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>After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. </li>
<li>Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.</li>
<li>This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. </li>
</ul>


After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. 
Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.
This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. 


Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Equity Bottom-Up

<ul>
<li>The big parcel couriers, Yamato Transport and Sagawa, announced price increases averaging around 10% last month. </li>
<li>Unlike the last big hike in 2017, the latest round is in response to multiple external pressures such as increased costs and a growing labour shortage.</li>
<li>But the constant growth in e-commerce demand remains the most significant factor.</li>
</ul>


The big parcel couriers, Yamato Transport and Sagawa, announced price increases averaging around 10% last month. 
Unlike the last big hike in 2017, the latest round is in response to multiple external pressures such as increased costs and a growing labour shortage.
But the constant growth in e-commerce demand remains the most significant factor.


Yamato and Sagawa Increase Prices as Delivery Volume Increases

<ul>
<li>E-Commerce sales of physical goods in Japan jumped nearly 9% in FY2021.</li>
<li>Although this was well down on the pandemic-induced surge the year before, it is still higher than in any year since 2016.</li>
<li>This leaves the sector well on track to become the largest single format channel. Total sales finished above ¥20.6 trillion.</li>
</ul>


E-Commerce sales of physical goods in Japan jumped nearly 9% in FY2021.
Although this was well down on the pandemic-induced surge the year before, it is still higher than in any year since 2016.
This leaves the sector well on track to become the largest single format channel. Total sales finished above ¥20.6 trillion.


E-Commerce in Japan 2021-22: Another High Growth Year

<ul>
<li>Qoo10 has become one of the most popular Japanese malls among young women for all things Korean, particularly cosmetics and fashion.</li>
<li>The online mall now wants to exploit this by creating a new dedicated fashion mall with better promotional opportunities for merchants of all nationalities.</li>
<li>This should bring more competition to <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a> and <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>.</li>
</ul>


Qoo10 has become one of the most popular Japanese malls among young women for all things Korean, particularly cosmetics and fashion.
The online mall now wants to exploit this by creating a new dedicated fashion mall with better promotional opportunities for merchants of all nationalities.
This should bring more competition to ZOZO Inc (3092 JP) and Rakuten Inc (4755 JP).


Qoo10 Japan to Launch ¥10 Billion Fashion Mall Rival to Zozo

<ul>
<li>Zozo opens its first popup physical store and starts a new platform service to make it easy for retailers’ shop staff to sell and communicate with Zozo customers.</li>
<li>Other big platforms are following suit, including arch rival Rakuten as the online fashion space sees intensifying competition and platforms seek to tie merchants closer to them.</li>
<li>Zozo is also launching a new measuring service shortly, this time for hands, tying with Bulgari no less, demonstrating again its ability to bind consumers and merchants to the platform.</li>
</ul>


Zozo opens its first popup physical store and starts a new platform service to make it easy for retailers’ shop staff to sell and communicate with Zozo customers.
Other big platforms are following suit, including arch rival Rakuten as the online fashion space sees intensifying competition and platforms seek to tie merchants closer to them.
Zozo is also launching a new measuring service shortly, this time for hands, tying with Bulgari no less, demonstrating again its ability to bind consumers and merchants to the platform.


Zozo Gets Physical: Launches OMO Platform, Opens First Pop-Up Store

Japan

JADE GROUP Inc operates a mail order site for providing shoes. The company was formerly known as LOCONDO, Inc. and changed its name to JADE GROUP, Inc in June 2023. The company was incorporated in 2010 and is based in Tokyo, Japan.

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Jade Group (3558 JP)

Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan's fashion e-commerce sector offers major growth stories among both online malls and physical retailers making a successful transition to...

Michael Causton

Yamato and Sagawa Increase Prices as Delivery Volume Increases

Prices for e-commerce deliveries are on the rise, at a time when inflation is hurting trade, but demand is likely to mean further pressures on...

Michael Causton

E-Commerce in Japan 2021-22: Another High Growth Year

E-commerce sales grew strongly in 2021-22 despite the surge in 2020 showing the vigour of the channel – but physical stores will always be more...

Michael Causton

Qoo10 Japan to Launch ¥10 Billion Fashion Mall Rival to Zozo

Qoo10 is largely unknown outside Japan but has grown fast and is becoming more of a competitor to Zozo and Rakuten, particularly in the key market...

Michael Causton

Zozo Gets Physical: Launches OMO Platform, Opens First Pop-Up Store

Zozo remains a solid bet. Yes the big surge to online during Covid will wane but Zozo is demonstrating renewed capacity to bind merchants and...

Michael Causton

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52-week Range

Market Cap (USDm)

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