LEADING THE WAY - Our Results and Revisions scoring methodology tracks both Interim and Annual forecasts with the former signalling the direction of the latter. For some companies such as Fancl (4921 JP), JCU (4975 JP) and Zenkoku Hosho (7164 JP), the Interim forecast is sufficiently pessimistic as to taint the reliability of the annual forecast. Our Interim Score will reach a new ten-year low this week; the Annual Score did so last month. We do not expect the COVID-19 earnings cycle to bottom until the January/February's mostly third-quarter results announcements.Source • Japan AnalyticsIn the DETAIL below, we shall review the results, revisions and initial forecast announcements made by larger-cap (¥75b+) companies on Friday. The balance between positive/neutral/negative of the 211 results announcements was 90:27:107. The average change in Score was -1. For the 131 revisions/initial forecasts, the split was 43:4:84  and the average Score was -5. Of the 155 companies declaring full-year results, 49% made interim and annual forecasts for the current year. Two hundred thirty-three companies will announce on Monday, the largest of which by market capitalisation will be Softbank Corp (9434 JP), Mitsubishi Electric (6503 JP), and Bridgestone (5108 JP). Friday's 'best' and worst scoring results were from Chiyoda (6366 JP) and Keihan Electric Railway (9045 JP), although the former is below our cap cut-off for our tables below. For more, see Mio Kato's results update Chiyoda – Gross Margin Disappoints but SG&amp;A Control Continues. 

🇯🇵 JAPAN • Results & Revisions Update 8th May - Lion, PPI, Hoya, Sogo Shosha, NEC

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/131/966/original/2020-05-08_05-43-09.png?1588884207" class="editor-image img-responsive" data-smartkarma-image-id="131966"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>7TH MAY</strong> - As we pick up again after the Golden Week holidays, the results and revisions 'reality' will increasingly take over the market narrative. Our cap-weighted aggregate Results &amp; Revision Score continues to decline, reaching a fresh three-year low.  A new ten-year low will follow next week, which we expect will curb any upside enthusiasm.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/131/970/original/File%202020-05-07%204%2029%2028.jpeg?1588886994" class="editor-image img-responsive" data-smartkarma-image-id="131970"></figure><div class="content-caption">Source • SUTD Data-Driven Innovation Lab</div><p><strong>THE ROAD TO ZERO</strong> - Having extended the nationwide state of emergency, the Japanese government is already relaxing restrictions in less-affected prefectures and has hinted that the measures limited activity in the remainder could be lifted before the end of the month. A simulation by the Singapore University of Technology and Design's Data-Driven Innovation Lab suggests that the goal of zero daily new confirmed new cases could be reached as early as 8th June. Testing is now being ramped up as the bureaucratic 'hurdles' are being overcome, and overly-strict preconditions have been relaxed. Nevertheless, the economic consequences of the extension are such that a second supplementary budget and an easing of the requirements for business interruption subsidies will be necessary.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/131/971/original/2020-05-08_06-52-52.png?1588888396" class="editor-image img-responsive" data-smartkarma-image-id="131971"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>THE OTHER SHOE? -</strong> The strength of the yen against the US Dollar and by extension against most emerging market currencies is a factor that has received less attention but has a bearing on the earnings of many Japanese exporters. We are preparing an <strong>Insight</strong> on the likely impact and those companies whose absolute and relative share prices are most and least correlated.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/131/972/original/2020-05-08_06-59-20.png?1588888777" class="editor-image img-responsive" data-smartkarma-image-id="131972"></figure><div class="content-caption">Source • Japan Analytics</div><p>In the<strong> DETAIL </strong>below, we shall review the results, revisions and initial forecast announcements made by larger-cap companies yesterday.  On another relatively quiet day, the balance between positive/neutral/negative of the 51 results announcements was 15:6:30. The average change in Score was -83. For the 29 revisions/initial forecasts, the split was 11:1:17  and the average Score was -2. Of the 32 companies declaring full-year results, just nine made interim or annual forecasts for the current year. Two hundred twenty-three companies will announce today, the largest of which by market capitalisation will be <a href="https://www.smartkarma.com/entities/hoya-corp" target="_blank" data-smartkarma-citation="entities:8990:1" rel="noopener">Hoya (7741 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a>, and <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu (8001 JP)</a>. </p>

Source • Japan Analytics7TH MAY - As we pick up again after the Golden Week holidays, the results and revisions 'reality' will increasingly take over the market narrative. Our cap-weighted aggregate Results &amp; Revision Score continues to decline, reaching a fresh three-year low.  A new ten-year low will follow next week, which we expect will curb any upside enthusiasm.Source • SUTD Data-Driven Innovation LabTHE ROAD TO ZERO - Having extended the nationwide state of emergency, the Japanese government is already relaxing restrictions in less-affected prefectures and has hinted that the measures limited activity in the remainder could be lifted before the end of the month. A simulation by the Singapore University of Technology and Design's Data-Driven Innovation Lab suggests that the goal of zero daily new confirmed new cases could be reached as early as 8th June. Testing is now being ramped up as the bureaucratic 'hurdles' are being overcome, and overly-strict preconditions have been relaxed. Nevertheless, the economic consequences of the extension are such that a second supplementary budget and an easing of the requirements for business interruption subsidies will be necessary.Source • Japan AnalyticsTHE OTHER SHOE? - The strength of the yen against the US Dollar and by extension against most emerging market currencies is a factor that has received less attention but has a bearing on the earnings of many Japanese exporters. We are preparing an Insight on the likely impact and those companies whose absolute and relative share prices are most and least correlated.Source • Japan AnalyticsIn the DETAIL below, we shall review the results, revisions and initial forecast announcements made by larger-cap companies yesterday.  On another relatively quiet day, the balance between positive/neutral/negative of the 51 results announcements was 15:6:30. The average change in Score was -83. For the 29 revisions/initial forecasts, the split was 11:1:17  and the average Score was -2. Of the 32 companies declaring full-year results, just nine made interim or annual forecasts for the current year. Two hundred twenty-three companies will announce today, the largest of which by market capitalisation will be Hoya (7741 JP), Mitsubishi Corp (8058 JP), and Itochu (8001 JP). 

🇯🇵 JAPAN • Results & Revisions Update 7th May - Yamaha, Misumi, FANCL, Workman, Nintendo

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/116/531/original/2020-02-06_03-39-10.png?1580933731" class="editor-image img-responsive" data-smartkarma-image-id="116531"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>5TH FEBRUARY ROUNDUP</strong> - Wednesday saw 171 Results and 65 Forecast/Revision announcements. The Results Score set another new three-year low losing 16bps to reach 0.35, while the Forecast/Revision Score shed 7bps to reach 0.08. The sogo shosha trading company results were weak, with the exception of <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu (8001 JP)</a>. Amongst large caps, <a href="https://www.smartkarma.com/entities/marubeni-corp" target="_blank" data-smartkarma-citation="entities:7463:1" rel="noopener">Marubeni (8002 JP)</a> and <a href="https://www.smartkarma.com/entities/dena-co-ltd" target="_blank" data-smartkarma-citation="entities:747:1" rel="noopener">DeNA(2432 JP)</a> had Operating Losses, while <a href="https://www.smartkarma.com/entities/mazda-motor-corp" target="_blank" data-smartkarma-citation="entities:20528:1" rel="noopener">Mazda Motor (7261 JP)</a>, <a href="https://www.smartkarma.com/entities/fujikura-ltd" target="_blank" data-smartkarma-citation="entities:10768:1" rel="noopener">Fujikura (5803 JP)</a>, <a href="https://www.smartkarma.com/entities/daicel-corp" target="_blank" data-smartkarma-citation="entities:10533:1" rel="noopener">Daicel (4202 JP)</a>, and <a href="https://www.smartkarma.com/entities/furukawa-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:5193:1" rel="noopener">Furukawa Electric (5801 JP)</a> saw steep quarterly year-on-year OP declines. Amongst the 'winners' were <a href="https://www.smartkarma.com/entities/square-enix-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15003:1" rel="noopener">Square Enix (9684 JP)</a>, and <a href="https://www.smartkarma.com/entities/rengo-co-ltd" target="_blank" data-smartkarma-citation="entities:20278:1" rel="noopener">Rengo (3941 JP)</a>.</p><hr><p style="text-align: center;"><strong>• SECTOR TIMELINE •</strong></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/116/532/original/2020-02-06_03-42-28.png?1580934310" class="editor-image img-responsive" data-smartkarma-image-id="116532"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>SECTOR TIMELINE</strong> - The <strong>Wholesale</strong> Sector was the largest loser yesterday with <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi (8058 JP)</a> and <a href="https://www.smartkarma.com/entities/kanematsu-corp" target="_blank" data-smartkarma-citation="entities:5810:1" rel="noopener">Kanematsu (8020 JP)</a> joining Marubeni in posting poor results. <a href="https://www.smartkarma.com/entities/taiyo-nippon-sanso-corp" target="_blank" data-smartkarma-citation="entities:15756:1" rel="noopener">Taiyo Nippon Sanso (4091 JP)</a> slowing momentum and downward revision saw the <strong>Chemical</strong> Sector move lower again. <a href="https://www.smartkarma.com/entities/agc-inc" target="_blank" data-smartkarma-citation="entities:2167:1" rel="noopener">AGC (5201 JP)</a> initial forecast for FY2020 helped the <strong>Other Materials</strong> Sector recover some ground. </p>

Source • Japan Analytics5TH FEBRUARY ROUNDUP - Wednesday saw 171 Results and 65 Forecast/Revision announcements. The Results Score set another new three-year low losing 16bps to reach 0.35, while the Forecast/Revision Score shed 7bps to reach 0.08. The sogo shosha trading company results were weak, with the exception of Itochu (8001 JP). Amongst large caps, Marubeni (8002 JP) and DeNA(2432 JP) had Operating Losses, while Mazda Motor (7261 JP), Fujikura (5803 JP), Daicel (4202 JP), and Furukawa Electric (5801 JP) saw steep quarterly year-on-year OP declines. Amongst the 'winners' were Square Enix (9684 JP), and Rengo (3941 JP).• SECTOR TIMELINE •Source • Japan AnalyticsSECTOR TIMELINE - The Wholesale Sector was the largest loser yesterday with Mitsubishi (8058 JP) and Kanematsu (8020 JP) joining Marubeni in posting poor results. Taiyo Nippon Sanso (4091 JP) slowing momentum and downward revision saw the Chemical Sector move lower again. AGC (5201 JP) initial forecast for FY2020 helped the Other Materials Sector recover some ground. 

🇯🇵 JAPAN • Results & Revisions Daily Roundup - 5th February ▲5201 4202 6269 ▼4091 9987 6869

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On August 22nd, the South Korean government announced that it has decided to terminate the <strong>GSOMIA</strong> (General Security of Military Information Agreement) with the Japanese government. As a result of the South Korean government's decision to terminate GSOMIA, this will likely to further fuel the discord the political relations between Japan and South Korea and the Korean stock market is likely to face further weakness, especially companies that are negatively impacted by this conflict.</li>
<li>
<strong>Cho Kuk</strong> has been the most discussed person in South Korea in the past two weeks. He is a nominee to become the next Justice Minister in South Korea. However, he and his family/relatives have been mired in numerous allegations which could make it difficult for him to become the next Justice Minister. On August 27th, the<a href="http://www.koreaherald.com/view.php?ud=20190827000730" target="_blank" rel="noopener"> government prosecutors</a> raided universities, a medical center and other facilities to investigate Justice Minister nominee Cho Kuk and his family.</li>
<li>
<a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> puts out a weekly on the Japan short interest data. The short notional in the market for the week ended 23 August is US$24.95bn with the largest short positions in <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a>, <a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota Motor (7203 JP)</a>, <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a>,  <a href="https://www.smartkarma.com/entities/taiyo-yuden-co-ltd" target="_blank" data-smartkarma-citation="entities:9924:1" rel="noopener">Taiyo Yuden (6976 JP)</a> and <a href="https://www.smartkarma.com/entities/sumitomo-mitsui-financial-gr" target="_blank" data-smartkarma-citation="entities:217:1" rel="noopener">Sumitomo Mitsui Financial (8316 JP)</a>. Most shorted stocks as a percentage of free float are Amazia, <a href="https://www.smartkarma.com/entities/extreme-co-ltd" target="_blank" data-smartkarma-citation="entities:5311:1" rel="noopener">Extreme Co Ltd (6033 JP)</a>, <a href="https://www.smartkarma.com/entities/taiyo-yuden-co-ltd" target="_blank" data-smartkarma-citation="entities:9924:1" rel="noopener">Taiyo Yuden (6976 JP)</a> and <a href="https://www.smartkarma.com/entities/leopalace21-corp" target="_blank" data-smartkarma-citation="entities:8244:1" rel="noopener">Leopalace21 Corp (8848 JP)</a>. </li>
<li>
<strong>MEGVII TECHNOLOGY IPO</strong> - <a href="https://www.smartkarma.com/profiles/arun-george" target="_blank" data-smartkarma-citation="accounts:1680" rel="noopener">Arun George</a> wrote about this company in his note, <strong><a href="https://www.smartkarma.com/insights/megvii-ipo-initiation-anonymous-no-more" target="_blank" data-smartkarma-citation="insights:32041" rel="noopener">Megvii IPO Initiation: Anonymous No More</a></strong>. <a href="https://www.smartkarma.com/entities/megvii-technology" target="_blank" data-smartkarma-citation="entities:28272:1" rel="noopener">Megvii Technology (1737211D HK)</a> is a Chinese AI company best known for its facial recognition platform Face++. It is backed by Ant Financial (15.1% shareholder), <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group Holding (BABA US)</a> (14.3% shareholder) and <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a> (1.2% shareholder). Overall, Arun believes Megvii is a decent “new economy” growth story as the positives outweigh the negatives. </li>
</ul>


On August 22nd, the South Korean government announced that it has decided to terminate the GSOMIA (General Security of Military Information Agreement) with the Japanese government. As a result of the South Korean government's decision to terminate GSOMIA, this will likely to further fuel the discord the political relations between Japan and South Korea and the Korean stock market is likely to face further weakness, especially companies that are negatively impacted by this conflict.

Cho Kuk has been the most discussed person in South Korea in the past two weeks. He is a nominee to become the next Justice Minister in South Korea. However, he and his family/relatives have been mired in numerous allegations which could make it difficult for him to become the next Justice Minister. On August 27th, the government prosecutors raided universities, a medical center and other facilities to investigate Justice Minister nominee Cho Kuk and his family.

Brian Freitas puts out a weekly on the Japan short interest data. The short notional in the market for the week ended 23 August is US$24.95bn with the largest short positions in Itochu Corp (8001 JP), Toyota Motor (7203 JP), Canon Inc (7751 JP),  Taiyo Yuden (6976 JP) and Sumitomo Mitsui Financial (8316 JP). Most shorted stocks as a percentage of free float are Amazia, Extreme Co Ltd (6033 JP), Taiyo Yuden (6976 JP) and Leopalace21 Corp (8848 JP). 

MEGVII TECHNOLOGY IPO - Arun George wrote about this company in his note, Megvii IPO Initiation: Anonymous No More. Megvii Technology (1737211D HK) is a Chinese AI company best known for its facial recognition platform Face++. It is backed by Ant Financial (15.1% shareholder), Alibaba Group Holding (BABA US) (14.3% shareholder) and Lenovo (992 HK) (1.2% shareholder). Overall, Arun believes Megvii is a decent “new economy” growth story as the positives outweigh the negatives. 


The Week That Was @ Smartkarma in Korea, Japan, China/HK: Megvii, GSOMIA, Cho Kuk, & Sony

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. 

<p>Below are several recent updates on Japanese retail and consumer markets that, while not meriting in-depth Insights of their own, are important trends impacting retail stocks.</p>
<h2><strong>TPP: profit and loss for Japan</strong></h2>
<p>The Trans-Pacific Partnership trade deal came into effect in late December, immediately cutting import tariffs across much of Southeast Asia. Despite some claims that this will help consumers, the cuts are most likely to benefit trading firms and leading food wholesalers like <a href="https://www.smartkarma.com/entities/19778" target="_blank" data-smartkarma-citation="entities:19778:1">Mitsubishi Shokuhin (7451 JP)</a> and <a href="https://www.smartkarma.com/entities/14985" target="_blank" data-smartkarma-citation="entities:14985:1">Itochu Shokuhin (2692 JP)</a> rather than result in lower retail prices.</p>
<h2><strong>Mash and Jun to start premium online lifestyle mall in October</strong></h2>
<p>Two leading lifestyle and fashion firms, Mash Holdings and Jun, will together launch a new challenger in the fashion and lifestyle online market in October. This is a threat to the premium end of <a href="https://www.smartkarma.com/entities/18379" target="_blank" data-smartkarma-citation="entities:18379:1">ZOZO's (3092 JP)</a> marketplace as well as the nascent Stripe Department, a joint venture between <a href="https://www.smartkarma.com/entities/27445" target="_blank" data-smartkarma-citation="entities:27445:1">Softbank (9434 JP)</a> and Stripe International, an unlisted fashion retailer.</p>
<h2><strong>A flat fashion market</strong></h2>
<p>A comprehensive recent survey of fashion industry managers suggests they are less optimistic about the outlook for 2019 compared to a year ago, weighed down with worries about depopulation, global trade, and changing consumer sentiment. More optimistically, many are investing in e-commerce as well as preparing to expand overseas.</p>
<h2><strong>Organic foods growing in popularity</strong></h2>
<p>After something of a false start back in the 1990s, organic fresh food is now moving out of a limited niche and into the mainstream, benefiting <a href="https://www.smartkarma.com/entities/10145" target="_blank" data-smartkarma-citation="entities:10145:1">Oisix Ra Daichi (3182 JP)</a> in particular.</p>
<h2><strong>Muji really is no name in China</strong></h2>
<p><a href="https://www.smartkarma.com/entities/2765" target="_blank" data-smartkarma-citation="entities:2765:1">Ryohin Keikaku's (7453 JP)</a> Muji is popular in China, but trademark conflicts, easy replication, as well as new emulator brands, all mean the "no brand" brand is not assured of continued success in the market.</p>

Below are several recent updates on Japanese retail and consumer markets that, while not meriting in-depth Insights of their own, are important trends impacting retail stocks.
TPP: profit and loss for Japan
The Trans-Pacific Partnership trade deal came into effect in late December, immediately cutting import tariffs across much of Southeast Asia. Despite some claims that this will help consumers, the cuts are most likely to benefit trading firms and leading food wholesalers like Mitsubishi Shokuhin (7451 JP) and Itochu Shokuhin (2692 JP) rather than result in lower retail prices.
Mash and Jun to start premium online lifestyle mall in October
Two leading lifestyle and fashion firms, Mash Holdings and Jun, will together launch a new challenger in the fashion and lifestyle online market in October. This is a threat to the premium end of ZOZO's (3092 JP) marketplace as well as the nascent Stripe Department, a joint venture between Softbank (9434 JP) and Stripe International, an unlisted fashion retailer.
A flat fashion market
A comprehensive recent survey of fashion industry managers suggests they are less optimistic about the outlook for 2019 compared to a year ago, weighed down with worries about depopulation, global trade, and changing consumer sentiment. More optimistically, many are investing in e-commerce as well as preparing to expand overseas.
Organic foods growing in popularity
After something of a false start back in the 1990s, organic fresh food is now moving out of a limited niche and into the mainstream, benefiting Oisix Ra Daichi (3182 JP) in particular.
Muji really is no name in China
Ryohin Keikaku's (7453 JP) Muji is popular in China, but trademark conflicts, easy replication, as well as new emulator brands, all mean the "no brand" brand is not assured of continued success in the market.

Also in the News: Updates from Japanese Retail Markets

Japan

ITOCHU Corporation is a general trading firm handling textiles, wood, machinery, metals, food, chemicals, construction materials, commodities, and energy related products such as oil and gas. The Company operates around the world. Itochu diversifies by operating in satellite communication and data communication businesses.

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Itochu Corp (8001 JP)

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Also in the News: Updates from Japanese Retail Markets

Below are several recent updates on Japanese retail and consumer markets that, while not meriting in-depth Insights of their own, are important...

Michael Causton

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