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>The so-called 2024 problem will cause significant disruption to logistics in Japan, including potentially higher costs for major firms like Yamato and Sagawa.</li>
<li>Already, companies that move product by road, and particularly those working in e-commerce, are working hard to come up with solutions to reduce the impact of the new rules.</li>
<li>For the better-resourced businesses, this could lead to more efficient supply-chains in the long run, creating more efficiencies within Japanese consumer markets.</li>
</ul>


The so-called 2024 problem will cause significant disruption to logistics in Japan, including potentially higher costs for major firms like Yamato and Sagawa.
Already, companies that move product by road, and particularly those working in e-commerce, are working hard to come up with solutions to reduce the impact of the new rules.
For the better-resourced businesses, this could lead to more efficient supply-chains in the long run, creating more efficiencies within Japanese consumer markets.


Solving the 2024 Logistics Problem Key to Japan Consumer Market Efficiency

Equity Bottom-Up

<ul>
<li>Oisix Ra Daichi is by far Japan’s largest online food retailer, driven by the popularity of its fresh food and meal kit subscription services.</li>
<li>Despite some backend problems last year, the company expects its system of continual improvement and expansion of new lines of meal kits to bring strong growth in the medium term.</li>
<li>The development of the online food market should help boost the company's prospects. Operating margins have worsened considerably but the company hopes to match the previous peak this year.</li>
</ul>


Oisix Ra Daichi is by far Japan’s largest online food retailer, driven by the popularity of its fresh food and meal kit subscription services.
Despite some backend problems last year, the company expects its system of continual improvement and expansion of new lines of meal kits to bring strong growth in the medium term.
The development of the online food market should help boost the company's prospects. Operating margins have worsened considerably but the company hopes to match the previous peak this year.


<ul>
<li>Oisix is Japan’s largest online food retailer but sales were flat in 1Q-3Q2022 as people returned to work and cooked less, and profits suffered as inflation brought increases in costs. </li>
<li>The company’s US operation also shrank as fewer people bought food online now that many Japanese are back to normal working patterns again.</li>
<li>But other international subsidiaries and its expanded wholesale businesses at home all grew strongly.</li>
</ul>


Oisix is Japan’s largest online food retailer but sales were flat in 1Q-3Q2022 as people returned to work and cooked less, and profits suffered as inflation brought increases in costs. 
The company’s US operation also shrank as fewer people bought food online now that many Japanese are back to normal working patterns again.
But other international subsidiaries and its expanded wholesale businesses at home all grew strongly.


<ul>
<li>Japanese consumer households continues to face significant barriers to spending post-Covid although there are clear signs of higher spending on categories like luxuries.</li>
<li>The biggest barrier is inflation, particularly in essential categories like food where there were 20,743 item price rises in the 11 months to November 2022.</li>
<li>Although wages have increased, much of the bounty is going into savings rather than higher spending.</li>
</ul>


Japanese consumer households continues to face significant barriers to spending post-Covid although there are clear signs of higher spending on categories like luxuries.
The biggest barrier is inflation, particularly in essential categories like food where there were 20,743 item price rises in the 11 months to November 2022.
Although wages have increased, much of the bounty is going into savings rather than higher spending.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On 8 September, I went over the <a href="https://www.smartkarma.com/entities/oisix-ra-daichi-inc" target="_blank" data-smartkarma-citation="entities:10145:1" rel="noopener">Oisix ra daichi (3182 JP)</a> bid for the stake in <a href="https://www.smartkarma.com/entities/shidax-corp" target="_blank" data-smartkarma-citation="entities:7754:1" rel="noopener">Shidax Corp (4837 JP)</a> held by Unison Capital. </li>
<li>The founding Shida family had a deal whereby when the company raised capital years ago, the family had ROFR to buy or nominate a buyer of the Unison stake.</li>
<li>The problem? Shidax' independent board said this was unfair to minorities. The back and forth has continued but there may now be hope for a better deal. </li>
</ul>


On 8 September, I went over the Oisix ra daichi (3182 JP) bid for the stake in Shidax Corp (4837 JP) held by Unison Capital. 
The founding Shida family had a deal whereby when the company raised capital years ago, the family had ROFR to buy or nominate a buyer of the Unison stake.
The problem? Shidax' independent board said this was unfair to minorities. The back and forth has continued but there may now be hope for a better deal. 


Shidax Outlook May Change - Better Governance Matters

Japan

Oisix ra daichi Inc. sells various food products online. Among other products, the company sells vegetables, fruits, fish, meat, milk, and ready-made food.

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Oisix ra daichi (3182 JP)

Solving the 2024 Logistics Problem Key to Japan Consumer Market Efficiency

The 2024 problem in Japan will disrupt logistics, increasing costs for major firms but they are finding solutions to minimize the impact and...

Michael Causton

Oisix: Meal Kit Kaizen

Oisix continues to lead in trust, quality and reliability in online food but saw a collapse in operating margins last year. This was mostly an one...

Michael Causton

Oisix Hit as People Return to Work

Oisix is Japan's best known online food retailer. It boomed in the pandemic so a correction was inevitable. Now this is done, we can look forward...

Michael Causton

Japanese Consumer Markets in 2023

Japanese consumer spending is rising again but there are headwinds such as fears over inflation and social security reforms. There is more...

Michael Causton

Shidax Outlook May Change - Better Governance Matters

Shidax may get a deal with Oisix to defend the fair value of future deals in the food service business, with Oisix or with others. That's good...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Solving the 2024 Logistics Problem Key to Japan Consumer Market Efficiency

​The 2024 problem in Japan will disrupt logistics, increasing costs for major firms but they are finding solutions to minimize the impact and...

Michael Causton

Oisix: Meal Kit Kaizen

Oisix continues to lead in trust, quality and reliability in online food but saw a collapse in operating margins last year. This was mostly an one...

Michael Causton

Oisix Hit as People Return to Work

Oisix is Japan's best known online food retailer. It boomed in the pandemic so a correction was inevitable. Now this is done, we can look forward...

Michael Causton

Japanese Consumer Markets in 2023

Japanese consumer spending is rising again but there are headwinds such as fears over inflation and social security reforms. There is more...

Michael Causton

Shidax Outlook May Change - Better Governance Matters

Shidax may get a deal with Oisix to defend the fair value of future deals in the food service business, with Oisix or with others. That's good...

Travis Lundy

The 2024 problem in Japan will disrupt logistics, increasing costs for major firms but they are finding solutions to minimize the impact and...