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

<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.


Thematic (Sector/Industry)

<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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shidax-corp" target="_blank" data-smartkarma-citation="entities:7754:1" rel="noopener">Shidax Corp (4837 JP)</a> is under offer for a partial tender by <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>. Unison Capital is expected to tender their shares.  </li>
<li>Unison may not want to go against the board but a direct transfer (i.e. not tender offer) is still possible. </li>
<li>Some Independent Board Members have suggested the company buy Unison's shares back. This might work BUT the end game is still the same. </li>
</ul>



Shidax Corp (4837 JP) is under offer for a partial tender by Oisix ra daichi (3182 JP). Unison Capital is expected to tender their shares.  
Unison may not want to go against the board but a direct transfer (i.e. not tender offer) is still possible. 
Some Independent Board Members have suggested the company buy Unison's shares back. This might work BUT the end game is still the same. 


<ul>
<li>E-Commerce sales of physical goods in Japan jumped nearly 9% in FY2021.</li>
<li>Although this was well down on the pandemic-induced surge the year before, it is still higher than in any year since 2016.</li>
<li>This leaves the sector well on track to become the largest single format channel. Total sales finished above ¥20.6 trillion.</li>
</ul>


E-Commerce sales of physical goods in Japan jumped nearly 9% in FY2021.
Although this was well down on the pandemic-induced surge the year before, it is still higher than in any year since 2016.
This leaves the sector well on track to become the largest single format channel. Total sales finished above ¥20.6 trillion.


E-Commerce in Japan 2021-22: Another High Growth Year

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Oisix ra daichi (3182 JP)

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

SHiDAX Board-Oisix-Shida Family Scrap

Some independent board members want the Shida family to accept that the company would buy back Unison's shares. This makes some sense if Unison...

Travis Lundy

E-Commerce in Japan 2021-22: Another High Growth Year

E-commerce sales grew strongly in 2021-22 despite the surge in 2020 showing the vigour of the channel – but physical stores will always be more...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)