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)

Momentum was building for fashion EC well before 2020 but the situation last year brought an overwhelming response from both consumers and merchants. As a result, market share for the online channel has spiralled upwards and, although there will be a correction once shoppers return to stores, the medium-term trajectory is clear.
The big malls continue to dominate – as Zozo’s 21.5% growth in 2020 attests – but retailers and brands are investing much more in their own online stores, creating a level of dynamism and competition not seen in other fashion retail channels.
The following is an in-depth review of the fashion e-commerce market covering:
<ul>
<li>Market Size and market growth</li>
<li>Winners and losers in the last two years</li>
<li>Ranking of the top vendors online by sales</li>
<li>Ranking of fastest growing e-commerce fashion retailers</li>
<li>Strengths and weaknesses in leading firms</li>
<li>Ranking of firms with highest ratio of online sales to offline</li>
<li>Ranking of firms with highest share of direct online sales vs 3rd party malls.</li>
<li>Review of market share of major malls vs direct sales by retailers and the momentum behind each.</li>
</ul>

Momentum was building for fashion EC well before 2020 but the situation last year brought an overwhelming response from both consumers and merchants. As a result, market share for the online channel has spiralled upwards and, although there will be a correction once shoppers return to stores, the medium-term trajectory is clear.
The big malls continue to dominate – as Zozo’s 21.5% growth in 2020 attests – but retailers and brands are investing much more in their own online stores, creating a level of dynamism and competition not seen in other fashion retail channels.
The following is an in-depth review of the fashion e-commerce market covering:

Market Size and market growth
Winners and losers in the last two years
Ranking of the top vendors online by sales
Ranking of fastest growing e-commerce fashion retailers
Strengths and weaknesses in leading firms
Ranking of firms with highest ratio of online sales to offline
Ranking of firms with highest share of direct online sales vs 3rd party malls.
Review of market share of major malls vs direct sales by retailers and the momentum behind each.


Fashion E-Commerce Has Watershed Year in 2020

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

Fashion is the fastest growing and largest category in the e-commerce channel in 2018. Fashion items are easy to stock and ship and low cost.Consumers still like to see, feel and try on their fashion purchases, but the ease and lower cost of shipping means that it is also an excellent category to shift to omnichannel, integrating customer touchpoints across promotion, through product trial, purchase and delivery.This is exactly what is now happening. All the major brands are selling online in some form, mostly through one or more of the big online malls, including the one dedicated fashion mall, <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a>, but more and more are now also selling directly online, with the best ones integrating online sales with their stores.The following is an in-depth review of the fashion e-commerce sector including market value and penetration rates and rankings of:<ul>
<li>The leading fashion vendors online by sales</li>
<li>Fastest-growing online sales</li>
<li>Penetration rates for online vs. total sales</li>
<li>Penetration rates for direct online sales via own stores rather than major online platforms.</li>
</ul>

Fashion is the fastest growing and largest category in the e-commerce channel in 2018. Fashion items are easy to stock and ship and low cost.Consumers still like to see, feel and try on their fashion purchases, but the ease and lower cost of shipping means that it is also an excellent category to shift to omnichannel, integrating customer touchpoints across promotion, through product trial, purchase and delivery.This is exactly what is now happening. All the major brands are selling online in some form, mostly through one or more of the big online malls, including the one dedicated fashion mall, ZOZO Inc (3092 JP), but more and more are now also selling directly online, with the best ones integrating online sales with their stores.The following is an in-depth review of the fashion e-commerce sector including market value and penetration rates and rankings of:
The leading fashion vendors online by sales
Fastest-growing online sales
Penetration rates for online vs. total sales
Penetration rates for direct online sales via own stores rather than major online platforms.


Japan Fashion E-Commerce: Direct Investment by Retailers on the Rise

As shown in Part I of our review, the apparel and fashion market contracted slightly last year and no single format was immune to the tougher trading environment – even the online channel.
However, retailers with fresh ideas and strong marketing to back them up continue to outperform, a reminder that the Japanese fashion market is perennially dynamic and adapts to new market realities. The winners include <a href="https://www.smartkarma.com/entities/workman-co-ltd" target="_blank" data-smartkarma-citation="entities:8467:1" rel="noopener">Workman Co Ltd (7564 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 Baycrews.
This is Part II of a 2-part review of Japan's apparel and fashion markets. <a href="https://www.smartkarma.com/insights/japan-fashion-market-review-2019-part-i-a-stable-market-but-tougher-trading-all-round" target="_blank" rel="noopener">Part I of our review is here</a> and has a macro review of retailers by format in 2018-19 as well as sales rankings of the top 100 apparel retailers, market share trends by format and profitability rankings.

As shown in Part I of our review, the apparel and fashion market contracted slightly last year and no single format was immune to the tougher trading environment – even the online channel.
However, retailers with fresh ideas and strong marketing to back them up continue to outperform, a reminder that the Japanese fashion market is perennially dynamic and adapts to new market realities. The winners include Workman Co Ltd (7564 JP),Ryohin Keikaku (7453 JP) and Baycrews.
This is Part II of a 2-part review of Japan's apparel and fashion markets. Part I of our review is here and has a macro review of retailers by format in 2018-19 as well as sales rankings of the top 100 apparel retailers, market share trends by format and profitability rankings.

Japan Fashion Market Review 2019 Part II: Winners & Losers and Key Business Trends

Fashion retailers had a much better year in 2017-18 as the apparel and accessories market expanded 2.2% after two years of market contraction.
Recent growth has mostly benefited the speciality store and online sectors, but last year department stores also improved, and even the odd GMS chain enjoyed the balmier climate.
As a result, department store market share among the top 100 apparel retailers – which account for 70% of the market – rose for the first time in 15 years.
The market share of the top 100 fell due to better sales at small retailers and independents.
Trading is still tough, however, and retailers are cautious about consumer sentiment going forward.
The winners though are clear to see, with companies like <a href="https://www.smartkarma.com/entities/2765" target="_blank" data-smartkarma-citation="entities:2765:1">Ryohin Keikaku (7453 JP)</a>, <a href="https://www.smartkarma.com/entities/23991" target="_blank" data-smartkarma-citation="entities:23991:1">Tokyo Base (3415 JP)</a>, Mash Holdings and <a href="https://www.smartkarma.com/entities/18379" target="_blank" data-smartkarma-citation="entities:18379:1">ZOZO Inc (3092 JP)</a> pushing well ahead of the sector year after year.
The following is a comprehensive review of the Japanese apparel/fashion market in FY2017, and the winners within it.

Fashion retailers had a much better year in 2017-18 as the apparel and accessories market expanded 2.2% after two years of market contraction.
Recent growth has mostly benefited the speciality store and online sectors, but last year department stores also improved, and even the odd GMS chain enjoyed the balmier climate.
As a result, department store market share among the top 100 apparel retailers – which account for 70% of the market – rose for the first time in 15 years.
The market share of the top 100 fell due to better sales at small retailers and independents.
Trading is still tough, however, and retailers are cautious about consumer sentiment going forward.
The winners though are clear to see, with companies like Ryohin Keikaku (7453 JP), Tokyo Base (3415 JP), Mash Holdings and ZOZO Inc (3092 JP) pushing well ahead of the sector year after year.
The following is a comprehensive review of the Japanese apparel/fashion market in FY2017, and the winners within it.

The Winners in Japanese Fashion Retailing

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)

Fashion E-Commerce Has Watershed Year in 2020

A complete review of the fashion e-commerce market in Japan, including rankings by sales, fastest growing, winners and losers and reviews of the...

Michael Causton

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

The following is a complete, in-depth review of the Japanese apparel/fashion sector covering key trends, rankings of the top 100 by sales and top...

Michael Causton

Japan Fashion E-Commerce: Direct Investment by Retailers on the Rise

Fashion is the fastest growing and largest category in the e-commerce channel in 2018. Fashion items are easy to stock and ship and low...

Michael Causton

Japan Fashion Market Review 2019 Part II: Winners & Losers and Key Business Trends

As shown in Part I of our review, the apparel and fashion market contracted slightly last year and no single format was immune to the tougher...

Michael Causton

The Winners in Japanese Fashion Retailing

Fashion retailers had a much better year in 2017-18 as the apparel and accessories market expanded 2.2% after two years of market...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)