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)

Fashion retailers continue to rely on third-party platforms, especially <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP),</a> to sell online but the scale of investment in direct mobile and web is growing. With Baycrews alone seeing customers that shop both online and in stores hitting 52% of all customers and spending 3.7 times more than store-only customers, it is not hard to see why.While there is no likelihood of direct sales taking significant share from the major online malls anytime soon, it is also true that the biggest competitive threat to the big three malls plus Zozo isn't another mall but the determination of fashion retailers and brands to wrest more control of online. On advantage they do have is experience of running retail stores and re opening more stores branded with the online shop name to increase awareness and cross-use.With one fashion retailer seeing the average annual purchase value of cross-use users 3.7 times that of store-only users, an astonishingly high difference, it is no surprise there is momentum to invest more in direct online sales.

Fashion retailers continue to rely on third-party platforms, especially ZOZO Inc (3092 JP), to sell online but the scale of investment in direct mobile and web is growing. With Baycrews alone seeing customers that shop both online and in stores hitting 52% of all customers and spending 3.7 times more than store-only customers, it is not hard to see why.While there is no likelihood of direct sales taking significant share from the major online malls anytime soon, it is also true that the biggest competitive threat to the big three malls plus Zozo isn't another mall but the determination of fashion retailers and brands to wrest more control of online. On advantage they do have is experience of running retail stores and re opening more stores branded with the online shop name to increase awareness and cross-use.With one fashion retailer seeing the average annual purchase value of cross-use users 3.7 times that of store-only users, an astonishingly high difference, it is no surprise there is momentum to invest more in direct online sales.

Japanese Fashion Retailers Advance Online Investment

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/line-corp" target="_blank" data-smartkarma-citation="entities:22772:1" rel="noopener">LINE Corp (3938 JP)'s </a>new collaboration with Staff Start is a huge boost to the fledgling omnichannel service provider but also helps cement LINE's role at the heart of omnichannel customer services and Live Commerce. Given LINE's new role at the heart of <a href="https://www.smartkarma.com/entities/z-holdings-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Z Holdings (4689 JP)'s </a>digital ecosystem, it is likely that Staff Start will be adopted across the group and maybe even become another subsidiary.Staff Start is a phenomenon. What started as a simple digital tool to help retailers post blogs online has become a full-service marketing platform used by more than 1,200 brands and retailers across fashion, food, home and sports, up from 700 two years ago.Staff Start has seen sales jump three-fold in the last year alone.The top selling shop staff manage sales of as much as ¥90 million a month, with a record for a single post of ¥13 million, so clearly a marketing method that works. Staff blogging has become a vital tool for many retailers, with one claiming 40% of direct online sales come from staff generated online content.The benefits of the deal will provide yet further challenges to rivals, especially <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP).</a>

LINE Corp (3938 JP)'s new collaboration with Staff Start is a huge boost to the fledgling omnichannel service provider but also helps cement LINE's role at the heart of omnichannel customer services and Live Commerce. Given LINE's new role at the heart of Z Holdings (4689 JP)'s digital ecosystem, it is likely that Staff Start will be adopted across the group and maybe even become another subsidiary.Staff Start is a phenomenon. What started as a simple digital tool to help retailers post blogs online has become a full-service marketing platform used by more than 1,200 brands and retailers across fashion, food, home and sports, up from 700 two years ago.Staff Start has seen sales jump three-fold in the last year alone.The top selling shop staff manage sales of as much as ¥90 million a month, with a record for a single post of ¥13 million, so clearly a marketing method that works. Staff blogging has become a vital tool for many retailers, with one claiming 40% of direct online sales come from staff generated online content.The benefits of the deal will provide yet further challenges to rivals, especially Rakuten Inc (4755 JP).

Firms like <a href="https://www.smartkarma.com/entities/world-co-ltd" target="_blank" data-smartkarma-citation="entities:27437:1" rel="noopener">World Co Ltd (3612 JP), </a><a href="https://www.smartkarma.com/entities/tsi-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:19259:1" rel="noopener">Tsi Holdings (3608 JP)</a> and <a href="https://www.smartkarma.com/entities/onward-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:11370:1" rel="noopener">Onward Holdings (8016 JP)</a>  are facing serious problems adjusting to a new distribution reality for apparel trading in Japan. While World is cutting more brands and investing in home decoration and other projects and TSI is focusing on sports and e-commerce (please see our other insights on these changes), Onward is doing all of these things: cutting more brands, investing in non-apparel and beefing up e-commerce sales.There is still a long way to go.

Firms like World Co Ltd (3612 JP), Tsi Holdings (3608 JP) and Onward Holdings (8016 JP)  are facing serious problems adjusting to a new distribution reality for apparel trading in Japan. While World is cutting more brands and investing in home decoration and other projects and TSI is focusing on sports and e-commerce (please see our other insights on these changes), Onward is doing all of these things: cutting more brands, investing in non-apparel and beefing up e-commerce sales.There is still a long way to go.

Big Apparel in Trouble: Onward Aims for 30% of Sales from Non-Apparel Brands

By 2019, many retailers and brands were already introducing new technology solutions to make up for labour shortages. Despite the crisis, shortages continue to be a major headache in the service sector and the downturn in trading since March has only accelerated efforts to replace staff with tech.This could create new problems as older employees lose their jobs although will also reduce pressure on the labour market and lessen labour shortages in retailing.

By 2019, many retailers and brands were already introducing new technology solutions to make up for labour shortages. Despite the crisis, shortages continue to be a major headache in the service sector and the downturn in trading since March has only accelerated efforts to replace staff with tech.This could create new problems as older employees lose their jobs although will also reduce pressure on the labour market and lessen labour shortages in retailing.

Surge in Calls for Retail Voluntary Redundancies Likely to Continue

Isetan Mitsukoshi Holdings Ltd / Equity Bottom-Up

Isetan-Mitsukoshi presents itself as one of the stronger department store businesses but its fractious boardroom battles and u-turns over store closures in the last five years have suggested a company in turmoil – as recent results indicate. The department store continues to talk big on digital solutions but it has an inherent problem: over-dependence on just three flagship stores.

Isetan-Mitsukoshi presents itself as one of the stronger department store businesses but its fractious boardroom battles and u-turns over store closures in the last five years have suggested a company in turmoil – as recent results indicate. The department store continues to talk big on digital solutions but it has an inherent problem: over-dependence on just three flagship stores.

Isetan-Mitsukoshi: Big Losses but Some Plans for the Future

Japan

ONWARD HOLDINGS CO., LTD. manufactures men's ready-made suits, women's, and children's wear.  The Company has its own brands, Onward and KUMIKYOKU. Onward also manufactures sports goods, books, stationery, cosmetics, art decoration.

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Onward Holdings (8016 JP)

Japanese Fashion Retailers Advance Online Investment

The major competitor for the major online malls in the Japanese fashion market, like Zozo and Rakuten, isn't another online mall but the growing...

Michael Causton

LINE Ties with Staff Start

LINE has a promising new jv with Staff Start, which facilitates omnichannel retailing and which has tripled GTVs in a year and which generates...

Michael Causton

Big Apparel in Trouble: Onward Aims for 30% of Sales from Non-Apparel Brands

Onward Holding, like its peers, is being forced to restructure further and faster than planned three years ago when competition in the apparel...

Michael Causton

Surge in Calls for Retail Voluntary Redundancies Likely to Continue

Japan's retail industry has been hit by labour shortages in the last 5 years but layoffs in the industry in the last year could end that, at least...

Michael Causton

Isetan-Mitsukoshi: Big Losses but Some Plans for the Future

Japanese department store sales are in fallout but Isetan-Mitsukoshi looks worse off than most despite investors thinking otherwise. Its dependence...

Michael Causton

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