Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>The Nikkei was down -3.4% over the past week (-4.3% YTD); the yen was flat at ¥142/$ (-24.1% YTD)</li>
<li>Shares of travel and tourism related companies advanced on hopes for a rebound in inbound tourism as Japan aims to ease travel restrictions in October</li>
<li>Shares of IHI slumped 9% in the week. We are interested in the energy segment that is geared to nuclear re-starts and longer-term, ammonia. </li>
</ul>


The Nikkei was down -3.4% over the past week (-4.3% YTD); the yen was flat at ¥142/$ (-24.1% YTD)
Shares of travel and tourism related companies advanced on hopes for a rebound in inbound tourism as Japan aims to ease travel restrictions in October
Shares of IHI slumped 9% in the week. We are interested in the energy segment that is geared to nuclear re-starts and longer-term, ammonia. 


<ul>
<li>Japan's government has been more reluctant to open its borders than counterparts in the rest of the world. </li>
<li>Before COVID, Japan welcomed around 31m tourists per annum. The latest cap sets the limit at 18m and drops the requirement for a negative COVID test. </li>
<li>We believe these moves will have a significant positive impact on the retail sector and highlight 3 key beneficiaries</li>
</ul>


Japan's government has been more reluctant to open its borders than counterparts in the rest of the world. 
Before COVID, Japan welcomed around 31m tourists per annum. The latest cap sets the limit at 18m and drops the requirement for a negative COVID test. 
We believe these moves will have a significant positive impact on the retail sector and highlight 3 key beneficiaries


Japan Tourism | 3 Stocks to Buy for Open Borders

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. 

<ul>
<li>As outlined in an overview on Japanese drugstores, the sector has outperformed all retail formats and grown 30% since 2015.</li>
<li>The sector continues to consolidate too, with greater share for a smaller number of leading firms.</li>
<li>This is being driven by organic expansion in and outside drugstores as well as M&amp;A, with a lot more of both to come.</li>
</ul>


As outlined in an overview on Japanese drugstores, the sector has outperformed all retail formats and grown 30% since 2015.
The sector continues to consolidate too, with greater share for a smaller number of leading firms.
This is being driven by organic expansion in and outside drugstores as well as M&amp;A, with a lot more of both to come.


<ul>
<li>The drugstore sector is now 30% larger than it was in 2015, the fastest growth of any retail channel other than e-commerce. </li>
<li>In 2020 and 2021 that growth continued, with only some minor signs of slowing after the boost that many chains enjoyed at the beginning of the pandemic. </li>
<li>Expansion into food means that drugstores are fast becoming competitors to other retailers and, by 2025, the sector could even break ¥10 trillion, matching the size of convenience stores.</li>
</ul>


The drugstore sector is now 30% larger than it was in 2015, the fastest growth of any retail channel other than e-commerce. 
In 2020 and 2021 that growth continued, with only some minor signs of slowing after the boost that many chains enjoyed at the beginning of the pandemic. 
Expansion into food means that drugstores are fast becoming competitors to other retailers and, by 2025, the sector could even break ¥10 trillion, matching the size of convenience stores.


Japanese Drugstores: The Best Retail Bet Japan Has

Equity Bottom-Up

<ul>
<li>Ancient proverbs dictate the pace of policy change in Japan. But, the first step has been taken </li>
<li>Investors should be watching for further relaxation of inbound tourist restrictions, particularly on the Chinese market </li>
<li>Out top pick on this thematic is <a href="https://www.smartkarma.com/entities/matsukiyococokara-co" target="_blank" data-smartkarma-citation="entities:2259:1" rel="noopener">MatsukiyoCocokara (3088 JP)</a> . Tourists used to account for over 10% of sales, but there is more...</li>
</ul>


Ancient proverbs dictate the pace of policy change in Japan. But, the first step has been taken 
Investors should be watching for further relaxation of inbound tourist restrictions, particularly on the Chinese market 
Out top pick on this thematic is MatsukiyoCocokara (3088 JP) . Tourists used to account for over 10% of sales, but there is more...


Japan Tourism | A Journey of a Thousand Miles Begins with a Single Step

Japan

MatsukiyoCocokara & Co. operates drug store chains. The Company retails medicines, cosmetics, health foods, beauty care products, and other products. MatsukiyoCocokara & also operates supermarkets and home centers.

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MatsukiyoCocokara (3088 JP)

Japan Weekly | JR East, Matsukiyo, IHI

Stocks in Japan are benefiting from continued expectations for a loosening of inbound tourist restrictions. Meanwhile, the drop in IHI could be an...

Mark Chadwick

Japan Tourism | 3 Stocks to Buy for Open Borders

Japan has been slow to reopen its borders post COVID. Under pressure to stimulate the economy, Kishida has committed to lifting the cap on...

Mark Chadwick

Drugstores in Japan: Winners and Losers

Japan's drugstore sector continues to grow but only a few retailers will emerge as winners as competitors carve out greater market share.

Michael Causton

Japanese Drugstores: The Best Retail Bet Japan Has

Japan's drugstore sector has been written off by many leading analysts in the past. They were wrong then and are wrong now. The sector has plenty...

Michael Causton

Japan Tourism | A Journey of a Thousand Miles Begins with a Single Step

The Japanese policy of opening up its borders to tourists is starting with a single step. But the direction of travel is clearly beneficial to...

Mark Chadwick

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