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>The 100 Yen shop model looked in danger when inflation began to bite and labour costs surged but the sector continues to expand</li>
<li>Their fixed price model meant there was little leeway to offset higher costs through higher prices but a survey shows 90% of respondents visited a Daiso store recently.</li>
<li>While Daiso has adapted quickly and looks to have a bright future, <a href="https://www.smartkarma.com/entities/seria-co-ltd" target="_blank" data-smartkarma-citation="entities:12989:1" rel="noopener">Seria Co Ltd (2782 JP)</a> refuses to adapt and has seen profits plummet.</li>
</ul>


The 100 Yen shop model looked in danger when inflation began to bite and labour costs surged but the sector continues to expand
Their fixed price model meant there was little leeway to offset higher costs through higher prices but a survey shows 90% of respondents visited a Daiso store recently.
While Daiso has adapted quickly and looks to have a bright future, Seria Co Ltd (2782 JP) refuses to adapt and has seen profits plummet.


100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

<ul>
<li>Growth in the Japanese home interiors and furniture markets is set to continue long-term. </li>
<li>At present, just a handful of brands have any major presence led by <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> which continues to expand market share.</li>
<li>With multiple formats, Nitori looks set to continue to dominate but faces competition from unlikely quarters, especially <a href="https://www.smartkarma.com/entities/yamada-denki-co-ltd" target="_blank" data-smartkarma-citation="entities:641:1" rel="noopener">Yamada Denki (9831 JP).</a>
</li>
</ul>


Growth in the Japanese home interiors and furniture markets is set to continue long-term. 
At present, just a handful of brands have any major presence led by Nitori Holdings (9843 JP) which continues to expand market share.
With multiple formats, Nitori looks set to continue to dominate but faces competition from unlikely quarters, especially Yamada Denki (9831 JP).



Interiors Long-Term Growth in Japan a Plus for Nitori

<ul>
<li>Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad. </li>
<li>This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.</li>
<li>Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.</li>
</ul>


Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad. 
This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.
Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.


Muji 500: The Missing Key to Plans for 2,000 Stores

PAL GROUP Holdings Co., Ltd. / Equity Bottom-Up

<ul>
<li>Not many retailers could boast sales growth of more than 50% last year, especially a retailer from the fashion sector.</li>
<li>Pal Group’s 3Coins managed this thanks to the huge success of the discount fashion to home decor format.</li>
<li>Its success is one more example of the growth in discount chains.</li>
</ul>


Not many retailers could boast sales growth of more than 50% last year, especially a retailer from the fashion sector.
Pal Group’s 3Coins managed this thanks to the huge success of the discount fashion to home decor format.
Its success is one more example of the growth in discount chains.


Record Sales for Pal Group Driven by 300 Yen Chain

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pal-group-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2633:1" rel="noopener">PAL GROUP Holdings Co., Ltd. (2726 JP)</a> is mostly a fashion retailer but two decades ago created a new discount variety chain called 3Coins. </li>
<li>3Coins has been one of the best performing retailers during the pandemic, building up a loyal following thanks to its diverse range of popular products.</li>
<li>Sales tripled in the decade to last year but look set to increase a further 25% this year alone.</li>
</ul>



PAL GROUP Holdings Co., Ltd. (2726 JP) is mostly a fashion retailer but two decades ago created a new discount variety chain called 3Coins. 
3Coins has been one of the best performing retailers during the pandemic, building up a loyal following thanks to its diverse range of popular products.
Sales tripled in the decade to last year but look set to increase a further 25% this year alone.


3Coins Proves a Hit in Pandemic and Moves into Food

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)

100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

Seria has always extracted the highest profits from the 100 Yen sector even as its larger competitor, Daiso, grew faster. Now, with labour and...

Michael Causton

Interiors Long-Term Growth in Japan a Plus for Nitori

Japan's interiors consumption has been one of the few categories to grow consistently and will continue to grow steadily as Japanese appetite for...

Michael Causton

Muji 500: The Missing Key to Plans for 2,000 Stores

Muji has been suffering of late but a new format focusing on prices below ¥500 could solve multiple problems both at home and overseas.

Michael Causton

Record Sales for Pal Group Driven by 300 Yen Chain

Discount chains are doing well in Japan and one of the better ones is 3Coins. Although it is owned by a fashion retailer, it is growing so fast...

Michael Causton

3Coins Proves a Hit in Pandemic and Moves into Food

Discount retail is booming in Japan and one of the winners is 3Coins, operated by fashion firm, Pal Group. While Pal suffers negatively from the...

Michael Causton

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