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

Apparel groups are in trouble, as <a href="https://www.smartkarma.com/entities/renown-inc" target="_blank" data-smartkarma-citation="entities:10158:1" rel="noopener">Renown Inc (3606 JP)'s</a><a href="https://www.smartkarma.com/insights/big-apparel-in-trouble-renown-finally-goes-under" target="_blank" rel="noopener"> bankruptcy</a> and <a href="https://www.smartkarma.com/entities/sanyo-shokai-ltd" target="_blank" data-smartkarma-citation="entities:12308:1" rel="noopener">Sanyo Shokai (8011 JP)</a><a href="https://www.smartkarma.com/insights/big-apparel-in-trouble-sanyo-shokai-slashes-stores-and-fights-off-shareholder-pressure" target="_blank" rel="noopener">’s boardroom battles</a> exemplify, but <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> always claimed it was in better shape – particularly just before relisting.
The Kobe-based firm has now admitted even its shopping mall chains need fixing, with a raft of closures due soon but, unlike competitors, it does have real growth businesses including its new Off Price chain, &amp;Bridge and is in much better shape than competitors – but all things are relative, with the apparel sector showing clear signs of dysfunction with more closures and bankruptcies to follow.
Their demise will leave more room for the better-performing retailers and brands.

Apparel groups are in trouble, as Renown Inc (3606 JP)'s bankruptcy and Sanyo Shokai (8011 JP)’s boardroom battles exemplify, but World Co Ltd (3612 JP) always claimed it was in better shape – particularly just before relisting.
The Kobe-based firm has now admitted even its shopping mall chains need fixing, with a raft of closures due soon but, unlike competitors, it does have real growth businesses including its new Off Price chain, &amp;Bridge and is in much better shape than competitors – but all things are relative, with the apparel sector showing clear signs of dysfunction with more closures and bankruptcies to follow.
Their demise will leave more room for the better-performing retailers and brands.

Japan's Big Apparel Trouble: World to Close 350 More Stores

Thematic (Sector/Industry)

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

As reported in an earlier insight (<a href="https://www.smartkarma.com/insights/big-apparel-in-trouble-onward-to-close-1-400-stores" target="_blank" rel="noopener">Big Apparel in Trouble: Onward to Close 1,400 stores</a>), Japan's big apparel firms were already fighting for survival before March and now even more so.
<a href="https://www.smartkarma.com/entities/sanyo-shokai-ltd" target="_blank" data-smartkarma-citation="entities:12308:1" rel="noopener">Sanyo Shokai (8011 JP)</a> is in worse shape than most because it lost the license for <a href="https://www.smartkarma.com/entities/burberry-group-plc" target="_blank" data-smartkarma-citation="entities:21849:1" rel="noopener">Burberry (BRBY LN)</a> in 2015 and not only failed to set up replacement licenses or brands in the years leading up to that loss, but has failed spectacularly ever since.
Not surprisingly, a US shareholder, RMB Capital, has been putting pressure on the apparel firm to get its house in order after years of empty promises about profit recovery. At the shareholder's meeting in late May, Japanese shareholders closed ranks, however.
While Sanyo Shokai may have won this round, in the longer-term battle for survival, it looks worryingly vulnerable to the same fate as <a href="https://www.smartkarma.com/entities/renown-inc" target="_blank" data-smartkarma-citation="entities:10158:1" rel="noopener">Renown Inc (3606 JP). </a>

As reported in an earlier insight (Big Apparel in Trouble: Onward to Close 1,400 stores), Japan's big apparel firms were already fighting for survival before March and now even more so.
Sanyo Shokai (8011 JP) is in worse shape than most because it lost the license for Burberry (BRBY LN) in 2015 and not only failed to set up replacement licenses or brands in the years leading up to that loss, but has failed spectacularly ever since.
Not surprisingly, a US shareholder, RMB Capital, has been putting pressure on the apparel firm to get its house in order after years of empty promises about profit recovery. At the shareholder's meeting in late May, Japanese shareholders closed ranks, however.
While Sanyo Shokai may have won this round, in the longer-term battle for survival, it looks worryingly vulnerable to the same fate as Renown Inc (3606 JP). 

Big Apparel in Trouble: Sanyo Shokai Slashes Stores and Fights off Shareholder Pressure

With shoppers staying away in March and April, department stores are suddenly the most vulnerable sector of all.Some department stores have improved in the past 20 years and, in the past five, the big players have poured investment into more modernisation. This has brought some success to the top firms, especially from wealthy consumers, but no one could have seen the virus crisis coming.A major cull of stores was already expected, but those cuts are now likely to go much deeper. A sector that once had 313 stores and is now already down to 205 may only have capacity for 100.A few chains will survive and thrive, however.

With shoppers staying away in March and April, department stores are suddenly the most vulnerable sector of all.Some department stores have improved in the past 20 years and, in the past five, the big players have poured investment into more modernisation. This has brought some success to the top firms, especially from wealthy consumers, but no one could have seen the virus crisis coming.A major cull of stores was already expected, but those cuts are now likely to go much deeper. A sector that once had 313 stores and is now already down to 205 may only have capacity for 100.A few chains will survive and thrive, however.

Japan's Department Stores: The Most to Lose but Also the Hardest Hit

Most apparel firms and retailers suffered plummeting sales in March and expect a further wrenching in April.The only retailers to post higher sales were <a href="https://www.smartkarma.com/entities/workman-co-ltd" target="_blank" data-smartkarma-citation="entities:8467:1" rel="noopener">Workman Co Ltd (7564 JP)</a> and <a href="https://www.smartkarma.com/entities/nishimatsuya-chain-co-ltd" target="_blank" data-smartkarma-citation="entities:13375:1" rel="noopener">Nishimatsuya Chain (7545 JP).</a> The only good news is that many saw online sales surge as consumers switched to mobile purchases. While this wasn’t enough to offset lost sales in stores, it will catalyse the shift to online.

Most apparel firms and retailers suffered plummeting sales in March and expect a further wrenching in April.The only retailers to post higher sales were Workman Co Ltd (7564 JP) and Nishimatsuya Chain (7545 JP). The only good news is that many saw online sales surge as consumers switched to mobile purchases. While this wasn’t enough to offset lost sales in stores, it will catalyse the shift to online.

90% of Japanese Listed Apparel Firms Down but E-Commerce Powers Ahead

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)

Japan's Big Apparel Trouble: World to Close 350 More Stores

Apparel groups are in trouble, as Renown’s bankruptcy (see Page 8) and Sanyo Shokai’s boardroom battles exemplify, but World always claimed it was...

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

Big Apparel in Trouble: Sanyo Shokai Slashes Stores and Fights off Shareholder Pressure

As reported in an earlier insight (Big Apparel in Trouble: Onward to Close 1,400 stores), Japan's big apparel firms were already fighting for...

Michael Causton

Japan's Department Stores: The Most to Lose but Also the Hardest Hit

With shoppers staying away in March and April, department stores are suddenly the most vulnerable sector of all.Some department stores have...

Michael Causton

90% of Japanese Listed Apparel Firms Down but E-Commerce Powers Ahead

Most apparel firms and retailers suffered plummeting sales in March and expect a further wrenching in April.The only retailers to post higher sales...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)