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. 

Thematic (Sector/Industry)

The following is an in-depth review of the retail sector by format with a brief overview of incomes and consumption trends and metrics before that. For any investor looking at the Japanese consumer/retail space, this insight will provide a rapid overview of all the major trends.2020 was a year to remember, although not for good reasons. While the news was overwhelmingly negative given the devastation that the pandemic caused to so many lives, for Japan as a country the experience could become a catalyst to spur positive change.No matter how much we might never wish to repeat the last 12 months, those governments and companies that learn from the experience will be better positioned whenever a new pandemic emerges.Department stores, convenience stores, and most fashion chains had a horrible year as so many people stayed away from major shopping areas, but many other retailers actually had stellar years, with further upside still to come.

The following is an in-depth review of the retail sector by format with a brief overview of incomes and consumption trends and metrics before that. For any investor looking at the Japanese consumer/retail space, this insight will provide a rapid overview of all the major trends.2020 was a year to remember, although not for good reasons. While the news was overwhelmingly negative given the devastation that the pandemic caused to so many lives, for Japan as a country the experience could become a catalyst to spur positive change.No matter how much we might never wish to repeat the last 12 months, those governments and companies that learn from the experience will be better positioned whenever a new pandemic emerges.Department stores, convenience stores, and most fashion chains had a horrible year as so many people stayed away from major shopping areas, but many other retailers actually had stellar years, with further upside still to come. 

Japan Retail Full Review 2020-2021: Some Retail Sectors Outperform in a Pandemic

By 2019, many retailers and brands were already introducing new technology solutions to make up for labour shortages. Despite the crisis, shortages continue to be a major headache in the service sector and the downturn in trading since March has only accelerated efforts to replace staff with tech.This could create new problems as older employees lose their jobs although will also reduce pressure on the labour market and lessen labour shortages in retailing.

By 2019, many retailers and brands were already introducing new technology solutions to make up for labour shortages. Despite the crisis, shortages continue to be a major headache in the service sector and the downturn in trading since March has only accelerated efforts to replace staff with tech.This could create new problems as older employees lose their jobs although will also reduce pressure on the labour market and lessen labour shortages in retailing.

Surge in Calls for Retail Voluntary Redundancies Likely to Continue

Equity Bottom-Up

Retailers selling business clothing are in a crisis. Teleworking has meant little incentive to update work wardrobes and given that March is usually the top month for suit sales, the Covid crisis could not have come at a worst time.
Sector leader, <a href="https://www.smartkarma.com/entities/aoyama-trading-co-ltd" target="_blank" data-smartkarma-citation="entities:4544:1" rel="noopener">Aoyama Trading (8219 JP),</a> is slashing staff while hoping a shift to digital will help, but it is also converting stores to co-working spaces for people working from home – although they are unlikely to come wearing a suit.

Retailers selling business clothing are in a crisis. Teleworking has meant little incentive to update work wardrobes and given that March is usually the top month for suit sales, the Covid crisis could not have come at a worst time.
Sector leader, Aoyama Trading (8219 JP), is slashing staff while hoping a shift to digital will help, but it is also converting stores to co-working spaces for people working from home – although they are unlikely to come wearing a suit.

Aoyama Trading: 400 Redundancies but Aims for Relevance Through Digital and Co-Working

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

At least until the Covid-19 crisis hit Japan in January, the majority of retailers were gearing up to announce yet another really good year of financial results for FY2019-20.Even with the crisis, results were generally better than for FY2018 – although there are big variations by sector.Those differences are more or less what we’ve come to expect, with traditional formats like department stores continuing to struggle, while those formats that have adopted modern management are doing well.The following is an in-depth review of Japan's retail sector, providing:<ul>
<li>An overview of consumer demand and retail performance</li>
<li>Format by format reviews showing growth and profit performance across all the main formats: convenience stores, supermarkets, GMS, consumer electronics, drugstores, homecentres, department stores, apparel, home and other specialty  formats.</li>
<li>Rankings: <ul>
<li>Market share and size by sector/format</li>
<li>By sales for all retailers with sales over ¥250 billion</li>
<li>By gross and operating margins, split by format and category.</li>
</ul>
</li>
</ul>As this is an in-depth insight, the review is split into two parts to make it easier to read.  This is Part I which provides a quick overview of all retailing. Part II, which provides snapshot reviews of each format/sector <a href="https://www.smartkarma.com/insights/japan-retail-review-2019-20-part-ii-a-sector-by-sector-review-of-winners-and-losers" target="_blank" rel="noopener">can be read here</a>.

At least until the Covid-19 crisis hit Japan in January, the majority of retailers were gearing up to announce yet another really good year of financial results for FY2019-20.Even with the crisis, results were generally better than for FY2018 – although there are big variations by sector.Those differences are more or less what we’ve come to expect, with traditional formats like department stores continuing to struggle, while those formats that have adopted modern management are doing well.The following is an in-depth review of Japan's retail sector, providing:
An overview of consumer demand and retail performance
Format by format reviews showing growth and profit performance across all the main formats: convenience stores, supermarkets, GMS, consumer electronics, drugstores, homecentres, department stores, apparel, home and other specialty  formats.
Rankings: 
Market share and size by sector/format
By sales for all retailers with sales over ¥250 billion
By gross and operating margins, split by format and category.


As this is an in-depth insight, the review is split into two parts to make it easier to read.  This is Part I which provides a quick overview of all retailing. Part II, which provides snapshot reviews of each format/sector can be read here.

The Japan Retail Review: Winners and Losers in Japanese Retailing (Part I)

Japan

AOYAMA TRADING Co., Ltd. is a menswear chain store known as Yofuku-no-Aoyama. The Company sells suits, jacket, formal wears, casual wears, shirts, ties, and business shoes.  The Company also operates credit card business.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Aoyama Trading (8219 JP)

Japan Retail Full Review 2020-2021: Some Retail Sectors Outperform in a Pandemic

An in-depth update for investors in Japan's retail and consumer space on Japan's retail sector by retail type as well as a review of the impact of...

Michael Causton

Surge in Calls for Retail Voluntary Redundancies Likely to Continue

Japan's retail industry has been hit by labour shortages in the last 5 years but layoffs in the industry in the last year could end that, at least...

Michael Causton

Aoyama Trading: 400 Redundancies but Aims for Relevance Through Digital and Co-Working

Japan's suit retailers are being hammered by a shrinking working population and more casual styles at work. They continue to try to fight back but...

Michael Causton

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

The following is a complete, in-depth review of the Japanese apparel/fashion sector covering key trends, rankings of the top 100 by sales and top...

Michael Causton

The Japan Retail Review: Winners and Losers in Japanese Retailing (Part I)

At least until the Covid-19 crisis hit Japan in January, the majority of retailers were gearing up to announce yet another really good year of...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)