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

<a href="https://www.smartkarma.com/entities/line-corp" target="_blank" data-smartkarma-citation="entities:22772:1" rel="noopener">LINE Corp (3938 JP)'s </a>new collaboration with Staff Start is a huge boost to the fledgling omnichannel service provider but also helps cement LINE's role at the heart of omnichannel customer services and Live Commerce. Given LINE's new role at the heart of <a href="https://www.smartkarma.com/entities/z-holdings-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Z Holdings (4689 JP)'s </a>digital ecosystem, it is likely that Staff Start will be adopted across the group and maybe even become another subsidiary.Staff Start is a phenomenon. What started as a simple digital tool to help retailers post blogs online has become a full-service marketing platform used by more than 1,200 brands and retailers across fashion, food, home and sports, up from 700 two years ago.Staff Start has seen sales jump three-fold in the last year alone.The top selling shop staff manage sales of as much as ¥90 million a month, with a record for a single post of ¥13 million, so clearly a marketing method that works. Staff blogging has become a vital tool for many retailers, with one claiming 40% of direct online sales come from staff generated online content.The benefits of the deal will provide yet further challenges to rivals, especially <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP).</a>

LINE Corp (3938 JP)'s new collaboration with Staff Start is a huge boost to the fledgling omnichannel service provider but also helps cement LINE's role at the heart of omnichannel customer services and Live Commerce. Given LINE's new role at the heart of Z Holdings (4689 JP)'s digital ecosystem, it is likely that Staff Start will be adopted across the group and maybe even become another subsidiary.Staff Start is a phenomenon. What started as a simple digital tool to help retailers post blogs online has become a full-service marketing platform used by more than 1,200 brands and retailers across fashion, food, home and sports, up from 700 two years ago.Staff Start has seen sales jump three-fold in the last year alone.The top selling shop staff manage sales of as much as ¥90 million a month, with a record for a single post of ¥13 million, so clearly a marketing method that works. Staff blogging has become a vital tool for many retailers, with one claiming 40% of direct online sales come from staff generated online content.The benefits of the deal will provide yet further challenges to rivals, especially Rakuten Inc (4755 JP).

<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> is pessimistic about the medium to long-term outlook for the apparel sector but not, that is, for Adastria. It sees its future as one of a small number of increasingly dominant leaders in apparel but also as a more diverse retailer.

Adastria Co Ltd (2685 JP) is pessimistic about the medium to long-term outlook for the apparel sector but not, that is, for Adastria. It sees its future as one of a small number of increasingly dominant leaders in apparel but also as a more diverse retailer.

Adastria: Japan's “Apparel Market to Shrink by 30% in Next 6 Years”

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

• LARGE CAP RESULTS - 5th APRIL •<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/198/987/original/image_46394735821617656683433.png?1617656684" class="editor-image img-responsive" data-smartkarma-image-id="198987"></figure><div class="content-caption"> Source for all charts &amp; tables: Japan Analytics</div>RESULTS - Of Friday's 23 results, only 10 scored positively; however, 73% of annual revisions were positive. Of the larger caps, <a href="https://www.smartkarma.com/entities/shimamura-co-ltd" target="_blank" data-smartkarma-citation="entities:15213:1" rel="noopener">Shimamura (8227 JP)</a> had a third-successive positive quarter, while <a href="https://www.smartkarma.com/entities/kewpie-corp" target="_blank" data-smartkarma-citation="entities:10681:1" rel="noopener">Kewpie (2809 JP)</a> and <a href="https://www.smartkarma.com/entities/adastria-co-ltd" target="_blank" data-smartkarma-citation="entities:11895:1" rel="noopener">Adastria (2685 JP)</a> had double-digit year-on-year sales declines, and drugstore <a href="https://www.smartkarma.com/entities/create-sd-holdings-co" target="_blank" data-smartkarma-citation="entities:12945:1" rel="noopener">Create SD (3148 JP)</a> saw profits decline.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/198/989/original/image_51513331531617657092402.png?1617657093" class="editor-image img-responsive" data-smartkarma-image-id="198989"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/198/990/original/image_56921939741617657150504.png?1617657151" class="editor-image img-responsive" data-smartkarma-image-id="198990"></figure>• LARGER CAP FORECASTS/REVISIONS - 5th APRIL • <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/198/991/original/image_89489650351617657220460.png?1617657221" class="editor-image img-responsive" data-smartkarma-image-id="198991"></figure>FORECASTS/REVISIONS - Adastria offset its weak results with a bullish FY22 forecast, as did restaurant chain <a href="https://www.smartkarma.com/entities/ichibanya-co-ltd" target="_blank" data-smartkarma-citation="entities:2914:1" rel="noopener">Ichibanya (7630 JP)</a>. Shimamura's interim forecast was much more bullish than for the full year. <a href="https://www.smartkarma.com/entities/kobe-steel-ltd" target="_blank" data-smartkarma-citation="entities:209:1" rel="noopener">Kobe Steel (5406 JP)</a> revised up further into the black, while <a href="https://www.smartkarma.com/entities/jins-holdings-inc" target="_blank" data-smartkarma-citation="entities:12002:1" rel="noopener">JINS (3046 JP)</a> revised its interim and full-year sales and operating income slightly lower.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/198/992/original/image_65197346461617657668077.png?1617657668" class="editor-image img-responsive" data-smartkarma-image-id="198992"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/198/993/original/image_33740867171617657704461.png?1617657705" class="editor-image img-responsive" data-smartkarma-image-id="198993"></figure>

• LARGE CAP RESULTS - 5th APRIL • Source for all charts &amp; tables: Japan AnalyticsRESULTS - Of Friday's 23 results, only 10 scored positively; however, 73% of annual revisions were positive. Of the larger caps, Shimamura (8227 JP) had a third-successive positive quarter, while Kewpie (2809 JP) and Adastria (2685 JP) had double-digit year-on-year sales declines, and drugstore Create SD (3148 JP) saw profits decline.• LARGER CAP FORECASTS/REVISIONS - 5th APRIL • FORECASTS/REVISIONS - Adastria offset its weak results with a bullish FY22 forecast, as did restaurant chain Ichibanya (7630 JP). Shimamura's interim forecast was much more bullish than for the full year. Kobe Steel (5406 JP) revised up further into the black, while JINS (3046 JP) revised its interim and full-year sales and operating income slightly lower.

🇯🇵 JAPAN • Results & Revisions 04/​05 - Shimamura & JINS

If <a href="https://www.smartkarma.com/entities/mercari-inc" target="_blank" data-smartkarma-citation="entities:27149:1" rel="noopener">Mercari Inc (4385 JP)</a> were a retailer, the CtoC platform would now be Japan’s 5th biggest vendor of apparel, symbolic of just how influential it has become and the significant role of used fashions in the wider market.
And it is not just fashion. Mercari is now handling all manner of household goods, even food. It is also increasingly influencing the sale of new goods thanks to new services for major retailers in data flow and marketing.
So big is its influence, even the Tax Office now has a Mercari department.
Not surprisingly, Mercari's success is attracting more competitors. <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> launched PayPay Flea Market just over a year ago and is now doing what it does best: slashing fees and piling on incentives to try and grab share from the market leader.

If Mercari Inc (4385 JP) were a retailer, the CtoC platform would now be Japan’s 5th biggest vendor of apparel, symbolic of just how influential it has become and the significant role of used fashions in the wider market.
And it is not just fashion. Mercari is now handling all manner of household goods, even food. It is also increasingly influencing the sale of new goods thanks to new services for major retailers in data flow and marketing.
So big is its influence, even the Tax Office now has a Mercari department.
Not surprisingly, Mercari's success is attracting more competitors. Z Holdings (4689 JP) launched PayPay Flea Market just over a year ago and is now doing what it does best: slashing fees and piling on incentives to try and grab share from the market leader.

Mercari’s Relentless Innovation Opens Closets

Penetration (the share of total retail sales) of e-commerce in Japan increased sharply in the past few years but still varies significantly by category.
The following insight looks at each consumer product category and how penetration has grown in the last few years and provides estimates of trends to 2025.
Even with these relatively cautious rates of growth, penetration rates are set to expand significantly in apparel, household &amp; interior, books &amp; media, and stationery but only retailers with form in successful online marketing will benefit from this with major negative implications for the many retailers that have failed to tackle the threat from online. This includes even major retailers like <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> which lags behind <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP), </a><a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a><a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">  and </a><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> in the race to lead the battle for leadership in online food retailing.

Penetration (the share of total retail sales) of e-commerce in Japan increased sharply in the past few years but still varies significantly by category.
The following insight looks at each consumer product category and how penetration has grown in the last few years and provides estimates of trends to 2025.
Even with these relatively cautious rates of growth, penetration rates are set to expand significantly in apparel, household &amp; interior, books &amp; media, and stationery but only retailers with form in successful online marketing will benefit from this with major negative implications for the many retailers that have failed to tackle the threat from online. This includes even major retailers like Seven &amp; I Holdings (3382 JP) which lags behind Aeon Co Ltd (8267 JP), Rakuten Inc (4755 JP)  and Amazon.com Inc (AMZN US) in the race to lead the battle for leadership in online food retailing.

E-Commerce Penetration Increasing in All Retail Categories

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)

LINE Ties with Staff Start

LINE has a promising new jv with Staff Start, which facilitates omnichannel retailing and which has tripled GTVs in a year and which generates...

Michael Causton

Adastria: Japan's “Apparel Market to Shrink by 30% in Next 6 Years”

Japan's apparel market will shrink but a fewer number of large apparel firms, including Adastria, will acquire more market share and diversify...

Michael Causton

🇯🇵 JAPAN • Results & Revisions 04/05 - Shimamura & JINS

RESULTS - Of Friday's 23 results, only 10 scored positively; however, 73% of annual revisions were positive. Of the larger caps, Shimamura (8227...

Campbell Gunn

Mercari’s Relentless Innovation Opens Closets

Mercari now dominates CtoC trading in Japan and is so big a Tax Office department is names after it. Competitors are circling, particularly Z...

Michael Causton

E-Commerce Penetration Increasing in All Retail Categories

A review of online market share in all key consumer categories in Japan, with forecasts for e-commerce market share to 2025 –the sharp growth will...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

LINE Ties with Staff Start

LINE has a promising new jv with Staff Start, which facilitates omnichannel retailing and which has tripled GTVs in a year and which generates...

Michael Causton

Adastria: Japan's “Apparel Market to Shrink by 30% in Next 6 Years”

Japan's apparel market will shrink but a fewer number of large apparel firms, including Adastria, will acquire more market share and diversify...

Michael Causton

🇯🇵 JAPAN • Results & Revisions 04/​05 - Shimamura & JINS

RESULTS - Of Friday's 23 results, only 10 scored positively; however, 73% of annual revisions were positive. Of the larger caps, Shimamura (8227...

Campbell Gunn

Mercari’s Relentless Innovation Opens Closets

Mercari now dominates CtoC trading in Japan and is so big a Tax Office department is names after it. Competitors are circling, particularly Z...

Michael Causton

E-Commerce Penetration Increasing in All Retail Categories

A review of online market share in all key consumer categories in Japan, with forecasts for e-commerce market share to 2025 –the sharp growth will...

Michael Causton

🇯🇵 JAPAN • Results & Revisions 04/05 - Shimamura & JINS