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>
<a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a> and <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a> are in a battle for share in online fashion with both companies increasingly aping the other to attract both merchants and consumers. </li>
<li>
<a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> and <a href="https://www.smartkarma.com/entities/z-holdings-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Z Holdings (4689 JP)</a> aren’t standing still either but the competitive pressures between Rakuten and Zozo may put them ahead of their rivals.</li>
<li>This competitive edge now encompasses both physical stores and online platforms for physical retailers, with the aim to bind them ever closer to the platform.</li>
</ul>



Rakuten Inc (4755 JP) and ZOZO Inc (3092 JP) are in a battle for share in online fashion with both companies increasingly aping the other to attract both merchants and consumers. 

Amazon.com Inc (AMZN US) and Z Holdings (4689 JP) aren’t standing still either but the competitive pressures between Rakuten and Zozo may put them ahead of their rivals.
This competitive edge now encompasses both physical stores and online platforms for physical retailers, with the aim to bind them ever closer to the platform.


Platforms Add Merchant Support as Japan's Online Fashion Wars Move Offline

Event-Driven

<ul>
<li>For a decade <a href="https://www.smartkarma.com/entities/adastria-co-ltd" target="_blank" data-smartkarma-citation="entities:11895:1" rel="noopener">Adastria Co Ltd (2685 JP)</a> was the fastest growing fashion retailer but, as it matured and the apparel market stagnated, growth rates declined.</li>
<li>The company now wants to become a diversified lifestyle retailer with food as a major element so, to speed things along, it will acquire restaurant business <a href="https://www.smartkarma.com/entities/zetton-inc" target="_blank" data-smartkarma-citation="entities:18552:1" rel="noopener">Zetton Inc (3057 JP)</a>.</li>
<li>It is also investing in overseas retailers to spearhead expansion abroad, a strategy that will include Zetton's leading chain, Aloha Table.</li>
</ul>


For a decade Adastria Co Ltd (2685 JP) was the fastest growing fashion retailer but, as it matured and the apparel market stagnated, growth rates declined.
The company now wants to become a diversified lifestyle retailer with food as a major element so, to speed things along, it will acquire restaurant business Zetton Inc (3057 JP).
It is also investing in overseas retailers to spearhead expansion abroad, a strategy that will include Zetton's leading chain, Aloha Table.


Adastria to Expand Beyond Fashion with Zetton Acquisition

<ul>
<li>We remain very optimistic about the outlook for Mercari's fundamentals, both gross transaction values and operating margins.</li>
<li>The sharing economy in Japan alone remains nascent and Mercari has only just started adding on adjunct value-add services, most of which are (and will) carry high margins.</li>
<li>Even in the core fashion category, which some analysts have assumed is already reaching saturation, CtoC platforms and used retailers have barely scratched the surface as new research shows.</li>
</ul>


We remain very optimistic about the outlook for Mercari's fundamentals, both gross transaction values and operating margins.
The sharing economy in Japan alone remains nascent and Mercari has only just started adding on adjunct value-add services, most of which are (and will) carry high margins.
Even in the core fashion category, which some analysts have assumed is already reaching saturation, CtoC platforms and used retailers have barely scratched the surface as new research shows.


2022 High Conviction – Plenty of Growth Avenues for Mercari, the Apple of CtoC Services

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

Private Capital Markets

<ul>
<li>Baycrews is an unlisted fashion retailer but is proving highly disruptive to both competitors and online malls like <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a>.</li>
<li>It is making best use of staff knowledge and experience, an increasingly crucial asset in the competitive online fashion market, to create true omnichannel retailing.</li>
<li>As a result, it garners more than 70% of online sales from its own store, proving that the biggest competitor to Zozo is merchant direct sales, not other platforms.</li>
</ul>


Baycrews is an unlisted fashion retailer but is proving highly disruptive to both competitors and online malls like ZOZO Inc (3092 JP).
It is making best use of staff knowledge and experience, an increasingly crucial asset in the competitive online fashion market, to create true omnichannel retailing.
As a result, it garners more than 70% of online sales from its own store, proving that the biggest competitor to Zozo is merchant direct sales, not other platforms.


Baycrews Grows Online Sales to 50% of Turnover

Japan

Adastria Co., Ltd. operates a chain of clothing stores in Japan. The Company also operates stores in China, Taiwan, Hong Kong and Korea.

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Adastria Co Ltd (2685 JP)

Platforms Add Merchant Support as Japan's Online Fashion Wars Move Offline

Zozo has had a good run during the pandemic and we continue to remain bullish about its growth thanks to many recent innovations but the biggest...

Michael Causton

Adastria to Expand Beyond Fashion with Zetton Acquisition

Japanese apparel retailers are struggling against a contracting market. Adastria is seeking growth at home through diversification and is buying...

Michael Causton

2022 High Conviction – Plenty of Growth Avenues for Mercari, the Apple of CtoC Services

Mercari is much, much more than its CtoC platform and will emerge as a pivotal part of Japan's consumer goods/services/finance distribution system...

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

Baycrews Grows Online Sales to 50% of Turnover

Baycrews is leading the fashion sector on developing more direct online sales, pulling traffic away from the big online malls like Zozo. This is...

Michael Causton

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