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 latest figures show that Japanese incomes fell for the first time in five years in 2021. </li>
<li>But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth</li>
<li>We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.</li>
</ul>


The latest figures show that Japanese incomes fell for the first time in five years in 2021. 
But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth
We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.


Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

<ul>
<li>The last 18 months were the most traumatic for the fashion retail history since WWII. </li>
<li>Average household consumption budgets for apparel fell 18% in 2020 to a monthly average of just ¥10,655, 22% down on five years previously.</li>
<li>The following is an in-depth review of the fashion sector with unique rankings of the top 100, most profitable, fastest growing chains.</li>
</ul>


The last 18 months were the most traumatic for the fashion retail history since WWII. 
Average household consumption budgets for apparel fell 18% in 2020 to a monthly average of just ¥10,655, 22% down on five years previously.
The following is an in-depth review of the fashion sector with unique rankings of the top 100, most profitable, fastest growing chains.


Fashion Retailing 2020-21: Leading Brands Suffer Worst Year in Modern History

<ul>
<li>Department stores are desperate to get back on track, having lost both the middle class at home and travellers from overseas. </li>
<li>There have been further squeezes on the middle class in the past 18 months and the average salary in 2020 stood at ¥4.24 million, just ¥180,000 more than in 1990.
</li>
<li>As a result, department stores are in a gold rush fervour to climb back upmarket and ply their wares to the rich. The problem is so is everyone else.</li>
</ul>


Department stores are desperate to get back on track, having lost both the middle class at home and travellers from overseas. 
There have been further squeezes on the middle class in the past 18 months and the average salary in 2020 stood at ¥4.24 million, just ¥180,000 more than in 1990.

As a result, department stores are in a gold rush fervour to climb back upmarket and ply their wares to the rich. The problem is so is everyone else.


Japanese Department Stores: Going After the Newly Wealthy

Fashion retailers continue to rely on third-party platforms, especially <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP),</a> to sell online but the scale of investment in direct mobile and web is growing. With Baycrews alone seeing customers that shop both online and in stores hitting 52% of all customers and spending 3.7 times more than store-only customers, it is not hard to see why.While there is no likelihood of direct sales taking significant share from the major online malls anytime soon, it is also true that the biggest competitive threat to the big three malls plus Zozo isn't another mall but the determination of fashion retailers and brands to wrest more control of online. On advantage they do have is experience of running retail stores and re opening more stores branded with the online shop name to increase awareness and cross-use.With one fashion retailer seeing the average annual purchase value of cross-use users 3.7 times that of store-only users, an astonishingly high difference, it is no surprise there is momentum to invest more in direct online sales.

Fashion retailers continue to rely on third-party platforms, especially ZOZO Inc (3092 JP), to sell online but the scale of investment in direct mobile and web is growing. With Baycrews alone seeing customers that shop both online and in stores hitting 52% of all customers and spending 3.7 times more than store-only customers, it is not hard to see why.While there is no likelihood of direct sales taking significant share from the major online malls anytime soon, it is also true that the biggest competitive threat to the big three malls plus Zozo isn't another mall but the determination of fashion retailers and brands to wrest more control of online. On advantage they do have is experience of running retail stores and re opening more stores branded with the online shop name to increase awareness and cross-use.With one fashion retailer seeing the average annual purchase value of cross-use users 3.7 times that of store-only users, an astonishingly high difference, it is no surprise there is momentum to invest more in direct online sales.

Japanese Fashion Retailers Advance Online Investment

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

Japan

UNITED ARROWS LTD., operates fashion stores, specializing in casual clothing and accessory for men and women.  The Company has stores nationwide.  Main forces are United Arrows, Green Label Relaxing and Chrome Hearts.

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United Arrows (7606 JP)

Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

Japanese spent more on homes and less on clothes in the last two years but they also added to their savings. This insight analyses the key...

Michael Causton

Fashion Retailing 2020-21: Leading Brands Suffer Worst Year in Modern History

This insight is an in-depth review of Japan's apparel sector providing key background and comparisons for investors, including rankings of the top...

Michael Causton

Japanese Department Stores: Going After the Newly Wealthy

Japanese department stores are waking up to the fact that the middle class is no longer their natural customer. The renewed focus on the wealthy is...

Michael Causton

Japanese Fashion Retailers Advance Online Investment

The major competitor for the major online malls in the Japanese fashion market, like Zozo and Rakuten, isn't another online mall but the growing...

Michael Causton

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

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