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>The almost viral popularity of Familymart’s line of basic clothing items continues to grow and shows the real potential for convenience stores to diversify and adapt. </li>
<li>Backed by Itochu, Familymart has expanded the product range and added new, limited edition items and brand collaborations, creating a success story that Seven Eleven may find hard to emulate.</li>
<li>Lawson, however, is controlled by Mitsubishi Corp which happens to have a clothing production arm that was behind the early success of Uniqlo and Adastria.</li>
</ul>


The almost viral popularity of Familymart’s line of basic clothing items continues to grow and shows the real potential for convenience stores to diversify and adapt. 
Backed by Itochu, Familymart has expanded the product range and added new, limited edition items and brand collaborations, creating a success story that Seven Eleven may find hard to emulate.
Lawson, however, is controlled by Mitsubishi Corp which happens to have a clothing production arm that was behind the early success of Uniqlo and Adastria.


Convenience Wear: Familymart Competes with Uniqlo in Basics

<ul>
<li>Amazon Netsuper is competing head to head with Rakuten’s online food platform in an online food sector that has <strong>grown 80% in four years</strong>. </li>
<li>Last month Amazon confirmed that Arcs, one of the largest supermarkets in Japan and the biggest in northern Japan, will join Life, Valor and Seijo Ishii in using its system.</li>
<li>Arcs’ online supermarket was already growing strongly but the tie-up with Amazon will take it to the next level, helping to compete with Aeon and Rakuten.</li>
</ul>


Amazon Netsuper is competing head to head with Rakuten’s online food platform in an online food sector that has grown 80% in four years. 
Last month Amazon confirmed that Arcs, one of the largest supermarkets in Japan and the biggest in northern Japan, will join Life, Valor and Seijo Ishii in using its system.
Arcs’ online supermarket was already growing strongly but the tie-up with Amazon will take it to the next level, helping to compete with Aeon and Rakuten.


Arcs' Online Expansion with Amazon a Worry for Rakuten and Aeon

<ul>
<li>Aeon and Seven &amp; I both have large financial services arms, generating a substantial share of consolidated profits.</li>
<li>With cashless payments now the norm, the old business models that relied on fees for cash dispensing are fast becoming outdated.</li>
<li>Both retailers plan major changes to create ecosystems that should deliver a lot more data to improve targeted marketing for e-commerce and retail stores.</li>
</ul>


Aeon and Seven &amp; I both have large financial services arms, generating a substantial share of consolidated profits.
With cashless payments now the norm, the old business models that relied on fees for cash dispensing are fast becoming outdated.
Both retailers plan major changes to create ecosystems that should deliver a lot more data to improve targeted marketing for e-commerce and retail stores.


Aeon and Seven & I to Create Ecosystems Via Financial Services

Equity Capital Markets

<ul>
<li>Seijo Ishii is Japan’s leading premium supermarket chain with some 200 stores and is being prepped for an IPO by its owner, Lawson. </li>
<li>After strong growth during Covid, sales have now flattened and the company’s large import business has suffered from higher costs due to the weak Yen and global crises.</li>
<li>To maintain its market position, it is reducing imports of packaged goods and increasing volumes of imported, high-end raw materials – and then manufacturing products itself.</li>
</ul>


Seijo Ishii is Japan’s leading premium supermarket chain with some 200 stores and is being prepped for an IPO by its owner, Lawson. 
After strong growth during Covid, sales have now flattened and the company’s large import business has suffered from higher costs due to the weak Yen and global crises.
To maintain its market position, it is reducing imports of packaged goods and increasing volumes of imported, high-end raw materials – and then manufacturing products itself.


Lawson: Seijo Ishii Producing at Home to Beat Inflation and Weak Yen

Japan Specialist

Mark Chadwick

<ul>
<li>We are bullish on Lawson and see fair value at Y7,500 per share based on 3% FY2/25 DPS of Y225/share</li>
<li>The domestic convenience store business is recovering post pandemic leading to a possible earnings beat</li>
<li>The market remains sceptical of mid-term growth drivers like Seijo Ishii and China expansion plans</li>
</ul>


We are bullish on Lawson and see fair value at Y7,500 per share based on 3% FY2/25 DPS of Y225/share
The domestic convenience store business is recovering post pandemic leading to a possible earnings beat
The market remains sceptical of mid-term growth drivers like Seijo Ishii and China expansion plans


Japan

LAWSON, INC. operates a chain of convenience stores in Japan. The Company sells a variety of products including fast food, beverages, snacks, magazines, newspapers, and sundry goods.

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Lawson Inc (2651 JP)

Convenience Wear: Familymart Competes with Uniqlo in Basics

Familymart is successfully diversifying through clothing, a hit line that Seven Eleven may struggle to replicate. Lawson, backed by Mitsubishi...

Michael Causton

Arcs' Online Expansion with Amazon a Worry for Rakuten and Aeon

Amazon Netsuper is challenging Rakuten's online food platform in a rapidly growing sector (up 80% in 4 years), with Arcs joining its system to...

Michael Causton

Aeon and Seven & I to Create Ecosystems Via Financial Services

Aeon and Seven & I are adapting to the cashless era by focusing on data-driven ecosystems for targeted marketing, which could turnaround financial...

Michael Causton

Lawson: Seijo Ishii Producing at Home to Beat Inflation and Weak Yen

Japan's leading premium supermarket chain, Seijo Ishii, is preparing for an IPO. To stay competitive, the company is reducing imports while...

Michael Causton

Lawson (2651) | Dividend Grower

Positive Q1 beat: Lawson reported +64% yoy growth in profit to Y26B. That significantly beat consensus estimates, but comps include an accounting...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Convenience Wear: Familymart Competes with Uniqlo in Basics

Familymart is successfully diversifying through clothing, a hit line that Seven Eleven may struggle to replicate. Lawson, backed by Mitsubishi...

Michael Causton

Arcs' Online Expansion with Amazon a Worry for Rakuten and Aeon

​Amazon Netsuper is challenging Rakuten's online food platform in a rapidly growing sector (up 80% in 4 years), with Arcs joining its system to...

Michael Causton

Aeon and Seven & I to Create Ecosystems Via Financial Services

​Aeon and Seven & I are adapting to the cashless era by focusing on data-driven ecosystems for targeted marketing, which could turnaround financial...

Michael Causton

Lawson: Seijo Ishii Producing at Home to Beat Inflation and Weak Yen

​Japan's leading premium supermarket chain, Seijo Ishii, is preparing for an IPO. To stay competitive, the company is reducing imports while...

Michael Causton

Lawson (2651) | Dividend Grower

Positive Q1 beat: Lawson reported +64% yoy growth in profit to Y26B. That significantly beat consensus estimates, but comps include an accounting...

Mark Chadwick

Amazon Netsuper is challenging Rakuten's online food platform in a rapidly growing sector (up 80% in 4 years), with Arcs joining its system to...

Aeon and Seven & I are adapting to the cashless era by focusing on data-driven ecosystems for targeted marketing, which could turnaround financial...

Japan's leading premium supermarket chain, Seijo Ishii, is preparing for an IPO. To stay competitive, the company is reducing imports while...