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>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>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.


Equity Bottom-Up

<ul>
<li>Japan has seen a large drop off in new mall developments in recent years. </li>
<li>This is partly due to a dwindling supply of viable locations but also because of competition from e-commerce.</li>
<li>To make malls more relevant, Aeon Mall is shifting to a more localised approach with a broader range of services.</li>
</ul>


Japan has seen a large drop off in new mall developments in recent years. 
This is partly due to a dwindling supply of viable locations but also because of competition from e-commerce.
To make malls more relevant, Aeon Mall is shifting to a more localised approach with a broader range of services.


Aeon Mall: Experiential Shift Will Get Footfall Back in Japanese Malls

<ul>
<li>100 Yen shops are expanding more rapidly after several tougher years dealing with the twin problems of labour shortages and higher wages – a particular issue for fixed price retailers.</li>
<li>With more flexible pricing models and high demand for discount retailing, there is optimism again.</li>
<li>Aeon, now the owner of Can Do, plans to double the size of its new acquisition and spread its merchandise across the Aeon empire.</li>
</ul>


100 Yen shops are expanding more rapidly after several tougher years dealing with the twin problems of labour shortages and higher wages – a particular issue for fixed price retailers.
With more flexible pricing models and high demand for discount retailing, there is optimism again.
Aeon, now the owner of Can Do, plans to double the size of its new acquisition and spread its merchandise across the Aeon empire.


Can Do to Double Stores in 5 Years – and Boost Profits Too

<ul>
<li>The government has promised consumers price inflation for almost a decade now but the only real result of this policy is that we’ve seen record levels of household saving. </li>
<li>Now, however, supply chain and other issues are quickly beginning to force up prices of basic products and these increases are having a real impact on household budgets.</li>
<li>How long this situation may last is the big question but the focus on price means discount food retailers like <a href="https://www.smartkarma.com/entities/kobe-bussan-co-ltd" target="_blank" data-smartkarma-citation="entities:4701:1" rel="noopener">Kobe Bussan (3038 JP)</a> are likely to boom.</li>
</ul>


The government has promised consumers price inflation for almost a decade now but the only real result of this policy is that we’ve seen record levels of household saving. 
Now, however, supply chain and other issues are quickly beginning to force up prices of basic products and these increases are having a real impact on household budgets.
How long this situation may last is the big question but the focus on price means discount food retailers like Kobe Bussan (3038 JP) are likely to boom.


Japanese Households Focus on Price as Inflation Fears Spike

Japan

Seria Co., Ltd. operates 100 yen chain stores nationwide.   The Company also operates franchise business.  Seria's main product line includes household goods and snacks.

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Seria Co Ltd (2782 JP)

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

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

Aeon Mall: Experiential Shift Will Get Footfall Back in Japanese Malls

Japanese shopping malls are only slowly recovering from the pandemic but the crisis has catalysed adaptation to new trends. Aeon Mall is leading...

Michael Causton

Can Do to Double Stores in 5 Years – and Boost Profits Too

While Seria and Daiso have grown significantly over the last decade, Can Do has barely moved. Now backed by Aeon, Can Do plans to double in size,...

Michael Causton

Japanese Households Focus on Price as Inflation Fears Spike

Pressure on household budgets from rising prices – real and perceived – are causing Japanese consumers to focus even further on prices. This will...

Michael Causton

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