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>The following is an in-depth review of the Japanese retail sector in 2021-22 and is designed to provide a complete overview for any investor in Japanese retail/consumer markets.</li>
<li>FY2021-22 proved a rebound year for retailers at the sector level. But on a company by company basis, there has been radical divergence between the best and the rest. </li>
<li>We look at the reasons for this divergence and the implications for Japanese retail and consumer firms in the years ahead.</li>
</ul>


The following is an in-depth review of the Japanese retail sector in 2021-22 and is designed to provide a complete overview for any investor in Japanese retail/consumer markets.
FY2021-22 proved a rebound year for retailers at the sector level. But on a company by company basis, there has been radical divergence between the best and the rest. 
We look at the reasons for this divergence and the implications for Japanese retail and consumer firms in the years ahead.


Japanese Retailing 2021-22: What's Really Going on and What's Next?

<ul>
<li>Japan may have discovered home decoration and DIY later than some markets but it has made up for this with a convert’s enthusiasm. </li>
<li>In the last decade, the market has grown around 50% and a host of brands and retailers have flourished.</li>
<li>These include <a href="https://www.smartkarma.com/entities/nitori-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20386:1" rel="noopener">Nitori Holdings (9843 JP)</a>, <a href="https://www.smartkarma.com/entities/ryohin-keikaku-co-ltd" target="_blank" data-smartkarma-citation="entities:2765:1" rel="noopener">Ryohin Keikaku (7453 JP)</a> and the home centres like Cainz and <a href="https://www.smartkarma.com/entities/dcm-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13042:1" rel="noopener">DCM Holdings (3050 JP). </a> The long-term outlook remains positive.</li>
</ul>


Japan may have discovered home decoration and DIY later than some markets but it has made up for this with a convert’s enthusiasm. 
In the last decade, the market has grown around 50% and a host of brands and retailers have flourished.
These include Nitori Holdings (9843 JP), Ryohin Keikaku (7453 JP) and the home centres like Cainz and DCM Holdings (3050 JP).  The long-term outlook remains positive.


Nitori, Muji Still Benefitting from a Flourishing Japan Home Decor Market

<ul>
<li>Daiso is usually known for standing back and throwing mountains of plastic into cramped stores and selling it all for ¥100 per item. </li>
<li>Daiso has moved on in the past few years and now has new formats that not only sell at higher prices but offer a level of quality that surprises customers.</li>
<li>Its latest chain, Standard Products, targets Muji and Nitori in home categories for anything smaller than a desk and is representative of the growing sophistication and reach of discount retailing.</li>
</ul>


Daiso is usually known for standing back and throwing mountains of plastic into cramped stores and selling it all for ¥100 per item. 
Daiso has moved on in the past few years and now has new formats that not only sell at higher prices but offer a level of quality that surprises customers.
Its latest chain, Standard Products, targets Muji and Nitori in home categories for anything smaller than a desk and is representative of the growing sophistication and reach of discount retailing.


<ul>
<li>The government has promised consumers price inflation for almost a decade now but the only real result of this policy is that we’ve seen record levels of household saving. </li>
<li>Now, however, supply chain and other issues are quickly beginning to force up prices of basic products and these increases are having a real impact on household budgets.</li>
<li>How long this situation may last is the big question but the focus on price means discount food retailers like <a href="https://www.smartkarma.com/entities/kobe-bussan-co-ltd" target="_blank" data-smartkarma-citation="entities:4701:1" rel="noopener">Kobe Bussan (3038 JP)</a> are likely to boom.</li>
</ul>


The government has promised consumers price inflation for almost a decade now but the only real result of this policy is that we’ve seen record levels of household saving. 
Now, however, supply chain and other issues are quickly beginning to force up prices of basic products and these increases are having a real impact on household budgets.
How long this situation may last is the big question but the focus on price means discount food retailers like Kobe Bussan (3038 JP) are likely to boom.


Japanese Households Focus on Price as Inflation Fears Spike

Contraction in apparel consumption aside, Japanese fashion retailers and brands have made dramatic strides to pull in customers online with e-commerce sales up 24% last year according to one survey, faster than the growth in e-commerce overall. Even some wholesalers are succeeding digitally. 
What the results show is a breakthrough shift to online with likely further growth this year, taking the online channel’s share above 25% and more than 30% for many of those firms with higher online ratios.

Contraction in apparel consumption aside, Japanese fashion retailers and brands have made dramatic strides to pull in customers online with e-commerce sales up 24% last year according to one survey, faster than the growth in e-commerce overall. Even some wholesalers are succeeding digitally. 
What the results show is a breakthrough shift to online with likely further growth this year, taking the online channel’s share above 25% and more than 30% for many of those firms with higher online ratios.

Japan

PAL GROUP Holdings Co., Ltd. operates a chain of casual clothing stores based in Kansai area. The Company manufactures and retails men's and women's casual wear and accessories.  The Company also sells its products on the Internet.

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PAL GROUP Holdings Co., Ltd. (2726 JP)

Japanese Retailing 2021-22: What's Really Going on and What's Next?

There is increasing divergence between the winners and losers in Japanese retailing and the following in-depth review looks at performance in the...

Michael Causton

Nitori, Muji Still Benefitting from a Flourishing Japan Home Decor Market

Japan's home decoration market grew fast in the pandemic but has been growing for 10 years and will continue to outperform other consumer...

Michael Causton

Daiso: Going After Muji and Nitori

Daiso Sangyo is known for cheap and cheerful 100 Yen stores but is fast expansing new higher priced chains which could well cause problems not only...

Michael Causton

Japanese Households Focus on Price as Inflation Fears Spike

Pressure on household budgets from rising prices – real and perceived – are causing Japanese consumers to focus even further on prices. This will...

Michael Causton

Japan Online Fashion Sales Soar

Before, the boom in online was just a theory but the numbers now make it clear that Japanese consumers have shifted their spending habits,...

Michael Causton

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