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>Private brands developed and managed by retailers themselves offer plenty of price and marketing flexibility during these inflationary times.</li>
<li>But it is not only their popularity as cheaper alternatives that is growing, so too are pack sizes, as consumers increase shopping volume and reduce shopping trip frequency.</li>
<li>The trend is another sign of why investors should look out for retailers with good private brands, given the impact on both sales and margin growth.</li>
</ul>


Private brands developed and managed by retailers themselves offer plenty of price and marketing flexibility during these inflationary times.
But it is not only their popularity as cheaper alternatives that is growing, so too are pack sizes, as consumers increase shopping volume and reduce shopping trip frequency.
The trend is another sign of why investors should look out for retailers with good private brands, given the impact on both sales and margin growth.


Private Brands in Japan: Getting Bigger – Literally

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aoki-super-co-ltd" target="_blank" data-smartkarma-citation="entities:13509:1" rel="noopener">Aoki Super (9977 JP)</a> has recommended an MBO tender offer of JPY3,800 per share, a 43.9% premium to the undisturbed (5 January). </li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 13.35% ownership ratio. </li>
<li>Based on the irrevocables, the minimum acceptance condition requires a 28.6% minority acceptance rate. This acceptance rate is achievable as the offer represents an all-time high. </li>
</ul>



Aoki Super (9977 JP) has recommended an MBO tender offer of JPY3,800 per share, a 43.9% premium to the undisturbed (5 January). 
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 13.35% ownership ratio. 
Based on the irrevocables, the minimum acceptance condition requires a 28.6% minority acceptance rate. This acceptance rate is achievable as the offer represents an all-time high. 


Aoki Super (9977 JP): MBO Tender Offer at JPY3,800

Equity Bottom-Up

<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>
<a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a> has announced a partial tender offer for <a href="https://www.smartkarma.com/entities/inageya-co-ltd" target="_blank" data-smartkarma-citation="entities:13994:1" rel="noopener">Inageya Co Ltd (8182 JP)</a> to make it a consolidated subsidiary. Aeon flagged this intention on 25 April.</li>
<li>The tender offer is for a maximum of 15.7 million shares (33.78% ownership ratio) at JPY1,610, a 23.2% premium to the undisturbed price. There is no minimum acceptance condition. </li>
<li>The offer price is reasonable. Longer-term, Aeon aims to make Inageya a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/united-super-markets-holdings" target="_blank" data-smartkarma-citation="entities:26107:1" rel="noopener">United Super Markets (3222 JP)</a> by November 2024.</li>
</ul>



Aeon Co Ltd (8267 JP) has announced a partial tender offer for Inageya Co Ltd (8182 JP) to make it a consolidated subsidiary. Aeon flagged this intention on 25 April.
The tender offer is for a maximum of 15.7 million shares (33.78% ownership ratio) at JPY1,610, a 23.2% premium to the undisturbed price. There is no minimum acceptance condition. 
The offer price is reasonable. Longer-term, Aeon aims to make Inageya a wholly-owned subsidiary of United Super Markets (3222 JP) by November 2024.


Inageya (8182 JP): Aeon’s JPY1,610 Partial Tender Offer

<ul>
<li>Rakuten sold its 20% stake in Seiyu to KKR at the end of May, divesting from direct ownership in physical supermarkets. </li>
<li>This provides a much needed injection of cash for Rakuten’s digital projects and should also help the online platform build trust with other supermarket chains interested in joining its platform.</li>
<li>Both companies reaffirmed their commitment to build the largest online food retail platform within the next two years.</li>
</ul>


Rakuten sold its 20% stake in Seiyu to KKR at the end of May, divesting from direct ownership in physical supermarkets. 
This provides a much needed injection of cash for Rakuten’s digital projects and should also help the online platform build trust with other supermarket chains interested in joining its platform.
Both companies reaffirmed their commitment to build the largest online food retail platform within the next two years.


Rakuten’s Seiyu Sell off Will Boost Netsuper Business

Japan

LIFE CORPORATION operates a supermarket chain mainly in Kansai and Kanto areas. The Company sells mainly groceries, and also clothing, and household utensils.

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Life Corp (8194 JP)

Private Brands in Japan: Getting Bigger – Literally

Private brands offer price and marketing flexibility during inflation, and their popularity is increasing. Investors should focus on retailers...

Michael Causton

Aoki Super (9977 JP): MBO Tender Offer at JPY3,800

Based on the irrevocables, the minimum acceptance condition requires a 28.6% minority acceptance rate. This acceptance rate is achievable as the...

Arun George

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

Inageya (8182 JP): Aeon’s JPY1,610 Partial Tender Offer

The tender offer is for a maximum of 15.7m shares (33.78% ownership ratio) at JPY1,610, a 23.2% premium to the undisturbed price. There is no...

Arun George

Rakuten’s Seiyu Sell off Will Boost Netsuper Business

Rakuten's sell off of Seiyu looked like a retreat from the online food business but in fact, the disposal will help bring in other retailers to its...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Private Brands in Japan: Getting Bigger – Literally

​Private brands offer price and marketing flexibility during inflation, and their popularity is increasing. Investors should focus on retailers...

Michael Causton

Aoki Super (9977 JP): MBO Tender Offer at JPY3,800

Based on the irrevocables, the minimum acceptance condition requires a 28.6% minority acceptance rate. This acceptance rate is achievable as the...

Arun George

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

Inageya (8182 JP): Aeon’s JPY1,610 Partial Tender Offer

The tender offer is for a maximum of 15.7m shares (33.78% ownership ratio) at JPY1,610, a 23.2% premium to the undisturbed price. There is no...

Arun George

Rakuten’s Seiyu Sell off Will Boost Netsuper Business

Rakuten's sell off of Seiyu looked like a retreat from the online food business but in fact, the disposal will help bring in other retailers to its...

Michael Causton

Private brands offer price and marketing flexibility during inflation, and their popularity is increasing. Investors should focus on retailers...

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...