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

Rakuten Group, Inc. provides Internet services. The Company offers Internet finance services which including "Rakuten Card" and "Rakuten Bank". Rakuten Group also provides digital content services including electronic book services.

<ul>
<li>Rakuten and Yahoo Shopping continued to outperform the e-commerce sector overall in the past six months – Amazon data is due early next year – so market share is rising.</li>
<li>However, a good chunk of recent growth was thanks to a now banned points scheme for tax offsets which led to a surge in sales pre-ban.</li>
<li>This means revenues may now dip again without that incentive but the longer term outlook remains clear: the big malls continue to increase market share in Japanese e-commerce.</li>
</ul>


Rakuten and Yahoo Shopping continued to outperform the e-commerce sector overall in the past six months – Amazon data is due early next year – so market share is rising.
However, a good chunk of recent growth was thanks to a now banned points scheme for tax offsets which led to a surge in sales pre-ban.
This means revenues may now dip again without that incentive but the longer term outlook remains clear: the big malls continue to increase market share in Japanese e-commerce.


Rakuten and Yahoo (And Zozo) Take More Share in Japanese E-Commerce Market

TOKYO BASE Co.,Ltd. designs, produces and provides specialized lines of men and women's apparel and accessories through its retailing shops as well as online stores.

<ul>
<li>Tokyo Base struggled during and after Covid, but the promoter of Japanese design has begun to find a new following.</li>
<li>As well as a new generation of Japanese customers thanks to new banners, it is becoming a favourite with inbound tourists, which account for as much as 25% of sales.</li>
<li>It is now planning greater expansion both at home and overseas</li>
</ul>


Tokyo Base struggled during and after Covid, but the promoter of Japanese design has begun to find a new following.
As well as a new generation of Japanese customers thanks to new banners, it is becoming a favourite with inbound tourists, which account for as much as 25% of sales.
It is now planning greater expansion both at home and overseas


Tokyo Base: Like Human Made, a Potential Export Growth Stock

Seven & i Holdings Co., Ltd. is a holding company which was established through the merger of Ito-Yokado Co., Seven Eleven Japan Co., and Denny's Japan. The Company plans, manages, and operates mainly convenience stores, supermarkets, and department stores.

<ul>
<li>The convenience store sector is not only saturated but also facing serious levels of new competition. Despite this, Seven Eleven posted much higher growth in November but problems remain.</li>
<li>The big 3 are working hard to innovate their way out of trouble and move on to new, fertile pastures of growth but Seven Eleven is behind Lawson and Familymart.</li>
<li>Innovation means high levels of differentiation across prices, tech, services and merchandising, making each chain much more distinctive and a fascinating example of where Japanese retail is headed.</li>
</ul>


The convenience store sector is not only saturated but also facing serious levels of new competition. Despite this, Seven Eleven posted much higher growth in November but problems remain.
The big 3 are working hard to innovate their way out of trouble and move on to new, fertile pastures of growth but Seven Eleven is behind Lawson and Familymart.
Innovation means high levels of differentiation across prices, tech, services and merchandising, making each chain much more distinctive and a fascinating example of where Japanese retail is headed.


Seven Eleven: Still a Work in Progress as Lawson and Familymart Innovate

Thematic (Sector/Industry)

<ul>
<li>The labour shortage is fast becoming a serious economic burden and not just a statistical conundrum.</li>
<li>There are now growing numbers of consumer-facing SMEs going out of business because of staff shortages while bigger firms are cutting back services and stores.</li>
<li>PM Takaichi is signalling a reduction in immigration, so the country needs other solutions if it is to avoid significant contraction in consumer markets.</li>
</ul>


The labour shortage is fast becoming a serious economic burden and not just a statistical conundrum.
There are now growing numbers of consumer-facing SMEs going out of business because of staff shortages while bigger firms are cutting back services and stores.
PM Takaichi is signalling a reduction in immigration, so the country needs other solutions if it is to avoid significant contraction in consumer markets.


There Is Now a Real Drag on Japanese Consumer Markets: Labour

Event-Driven

TSURUHA HOLDINGS INC. is a holding company which manages subsidiaries that operate drug stores in Hokkaido and the Tohoku area.  The Company's product line includes drugs, cosmetics, and household utensils.

<ul>
<li>The Tsuruha and Welcia merger before the year’s close, backed by Aeon, is targeting ¥50 billion in cost savings over three years. </li>
<li>As well as the massive economies of scale, consolidated procurement, revamped private brands and a unified points and customer‑ID strategy are central to this.</li>
<li>However, weak food offerings, legacy stores and IT complexity still threaten sustainable profit recovery as is the question of who will be in charge.</li>
</ul>


The Tsuruha and Welcia merger before the year’s close, backed by Aeon, is targeting ¥50 billion in cost savings over three years. 
As well as the massive economies of scale, consolidated procurement, revamped private brands and a unified points and customer‑ID strategy are central to this.
However, weak food offerings, legacy stores and IT complexity still threaten sustainable profit recovery as is the question of who will be in charge.


Tsuruha-Welcia: Will Scale Translate into Profit?