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>With energy costs still rising and ongoing supply-chain issues exacerbated by the re-emergence of Covid problems in China, Japanese consumers suddenly face the prospect of genuine price inflation.</li>
<li>How will they respond? Some retailers are trying to resist higher prices at the expense of profits and others have no choice but to raise prices.</li>
<li>We look at the wholesale, retail and consumer response to inflation and which retailers stand to benefit or lose from inflation.</li>
</ul>


With energy costs still rising and ongoing supply-chain issues exacerbated by the re-emergence of Covid problems in China, Japanese consumers suddenly face the prospect of genuine price inflation.
How will they respond? Some retailers are trying to resist higher prices at the expense of profits and others have no choice but to raise prices.
We look at the wholesale, retail and consumer response to inflation and which retailers stand to benefit or lose from inflation.


Widespread Price Rises at Japanese Retail and Wholesale

<ul>
<li>The latest figures show that Japanese incomes fell for the first time in five years in 2021. </li>
<li>But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth</li>
<li>We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.</li>
</ul>


The latest figures show that Japanese incomes fell for the first time in five years in 2021. 
But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth
We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.


Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

<ul>
<li>Japanese are developing a growing love for frozen foods, creating new opportunities for food brands and retailers.  </li>
<li>Frozen foods were long overlooked within the supply chain because of a traditional emphasis on fresh foods but frozen </li>
<li>As supply has increased, consumer demand has grown to match and now, with the growth of e-commerce and home delivery, frozen foods offer key advantages to both consumers and retailers.</li>
</ul>


Japanese are developing a growing love for frozen foods, creating new opportunities for food brands and retailers.  
Frozen foods were long overlooked within the supply chain because of a traditional emphasis on fresh foods but frozen 
As supply has increased, consumer demand has grown to match and now, with the growth of e-commerce and home delivery, frozen foods offer key advantages to both consumers and retailers.


Equity Bottom-Up

<ul>
<li>The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.</li>
<li>The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.</li>
<li>As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.</li>
</ul>


The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.
The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.
As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.


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.

<p>In the previous article, "Japan's Governance: Founder Family Ownership / Case of Drugstore Industry," I examined the negative correlation between the diversification of the founder family's ownership and the decline in the percentage of ownership in value creation indicators such as ROE, ROA, and Tobin's Q. The drugstore industry was chosen as a case study. The reason for choosing the drugstore industry as a case study is that more than 20 years have passed since the companys' inception in the 1990s, and many major drugstore chains are now at a point where the founders are stepping down from the management line and handing over management to their successors. This is because the competition in the industry is becoming more intensified as the founders' shareholdings become more diversified, and management decisions are becoming more critical for the survival of the industry as it approaches the stage of deciding who will win. In this article, I would like to focus on one company in the industry whose founder is at the front line of management, Genky DrugStores (9267). I will focus on Genky DrugStores (9267) because of its unique management strategy.</p>

In the previous article, "Japan's Governance: Founder Family Ownership / Case of Drugstore Industry," I examined the negative correlation between the diversification of the founder family's ownership and the decline in the percentage of ownership in value creation indicators such as ROE, ROA, and Tobin's Q. The drugstore industry was chosen as a case study. The reason for choosing the drugstore industry as a case study is that more than 20 years have passed since the companys' inception in the 1990s, and many major drugstore chains are now at a point where the founders are stepping down from the management line and handing over management to their successors. This is because the competition in the industry is becoming more intensified as the founders' shareholdings become more diversified, and management decisions are becoming more critical for the survival of the industry as it approaches the stage of deciding who will win. In this article, I would like to focus on one company in the industry whose founder is at the front line of management, Genky DrugStores (9267). I will focus on Genky DrugStores (9267) because of its unique management strategy.

Japan's Governance: Founder Family Ownership / Case of Drugstore Industry (2)

Japan

Genky DrugStores Co., Ltd. operates drug stores. The Company sells prescription drugs and medications. Genky DrugStores provides its services in Japan.

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

Genky DrugStores Co Ltd (9267 JP)

Widespread Price Rises at Japanese Retail and Wholesale

Japan is finally getting inflation after a decade of government failed efforts. We examine the wholesale, retail and consumer response to evaluate...

Michael Causton

Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

Japanese spent more on homes and less on clothes in the last two years but they also added to their savings. This insight analyses the key...

Michael Causton

Japan's New Food Boom: Frozen Food

Frozen food sales have boomed during the pandemic but the new enthusiasm for all things frozen is a long-term trend and some retailers and...

Michael Causton

Matsukiyo Cocokara: Together at Last

MatsukiyoCocokara may top the drugstore ranking post-merger but Welcia and Tsuruha have grown much faster and may take the lead again soon given...

Michael Causton

Japan's Governance: Founder Family Ownership / Case of Drugstore Industry (2)

I would like to focus on one company in the industry whose founder is at the front line of management, Genky DrugStores (9267) because of its...

Metrical Inc

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)