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

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pal-group-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2633:1" rel="noopener">PAL GROUP Holdings Co., Ltd. (2726 JP)</a> is mostly a fashion retailer but two decades ago created a new discount variety chain called 3Coins. </li>
<li>3Coins has been one of the best performing retailers during the pandemic, building up a loyal following thanks to its diverse range of popular products.</li>
<li>Sales tripled in the decade to last year but look set to increase a further 25% this year alone.</li>
</ul>



PAL GROUP Holdings Co., Ltd. (2726 JP) is mostly a fashion retailer but two decades ago created a new discount variety chain called 3Coins. 
3Coins has been one of the best performing retailers during the pandemic, building up a loyal following thanks to its diverse range of popular products.
Sales tripled in the decade to last year but look set to increase a further 25% this year alone.


3Coins Proves a Hit in Pandemic and Moves into Food

Thematic (Sector/Industry)

Contraction in apparel consumption aside, Japanese fashion retailers and brands have made dramatic strides to pull in customers online with e-commerce sales up 24% last year according to one survey, faster than the growth in e-commerce overall. Even some wholesalers are succeeding digitally. 
What the results show is a breakthrough shift to online with likely further growth this year, taking the online channel’s share above 25% and more than 30% for many of those firms with higher online ratios.

Contraction in apparel consumption aside, Japanese fashion retailers and brands have made dramatic strides to pull in customers online with e-commerce sales up 24% last year according to one survey, faster than the growth in e-commerce overall. Even some wholesalers are succeeding digitally. 
What the results show is a breakthrough shift to online with likely further growth this year, taking the online channel’s share above 25% and more than 30% for many of those firms with higher online ratios.

Momentum was building for fashion EC well before 2020 but the situation last year brought an overwhelming response from both consumers and merchants. As a result, market share for the online channel has spiralled upwards and, although there will be a correction once shoppers return to stores, the medium-term trajectory is clear.
The big malls continue to dominate – as Zozo’s 21.5% growth in 2020 attests – but retailers and brands are investing much more in their own online stores, creating a level of dynamism and competition not seen in other fashion retail channels.
The following is an in-depth review of the fashion e-commerce market covering:
<ul>
<li>Market Size and market growth</li>
<li>Winners and losers in the last two years</li>
<li>Ranking of the top vendors online by sales</li>
<li>Ranking of fastest growing e-commerce fashion retailers</li>
<li>Strengths and weaknesses in leading firms</li>
<li>Ranking of firms with highest ratio of online sales to offline</li>
<li>Ranking of firms with highest share of direct online sales vs 3rd party malls.</li>
<li>Review of market share of major malls vs direct sales by retailers and the momentum behind each.</li>
</ul>

Momentum was building for fashion EC well before 2020 but the situation last year brought an overwhelming response from both consumers and merchants. As a result, market share for the online channel has spiralled upwards and, although there will be a correction once shoppers return to stores, the medium-term trajectory is clear.
The big malls continue to dominate – as Zozo’s 21.5% growth in 2020 attests – but retailers and brands are investing much more in their own online stores, creating a level of dynamism and competition not seen in other fashion retail channels.
The following is an in-depth review of the fashion e-commerce market covering:

Market Size and market growth
Winners and losers in the last two years
Ranking of the top vendors online by sales
Ranking of fastest growing e-commerce fashion retailers
Strengths and weaknesses in leading firms
Ranking of firms with highest ratio of online sales to offline
Ranking of firms with highest share of direct online sales vs 3rd party malls.
Review of market share of major malls vs direct sales by retailers and the momentum behind each.


Fashion E-Commerce Has Watershed Year in 2020

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Last year the Japanese fashion market contracted below ¥16 trillion for the first time in more than a decade and this year is proving much, much worse.In the last big crises – the 2008 financial shock and 2011 triple disasters – demand also fell dramatically and then recovered. But this time is different: as well as a fall in demand, the Covid-19 crisis has also led to a marked fall in supply.But there is some good news. Above all, Japanese are not travelling either at home or abroad and they are also eating out less.In the seven months to July, the average working household had cumulatively saved a net ¥1.25 million, more than 11 months in both 2018 and 2019 and more than an entire year before 2018.Suddenly wallets are full, which could mean more money to spend on treats – good news for luxury but also any brand or retailing offering something fun to divert from the all bleak news.While the short-term outlook remains dark, the medium-term should see both a return to a more stable trading environment and something of a splurge too as people express their relief that it’s all over.The following is a complete review of the Japanese apparel/fashion sector including rankings of the top 100 retailers by sales, top by profit, sales growth, and store openings/closures.This insight is labelled bullish because the Japanese apparel/fashion sector will rebound from the current crisis although the long-term outlook for this sector is stagnant stability rather than significant growth. However, within this, there are significant growth stocks as detailed below.

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

Fashion is the fastest growing and largest category in the e-commerce channel in 2018. Fashion items are easy to stock and ship and low cost.Consumers still like to see, feel and try on their fashion purchases, but the ease and lower cost of shipping means that it is also an excellent category to shift to omnichannel, integrating customer touchpoints across promotion, through product trial, purchase and delivery.This is exactly what is now happening. All the major brands are selling online in some form, mostly through one or more of the big online malls, including the one dedicated fashion mall, <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a>, but more and more are now also selling directly online, with the best ones integrating online sales with their stores.The following is an in-depth review of the fashion e-commerce sector including market value and penetration rates and rankings of:<ul>
<li>The leading fashion vendors online by sales</li>
<li>Fastest-growing online sales</li>
<li>Penetration rates for online vs. total sales</li>
<li>Penetration rates for direct online sales via own stores rather than major online platforms.</li>
</ul>

Fashion is the fastest growing and largest category in the e-commerce channel in 2018. Fashion items are easy to stock and ship and low cost.Consumers still like to see, feel and try on their fashion purchases, but the ease and lower cost of shipping means that it is also an excellent category to shift to omnichannel, integrating customer touchpoints across promotion, through product trial, purchase and delivery.This is exactly what is now happening. All the major brands are selling online in some form, mostly through one or more of the big online malls, including the one dedicated fashion mall, ZOZO Inc (3092 JP), but more and more are now also selling directly online, with the best ones integrating online sales with their stores.The following is an in-depth review of the fashion e-commerce sector including market value and penetration rates and rankings of:
The leading fashion vendors online by sales
Fastest-growing online sales
Penetration rates for online vs. total sales
Penetration rates for direct online sales via own stores rather than major online platforms.


Japan Fashion E-Commerce: Direct Investment by Retailers on the Rise

Japan

KOMERI CO., LTD. operates a home center chain based in Niigata Prefecture. The Company sells DIY (do-it-yourself) products, building materials, tools, hardware, household utensils, gardening materials, car care goods, and leisure goods.  Komeri also operates business in China.

AUTOBACS SEVEN CO., LTD. retails automobile related products and services mainly through its franchise stores throughout Japan.  The Company's product lines include tires, wheels, engine oils, batteries, car stereos, and both interior and exterior car accessories.  Autobacs Seven also has some stores in the Asian region, such as Taiwan, as well as Europe and the United States.

T-GAIA CORPORATION sells cell-phone units and service contracts in Japan. The Company also offers high-speed internet connection service through sales agencies.

Nojima Corporation operates consumer electronic store chains that specialize in computers and communication products.  The Company also sells entertainment related items such as game software and CDs, and household appliances. The Company operates  and franchises stores in Kanagawa Prefecture.

NEXTAGE Co., Ltd. operates a used automobile business. Its main line of business is retail of used domestic cars but it also sells imported cars and SUV/vans. In addition, the company also operates an automobile maintenace business.

Adastria Co., Ltd. operates a chain of clothing stores in Japan. The Company also operates stores in China, Taiwan, Hong Kong and Korea.

NISHIMATSUYA CHAIN Co., Ltd., a specialty retailer, sells mainly clothes for infants and children, and also women and men.  The Company also sells maternity clothes and new born baby goods.

Joyful Honda Co.,Ltd. operates home improvement center business. The company sells products such as hardware, garden, pet products and also household utensil s.

AOKI Holdings Inc. operators a store chain specializing in men's suits. The Company also offers maternity and kids clothing.  Aoki International mainly operates in Tokyo metropolitan area and also operates online shopping.

KOHNAN SHOJI CO., LTD. operates a home improvement center chain, located in Osaka, Hyogo, and Kyoto.  The Company sells mainly home improvement products such as lumber, hardware, paint and also household utensils.  Kohnan Shoji also sells auto and leisure products.

Shoe Carnival, Inc., a retailer of family footwear, operates primarily in the Midwest, South, and Southeastern regions of the United States. The Company seeks to create a carnival-like atmosphere in each of its stores by decorating with bright lights, colors, and neon signs.

Chico's FAS, Inc. sells private label women's casual clothing and related accessories.  The Company's clothing includes tops, pants, shorts, skirts, and dresses.  Chico's owns and operates stores throughout the United States.

Franchise Group, Inc. is an owner and operator of franchised and franchisable businesses. The Company's business lines include pet supplies plus, american freight, the vitamin shoppe, badcock home furniture, buddy's home furnishings, and sylvan learning. Franchise Group serves customers in the United States and Canada.

The Hour Glass Limited retails and wholesales watches, jewelry and related products through its subsidiaries. The Company also manufactures watches and invests in properties.

PT ACE Hardware Indonesia Tbk retails tools, home improvement products, lawn and garden supplies, plumbing, furniture, sporting goods, and pet supplies.

Hibbett Sports Inc. operates a chain of sporting goods stores in the southeastern United States.  The stores sell athletic footwear, apparel, and equipment.

Petco Health and Wellness Company, Inc. operates as a pet health and wellness company. The Company provides pet health services, including veterinary care, grooming, and training, as well as offers pet nutrition products and supplies. Petco Health and Wellness serves customers in the United States, Mexico, and Puerto Rico.

EEKA Fashion Holdings Limited engages in apparel design and development businesses. The Company produces high-fashion women's apparel products. EEKA Fashion Holdings sells products through domestic department stores and shopping centers.

Nick Scali Limited retails furniture in Australia.  The Company specializes in leather and fabric lounges, dining rooms, bedrooms and occasional furniture. Nick Scali has about nine showrooms located in New South Wales and Queensland.

Groupe FNAC S.A. distributes consumer goods. The Company sells a wide range of books, music, movie discs, video games and consoles, computer products, telephones, home appliances, cameras, electronic  equipment, and travel services.

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)

3Coins Proves a Hit in Pandemic and Moves into Food

Discount retail is booming in Japan and one of the winners is 3Coins, operated by fashion firm, Pal Group. While Pal suffers negatively from the...

Michael Causton

Japan Online Fashion Sales Soar

Before, the boom in online was just a theory but the numbers now make it clear that Japanese consumers have shifted their spending habits,...

Michael Causton

Fashion E-Commerce Has Watershed Year in 2020

A complete review of the fashion e-commerce market in Japan, including rankings by sales, fastest growing, winners and losers and reviews of the...

Michael Causton

Japan Fashion Retailing Complete Review 2019-20: Pain Now but a Recovery Is Certain

The following is a complete, in-depth review of the Japanese apparel/fashion sector covering key trends, rankings of the top 100 by sales and top...

Michael Causton

Japan Fashion E-Commerce: Direct Investment by Retailers on the Rise

Fashion is the fastest growing and largest category in the e-commerce channel in 2018. Fashion items are easy to stock and ship and low...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)