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>Convenience stores are bouncing back after a difficult 18 months, aided by efforts to find new ways to meet demand for home deliveries.</li>
<li>While conbini are ideally placed to do this, their less flexible business model means that competitors like food delivery companies are making the first moves.</li>
<li>These firms are already setting up dark stores for local deliveries and could grow into a new form of competition for convenience stores and local supermarkets.</li>
</ul>


Convenience stores are bouncing back after a difficult 18 months, aided by efforts to find new ways to meet demand for home deliveries.
While conbini are ideally placed to do this, their less flexible business model means that competitors like food delivery companies are making the first moves.
These firms are already setting up dark stores for local deliveries and could grow into a new form of competition for convenience stores and local supermarkets.


Home Delivery Next Evolution for Japan's Conbini Sector?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>On January 14 (Fri.), I attended the 1QFY8/2022 earnings presentation of Demae-Can (2484), followed by the recent accounting scandal and update the profitability of the Company.</li>
<li>GMV in 1QFY8/2022 slows to grow in QoQ. Also, the take rate in QoQ was flat from 4QFY8/2021, which seems to have risen as much as GMV slightly decreased.</li>
<li>The focus will still be on when the end of competition will bring promotional expenses to an equilibrium level and allow the E-Commerce Model to return to profitability.</li>
</ul>


On January 14 (Fri.), I attended the 1QFY8/2022 earnings presentation of Demae-Can (2484), followed by the recent accounting scandal and update the profitability of the Company.
GMV in 1QFY8/2022 slows to grow in QoQ. Also, the take rate in QoQ was flat from 4QFY8/2021, which seems to have risen as much as GMV slightly decreased.
The focus will still be on when the end of competition will bring promotional expenses to an equilibrium level and allow the E-Commerce Model to return to profitability.


Japan's Governance: Demae-Can (2484) 1QFY8/2022 Briefing

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The new market structure of the Tokyo Stock Exchange (TSE) consisting of Prime and Standard Sections is about to become functional in a few months.</li>
<li>Some companies have already announced their desired Market Sections under this new structure. However, some companies are yet to make such announcements.</li>
<li>In this insight, we take a look at those who are yet to make such announcements to identify attractive TOPIX Inclusion Pre-event candidates. </li>
</ul>


The new market structure of the Tokyo Stock Exchange (TSE) consisting of Prime and Standard Sections is about to become functional in a few months.
Some companies have already announced their desired Market Sections under this new structure. However, some companies are yet to make such announcements.
In this insight, we take a look at those who are yet to make such announcements to identify attractive TOPIX Inclusion Pre-event candidates. 


<p>I would like to add a few things that I left out in my previous article "Equity Finance Update Demae-Can (2484) Vol.2". Regarding the approximately 83 billion yen raised through equity finance, based on the plan in the disclosed information, the fund will be used mainly for marketing expenses, and the remaining 10 billion yen will be used for capital expenditures to enhance systems. The company said, "Even if we invest 40-50 billion yen in marketing expenses this fiscal year, we have 10 billion yen in cash on hand before the capital increase, so we will be able to invest the same amount in marketing expenses next fiscal year as we did this fiscal year, and there is no need for new equity financing. As for the outlook for the current fiscal year, the KPIs for GMV and active users were 330 billion yen (203% YoY) and 12 million users (163% YoY), respectively. As I mentioned in my previous article, after the analyst meeting, we were told that the company was expecting an operating loss of 50-55 billion yen for this fiscal year. After the analyst meeting, our stock price has continued to weaken. One of the reasons for this is that while the company announced that it would increase marketing costs this fiscal year, it did not provide a specific forecast for the convergence of these costs. The company plans to increase the ratio of GMV to advertising expenses, which accounts for the majority of marketing costs, from 9.1% in the previous fiscal year to the mid-10% range in the current fiscal year, but it has set that figure as a medium-term target of 2% or less. I suspect that many investors are concerned about the fact that the timing of the convergence of marketing costs is unclear.</p>

I would like to add a few things that I left out in my previous article "Equity Finance Update Demae-Can (2484) Vol.2". Regarding the approximately 83 billion yen raised through equity finance, based on the plan in the disclosed information, the fund will be used mainly for marketing expenses, and the remaining 10 billion yen will be used for capital expenditures to enhance systems. The company said, "Even if we invest 40-50 billion yen in marketing expenses this fiscal year, we have 10 billion yen in cash on hand before the capital increase, so we will be able to invest the same amount in marketing expenses next fiscal year as we did this fiscal year, and there is no need for new equity financing. As for the outlook for the current fiscal year, the KPIs for GMV and active users were 330 billion yen (203% YoY) and 12 million users (163% YoY), respectively. As I mentioned in my previous article, after the analyst meeting, we were told that the company was expecting an operating loss of 50-55 billion yen for this fiscal year. After the analyst meeting, our stock price has continued to weaken. One of the reasons for this is that while the company announced that it would increase marketing costs this fiscal year, it did not provide a specific forecast for the convergence of these costs. The company plans to increase the ratio of GMV to advertising expenses, which accounts for the majority of marketing costs, from 9.1% in the previous fiscal year to the mid-10% range in the current fiscal year, but it has set that figure as a medium-term target of 2% or less. I suspect that many investors are concerned about the fact that the timing of the convergence of marketing costs is unclear.

Japan's Governance: Equity Finance Update Demae-Can (2484) Vol.3

<p>Yesterday, Thursday, October 14, I attended the analyst meeting of Demae-Can (2484) following the announcement of its full-year financial results, and would like to update my previous article, "Equity Finance Update: Demae-Can (2484). The Company summarized that it had achieved its key KPIs for the previous fiscal year and set KPIs for the current fiscal year as 330 billion yen (203% YoY) in GNV, 12 million active users (163% YoY), and 3.6 times delivery personnel. The company announced that it will post an operating loss of 50-55 billion yen for the current fiscal year. However, it goes without saying that investors are using the current fiscal year's guidance as a basis for evaluating the stock price based on future earnings trends.</p>

Yesterday, Thursday, October 14, I attended the analyst meeting of Demae-Can (2484) following the announcement of its full-year financial results, and would like to update my previous article, "Equity Finance Update: Demae-Can (2484). The Company summarized that it had achieved its key KPIs for the previous fiscal year and set KPIs for the current fiscal year as 330 billion yen (203% YoY) in GNV, 12 million active users (163% YoY), and 3.6 times delivery personnel. The company announced that it will post an operating loss of 50-55 billion yen for the current fiscal year. However, it goes without saying that investors are using the current fiscal year's guidance as a basis for evaluating the stock price based on future earnings trends.

Japan's Governance: Equity Finance Update Demae-Can Vol.2

Japan

Demae-can Co., Ltd. operates websites offering comprehensive delivery services.  The Company's websites allow users to order food, dry cleaning, and repair and recycling services through the Internet.

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Demae-Can Co., Ltd. (2484 JP)

Home Delivery Next Evolution for Japan's Conbini Sector?

Food delivery is evolving fast in Japan but not just for takeaways. Local delivery of essentials by food delivery firms is becoming a new source of...

Michael Causton

Japan's Governance: Demae-Can (2484) 1QFY8/2022 Briefing

The focus is on when the end of competition will bring promotional expenses to an equilibrium level and allow E-Commerce Model to return to profit....

Metrical Inc

TOPIX Inclusions: Who Is READY? 4.0

In this insight, we take a look at potential pre-event candidates who could move to the First Section of the Tokyo Stock Exchange in the next few...

Janaghan Jeyakumar, CFA

Japan's Governance: Equity Finance Update Demae-Can (2484) Vol.3

The priority is to secure orders and delivery personnel to increase the # of merchants. As a measure, Deamae-Can raises marketing costs and...

Metrical Inc

Japan's Governance: Equity Finance Update Demae-Can Vol.2

the company may have had no other choice but to invest more marketing money through equity financing to survive the competition, but it seems to be...

Metrical Inc

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