Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>In this insight, I have defined six key Segment Transfer requirements which prove to be decisive in this process.</li>
<li>At present, there are 51 names that satisfy all of these conditions and there are more names that are close to being that group.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
In this insight, I have defined six key Segment Transfer requirements which prove to be decisive in this process.
At present, there are 51 names that satisfy all of these conditions and there are more names that are close to being that group.


TOPIX Inclusions: Who Is Ready (Aug 2022)

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>Decathlon entered the Japanese retail market in 2017 with the opportunity to take a significant share of a growing sports and athleisure sector.</li>
<li>But the French firm is already retreating: it will close its two stores and focus on online and wholesaling. </li>
<li>The market is poorer for but it does leave the market wide open for Workman – which built a consumer chain to combat Decathlon – to become dominant.</li>
</ul>


Decathlon entered the Japanese retail market in 2017 with the opportunity to take a significant share of a growing sports and athleisure sector.
But the French firm is already retreating: it will close its two stores and focus on online and wholesaling. 
The market is poorer for but it does leave the market wide open for Workman – which built a consumer chain to combat Decathlon – to become dominant.


Workman Wins as Decathlon Closes Japan Stores

<ul>
<li>Workman sees an opportunity to disrupt the footwear market by creating Japan’s first national low price chain, with a strong focus on women’s shoes.</li>
<li>It launched the first store this month with prices as low as ¥680 and expects to have 200 stores in the near future.</li>
<li>The Japanese footwear market is ripe for disruption as <a href="https://www.smartkarma.com/entities/abc-mart-inc" target="_blank" data-smartkarma-citation="entities:3213:1" rel="noopener">Abc Mart Inc (2670 JP)</a> diversifies and <a href="https://www.smartkarma.com/entities/chiyoda-co-ltd" target="_blank" data-smartkarma-citation="entities:6461:1" rel="noopener">Chiyoda Co Ltd (8185 JP)</a> and <a href="https://www.smartkarma.com/entities/gfoot-co-ltd" target="_blank" data-smartkarma-citation="entities:10237:1" rel="noopener">Gfoot Co Ltd (2686 JP)</a> struggle to maintain momentum.</li>
</ul>


Workman sees an opportunity to disrupt the footwear market by creating Japan’s first national low price chain, with a strong focus on women’s shoes.
It launched the first store this month with prices as low as ¥680 and expects to have 200 stores in the near future.
The Japanese footwear market is ripe for disruption as Abc Mart Inc (2670 JP) diversifies and Chiyoda Co Ltd (8185 JP) and Gfoot Co Ltd (2686 JP) struggle to maintain momentum.


Workman to Disrupt Footwear Market with ¥60 Billion Sales Target

<ul>
<li>Workman has consolidated its position as a leading domestic outdoor/sports casual retailer in the last two years.</li>
<li>Growth has been less dramatic but it has developed more infrastructure and brand foundations for what it hopes will be the next big expansion.</li>
<li>It is expanding the number of banners, increasing the ratio of private label and widening the number of categories it sells, including footwear and camping. </li>
</ul>


Workman has consolidated its position as a leading domestic outdoor/sports casual retailer in the last two years.
Growth has been less dramatic but it has developed more infrastructure and brand foundations for what it hopes will be the next big expansion.
It is expanding the number of banners, increasing the ratio of private label and widening the number of categories it sells, including footwear and camping. 


Workman to Open in Ginza, Launches Workman Shoes and More Suits

Private Capital Markets

Nitori Holdings / Private Capital Markets

<ul>
<li>Iconic retail chain, Tokyu Hands, is to be acquired by Cainz, Japan’s leading home centre retailer. </li>
<li>Tokyu Hands remains as popular as ever thanks to its unique merchandising, but it has struggled to be profitable for a long time.</li>
<li>Cainz should be able to fix this and Hands will be part of Cainz’s plans to become the <a href="https://www.smartkarma.com/entities/workman-co-ltd" target="_blank" data-smartkarma-citation="entities:8467:1" rel="noopener">Workman Co Ltd (7564 JP)</a> of home retailing – bringing competition to Nitori.</li>
</ul>


Iconic retail chain, Tokyu Hands, is to be acquired by Cainz, Japan’s leading home centre retailer. 
Tokyu Hands remains as popular as ever thanks to its unique merchandising, but it has struggled to be profitable for a long time.
Cainz should be able to fix this and Hands will be part of Cainz’s plans to become the Workman Co Ltd (7564 JP) of home retailing – bringing competition to Nitori.


Cainz Takes on Nitori with Tokyu Hands Takeover

Japan

WORKMAN CO., LTD. designs, produces, and retails work uniforms and related goods including work gloves and safety shoes.  The Company operates its own stores and franchise stores located throughout eastern Japan.

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Workman Co Ltd (7564 JP)

TOPIX Inclusions: Who Is Ready (Aug 2022)

Appier Group is currently one of the best picks because when it comes to TOPIX Inclusion Pre-events, knowing that a company intends to move to the...

Janaghan Jeyakumar, CFA

Workman Wins as Decathlon Closes Japan Stores

Workman has won the battle for Japan's low price sports and outdoor market. Decathlon is in retreat and no other retailer comes close on cost...

Michael Causton

Workman to Disrupt Footwear Market with ¥60 Billion Sales Target

Some analysts write off Workman as a past growth story. This is a mistake. It remains one of the strongest discount lifestyle retailers and has...

Michael Causton

Workman to Open in Ginza, Launches Workman Shoes and More Suits

The short-term outlook for Japanese retail remains somewhat depressed but this provides opportunities for LT investors. Workman is one of our top...

Michael Causton

Cainz Takes on Nitori with Tokyu Hands Takeover

Nitori and Muji have pretty much had the interiors market to themselves until now thanks to IKEA's slow rollout but new competition is coming from...

Michael Causton

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