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>Analysts are expecting cashless payments in Japan for 2021 to show further accelerated growth in the use of mobile payment apps.</li>
<li>Surveys suggest consumers rapidly increased their use of mobile payments and are even expressing frustration when the service is unavailable. </li>
<li>PayPay is utterly dominant with nearly 50% share based on survey responses. We expect consolidation below from NTT, Mercari, Rakuten and KDDI.</li>
</ul>


Analysts are expecting cashless payments in Japan for 2021 to show further accelerated growth in the use of mobile payment apps.
Surveys suggest consumers rapidly increased their use of mobile payments and are even expressing frustration when the service is unavailable. 
PayPay is utterly dominant with nearly 50% share based on survey responses. We expect consolidation below from NTT, Mercari, Rakuten and KDDI.


Growth in Cashless Payments Surges in Japan – PayPay Totally Dominant

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.</li>
<li>KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.</li>
<li>KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.</li>
</ul>


KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.
KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.
KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.


KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

<ul>
<li>We remain very optimistic about the outlook for Mercari's fundamentals, both gross transaction values and operating margins.</li>
<li>The sharing economy in Japan alone remains nascent and Mercari has only just started adding on adjunct value-add services, most of which are (and will) carry high margins.</li>
<li>Even in the core fashion category, which some analysts have assumed is already reaching saturation, CtoC platforms and used retailers have barely scratched the surface as new research shows.</li>
</ul>


We remain very optimistic about the outlook for Mercari's fundamentals, both gross transaction values and operating margins.
The sharing economy in Japan alone remains nascent and Mercari has only just started adding on adjunct value-add services, most of which are (and will) carry high margins.
Even in the core fashion category, which some analysts have assumed is already reaching saturation, CtoC platforms and used retailers have barely scratched the surface as new research shows.


2022 High Conviction – Plenty of Growth Avenues for Mercari, the Apple of CtoC Services

<ul>
<li>Oisix Ra Daichi sees sales continue to rise, up 18% in the first half of the year and ARPU still remains 18% higher than 2019.</li>
<li>Additional promotional costs and the cost of expanding production and distribution capacity meant profits fell short of 2020. </li>
<li>But the online food firm is a leader in the online category with the biggest growth potential and we see no downside, especially given the recent decline in share price.</li>
</ul>


Oisix Ra Daichi sees sales continue to rise, up 18% in the first half of the year and ARPU still remains 18% higher than 2019.
Additional promotional costs and the cost of expanding production and distribution capacity meant profits fell short of 2020. 
But the online food firm is a leader in the online category with the biggest growth potential and we see no downside, especially given the recent decline in share price.


Oisix Fundamentals Strong Base for Future Premium Online Food Leadership

Equity Long-Short Analyst

Pyari Menon

<ul>
<li>The companies that are best positioned to take advantage of the 5G growth are a mix of equipment vendors, chipset companies, device makers, and enterprise solution providers. </li>
<li>The top ten companies to benefit from 5G rollout based on innovation and citation count are <strong>Samsung Electronics, Qualcomm, LG Electronics, AT&amp;T, Huawei, Intel, Google, Ericsson, Apple,</strong> and <strong>Nokia </strong>
</li>
<li>A stand-out in 5G technology rankings is <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a> which is punching well above its current market share in the industry. </li>
</ul>


The companies that are best positioned to take advantage of the 5G growth are a mix of equipment vendors, chipset companies, device makers, and enterprise solution providers. 
The top ten companies to benefit from 5G rollout based on innovation and citation count are Samsung Electronics, Qualcomm, LG Electronics, AT&amp;T, Huawei, Intel, Google, Ericsson, Apple, and Nokia 

A stand-out in 5G technology rankings is LG Electronics (066570 KS) which is punching well above its current market share in the industry. 


Stock Ideas from Data Mining Technical Publications: A Look at 5G

Japan

NTT DOCOMO, INC. provides various types of telecommunication services including cellular phones, satellite mobile communication, and wireless LAN Network. The Company also sells cellular phones, and other equipment.

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NTT Docomo Inc (9437 JP)

Growth in Cashless Payments Surges in Japan – PayPay Totally Dominant

Japan is shifting from 80-90% cash retail transactions to 40-50% cashless in the blink of an eye. Softbank/Z HD dominates with nearly 50% share and...

Michael Causton

KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

We discuss major catalysts/investment highlights of KT including near 6% dividend yield, recent stock swap with Shinhan Bank, shift to value,...

Douglas Kim

2022 High Conviction – Plenty of Growth Avenues for Mercari, the Apple of CtoC Services

Mercari is much, much more than its CtoC platform and will emerge as a pivotal part of Japan's consumer goods/services/finance distribution system...

Michael Causton

Oisix Fundamentals Strong Base for Future Premium Online Food Leadership

Japan's online food market has less than 3% share but will grow fast in the next 3 years as both consumers and retailers adapt. Oisix is brilliant...

Michael Causton

Stock Ideas from Data Mining Technical Publications: A Look at 5G

5G connectivity is expected to spawn new business and services across sectors. We review the technological positioning of companies competing in...

Pyari Menon

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