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>In this in-depth review, it is clear that while Japanese clothing markets had a solid year in FY2024-25, once again the top 100 retailers outperformed by a large margin.</li>
<li>This meant they surpassed 71% share of the market but, within the specialty market alone, the top 10 retailers own 34%. This is now a clear oligopoly.</li>
<li>There are no signs of the situation changing either but rather the capacity of the leaders to invest should further expand share at the top.</li>
</ul>


In this in-depth review, it is clear that while Japanese clothing markets had a solid year in FY2024-25, once again the top 100 retailers outperformed by a large margin.
This meant they surpassed 71% share of the market but, within the specialty market alone, the top 10 retailers own 34%. This is now a clear oligopoly.
There are no signs of the situation changing either but rather the capacity of the leaders to invest should further expand share at the top.


The Great Divide: Fashion Retail’s Oligopoly

<ul>
<li>There have been a lot of deals in the last 5 years, including M&amp;A between Japanese companies, distribution deals/licenses, foreign companies buying into Japan and Japanese buying foreign brands. </li>
<li>Consolidation is a key motivation but so are category expansion, rationalisation and buying in expertise. All these reasons and more suggest more deals to come in the next few years.</li>
<li>Here we provide a comprehensive list of deals between 2019-2025 as well as a map showing who owns who and, as important, who influences who without any paperwork at all.</li>
</ul>


There have been a lot of deals in the last 5 years, including M&amp;A between Japanese companies, distribution deals/licenses, foreign companies buying into Japan and Japanese buying foreign brands. 
Consolidation is a key motivation but so are category expansion, rationalisation and buying in expertise. All these reasons and more suggest more deals to come in the next few years.
Here we provide a comprehensive list of deals between 2019-2025 as well as a map showing who owns who and, as important, who influences who without any paperwork at all.


[Japan M&A] Who Owns Who in Fashion & Lifestyle Markets

Equity Bottom-Up

<ul>
<li>World may finally have found the key to real growth after years of trying to build a fashion retail business in shopping centres, but with limited success.</li>
<li>The big problem was that it didn’t have the supply chain skills to compete with the big retailers like Uniqlo and Adastria.</li>
<li>Buying the supplier that helped grow those same chains means World now has a real chance to enter the big leagues.</li>
</ul>


World may finally have found the key to real growth after years of trying to build a fashion retail business in shopping centres, but with limited success.
The big problem was that it didn’t have the supply chain skills to compete with the big retailers like Uniqlo and Adastria.
Buying the supplier that helped grow those same chains means World now has a real chance to enter the big leagues.


Event-Driven

<ul>
<li>World is buying a large stake in Right On, the beleaguered casual clothing retailer. </li>
<li>The deal is necessary to save Right On from extinction and may possibly help World with its plans to diversify and get closer to the consumer. </li>
<li>But it is really a bail out of a business that doesn't have much promise given the poor branding and inefficient supply chains.</li>
</ul>


World is buying a large stake in Right On, the beleaguered casual clothing retailer. 
The deal is necessary to save Right On from extinction and may possibly help World with its plans to diversify and get closer to the consumer. 
But it is really a bail out of a business that doesn't have much promise given the poor branding and inefficient supply chains.


<ul>
<li>The apparel/fashion sector made a partial recovery last year but was still down on 2019. 2022 looks a lot brighter with customers now back in stores including even inbound tourists. </li>
<li>The same challenges that the sector faced before Covid remain but there is plenty of room to grow by taking share from the less innovative competitors – i.e. more consolidation.</li>
<li>The sector saw the highest fall in store numbers in its history last year, but there was more investment in creating a compelling omnichannel model suited to Japan’s particular market.</li>
</ul>


The apparel/fashion sector made a partial recovery last year but was still down on 2019. 2022 looks a lot brighter with customers now back in stores including even inbound tourists. 
The same challenges that the sector faced before Covid remain but there is plenty of room to grow by taking share from the less innovative competitors – i.e. more consolidation.
The sector saw the highest fall in store numbers in its history last year, but there was more investment in creating a compelling omnichannel model suited to Japan’s particular market.


Japan's Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery

Japan

RIGHT ON Co, Ltd. retails jeans and casual wear.  The Company operates the chain stores nationwide in various type of styles such as suburban roadside stores, and stores in shopping centers and station buildings.

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Right On Co Ltd (7445 JP)

The Great Divide: Fashion Retail’s Oligopoly

Japanese clothing market dominated by top 100 retailers in FY2024-25, with top 10 owning 34% in specialty market, solidifying oligopoly. Leaders...

Michael Causton

[Japan M&A] Who Owns Who in Fashion & Lifestyle Markets

Recent years have seen a surge in deals between Japanese and foreign companies in lifestyle/fashion, driven by consolidation and category...

Michael Causton

World Buys Mitsubishi Clothing Business

World has found the key to growth by acquiring a supplier business owned by Mitsubishi Corp to compete with big retailers like Uniqlo and Adastria.

Michael Causton

World to Buy Right On

World to buy stake in struggling retailer Right On to save it from extinction and aid in diversification plans, but some see it as a bailout for a...

Michael Causton

Japan's Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery

Japan's fashion and apparel sector was severely hit by the pandemic and the loss of tourism. With wallets full, Japanese are now spending again...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Great Divide: Fashion Retail’s Oligopoly

​Japanese clothing market dominated by top 100 retailers in FY2024-25, with top 10 owning 34% in specialty market, solidifying oligopoly. Leaders...

Michael Causton

[Japan M&A] Who Owns Who in Fashion & Lifestyle Markets

​Recent years have seen a surge in deals between Japanese and foreign companies in lifestyle/fashion, driven by consolidation and category...

Michael Causton

World Buys Mitsubishi Clothing Business

​World has found the key to growth by acquiring a supplier business owned by Mitsubishi Corp to compete with big retailers like Uniqlo and Adastria.

Michael Causton

World to Buy Right On

​World to buy stake in struggling retailer Right On to save it from extinction and aid in diversification plans, but some see it as a bailout for a...

Michael Causton

Japan's Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery

Japan's fashion and apparel sector was severely hit by the pandemic and the loss of tourism. With wallets full, Japanese are now spending again...

Michael Causton

Japanese clothing market dominated by top 100 retailers in FY2024-25, with top 10 owning 34% in specialty market, solidifying oligopoly. Leaders...

Recent years have seen a surge in deals between Japanese and foreign companies in lifestyle/fashion, driven by consolidation and category...

World has found the key to growth by acquiring a supplier business owned by Mitsubishi Corp to compete with big retailers like Uniqlo and Adastria.

World to buy stake in struggling retailer Right On to save it from extinction and aid in diversification plans, but some see it as a bailout for a...