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

The Japanese suits market is in free fall, with average expenditure per household down from a peak of ¥19,000 to just ¥1,300 last year. The big four suit retailers are reeling, slashing staff, stores and sales space and investing in new businesses outside of the suits market. While suits are in decline, workwear suits starting at ¥4,800 are taking off.

The Japanese suits market is in free fall, with average expenditure per household down from a peak of ¥19,000 to just ¥1,300 last year. The big four suit retailers are reeling, slashing staff, stores and sales space and investing in new businesses outside of the suits market. While suits are in decline, workwear suits starting at ¥4,800 are taking off.

The Suit Comes Off: Japan Suits Retail Market Collapses

Retailers selling business clothing are in a crisis. Teleworking has meant little incentive to update work wardrobes and given that March is usually the top month for suit sales, the Covid crisis could not have come at a worst time.
Sector leader, <a href="https://www.smartkarma.com/entities/aoyama-trading-co-ltd" target="_blank" data-smartkarma-citation="entities:4544:1" rel="noopener">Aoyama Trading (8219 JP),</a> is slashing staff while hoping a shift to digital will help, but it is also converting stores to co-working spaces for people working from home – although they are unlikely to come wearing a suit.

Retailers selling business clothing are in a crisis. Teleworking has meant little incentive to update work wardrobes and given that March is usually the top month for suit sales, the Covid crisis could not have come at a worst time.
Sector leader, Aoyama Trading (8219 JP), is slashing staff while hoping a shift to digital will help, but it is also converting stores to co-working spaces for people working from home – although they are unlikely to come wearing a suit.

Aoyama Trading: 400 Redundancies but Aims for Relevance Through Digital and Co-Working

Thematic (Sector/Industry)

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

Event-Driven

A dowdy suits retailer and a celebrity-endorsed bag and accessories brand with more than a hint of tackiness seemed like an odd pairing when the former bought a stake in the latter last year, but now the old man in the suit has wedded the young fashionista and hopes the marriage will be much more than the sum of its parts.

A dowdy suits retailer and a celebrity-endorsed bag and accessories brand with more than a hint of tackiness seemed like an odd pairing when the former bought a stake in the latter last year, but now the old man in the suit has wedded the young fashionista and hopes the marriage will be much more than the sum of its parts.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Last Week in Event SPACE: WorleyParsons, UNIZO, Adani Gas, ERM, Dah Chong, Toshiba, China Everbright

Japan

KONAKA CO., LTD. operates a men's suits store chain based in Yokohama. The Company has its own brand name JOHN PEARSE.  The Company also operates jeans and casual wear store chain named BALBO.

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Konaka Co Ltd (7494 JP)

The Suit Comes Off: Japan Suits Retail Market Collapses

The Japanese suits market was already in serious decline before the pandemic but since then the suits retailers have collapsed. Worse is to come.

Michael Causton

Aoyama Trading: 400 Redundancies but Aims for Relevance Through Digital and Co-Working

Japan's suit retailers are being hammered by a shrinking working population and more casual styles at work. They continue to try to fight back but...

Michael Causton

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

The following is a complete, in-depth review of the Japanese apparel/fashion sector covering key trends, rankings of the top 100 by sales and top...

Michael Causton

Konaka Absorbs Samantha Thavasa

A dowdy suits retailer and a celebrity-endorsed bag and accessories brand with more than a hint of tackiness seemed like an odd pairing when the...

Michael Causton

Last Week in Event SPACE: WorleyParsons, UNIZO, Adani Gas, ERM, Dah Chong, Toshiba, China Everbright

Last Week in Event SPACE ... WorleyParsons Ltd (WOR AU) petitions FIRB to decide whether Dar Group is abusing the creeper rule. The Unizo...

David Blennerhassett

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