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>Workman was a purveyor of durable gear for workers in jobs like construction but then had the brilliant idea to transpose that expertise to create activewear like Decathlon.</li>
<li>This was working well but then it decided to take on the likes of Fast Retailing and Shimamura by moving into casual clothing.</li>
<li>Since then, same-store sales growth has been negative in many months and profits have fallen. The outlook is increasingly poor.</li>
</ul>


Workman was a purveyor of durable gear for workers in jobs like construction but then had the brilliant idea to transpose that expertise to create activewear like Decathlon.
This was working well but then it decided to take on the likes of Fast Retailing and Shimamura by moving into casual clothing.
Since then, same-store sales growth has been negative in many months and profits have fallen. The outlook is increasingly poor.


Honeys Holdings Co., Ltd. / Equity Bottom-Up

<ul>
<li>Low cost apparel retailers have enjoyed a significant uptick in the past few years as consumers look to polarise their spending further between cheaper basics and luxury treats. </li>
<li>But the real change is in improving profitability. One the biggest beneficiaries has been Honeys, a low cost womenswear retailer that has seen a revival in the past few years.</li>
<li>Operating profit has tripled since 2018. Can it last? Work on creating its own low cost manufacturing base suggests it can.</li>
</ul>


Low cost apparel retailers have enjoyed a significant uptick in the past few years as consumers look to polarise their spending further between cheaper basics and luxury treats. 
But the real change is in improving profitability. One the biggest beneficiaries has been Honeys, a low cost womenswear retailer that has seen a revival in the past few years.
Operating profit has tripled since 2018. Can it last? Work on creating its own low cost manufacturing base suggests it can.


Equity Capital Markets

<ul>
<li>A lot has been said and written about Trial's IPO but much of this relates to pass performance and comparing it to supermarkets.</li>
<li>As the company's latest Trial Go store in Fukuoka shows,  Trial is a tech-based retailer and a true discounter, and discounting is where the growth is in Japanese FMCG.</li>
<li>Trial thinks its technology can reduce costs significantly, improving margins while allowing it to roll out more small format stores to compete with convenience stores. It may be right.</li>
</ul>


A lot has been said and written about Trial's IPO but much of this relates to pass performance and comparing it to supermarkets.
As the company's latest Trial Go store in Fukuoka shows,  Trial is a tech-based retailer and a true discounter, and discounting is where the growth is in Japanese FMCG.
Trial thinks its technology can reduce costs significantly, improving margins while allowing it to roll out more small format stores to compete with convenience stores. It may be right.


Trial IPO to Drive Tech Innovation Targeting Convenience Stores

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>The Japanese fashion e-commerce market is undergoing rapid transformation: while online sales continue to grow, the channel’s share of total fashion sales has fluctuated due to strong in-store performance.</li>
<li>Even the best exemplars of effective integration of online and offline and personalised marketing have seen e-commerce share fall as physical store sales have risen faster for many. </li>
<li>Omnichannel models continue to evolve, with great examples of deeper integration of stores and digital through staff activities like blogging and Live Commerce.</li>
</ul>


The Japanese fashion e-commerce market is undergoing rapid transformation: while online sales continue to grow, the channel’s share of total fashion sales has fluctuated due to strong in-store performance.
Even the best exemplars of effective integration of online and offline and personalised marketing have seen e-commerce share fall as physical store sales have risen faster for many. 
Omnichannel models continue to evolve, with great examples of deeper integration of stores and digital through staff activities like blogging and Live Commerce.


Fashion E-Commerce in Japan: Stores Are Key Too

Japan

SHIMAMURA CO., Ltd. operates chain stores selling mainly clothing for men, women, children, and also bedding and furnishing goods.  The Company has stores in mainly suburb areas throughout Japan.

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Shimamura (8227 JP)

Workman Under Pressure

Workman's shift from durable work gear to casual clothing has led to declining sales and profits, challenging its once successful business model.

Michael Causton

Sweet Honeys: A Profit Machine

Low cost apparel retailers are seeing increased profitability, with Honeys leading the way through a revival and focus on creating a low cost...

Michael Causton

Trial IPO to Drive Tech Innovation Targeting Convenience Stores

Trial failed to complete an IPO and is now going again and the same fundamentals outlined in this insight apply today as it is a long-term viewpoint.

Michael Causton

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

Fashion E-Commerce in Japan: Stores Are Key Too

Japanese fashion e-commerce market sees growth, but in-store sales outpace online, challenging even top omnichannel strategies. Staff engagement...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Workman Under Pressure

​Workman's shift from durable work gear to casual clothing has led to declining sales and profits, challenging its once successful business model.

Michael Causton

Sweet Honeys: A Profit Machine

​Low cost apparel retailers are seeing increased profitability, with Honeys leading the way through a revival and focus on creating a low cost...

Michael Causton

Trial IPO to Drive Tech Innovation Targeting Convenience Stores

Trial failed to complete an IPO and is now going again and the same fundamentals outlined in this insight apply today as it is a long-term viewpoint.

Michael Causton

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

Fashion E-Commerce in Japan: Stores Are Key Too

​Japanese fashion e-commerce market sees growth, but in-store sales outpace online, challenging even top omnichannel strategies. Staff engagement...

Michael Causton

Workman's shift from durable work gear to casual clothing has led to declining sales and profits, challenging its once successful business model.

Low cost apparel retailers are seeing increased profitability, with Honeys leading the way through a revival and focus on creating a low cost...

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

Japanese fashion e-commerce market sees growth, but in-store sales outpace online, challenging even top omnichannel strategies. Staff engagement...