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)

<ul>
<li>The following is an in-depth review of the Japanese retail sector in 2021-22 and is designed to provide a complete overview for any investor in Japanese retail/consumer markets.</li>
<li>FY2021-22 proved a rebound year for retailers at the sector level. But on a company by company basis, there has been radical divergence between the best and the rest. </li>
<li>We look at the reasons for this divergence and the implications for Japanese retail and consumer firms in the years ahead.</li>
</ul>


The following is an in-depth review of the Japanese retail sector in 2021-22 and is designed to provide a complete overview for any investor in Japanese retail/consumer markets.
FY2021-22 proved a rebound year for retailers at the sector level. But on a company by company basis, there has been radical divergence between the best and the rest. 
We look at the reasons for this divergence and the implications for Japanese retail and consumer firms in the years ahead.


Japanese Retailing 2021-22: What's Really Going on and What's Next?

Equity Capital Markets

<ul>
<li>A lot has been said and written about Trial's IPO but much of this relates to pass performance and comparing it to supermarkets.</li>
<li>As the company's latest Trial Go store in Fukuoka shows,  Trial is a tech-based retailer and a true discounter, and discounting is where the growth is in Japanese FMCG.</li>
<li>Trial thinks its technology can reduce costs significantly, improving margins while allowing it to roll out more small format stores to compete with convenience stores. It may be right.</li>
</ul>


A lot has been said and written about Trial's IPO but much of this relates to pass performance and comparing it to supermarkets.
As the company's latest Trial Go store in Fukuoka shows,  Trial is a tech-based retailer and a true discounter, and discounting is where the growth is in Japanese FMCG.
Trial thinks its technology can reduce costs significantly, improving margins while allowing it to roll out more small format stores to compete with convenience stores. It may be right.


Trial IPO to Drive Tech Innovation Targeting Convenience Stores

<ul>
<li>OK Super opened its first store in Kansai in November with a second already due in January and at least one more by the end of 2025</li>
<li>But then it will open 10 stores a year in the region aiming to take the lead in Kansai just as it did in Tokyo/Kanto – bigger even than Aeon.</li>
<li>More than 300 people queued to get into the supermarket and OK’s EDLP strategy is certain to prove a hit with customers in the region. Competitors will be hit hard.</li>
</ul>


OK Super opened its first store in Kansai in November with a second already due in January and at least one more by the end of 2025
But then it will open 10 stores a year in the region aiming to take the lead in Kansai just as it did in Tokyo/Kanto – bigger even than Aeon.
More than 300 people queued to get into the supermarket and OK’s EDLP strategy is certain to prove a hit with customers in the region. Competitors will be hit hard.


OK Super Fast Rollout in Kansai a Threat to Kansai Super and Others

Equity Bottom-Up

<ul>
<li>Post-Covid, <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> began to deliver real profit growth but 1H2024 showed it cannot rest on its laurels. </li>
<li>While it’ll be happy not to be worrying about a takeover bid like its rival, Seven &amp; I, it still doesn’t have a profit machine similar to Seven Eleven Japan.</li>
<li>Welcia helps and so does expanding e-commerce but there is still plenty of room for cutting overhead.</li>
</ul>


Post-Covid, Aeon Co Ltd (8267 JP) began to deliver real profit growth but 1H2024 showed it cannot rest on its laurels. 
While it’ll be happy not to be worrying about a takeover bid like its rival, Seven &amp; I, it still doesn’t have a profit machine similar to Seven Eleven Japan.
Welcia helps and so does expanding e-commerce but there is still plenty of room for cutting overhead.


Global Healthcare Analyst

Tina Banerjee

<ul>
<li>China's NMPA aims to redouble efforts to facilitate research and market registration of homegrown innovative drugs, while speeding up the introduction of novel foreign drugs to the domestic market.</li>
<li>Since the BoJ interest rate hike in July, the Yen appreciated ~5% to ¥142.74. Considerable amount of appreciation may be dilutive on the overall performance of export-oriented healthcare industry.</li>
<li>
<a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a> has offered remedial measure to alleviate preliminary anti-competition concerns raised by ACCC in relation to its proposed merger with CWG.</li>
</ul>


China's NMPA aims to redouble efforts to facilitate research and market registration of homegrown innovative drugs, while speeding up the introduction of novel foreign drugs to the domestic market.
Since the BoJ interest rate hike in July, the Yen appreciated ~5% to ¥142.74. Considerable amount of appreciation may be dilutive on the overall performance of export-oriented healthcare industry.

Sigma Healthcare (SIG AU) has offered remedial measure to alleviate preliminary anti-competition concerns raised by ACCC in relation to its proposed merger with CWG.


APAC Healthcare Weekly (Oct 6)-Strong Yen Impact, Sigma's Remedial Measures, Mesoblast's Fund Raise

Japan

COSMOS Pharmaceutical Corporation operates drug stores based in Kyushu. The Company sells daily necessities such as drug medicines, foodstuffs, and alcoholic beverages.

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

Cosmos Pharmaceutical (3349 JP)

Japanese Retailing 2021-22: What's Really Going on and What's Next?

There is increasing divergence between the winners and losers in Japanese retailing and the following in-depth review looks at performance in the...

Michael Causton

Trial IPO to Drive Tech Innovation Targeting Convenience Stores

Trial failed to complete an IPO and is now going again and the same fundamentals outlined in this insight apply today as it is a long-term viewpoint.

Michael Causton

OK Super Fast Rollout in Kansai a Threat to Kansai Super and Others

OK Super has just begun expanding in Kansai, with plans to open multiple stores each year, drawing in customers with its EDLP strategy. OK Super...

Michael Causton

Aeon (8267JP): Sales Up, Profit Down

Post-Covid, Aeon Co Ltd has seen significant profit growth but must address profit challenges and overhead costs to rival Seven & I's profit...

Michael Causton

APAC Healthcare Weekly (Oct 6)-Strong Yen Impact, Sigma's Remedial Measures, Mesoblast's Fund Raise

BoJ interest rate hike leads to Yen appreciation, potentially impacting export-oriented healthcare industry. Sigma Healthcare addresses anti...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japanese Retailing 2021-22: What's Really Going on and What's Next?

There is increasing divergence between the winners and losers in Japanese retailing and the following in-depth review looks at performance in the...

Michael Causton

Trial IPO to Drive Tech Innovation Targeting Convenience Stores

Trial failed to complete an IPO and is now going again and the same fundamentals outlined in this insight apply today as it is a long-term viewpoint.

Michael Causton

OK Super Fast Rollout in Kansai a Threat to Kansai Super and Others

​OK Super has just begun expanding in Kansai, with plans to open multiple stores each year, drawing in customers with its EDLP strategy. OK Super...

Michael Causton

Aeon (8267JP): Sales Up, Profit Down

​Post-Covid, Aeon Co Ltd has seen significant profit growth but must address profit challenges and overhead costs to rival Seven & I's profit...

Michael Causton

APAC Healthcare Weekly (Oct 6)-Strong Yen Impact, Sigma's Remedial Measures, Mesoblast's Fund Raise

BoJ interest rate hike leads to Yen appreciation, potentially impacting export-oriented healthcare industry. Sigma Healthcare addresses anti...

Tina Banerjee

OK Super has just begun expanding in Kansai, with plans to open multiple stores each year, drawing in customers with its EDLP strategy. OK Super...

Post-Covid, Aeon Co Ltd has seen significant profit growth but must address profit challenges and overhead costs to rival Seven & I's profit...