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

Like other big apparel firms, <a href="https://www.smartkarma.com/entities/world-co-ltd" target="_blank" data-smartkarma-citation="entities:27437:1" rel="noopener">World Co Ltd (3612 JP)</a> is reeling from the impact of Covid-19 restrictions on middle market apparel. After one round of restructuring and layoffs that led to the closure of 360 stores and five brands last year, World will have another go, cutting 450 stores. This may still not be enough.

Like other big apparel firms, World Co Ltd (3612 JP) is reeling from the impact of Covid-19 restrictions on middle market apparel. After one round of restructuring and layoffs that led to the closure of 360 stores and five brands last year, World will have another go, cutting 450 stores. This may still not be enough. 

<a href="https://www.smartkarma.com/entities/world-co-ltd" target="_blank" data-smartkarma-citation="entities:27437:1" rel="noopener">World Co Ltd (3612 JP)</a> is working hard to diversify from its dependence on the mid-level fashion market as both its department store and shopping centre brands retreat in the face of competition and lower apparel consumption.But it needs to fill the empty concessions in department stores and one solution is the UK brand, Laura Ashley, which it is now launching in Japan with plans for 30 stores soon.This is not enough however. While World cancelled five brands and several hundred shops last August, we argued it would need to do more and it has just confirmed it will close another 450 stores and ask for another 100 voluntary redundancies.Meanwhile sales continue to plummet, down nearly 40% in January.

World Co Ltd (3612 JP) is working hard to diversify from its dependence on the mid-level fashion market as both its department store and shopping centre brands retreat in the face of competition and lower apparel consumption.But it needs to fill the empty concessions in department stores and one solution is the UK brand, Laura Ashley, which it is now launching in Japan with plans for 30 stores soon.This is not enough however. While World cancelled five brands and several hundred shops last August, we argued it would need to do more and it has just confirmed it will close another 450 stores and ask for another 100 voluntary redundancies.Meanwhile sales continue to plummet, down nearly 40% in January. 

World Launches Laura Ashley Chain but It Is Not Enough

Thematic (Sector/Industry)

By 2019, many retailers and brands were already introducing new technology solutions to make up for labour shortages. Despite the crisis, shortages continue to be a major headache in the service sector and the downturn in trading since March has only accelerated efforts to replace staff with tech.This could create new problems as older employees lose their jobs although will also reduce pressure on the labour market and lessen labour shortages in retailing.

By 2019, many retailers and brands were already introducing new technology solutions to make up for labour shortages. Despite the crisis, shortages continue to be a major headache in the service sector and the downturn in trading since March has only accelerated efforts to replace staff with tech.This could create new problems as older employees lose their jobs although will also reduce pressure on the labour market and lessen labour shortages in retailing.

Surge in Calls for Retail Voluntary Redundancies Likely to Continue

Isetan Mitsukoshi Holdings Ltd / Equity Bottom-Up

Isetan-Mitsukoshi presents itself as one of the stronger department store businesses but its fractious boardroom battles and u-turns over store closures in the last five years have suggested a company in turmoil – as recent results indicate. The department store continues to talk big on digital solutions but it has an inherent problem: over-dependence on just three flagship stores.

Isetan-Mitsukoshi presents itself as one of the stronger department store businesses but its fractious boardroom battles and u-turns over store closures in the last five years have suggested a company in turmoil – as recent results indicate. The department store continues to talk big on digital solutions but it has an inherent problem: over-dependence on just three flagship stores.

Isetan-Mitsukoshi: Big Losses but Some Plans for the Future

Japan’s big apparel firms have suffered even more than the apparel sector overall and as reported before will have closed over 3,000 stores by the end of this year.World, which leads the sector, plans to go even further than previously expected, with a major overhaul of its business while others are seeking new solutions, such as showrooming stores, to stem losses from piling inventory.

Japan’s big apparel firms have suffered even more than the apparel sector overall and as reported before will have closed over 3,000 stores by the end of this year.World, which leads the sector, plans to go even further than previously expected, with a major overhaul of its business while others are seeking new solutions, such as showrooming stores, to stem losses from piling inventory.

World Resets as Losses Mount for Apparel Firms

Japan

World Co., Ltd. designs, manufactures, and distributes apparels. The Company produces women's garments, men's garments, children's garments, and other products. World also operates investment businesses.

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World Co Ltd (3612 JP)

World to Close 450 More Stores

Japan's apparel groups are struggling and will continue to struggle. We remain bearish on all the big firms and that includes World which claims to...

Michael Causton

World Launches Laura Ashley Chain but It Is Not Enough

World is one of Japan's largest apparel firms and is fighting for survival, cutting brands while diversifying. Its purchase of a franchise for...

Michael Causton

Surge in Calls for Retail Voluntary Redundancies Likely to Continue

Japan's retail industry has been hit by labour shortages in the last 5 years but layoffs in the industry in the last year could end that, at least...

Michael Causton

Isetan-Mitsukoshi: Big Losses but Some Plans for the Future

Japanese department store sales are in fallout but Isetan-Mitsukoshi looks worse off than most despite investors thinking otherwise. Its dependence...

Michael Causton

World Resets as Losses Mount for Apparel Firms

World and the other major apparel groups are shrinking fast during the current crisis but their decline has been a long time coming and will...

Michael Causton

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