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>The premium fashion market in Japan is growing again and it is not just department stores.</li>
<li>One of the leader is United Arrows, whose main urban chains are on a roll, up double digits, but is being held back by lower priced suburban chains.</li>
<li>It will now focus more  on the premium market through aggressive category expansion, new brands and M&amp;A.</li>
</ul>


The premium fashion market in Japan is growing again and it is not just department stores.
One of the leader is United Arrows, whose main urban chains are on a roll, up double digits, but is being held back by lower priced suburban chains.
It will now focus more  on the premium market through aggressive category expansion, new brands and M&amp;A.


Thematic (Sector/Industry)

<ul>
<li>The shakeout in clothing and fashion retailing continues, with most of the good fortune spread amongst a smaller group of either very large or very small retail chains and brands. </li>
<li>In specialty, lower cost national chains largely located in the suburbs continued to increase share but premium fashion retailers also had a great year boosting profits.</li>
<li>More dramatic was the startling growth of a few department stores which helped the format increase share of the apparel market for only the 4th time in 20 years.</li>
</ul>


The shakeout in clothing and fashion retailing continues, with most of the good fortune spread amongst a smaller group of either very large or very small retail chains and brands. 
In specialty, lower cost national chains largely located in the suburbs continued to increase share but premium fashion retailers also had a great year boosting profits.
More dramatic was the startling growth of a few department stores which helped the format increase share of the apparel market for only the 4th time in 20 years.


Japan Fashion Retailing: Stores Still Popular and Profit Soars for Some

<ul>
<li>The rebound in tourist numbers to Japan after Covid was inevitable given the latent demand and ongoing popularity of the country as a destination.</li>
<li>But more surprising has been the huge diversity of nationalities, making up for the lag in Chinese visitors, boosting traffic at key retailers (as listed below).</li>
<li>Also new is the higher spend per visitor thanks to the cheap Yen, boosting retailers across the spectrum. Data from Google and Qunar suggests much more growth to come.</li>
</ul>


The rebound in tourist numbers to Japan after Covid was inevitable given the latent demand and ongoing popularity of the country as a destination.
But more surprising has been the huge diversity of nationalities, making up for the lag in Chinese visitors, boosting traffic at key retailers (as listed below).
Also new is the higher spend per visitor thanks to the cheap Yen, boosting retailers across the spectrum. Data from Google and Qunar suggests much more growth to come.


Japan Tourist Spending Per Head up 50% on 2019 Amid Record Arrivals

<ul>
<li>After a bumper bonus during Covid, the fashion sector saw calmer spending in the last 18 months as the big return to shops led to more muted growth online. </li>
<li>The overall EC fashion market grew around 4-7% depending on how you measure it, but online market share actually fell as people went back to shops.</li>
<li>This in-depth review highlights the key trends in the sector as well as the winners by sales growth among retailers and fashion brands.</li>
</ul>


After a bumper bonus during Covid, the fashion sector saw calmer spending in the last 18 months as the big return to shops led to more muted growth online. 
The overall EC fashion market grew around 4-7% depending on how you measure it, but online market share actually fell as people went back to shops.
This in-depth review highlights the key trends in the sector as well as the winners by sales growth among retailers and fashion brands.


Fashion E-Commerce: Physical Stores Grow Faster than Online in Japan

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a> is +10% since the close <em>after</em> the Nikkei 225 inclusion announcement vs Nikkei225 +2%. Fellow upweight Nitori is up too. Disco and Socionext are up less.</li>
<li>All three inclusions and one upweight see considerable inclusion demand when compared to active holdings. Some more than others. </li>
<li>Some trades here are more interesting than others, still. Cumulative excess volumes are one guide. Fundamentals, and flow dynamics are another.</li>
</ul>



ZOZO Inc (3092 JP) is +10% since the close after the Nikkei 225 inclusion announcement vs Nikkei225 +2%. Fellow upweight Nitori is up too. Disco and Socionext are up less.
All three inclusions and one upweight see considerable inclusion demand when compared to active holdings. Some more than others. 
Some trades here are more interesting than others, still. Cumulative excess volumes are one guide. Fundamentals, and flow dynamics are another.


Mar24 Nikkei 225 Rebal: Zozo (3092) And Other ADDs Update

Japan

UNITED ARROWS LTD., operates fashion stores, specializing in casual clothing and accessory for men and women.  The Company has stores nationwide.  Main forces are United Arrows, Green Label Relaxing and Chrome Hearts.

Price Gauge
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United Arrows (7606 JP)

United Arrows: Premium Growth

Japan's premium fashion market is rebounding, with United Arrows leading the way by expanding into new brands and categories, focusing more on the...

Michael Causton

Japan Fashion Retailing: Stores Still Popular and Profit Soars for Some

A major review of Japanese clothing retail markets: the ongoing shakeout benefits large and small chains, but profit growth across the sector is...

Michael Causton

Japan Tourist Spending Per Head up 50% on 2019 Amid Record Arrivals

Japan's tourism rebound post-Covid was expected due to high demand, but diverse nationalities and increased spending per visitor are boosting...

Michael Causton

Fashion E-Commerce: Physical Stores Grow Faster than Online in Japan

Fashion sector saw a slowdown in online spending post-Covid as shoppers returned to physical stores, impacting overall market growth. Winners in...

Michael Causton

Mar24 Nikkei 225 Rebal: Zozo (3092) And Other ADDs Update

The Mar24 N225 rebal has 5 days to run. So far, 3 of 4 stocks ADDed or UPweighted are up vs N225. DELETEs are down. There is a big funding sell....

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

United Arrows: Premium Growth

​Japan's premium fashion market is rebounding, with United Arrows leading the way by expanding into new brands and categories, focusing more on the...

Michael Causton

Japan Fashion Retailing: Stores Still Popular and Profit Soars for Some

A major review of Japanese clothing retail markets: ​the ongoing shakeout benefits large and small chains, but profit growth across the sector is...

Michael Causton

Japan Tourist Spending Per Head up 50% on 2019 Amid Record Arrivals

​Japan's tourism rebound post-Covid was expected due to high demand, but diverse nationalities and increased spending per visitor are boosting...

Michael Causton

Fashion E-Commerce: Physical Stores Grow Faster than Online in Japan

​Fashion sector saw a slowdown in online spending post-Covid as shoppers returned to physical stores, impacting overall market growth. Winners in...

Michael Causton

Mar24 Nikkei 225 Rebal: Zozo (3092) And Other ADDs Update

The Mar24 N225 rebal has 5 days to run. So far, 3 of 4 stocks ADDed or UPweighted are up vs N225. DELETEs are down. There is a big funding sell....

Travis Lundy

Japan's premium fashion market is rebounding, with United Arrows leading the way by expanding into new brands and categories, focusing more on the...

A major review of Japanese clothing retail markets: the ongoing shakeout benefits large and small chains, but profit growth across the sector is...

Japan's tourism rebound post-Covid was expected due to high demand, but diverse nationalities and increased spending per visitor are boosting...

Fashion sector saw a slowdown in online spending post-Covid as shoppers returned to physical stores, impacting overall market growth. Winners in...