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>With three food deliveries a day, convenience stores need to optimise stocks to sell unsold items, most of which have only been on shelves for a few hours.</li>
<li>Most chains deal with this problem manually by offloading the burden of optimal ordering and the cost of unsold stock onto franchisees,</li>
<li>Lawson has a new AI system that can automatically apply markdowns on any item without the need for skilled labour in the store. Gross margins rose 1% in test stores.</li>
</ul>


With three food deliveries a day, convenience stores need to optimise stocks to sell unsold items, most of which have only been on shelves for a few hours.
Most chains deal with this problem manually by offloading the burden of optimal ordering and the cost of unsold stock onto franchisees,
Lawson has a new AI system that can automatically apply markdowns on any item without the need for skilled labour in the store. Gross margins rose 1% in test stores.


Thematic (Sector/Industry)

<ul>
<li>Major wholesalers in food, pharmaceuticals and books continue to prosper due to their role in both serving and protecting fragmented distribution channels.</li>
<li>Profits returned last year as clients picked themselves up after Covid, but as inflation sets in, these middlemen are being squeezed by both manufacturers and retailers and profits may slump.</li>
<li>They now need to offer an ever increasing array of value-added services to continue to grow and not all have the capability. More M&amp;A may be on the cards.</li>
</ul>


Major wholesalers in food, pharmaceuticals and books continue to prosper due to their role in both serving and protecting fragmented distribution channels.
Profits returned last year as clients picked themselves up after Covid, but as inflation sets in, these middlemen are being squeezed by both manufacturers and retailers and profits may slump.
They now need to offer an ever increasing array of value-added services to continue to grow and not all have the capability. More M&amp;A may be on the cards.


Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

<ul>
<li>Convenience stores in Japan aren't known for their fashion prowess although most sell the odd sock and underwear.</li>
<li>
<a href="https://www.smartkarma.com/entities/familymart-co-ltd" target="_blank" data-smartkarma-citation="entities:320:1" rel="noopener">FamilyMart Co Ltd (8028 JP)</a> sees an opportunity to both expand sales categories and increase margins with higher value fashion basics supplied by its new parent <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP).</a>
</li>
<li>Itochu is a leading fashion supplier and has created a hit product range for Familymart as well as another in cosmetics.</li>
</ul>


Convenience stores in Japan aren't known for their fashion prowess although most sell the odd sock and underwear.

FamilyMart Co Ltd (8028 JP) sees an opportunity to both expand sales categories and increase margins with higher value fashion basics supplied by its new parent Itochu Corp (8001 JP).

Itochu is a leading fashion supplier and has created a hit product range for Familymart as well as another in cosmetics.


Familymart to Double Space for Hit Clothing Range

<ul>
<li>The convenience store sector returned to growth last year but the outlook remains uncertain.</li>
<li>The big 3 chains still have a way to go to adjust to a new era of slower growth and the need for new ideas.</li>
<li>Even with new ideas on merchandising and services, the CVS sector remains saturated and the only real growth is overseas or in other formats.</li>
</ul>


The convenience store sector returned to growth last year but the outlook remains uncertain.
The big 3 chains still have a way to go to adjust to a new era of slower growth and the need for new ideas.
Even with new ideas on merchandising and services, the CVS sector remains saturated and the only real growth is overseas or in other formats.


Top Japanese Convenience Store Chains Rebound in FY2021

<ul>
<li>Poplar is one of the few remaining small CVS chains in Japan and is struggling.</li>
<li>It is now trying a new format of mini stores to take merchandise to the customer.</li>
<li>This may not be enough and it will likely cede more of its stores to Lawson.</li>
</ul>


Poplar is one of the few remaining small CVS chains in Japan and is struggling.
It is now trying a new format of mini stores to take merchandise to the customer.
This may not be enough and it will likely cede more of its stores to Lawson.


Poplar Launches Unmanned Stores but Independence Still Under Threat

Japan

FamilyMart Co., Ltd. operates convenience store chains. The Company provides rice balls, hot snacks, stews, beverages, and other products. FamilyMart conducts businesses in China, Taiwan, South Korea, Thailand, and other countries and regions.

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FamilyMart Co Ltd (8028 JP)

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The convenience store sector may be saturated but more efficiencies should lead to higher margins. Lawson is leading the way with a new AI-based...

Michael Causton

Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

Wholesalers in Japan had a good year last year. The biggest firms like Medipal may prosper but there are challenges for the sector which could...

Michael Causton

Familymart to Double Space for Hit Clothing Range

Familymart is seeing a revival in merchandising since the takeover by Itochu. The latter has experience in sourcing fashion, cosmetics, home as...

Michael Causton

Top Japanese Convenience Store Chains Rebound in FY2021

Japanese convenience store chains posted higher sales in 2021 after a tough 2020 but the outlook remains uncertain given saturation and new forms...

Michael Causton

Poplar Launches Unmanned Stores but Independence Still Under Threat

Poplar has been struggling to remain independent and has already ceded 30% of its chain to Lawson. With losses mounting, it is trying new unmanned...

Michael Causton

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