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>Descente Ltd (8114 JP)  is about the same size as Goldwin but has traditionally depended for half of its sales on South Korea.</li>
<li>
<a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a> acquired control in a fraught battle with management, in order to reduce this dependence. As a result, Descente managed a return to the black in 1H202.</li>
<li>It has ambitious plans to create a set of brands strong both at home and abroad by copying much of Goldwin’s playbook, particularly its investment in retail and online.</li>
</ul>


Descente Ltd (8114 JP)  is about the same size as Goldwin but has traditionally depended for half of its sales on South Korea.

Itochu Corp (8001 JP) acquired control in a fraught battle with management, in order to reduce this dependence. As a result, Descente managed a return to the black in 1H202.
It has ambitious plans to create a set of brands strong both at home and abroad by copying much of Goldwin’s playbook, particularly its investment in retail and online.


Thematic (Sector/Industry)

<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>
<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> has unveiled another retail banner, this time for the professional tradesperson. </li>
<li>Workman Pro will be used to rebrand existing Workman stores and will also have its own store brands. The new format is part of a push to expand to 1,500 stores.</li>
<li>Although growth has slowed in the past year, Workman continues to mop up market share in outdoor/sports/casual apparel and has plenty of room still left to grow.</li>
</ul>



Workman Co Ltd (7564 JP) has unveiled another retail banner, this time for the professional tradesperson. 
Workman Pro will be used to rebrand existing Workman stores and will also have its own store brands. The new format is part of a push to expand to 1,500 stores.
Although growth has slowed in the past year, Workman continues to mop up market share in outdoor/sports/casual apparel and has plenty of room still left to grow.


The latest Census in Japan confirms the ongoing fall in total population across most of the country but reveals surprising growth markets in small pockets, particularly around Greater Tokyo which now accounts for just under 30% of the total population.There are also ever growing numbers of single people, expanding the promising solo market. In the bigger cities, younger people bring new types of consumption but the increase in older singles is a growing problem.The following provides background macro trends for any investor looking at the Japan consumer space and some stocks we think will benefit from these macro trends.

The latest Census in Japan confirms the ongoing fall in total population across most of the country but reveals surprising growth markets in small pockets, particularly around Greater Tokyo which now accounts for just under 30% of the total population.There are also ever growing numbers of single people, expanding the promising solo market. In the bigger cities, younger people bring new types of consumption but the increase in older singles is a growing problem.The following provides background macro trends for any investor looking at the Japan consumer space and some stocks we think will benefit from these macro trends.

Shrinking, Ageing Japan but a Growing Solo Market

We have been bullish about <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> since 2017 and since then the share price has surged from ¥1,600 to more than ¥10,000 before declining from late last year.Workman continues its relentless expansion and plans to reduce the number of its original Workman stores to just 200 while investing heavily in its consumer-oriented chain, including its new Joshi format targeting women.Thanks to the new product lines and focus on consumers, same-store sales rose 14.2% last year, a remarkable achievement at any time let alone in a pandemic – per customer sales only rose 0.3% but footfall jumped 13.8%. This is not a fluke – in the last five years, the average daily number of customers to Workman stores has increased from 107 to 166.The outdoor and workwear retailer remains a solid long-term bet and with the share price well off its peak with a possible further fall in the short-term, long-term investors may find a good opportunity to buy in.

We have been bullish about Workman Co Ltd (7564 JP) since 2017 and since then the share price has surged from ¥1,600 to more than ¥10,000 before declining from late last year.Workman continues its relentless expansion and plans to reduce the number of its original Workman stores to just 200 while investing heavily in its consumer-oriented chain, including its new Joshi format targeting women.Thanks to the new product lines and focus on consumers, same-store sales rose 14.2% last year, a remarkable achievement at any time let alone in a pandemic – per customer sales only rose 0.3% but footfall jumped 13.8%. This is not a fluke – in the last five years, the average daily number of customers to Workman stores has increased from 107 to 166.The outdoor and workwear retailer remains a solid long-term bet and with the share price well off its peak with a possible further fall in the short-term, long-term investors may find a good opportunity to buy in.

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Workman Co Ltd (7564 JP)

Descente: The Next Goldwin?

Japan's outdoor/sports market remains one of the few consistent growth categories in consumer markets. Goldwin was the most visible success story...

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

Workman (Re)Launches Workman Pro

Workman's share price has collapsed this year but we remain bullish about the retailer's prospects over the long-term given the outstanding growth...

Michael Causton

Shrinking, Ageing Japan but a Growing Solo Market

Japan's population is contracting but there are areas of growth, particularly the solo market (single people living alone) and the senior market....

Michael Causton

Workman Targets 1,500 Stores

Workman is a phenomenon in Japan. The company is one of the fastest growing retailers in Japanese history, carving out a leading share in the still...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)