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 stellar growth in 2020, the e-commerce market grew much slower in 2021 but still outpaced all other channels and set the second highest increase in four years.</li>
<li>At this rate, by 2025 e-commerce should become the largest retail channel, overtaking chain stores.</li>
<li>Japan’s easy access to retail stores means shops aren’t about to disappear anytime soon and Japan will become a model for omnichannel retailing with stores still playing a key role.</li>
</ul>


After stellar growth in 2020, the e-commerce market grew much slower in 2021 but still outpaced all other channels and set the second highest increase in four years.
At this rate, by 2025 e-commerce should become the largest retail channel, overtaking chain stores.
Japan’s easy access to retail stores means shops aren’t about to disappear anytime soon and Japan will become a model for omnichannel retailing with stores still playing a key role.


Japanese E-Commerce Big Review: Still Taking Market Share as Omnichannel Becomes the Norm

<ul>
<li>Consumer electronics retailers and producers benefited a lot from the pandemic, supplying customers stuck at home with kit for work and play. </li>
<li>The Olympics also encouraged people to update their TVs and entertainment systems.</li>
<li>Now, sales are falling to pre-2020 levels due to saturation. Inflationary pressures also mean more people are turning to second-hand options or simply not replacing old appliances at all.</li>
</ul>


Consumer electronics retailers and producers benefited a lot from the pandemic, supplying customers stuck at home with kit for work and play. 
The Olympics also encouraged people to update their TVs and entertainment systems.
Now, sales are falling to pre-2020 levels due to saturation. Inflationary pressures also mean more people are turning to second-hand options or simply not replacing old appliances at all.


Japan's Consumer Electronics Retailers Face Tough Outlook

The following is an in-depth review of Japanese retail in the last 18 months covering all the main formats and categories, providing a quick way to see an overview of all the key trends and winners and losers in Japanese retailing now and going forward.FY2020 was an anomaly and one that businesses everywhere will want to forget and never repeat. There was more than enough pain among Japan’s top retailers last year, but equally some formats did surprisingly well given the circumstances.For most, work-from-home was the single most important factor in determining a chain’s fortunes. City-centre stores and shopping centres offering mostly discretionary shopping have been hit hard, as have convenience stores.But those chains selling essentials, healthcare, electronics and, most importantly, food, all saw their fortunes improve. The pandemic has also revealed the strong, dynamic players and exposed the weaker ones. Oh, and everyone needs to be online.

The following is an in-depth review of Japanese retail in the last 18 months covering all the main formats and categories, providing a quick way to see an overview of all the key trends and winners and losers in Japanese retailing now and going forward.FY2020 was an anomaly and one that businesses everywhere will want to forget and never repeat. There was more than enough pain among Japan’s top retailers last year, but equally some formats did surprisingly well given the circumstances.For most, work-from-home was the single most important factor in determining a chain’s fortunes. City-centre stores and shopping centres offering mostly discretionary shopping have been hit hard, as have convenience stores.But those chains selling essentials, healthcare, electronics and, most importantly, food, all saw their fortunes improve. The pandemic has also revealed the strong, dynamic players and exposed the weaker ones. Oh, and everyone needs to be online.

The Polarising Pandemic in Japanese Retail

Penetration (the share of total retail sales) of e-commerce in Japan increased sharply in the past few years but still varies significantly by category.
The following insight looks at each consumer product category and how penetration has grown in the last few years and provides estimates of trends to 2025.
Even with these relatively cautious rates of growth, penetration rates are set to expand significantly in apparel, household &amp; interior, books &amp; media, and stationery but only retailers with form in successful online marketing will benefit from this with major negative implications for the many retailers that have failed to tackle the threat from online. This includes even major retailers like <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> which lags behind <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><a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a><a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">  and </a><a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> in the race to lead the battle for leadership in online food retailing.

Penetration (the share of total retail sales) of e-commerce in Japan increased sharply in the past few years but still varies significantly by category.
The following insight looks at each consumer product category and how penetration has grown in the last few years and provides estimates of trends to 2025.
Even with these relatively cautious rates of growth, penetration rates are set to expand significantly in apparel, household &amp; interior, books &amp; media, and stationery but only retailers with form in successful online marketing will benefit from this with major negative implications for the many retailers that have failed to tackle the threat from online. This includes even major retailers like Seven &amp; I Holdings (3382 JP) which lags behind Aeon Co Ltd (8267 JP), Rakuten Inc (4755 JP)  and Amazon.com Inc (AMZN US) in the race to lead the battle for leadership in online food retailing.

E-Commerce Penetration Increasing in All Retail Categories

The latest survey of Japanese e-commerce by the Ministry of Trade, Economy &amp; Industry (METI) is now out showing that the e-commerce channel continued to grow strongly in FY2019. The current health crisis is further fuelling the speed of growth beyond everyone’s expectations.Online sales of goods alone rose to over ¥10 trillion and total e-commerce transactions hit ¥19.3 trillion.Apparel and food remain the two largest categories online, but publishing saw the biggest growth in 2019 as suppliers finally accepted the inevitable consumer shift to electronic versions.At 6.2%, EC penetration in Japan remains much lower than either the USA or UK, where the channel reportedly accounts for 9.9% and 20.7% of retail respectively. This is in part because Japan has as many stores as the US, a market with three times the population, making stores that much more accessible. The current crisis however has accelerated the shift to online, a worry for physical retailers of all kinds.EC remains on track to break 10% of merchandise sales by 2025 at the latest and, especially with the shift online over the past nine months, could even hit that target in the next three years.

The latest survey of Japanese e-commerce by the Ministry of Trade, Economy &amp; Industry (METI) is now out showing that the e-commerce channel continued to grow strongly in FY2019. The current health crisis is further fuelling the speed of growth beyond everyone’s expectations.Online sales of goods alone rose to over ¥10 trillion and total e-commerce transactions hit ¥19.3 trillion.Apparel and food remain the two largest categories online, but publishing saw the biggest growth in 2019 as suppliers finally accepted the inevitable consumer shift to electronic versions.At 6.2%, EC penetration in Japan remains much lower than either the USA or UK, where the channel reportedly accounts for 9.9% and 20.7% of retail respectively. This is in part because Japan has as many stores as the US, a market with three times the population, making stores that much more accessible. The current crisis however has accelerated the shift to online, a worry for physical retailers of all kinds.EC remains on track to break 10% of merchandise sales by 2025 at the latest and, especially with the shift online over the past nine months, could even hit that target in the next three years.

Japan E-Commerce Breaks ¥10 Trillion, Set for Major Boost This Year

Japan

Joshin Denki Co., Ltd. operates a chain store specialized in household appliances and computers.  The Company also sells its products through catalog shopping and on-line shopping.  Joshin Denki operates its own stores and also franchise stores.

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Joshin Denki (8173 JP)

Japan's Consumer Electronics Retailers Face Tough Outlook

Don't expect much growth from Japan's consumer electronics retailers. With market saturation and waning demand, there is trouble ahead and possibly...

Michael Causton

The Polarising Pandemic in Japanese Retail

A complete review of the Japanese retail sector in the last 18 months, format by format, category by category, providing key trends and winners &...

Michael Causton

E-Commerce Penetration Increasing in All Retail Categories

A review of online market share in all key consumer categories in Japan, with forecasts for e-commerce market share to 2025 –the sharp growth will...

Michael Causton

Japan E-Commerce Breaks ¥10 Trillion, Set for Major Boost This Year

The e-commerce channel continued to grow strongly in 2019 and the current health crisis is further fuelling the speed of growth beyond everyone’s...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japanese E-Commerce Big Review: Still Taking Market Share as Omnichannel Becomes the Norm

Japanese e-commerce continues to take more share from other retail channels but Japan is developing a sophisticated omnichannel model where stores...

Michael Causton

Japan's Consumer Electronics Retailers Face Tough Outlook

Don't expect much growth from Japan's consumer electronics retailers. With market saturation and waning demand, there is trouble ahead and possibly...

Michael Causton

The Polarising Pandemic in Japanese Retail

A complete review of the Japanese retail sector in the last 18 months, format by format, category by category, providing key trends and winners &...

Michael Causton

E-Commerce Penetration Increasing in All Retail Categories

A review of online market share in all key consumer categories in Japan, with forecasts for e-commerce market share to 2025 –the sharp growth will...

Michael Causton

Japan E-Commerce Breaks ¥10 Trillion, Set for Major Boost This Year

The e-commerce channel continued to grow strongly in 2019 and the current health crisis is further fuelling the speed of growth beyond everyone’s...

Michael Causton