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>E-Commerce is a natural fit for furniture brands given the difficulty of taking purchases home from stores.</li>
<li>A number of start-ups are attracting investment and growing fast, but more established online players like Lowya are now opening stores given demand to try out furniture before purchase.</li>
<li>Industry estimates suggest the e-commerce home decor market is growing at twice the rate of the market overall.</li>
</ul>


E-Commerce is a natural fit for furniture brands given the difficulty of taking purchases home from stores.
A number of start-ups are attracting investment and growing fast, but more established online players like Lowya are now opening stores given demand to try out furniture before purchase.
Industry estimates suggest the e-commerce home decor market is growing at twice the rate of the market overall.


Vega and Rivals Expand Home Decor E-Commerce in Japan

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ci-medical-co-ltd" target="_blank" data-smartkarma-citation="entities:26170:1" rel="noopener">Ci Medical (3540 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/air-water-inc" target="_blank" data-smartkarma-citation="entities:18073:1" rel="noopener">Air Water Inc (4088 JP)</a> at JPY1,500, a 48.5% premium to the last close.</li>
<li>The offer is attractive compared to historical trading ranges and is above the mid-point of the IFA DCF valuation range. </li>
<li>This is a done deal as the offeror and irrevocable represent an 85.02% ownership ratio, which ensures that the EGM vote for share consolidation will pass. </li>
</ul>



Ci Medical (3540 JP) has recommended a tender offer from Air Water Inc (4088 JP) at JPY1,500, a 48.5% premium to the last close.
The offer is attractive compared to historical trading ranges and is above the mid-point of the IFA DCF valuation range. 
This is a done deal as the offeror and irrevocable represent an 85.02% ownership ratio, which ensures that the EGM vote for share consolidation will pass. 


CI Medical (3540 JP): Air Water (4088 JP)’s Tender Offer Is a Done Deal

<ul>
<li>Lowya began as an online furniture retailer and is still one of the largest in e-commerce, but limited brand awareness has held it back and sales fell last year. </li>
<li>Vega Corporation, Lowya’s parent, is now expanding physical stores and offering omnichannel solutions to fix the problem.</li>
<li>This makes sense in a market where stores remain preeminent and are likely to remain so.</li>
</ul>


Lowya began as an online furniture retailer and is still one of the largest in e-commerce, but limited brand awareness has held it back and sales fell last year. 
Vega Corporation, Lowya’s parent, is now expanding physical stores and offering omnichannel solutions to fix the problem.
This makes sense in a market where stores remain preeminent and are likely to remain so.


Vega's Lowya Expanding Omnichannel to Grow Audience

<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>Lowya is an online furniture brand run by Vega Corp that hit the headlines with 42% growth in 2020 while most other lifestyle retailers were reeling from the pandemic. </li>
<li>Sales fell last year post-Covid and won't grow much this year either but Lowya wants to become a ¥60 billion business and looks a good bet for the long-term.</li>
<li>Lowya will shift to a mall model similar to Zozo which should allow it to grow faster, while tie-ups with major retailers like Aeon should raise brand awareness fast.</li>
</ul>


Lowya is an online furniture brand run by Vega Corp that hit the headlines with 42% growth in 2020 while most other lifestyle retailers were reeling from the pandemic. 
Sales fell last year post-Covid and won't grow much this year either but Lowya wants to become a ¥60 billion business and looks a good bet for the long-term.
Lowya will shift to a mall model similar to Zozo which should allow it to grow faster, while tie-ups with major retailers like Aeon should raise brand awareness fast.


Japan

Vega Corporation K.K.'s line of business includes the online retail sales of furnitures. The Company also develops and distribute mobile game apps for smartphone.

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Vega Corp (3542 JP)

Vega and Rivals Expand Home Decor E-Commerce in Japan

E-commerce furniture brands are growing as consumers seek convenience and selection, with industry growth outpacing overall market trends but Vega...

Michael Causton

CI Medical (3540 JP): Air Water (4088 JP)’s Tender Offer Is a Done Deal

This is a done deal as the offeror and irrevocable represent an 85.02% ownership ratio, which ensures that the EGM vote for share consolidation...

Arun George

Vega's Lowya Expanding Omnichannel to Grow Audience

Lowya, the online furniture retailer, is expanding physical stores and omnichannel solutions to boost sales due to limited brand awareness 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

Lowya – the Zozo of Home Decor?

Home decoration is a strong consumer category in Japan and Lowya a big name in online furniture. Tie-ups with Aeon and its own stores combined with...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Vega and Rivals Expand Home Decor E-Commerce in Japan

​E-commerce furniture brands are growing as consumers seek convenience and selection, with industry growth outpacing overall market trends but Vega...

Michael Causton

CI Medical (3540 JP): Air Water (4088 JP)’s Tender Offer Is a Done Deal

This is a done deal as the offeror and irrevocable represent an 85.02% ownership ratio, which ensures that the EGM vote for share consolidation...

Arun George

Vega's Lowya Expanding Omnichannel to Grow Audience

​Lowya, the online furniture retailer, is expanding physical stores and omnichannel solutions to boost sales due to limited brand awareness 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

Lowya – the Zozo of Home Decor?

Home decoration is a strong consumer category in Japan and Lowya a big name in online furniture. Tie-ups with Aeon and its own stores combined with...

Michael Causton

E-commerce furniture brands are growing as consumers seek convenience and selection, with industry growth outpacing overall market trends but Vega...

Lowya, the online furniture retailer, is expanding physical stores and omnichannel solutions to boost sales due to limited brand awareness and...