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>Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad. </li>
<li>This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.</li>
<li>Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.</li>
</ul>


Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad. 
This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.
Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.


Muji 500: The Missing Key to Plans for 2,000 Stores

Thematic (Sector/Industry)

<ul>
<li>Low demand and slightly higher unemployment during the pandemic dampened the rising cost of part-time employees but that short respite is now over. </li>
<li>Hourly wages hit a new high in August and are set to rise further in coming months, renewing pressure on sectors like hospitality, retailing and logistics.</li>
<li>Retailers with high ratios of part-time wages such as the 100 Yen retailers like <a href="https://www.smartkarma.com/entities/seria-co-ltd" target="_blank" data-smartkarma-citation="entities:12989:1" rel="noopener">Seria Co Ltd (2782 JP)</a> and apparel retailers, will be hit particularly hard.</li>
</ul>


Low demand and slightly higher unemployment during the pandemic dampened the rising cost of part-time employees but that short respite is now over. 
Hourly wages hit a new high in August and are set to rise further in coming months, renewing pressure on sectors like hospitality, retailing and logistics.
Retailers with high ratios of part-time wages such as the 100 Yen retailers like Seria Co Ltd (2782 JP) and apparel retailers, will be hit particularly hard.


New Highs for Part-Time Wages a Worry for Japan's Retailers

<ul>
<li>Japan may have discovered home decoration and DIY later than some markets but it has made up for this with a convert’s enthusiasm. </li>
<li>In the last decade, the market has grown around 50% and a host of brands and retailers have flourished.</li>
<li>These include <a href="https://www.smartkarma.com/entities/nitori-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20386:1" rel="noopener">Nitori Holdings (9843 JP)</a>, <a href="https://www.smartkarma.com/entities/ryohin-keikaku-co-ltd" target="_blank" data-smartkarma-citation="entities:2765:1" rel="noopener">Ryohin Keikaku (7453 JP)</a> and the home centres like Cainz and <a href="https://www.smartkarma.com/entities/dcm-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13042:1" rel="noopener">DCM Holdings (3050 JP). </a> The long-term outlook remains positive.</li>
</ul>


Japan may have discovered home decoration and DIY later than some markets but it has made up for this with a convert’s enthusiasm. 
In the last decade, the market has grown around 50% and a host of brands and retailers have flourished.
These include Nitori Holdings (9843 JP), Ryohin Keikaku (7453 JP) and the home centres like Cainz and DCM Holdings (3050 JP).  The long-term outlook remains positive.


Nitori, Muji Still Benefitting from a Flourishing Japan Home Decor Market

PAL GROUP Holdings Co., Ltd. / Equity Bottom-Up

<ul>
<li>Not many retailers could boast sales growth of more than 50% last year, especially a retailer from the fashion sector.</li>
<li>Pal Group’s 3Coins managed this thanks to the huge success of the discount fashion to home decor format.</li>
<li>Its success is one more example of the growth in discount chains.</li>
</ul>


Not many retailers could boast sales growth of more than 50% last year, especially a retailer from the fashion sector.
Pal Group’s 3Coins managed this thanks to the huge success of the discount fashion to home decor format.
Its success is one more example of the growth in discount chains.


Record Sales for Pal Group Driven by 300 Yen Chain

<ul>
<li>Daiso is usually known for standing back and throwing mountains of plastic into cramped stores and selling it all for ¥100 per item. </li>
<li>Daiso has moved on in the past few years and now has new formats that not only sell at higher prices but offer a level of quality that surprises customers.</li>
<li>Its latest chain, Standard Products, targets Muji and Nitori in home categories for anything smaller than a desk and is representative of the growing sophistication and reach of discount retailing.</li>
</ul>


Daiso is usually known for standing back and throwing mountains of plastic into cramped stores and selling it all for ¥100 per item. 
Daiso has moved on in the past few years and now has new formats that not only sell at higher prices but offer a level of quality that surprises customers.
Its latest chain, Standard Products, targets Muji and Nitori in home categories for anything smaller than a desk and is representative of the growing sophistication and reach of discount retailing.


Japan

PAL GROUP Holdings Co., Ltd. operates a chain of casual clothing stores based in Kansai area. The Company manufactures and retails men's and women's casual wear and accessories.  The Company also sells its products on the Internet.

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PAL GROUP Holdings Co., Ltd. (2726 JP)

Muji 500: The Missing Key to Plans for 2,000 Stores

Muji has been suffering of late but a new format focusing on prices below ¥500 could solve multiple problems both at home and overseas.

Michael Causton

New Highs for Part-Time Wages a Worry for Japan's Retailers

Wage growth slowed during the pandemic in Japan but is now relentlessly on the rise again. Retailers in particular are vulnerable, especially those...

Michael Causton

Nitori, Muji Still Benefitting from a Flourishing Japan Home Decor Market

Japan's home decoration market grew fast in the pandemic but has been growing for 10 years and will continue to outperform other consumer...

Michael Causton

Record Sales for Pal Group Driven by 300 Yen Chain

Discount chains are doing well in Japan and one of the better ones is 3Coins. Although it is owned by a fashion retailer, it is growing so fast...

Michael Causton

Daiso: Going After Muji and Nitori

Daiso Sangyo is known for cheap and cheerful 100 Yen stores but is fast expansing new higher priced chains which could well cause problems not only...

Michael Causton

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