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>The outlook for big apparel remains uncertain; most executives are optimistic about a rebound in sales of premium apparel brands, they are also running around looking for ways to diversify.</li>
<li>Despite years of closing stores and a recent re-listing, <a href="https://www.smartkarma.com/entities/world-co-ltd" target="_blank" data-smartkarma-citation="entities:27437:1" rel="noopener">World Co Ltd (3612 JP)</a> remains in uncertain territory as it tries to boost sales of key brands.</li>
<li>More brands may need to close but the apparel firm is at least investing in new ventures, even if small scale.</li>
</ul>


The outlook for big apparel remains uncertain; most executives are optimistic about a rebound in sales of premium apparel brands, they are also running around looking for ways to diversify.
Despite years of closing stores and a recent re-listing, World Co Ltd (3612 JP) remains in uncertain territory as it tries to boost sales of key brands.
More brands may need to close but the apparel firm is at least investing in new ventures, even if small scale.


Japan Apparel Rethink: World Tries Diversification

Event-Driven

Narumiya International Co Ltd / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/world-co-ltd" target="_blank" data-smartkarma-citation="entities:27437:1" rel="noopener">World Co Ltd (3612 JP)</a> is desperate to diversify its portfolio and find new growth assets as it continues to slash the non-performing parts of its sprawling business. </li>
<li>While childrenswear might not seem like a growth market, there are still opportunities, including at the premium end, explaining the rationale for buying <a href="https://www.smartkarma.com/entities/narumiya-international-co-ltd" target="_blank" data-smartkarma-citation="entities:27417:1" rel="noopener">Narumiya International Co Ltd (9275 JP)</a>.</li>
<li>Narumiya expanded in the four years up to the pandemic and could provide a new growth division for World.</li>
</ul>



World Co Ltd (3612 JP) is desperate to diversify its portfolio and find new growth assets as it continues to slash the non-performing parts of its sprawling business. 
While childrenswear might not seem like a growth market, there are still opportunities, including at the premium end, explaining the rationale for buying Narumiya International Co Ltd (9275 JP).
Narumiya expanded in the four years up to the pandemic and could provide a new growth division for World.


Firms like <a href="https://www.smartkarma.com/entities/world-co-ltd" target="_blank" data-smartkarma-citation="entities:27437:1" rel="noopener">World Co Ltd (3612 JP), </a><a href="https://www.smartkarma.com/entities/tsi-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:19259:1" rel="noopener">Tsi Holdings (3608 JP)</a> and <a href="https://www.smartkarma.com/entities/onward-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:11370:1" rel="noopener">Onward Holdings (8016 JP)</a>  are facing serious problems adjusting to a new distribution reality for apparel trading in Japan. While World is cutting more brands and investing in home decoration and other projects and TSI is focusing on sports and e-commerce (please see our other insights on these changes), Onward is doing all of these things: cutting more brands, investing in non-apparel and beefing up e-commerce sales.There is still a long way to go.

Firms like World Co Ltd (3612 JP), Tsi Holdings (3608 JP) and Onward Holdings (8016 JP)  are facing serious problems adjusting to a new distribution reality for apparel trading in Japan. While World is cutting more brands and investing in home decoration and other projects and TSI is focusing on sports and e-commerce (please see our other insights on these changes), Onward is doing all of these things: cutting more brands, investing in non-apparel and beefing up e-commerce sales.There is still a long way to go.

Big Apparel in Trouble: Onward Aims for 30% of Sales from Non-Apparel Brands

<a href="https://www.smartkarma.com/entities/tsi-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:19259:1" rel="noopener">Tsi Holdings (3608 JP)</a> is one of the leading apparel firms in Japan but was already forced to do some major restructuring well before the pandemic. The latter has caused a serious rethink at the company which will mean further closure of brands and stores and more investment in e-commerce and non-apparel.

Tsi Holdings (3608 JP) is one of the leading apparel firms in Japan but was already forced to do some major restructuring well before the pandemic. The latter has caused a serious rethink at the company which will mean further closure of brands and stores and more investment in e-commerce and non-apparel.

Big Apparel in Trouble: TSI Wins on E-Commerce but Closes More Brands

2020 was an annus horribilis for the apparel sector, and particularly for wholesale-centred firms. The good news is that most have come out of the crisis energised, with new ideas about how to save their businesses and some even think they can expand again through e-commerce and diversification beyond apparel.The bad news is that the new wave of cuts being announced will likely still not be enough and the leaders in the apparel sector will end this sorry period significantly diminished in size although a bit more profitable.In World's case, it has said repeatedly in the past few years that the work of restructuring is done but soon enough as announced yet another round of cuts to brands and stores. We expect a repeat next year too.

2020 was an annus horribilis for the apparel sector, and particularly for wholesale-centred firms. The good news is that most have come out of the crisis energised, with new ideas about how to save their businesses and some even think they can expand again through e-commerce and diversification beyond apparel.The bad news is that the new wave of cuts being announced will likely still not be enough and the leaders in the apparel sector will end this sorry period significantly diminished in size although a bit more profitable.In World's case, it has said repeatedly in the past few years that the work of restructuring is done but soon enough as announced yet another round of cuts to brands and stores. We expect a repeat next year too.

Big Apparel in Trouble: World Announces yet More Cuts but It Still Won't Be Enough

Japan

World Co., Ltd. designs, manufactures, and distributes apparels. The Company produces women's garments, men's garments, children's garments, and other products. World also operates investment businesses.

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World Co Ltd (3612 JP)

Japan Apparel Rethink: World Tries Diversification

Japan's big apparel firms have slashed operations and remain bullish about their outlook despite a lot of data to the contrary. Growth won't be...

Michael Causton

World to Absorb Narumiya

World is trying to diversify and is buying the rest of Narumiya International, a childrenswear retailer. Despite the falling birthrate, this is a...

Michael Causton

Big Apparel in Trouble: Onward Aims for 30% of Sales from Non-Apparel Brands

Onward Holding, like its peers, is being forced to restructure further and faster than planned three years ago when competition in the apparel...

Michael Causton

Big Apparel in Trouble: TSI Wins on E-Commerce but Closes More Brands

TSI Holdings is one of Japan's larger apparel groups and like its peers is trying to reinvent itself to cope with a post-Covid world where people...

Michael Causton

Big Apparel in Trouble: World Announces yet More Cuts but It Still Won't Be Enough

Japan's apparel firms had an unquestionably bad year last year but trading isn't getting much easier. World is showing promise through...

Michael Causton

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