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>In this in-depth review, it is clear that while Japanese clothing markets had a solid year in FY2024-25, once again the top 100 retailers outperformed by a large margin.</li>
<li>This meant they surpassed 71% share of the market but, within the specialty market alone, the top 10 retailers own 34%. This is now a clear oligopoly.</li>
<li>There are no signs of the situation changing either but rather the capacity of the leaders to invest should further expand share at the top.</li>
</ul>


In this in-depth review, it is clear that while Japanese clothing markets had a solid year in FY2024-25, once again the top 100 retailers outperformed by a large margin.
This meant they surpassed 71% share of the market but, within the specialty market alone, the top 10 retailers own 34%. This is now a clear oligopoly.
There are no signs of the situation changing either but rather the capacity of the leaders to invest should further expand share at the top.


The Great Divide: Fashion Retail’s Oligopoly

<ul>
<li>Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.</li>
<li>2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.</li>
<li>While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.</li>
</ul>


Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.
2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.
While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.


Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

Equity Bottom-Up

Samantha Thavasa Japan / Equity Bottom-Up

<ul>
<li>Once a major hit with young women, Samantha Thavasa has struggled to find relevance in the past five years.</li>
<li>Despite an injection of capital and management from new parent, Konaka, the business has continued to close stores.</li>
<li>While Konaka is restructuring the business, the brand's low levels of recognition with the younger generation will likely mean further retreat.</li>
</ul>


Once a major hit with young women, Samantha Thavasa has struggled to find relevance in the past five years.
Despite an injection of capital and management from new parent, Konaka, the business has continued to close stores.
While Konaka is restructuring the business, the brand's low levels of recognition with the younger generation will likely mean further retreat.


Samantha Thavasa Attempts Rebirth but Losses Continue

<ul>
<li>Fewer people wear suits as a regular office uniform and there are also fewer working age Japanese.</li>
<li>Combined with the fact that more people work from home some days a week, this has meant a drastic decline in suit sales</li>
<li>In response, the big retailers are exploiting the growing popularity of custom and premium suits but the shift won't offset the decline.</li>
</ul>


Fewer people wear suits as a regular office uniform and there are also fewer working age Japanese.
Combined with the fact that more people work from home some days a week, this has meant a drastic decline in suit sales
In response, the big retailers are exploiting the growing popularity of custom and premium suits but the shift won't offset the decline.


Fewer but Better Suits from Aoyama and Its Competitors

<ul>
<li>The apparel/fashion sector made a partial recovery last year but was still down on 2019. 2022 looks a lot brighter with customers now back in stores including even inbound tourists. </li>
<li>The same challenges that the sector faced before Covid remain but there is plenty of room to grow by taking share from the less innovative competitors – i.e. more consolidation.</li>
<li>The sector saw the highest fall in store numbers in its history last year, but there was more investment in creating a compelling omnichannel model suited to Japan’s particular market.</li>
</ul>


The apparel/fashion sector made a partial recovery last year but was still down on 2019. 2022 looks a lot brighter with customers now back in stores including even inbound tourists. 
The same challenges that the sector faced before Covid remain but there is plenty of room to grow by taking share from the less innovative competitors – i.e. more consolidation.
The sector saw the highest fall in store numbers in its history last year, but there was more investment in creating a compelling omnichannel model suited to Japan’s particular market.


Japan's Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery

Japan

KONAKA CO., LTD. operates a men's suits store chain based in Yokohama. The Company has its own brand name JOHN PEARSE.  The Company also operates jeans and casual wear store chain named BALBO.

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Konaka Co Ltd (7494 JP)

The Great Divide: Fashion Retail’s Oligopoly

Japanese clothing market dominated by top 100 retailers in FY2024-25, with top 10 owning 34% in specialty market, solidifying oligopoly. Leaders...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

Samantha Thavasa Attempts Rebirth but Losses Continue

Samantha Thavasa had a moment in the spotlight more than a decade ago thanks to clever use of international celebrities but that moment has gone...

Michael Causton

Fewer but Better Suits from Aoyama and Its Competitors

Suit retailers were one of the worst affected sectors during the pandemic. But this was just an acceleration of a longer decline. Some firms will...

Michael Causton

Japan's Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery

Japan's fashion and apparel sector was severely hit by the pandemic and the loss of tourism. With wallets full, Japanese are now spending again...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Great Divide: Fashion Retail’s Oligopoly

​Japanese clothing market dominated by top 100 retailers in FY2024-25, with top 10 owning 34% in specialty market, solidifying oligopoly. Leaders...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

​Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

Samantha Thavasa Attempts Rebirth but Losses Continue

Samantha Thavasa had a moment in the spotlight more than a decade ago thanks to clever use of international celebrities but that moment has gone...

Michael Causton

Fewer but Better Suits from Aoyama and Its Competitors

Suit retailers were one of the worst affected sectors during the pandemic. But this was just an acceleration of a longer decline. Some firms will...

Michael Causton

Japan's Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery

Japan's fashion and apparel sector was severely hit by the pandemic and the loss of tourism. With wallets full, Japanese are now spending again...

Michael Causton

Japanese clothing market dominated by top 100 retailers in FY2024-25, with top 10 owning 34% in specialty market, solidifying oligopoly. Leaders...

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...