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>Warren Buffett is investing more in Japan's trading companies for a variety of reasons but Itochu stands alone in its dominance of Japan's fashion sector.</li>
<li>Itochu continues to emphasise investment in consumer brands, particularly fashion and sports, but will now adjust its decades-old playbook, introducing more direct oversight of subsidiaries and affiliates.</li>
<li>This will include a big new push to turn Vivienne Westwood into a luxury brand, upgrading Paul Smith and bringing <a href="https://www.smartkarma.com/entities/descente-ltd" target="_blank" data-smartkarma-citation="entities:8225:1" rel="noopener">Descente Ltd (8114 JP)</a> in-house</li>
</ul>


Warren Buffett is investing more in Japan's trading companies for a variety of reasons but Itochu stands alone in its dominance of Japan's fashion sector.
Itochu continues to emphasise investment in consumer brands, particularly fashion and sports, but will now adjust its decades-old playbook, introducing more direct oversight of subsidiaries and affiliates.
This will include a big new push to turn Vivienne Westwood into a luxury brand, upgrading Paul Smith and bringing Descente Ltd (8114 JP) in-house


Itochu the Fashion Giant Doubles Down on Brand Business

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> isn't the only consumer-facing business Itochu wants more interest in. It has also been mopping up multiple fashion and sports brands recently.</li>
<li>The latest is LeSportsac which Itochu already owned the global rights for but which didn't really translate into success in Japan.. </li>
<li>It will now run the brand with Mash Holdings – Itochu is an increasingly important partner for Mash – which is likely to IPO in a few years.</li>
</ul>



Seven &amp; I Holdings (3382 JP) isn't the only consumer-facing business Itochu wants more interest in. It has also been mopping up multiple fashion and sports brands recently.
The latest is LeSportsac which Itochu already owned the global rights for but which didn't really translate into success in Japan.. 
It will now run the brand with Mash Holdings – Itochu is an increasingly important partner for Mash – which is likely to IPO in a few years.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Yesterday a news article from Bloomberg suggested 7&amp;i was "considering" an MBO. <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> later confirmed they had received a non-binding proposal from ITO Junro/family.</li>
<li>The initial number was ¥9trln. If market cap? High. If EV, too low. That would have implied a price just over the first "grossly inadequate" ACT price.</li>
<li>There is a lot we don't know. This changes the landscape. It probably shifts the range trade, but it will shift more when we get more clarity on ITO-san's price.</li>
</ul>


Yesterday a news article from Bloomberg suggested 7&amp;i was "considering" an MBO. Seven &amp; I Holdings (3382 JP) later confirmed they had received a non-binding proposal from ITO Junro/family.
The initial number was ¥9trln. If market cap? High. If EV, too low. That would have implied a price just over the first "grossly inadequate" ACT price.
There is a lot we don't know. This changes the landscape. It probably shifts the range trade, but it will shift more when we get more clarity on ITO-san's price.


7&I (3382 JP) - An ITO Family MBO? With Itochu? At ¥9trln? Maybe. Information Is Scarce

<ul>
<li>Just as they did before, Japanese convenience stores are taking a US idea and making it Japanese, in this case retail media, which looks set to be huge in Japan.</li>
<li>Seven &amp; I believes it will be a ¥3 trillion business and Familymart, which is leading in this new profit machine, expects ¥5 billion in media income in 3 years.</li>
<li>The options for highly personalised targeting and behavioural analysis will transform brand advertising and marketing – but even more the bottom line of convenience stores.</li>
</ul>


Just as they did before, Japanese convenience stores are taking a US idea and making it Japanese, in this case retail media, which looks set to be huge in Japan.
Seven &amp; I believes it will be a ¥3 trillion business and Familymart, which is leading in this new profit machine, expects ¥5 billion in media income in 3 years.
The options for highly personalised targeting and behavioural analysis will transform brand advertising and marketing – but even more the bottom line of convenience stores.


How Seven Eleven and Other Conbinis Are Sitting on a Retail Media Goldmine

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

<ul>
<li>
<a href="https://www.smartkarma.com/entities/citic-ltd" target="_blank" data-smartkarma-citation="entities:20590:1" rel="noopener">Citic Ltd (267 HK)</a> is a well-managed conglomerate trading at a big discount to its constituent parts</li>
<li>Earnings should move up from here and pays a decent dividend while you wait.</li>
<li>A member of both the the Hang Seng Index (HSI INDEX)  and the HSCCI and will attract inflows once institutional money returns</li>
</ul>



Citic Ltd (267 HK) is a well-managed conglomerate trading at a big discount to its constituent parts
Earnings should move up from here and pays a decent dividend while you wait.
A member of both the the Hang Seng Index (HSI INDEX)  and the HSCCI and will attract inflows once institutional money returns


Citic Limited - A Deeply Discounted Conglomerate in the Hang Seng Index

Japan

ITOCHU Corporation is a general trading firm handling textiles, wood, machinery, metals, food, chemicals, construction materials, commodities, and energy related products such as oil and gas. The Company operates around the world. Itochu diversifies by operating in satellite communication and data communication businesses.

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Itochu Corp (8001 JP)

Itochu the Fashion Giant Doubles Down on Brand Business

Warren Buffett is investing in Japan's trading companies for good reason but only Itochu has a big share of the fashion sector through Itochu...

Michael Causton

Mash Buys into LeSportsac with Itochu

Itochu expands its consumer-facing business by acquiring fashion and sports brands like LeSportsac, partnering with Mash Holdings for future...

Michael Causton

7&I (3382 JP) - An ITO Family MBO? With Itochu? At ¥9trln? Maybe. Information Is Scarce

An MBO for Seven & i by the ITO family? Maybe. And the number was big (¥3450/sh), unless it was small (¥2,300/sh), and we don't know which. But it...

Travis Lundy

How Seven Eleven and Other Conbinis Are Sitting on a Retail Media Goldmine

Japanese CVS are adapting retail media and expect this to be a ¥3 trillion business with highly personalised targeting and behavioural analysis...

Michael Causton

Citic Limited - A Deeply Discounted Conglomerate in the Hang Seng Index

Tradeable rally for the Hang Seng Index in motion. Conglomerates have been leading the market (as noted by @David Mudd here BUY/SELL/HOLD: Hong...

Rikki Malik

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Itochu the Fashion Giant Doubles Down on Brand Business

​Warren Buffett is investing in Japan's trading companies for good reason but only Itochu has a big share of the fashion sector through Itochu...

Michael Causton

Mash Buys into LeSportsac with Itochu

​Itochu expands its consumer-facing business by acquiring fashion and sports brands like LeSportsac, partnering with Mash Holdings for future...

Michael Causton

7&I (3382 JP) - An ITO Family MBO? With Itochu? At ¥9trln? Maybe. Information Is Scarce

An MBO for Seven & i by the ITO family? Maybe. And the number was big (¥3450/sh), unless it was small (¥2,300/sh), and we don't know which. But it...

Travis Lundy

How Seven Eleven and Other Conbinis Are Sitting on a Retail Media Goldmine

​Japanese CVS are adapting retail media and expect this to be a ¥3 trillion business with highly personalised targeting and behavioural analysis...

Michael Causton

Citic Limited - A Deeply Discounted Conglomerate in the Hang Seng Index

Tradeable rally for the Hang Seng Index in motion. Conglomerates have been leading the market (as noted by @David Mudd here BUY/SELL/HOLD: Hong...

Rikki Malik

Warren Buffett is investing in Japan's trading companies for good reason but only Itochu has a big share of the fashion sector through Itochu...

Itochu expands its consumer-facing business by acquiring fashion and sports brands like LeSportsac, partnering with Mash Holdings for future...

Japanese CVS are adapting retail media and expect this to be a ¥3 trillion business with highly personalised targeting and behavioural analysis...