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>
<a href="https://www.smartkarma.com/entities/welcia-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20895:1" rel="noopener">Welcia Holdings (3141 JP)</a> and <a href="https://www.smartkarma.com/entities/tsuruha-holdings-inc" target="_blank" data-smartkarma-citation="entities:9536:1" rel="noopener">Tsuruha Holdings (3391 JP)</a>, the country’s leading drugstore chains, are both looking to expand quickly in Kyushu after only entering the market recently. </li>
<li>This won’t be easy. Kyushu is full of discount retailers led by one of the best discounters, <a href="https://www.smartkarma.com/entities/cosmos-pharmaceutical-corp" target="_blank" data-smartkarma-citation="entities:3797:1" rel="noopener">Cosmos Pharmaceutical (3349 JP)</a>, which is also a leading drugstore chain.</li>
<li>But building a significant market share in the Kyushu market is crucial to competing nationally with these emerging discount leaders.</li>
</ul>



Welcia Holdings (3141 JP) and Tsuruha Holdings (3391 JP), the country’s leading drugstore chains, are both looking to expand quickly in Kyushu after only entering the market recently. 
This won’t be easy. Kyushu is full of discount retailers led by one of the best discounters, Cosmos Pharmaceutical (3349 JP), which is also a leading drugstore chain.
But building a significant market share in the Kyushu market is crucial to competing nationally with these emerging discount leaders.


Japan Specialist

Mark Chadwick

<ul>
<li>Over the past 2 years, customers cut back drastically on shopping and travel. Many worked in home offices in sweatpants and t-shirts.  </li>
<li>But now, people are vaccinated, and lockdowns have lifted. Even Japan’s borders are starting to spring open.  </li>
<li>Consumers are looking for ways to make up for lost time – we highlight 3 beneficiaries of revenge shopping. </li>
</ul>


Over the past 2 years, customers cut back drastically on shopping and travel. Many worked in home offices in sweatpants and t-shirts.  
But now, people are vaccinated, and lockdowns have lifted. Even Japan’s borders are starting to spring open.  
Consumers are looking for ways to make up for lost time – we highlight 3 beneficiaries of revenge shopping. 


Japan Retail | 3 Stocks to Buy for Revenge Shopping

<ul>
<li>Ancient proverbs dictate the pace of policy change in Japan. But, the first step has been taken </li>
<li>Investors should be watching for further relaxation of inbound tourist restrictions, particularly on the Chinese market </li>
<li>Out top pick on this thematic is <a href="https://www.smartkarma.com/entities/matsukiyococokara-co" target="_blank" data-smartkarma-citation="entities:2259:1" rel="noopener">MatsukiyoCocokara (3088 JP)</a> . Tourists used to account for over 10% of sales, but there is more...</li>
</ul>


Ancient proverbs dictate the pace of policy change in Japan. But, the first step has been taken 
Investors should be watching for further relaxation of inbound tourist restrictions, particularly on the Chinese market 
Out top pick on this thematic is MatsukiyoCocokara (3088 JP) . Tourists used to account for over 10% of sales, but there is more...


Japan Tourism | A Journey of a Thousand Miles Begins with a Single Step

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>The Nikkei Shimbun published an article titled "Matsukyo Cococala &amp; Co. 6 Months After Inauguration, Integration Effects Begin Here," and I have considered the issues discussed in that article.</li>
<li>The integration effect will raise the profit, but further improvement is less likely without recovery in same-store sales, as the profit margin for prescription will decline amid intensifying competition.</li>
<li>Tsuruha and Matsukiyo Cococala, which belong to group (C) where family members are leading the company while the family's shareholding has been reduced to less than 20%, are facing difficulties.</li>
</ul>


The Nikkei Shimbun published an article titled "Matsukyo Cococala &amp; Co. 6 Months After Inauguration, Integration Effects Begin Here," and I have considered the issues discussed in that article.
The integration effect will raise the profit, but further improvement is less likely without recovery in same-store sales, as the profit margin for prescription will decline amid intensifying competition.
Tsuruha and Matsukiyo Cococala, which belong to group (C) where family members are leading the company while the family's shareholding has been reduced to less than 20%, are facing difficulties.


Japan's Governance: About an Article on Matsukiyo Cococala & Co.

<ul>
<li>Merger synergies such as integrated purchasing will result in higher gross margins. A more efficient cost structure and sales synergies will boost the bottom line </li>
<li>We expect consumption to normalize in Japan as people get used to "living with covid."  Higher foot traffic will drive a resumption of high margin cosmetics </li>
<li>Inbound travel should be partially normalized this year and we believe the market will quickly price this in once borders reopen. We see 21% upside </li>
</ul>


Merger synergies such as integrated purchasing will result in higher gross margins. A more efficient cost structure and sales synergies will boost the bottom line 
We expect consumption to normalize in Japan as people get used to "living with covid."  Higher foot traffic will drive a resumption of high margin cosmetics 
Inbound travel should be partially normalized this year and we believe the market will quickly price this in once borders reopen. We see 21% upside 


MatsukiyoCocokara (3088) | Triple Booster of Merger Synergies, Domestic Recovery, & Tourism

Japan

MatsukiyoCocokara & Co. operates drug store chains. The Company retails medicines, cosmetics, health foods, beauty care products, and other products. MatsukiyoCocokara & also operates supermarkets and home centers.

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MatsukiyoCocokara (3088 JP)

Welcia Challenges Cosmos in Kyushu

Kyushu has become a hotbed of retail competition, especially in discount and drugstores. Aeon is determined to undermine the local champions,...

Michael Causton

Japan Retail | 3 Stocks to Buy for Revenge Shopping

We pick three retail stocks - that are trading at a discount to pre-covid levels - and benefit from revenge shopping: Matsukiyo, J Front and Pan...

Mark Chadwick

Japan Tourism | A Journey of a Thousand Miles Begins with a Single Step

The Japanese policy of opening up its borders to tourists is starting with a single step. But the direction of travel is clearly beneficial to...

Mark Chadwick

Japan's Governance: About an Article on Matsukiyo Cococala & Co.

The Nikkei Shimbun published an article titled "Matsukyo Cococala & Co. 6 Months After Inauguration, Integration Effects Begin Here," and I would...

Metrical Inc

MatsukiyoCocokara (3088) | Triple Booster of Merger Synergies, Domestic Recovery, & Tourism

Matsukiyo is already starting to benefit from merger synergies with Cocokara. We see further upside to earnings from a domestic recovery in...

Mark Chadwick

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