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. 

Private Capital Markets

<ul>
<li>Although there are some points to iron out, Fortress Investment is in the final stages of negotiation to purchase Sogo Seibu from Seven &amp; I, with Yodobashi Camera as partner. </li>
<li>This is an exciting move for Yodobashi as it should be an excellent choice to leverage Sogo Seibu’s better locations and create more competition for rivals like Bic Camera.</li>
<li>Even so, some stores will no longer have a future under their existing banners and the acquisition will mark the final demise of a 170 year old brand and company.</li>
</ul>


Although there are some points to iron out, Fortress Investment is in the final stages of negotiation to purchase Sogo Seibu from Seven &amp; I, with Yodobashi Camera as partner. 
This is an exciting move for Yodobashi as it should be an excellent choice to leverage Sogo Seibu’s better locations and create more competition for rivals like Bic Camera.
Even so, some stores will no longer have a future under their existing banners and the acquisition will mark the final demise of a 170 year old brand and company.


Yodobashi to Become Top 10 Retailer in Sogo Seibu Deal with Fortress

Equity Bottom-Up

<ul>
<li>Nitori dominates in home decor and furniture but now wants to become a top 10 fashion retailer through its N+ chain targeting older women. </li>
<li>It will raise the rate of new stores to 30 a year and then to up to 100 a year as it reaches scale. </li>
<li>Will it be the Uniqlo for the middle-aged? If so it could own a chunk of a segment worth an estimated ¥2.5 trillion.</li>
</ul>


Nitori dominates in home decor and furniture but now wants to become a top 10 fashion retailer through its N+ chain targeting older women. 
It will raise the rate of new stores to 30 a year and then to up to 100 a year as it reaches scale. 
Will it be the Uniqlo for the middle-aged? If so it could own a chunk of a segment worth an estimated ¥2.5 trillion.


Nitori to Ramp up N+ Clothing Chain – ¥500 Billion in New Sales?

Thematic (Sector/Industry)

<ul>
<li>Consumer electronics retailers and producers benefited a lot from the pandemic, supplying customers stuck at home with kit for work and play. </li>
<li>The Olympics also encouraged people to update their TVs and entertainment systems.</li>
<li>Now, sales are falling to pre-2020 levels due to saturation. Inflationary pressures also mean more people are turning to second-hand options or simply not replacing old appliances at all.</li>
</ul>


Consumer electronics retailers and producers benefited a lot from the pandemic, supplying customers stuck at home with kit for work and play. 
The Olympics also encouraged people to update their TVs and entertainment systems.
Now, sales are falling to pre-2020 levels due to saturation. Inflationary pressures also mean more people are turning to second-hand options or simply not replacing old appliances at all.


Japan's Consumer Electronics Retailers Face Tough Outlook

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/soho-china-ltd" target="_blank" data-smartkarma-citation="entities:4123:1" rel="noopener">Soho China (410 HK)</a>'s Pan Shiyi is resigning to focus on "philanthropic pursuits". That sounds like "donations", which can be sourced from the Pans selling their stake in SOHO.</li>
<li>In the Nikkei 225 Annual Review, <a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec (6594 JP)</a>, <a href="https://www.smartkarma.com/entities/smc-corp" target="_blank" data-smartkarma-citation="entities:20866:1" rel="noopener">SMC (6273 JP)</a>, <a href="https://www.smartkarma.com/entities/hoya-corp" target="_blank" data-smartkarma-citation="entities:8990:1" rel="noopener">Hoya (7741 JP)</a> are IN. <a href="https://www.smartkarma.com/entities/unitika-ltd" target="_blank" data-smartkarma-citation="entities:7669:1" rel="noopener">Unitika (3103 JP)</a>, <a href="https://www.smartkarma.com/entities/maruha-nichiro-corp" target="_blank" data-smartkarma-citation="entities:20640:1" rel="noopener">Maruha (1333 JP)</a>, and <a href="https://www.smartkarma.com/entities/oki-electric-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:2181:1" rel="noopener">Oki Electric (6703 JP)</a> are OUT.</li>
<li>
<a href="https://www.smartkarma.com/entities/volkswagen-ag" target="_blank" data-smartkarma-citation="entities:21738:1" rel="noopener">Volkswagen (VOW GR)</a> confirms its intention to float a portion of its Porsche sports-car brand within weeks, in what is expected to be one of Germany’s largest-ever public debuts.</li>
</ul>



Soho China (410 HK)'s Pan Shiyi is resigning to focus on "philanthropic pursuits". That sounds like "donations", which can be sourced from the Pans selling their stake in SOHO.
In the Nikkei 225 Annual Review, Nidec (6594 JP), SMC (6273 JP), Hoya (7741 JP) are IN. Unitika (3103 JP), Maruha (1333 JP), and Oki Electric (6703 JP) are OUT.

Volkswagen (VOW GR) confirms its intention to float a portion of its Porsche sports-car brand within weeks, in what is expected to be one of Germany’s largest-ever public debuts.


Last Week in Event SPACE: SOHO China, Nikkei 225 Review, SK Chemicals, SingTel, Porsche, Tyro

Japan Specialist

Mark Chadwick

<ul>
<li>After the close, Walmart slashed its quarter and full-year profit guidance – the second inflation-induced cut this year – stock down sharply </li>
<li>The company said inflation is causing consumers to spend more on must-have things such as food and less on electronics </li>
<li>Japanese electronics retailers will face a similar problem as inflation feeds through to weaker consumption of high-end goods  </li>
</ul>


After the close, Walmart slashed its quarter and full-year profit guidance – the second inflation-induced cut this year – stock down sharply 
The company said inflation is causing consumers to spend more on must-have things such as food and less on electronics 
Japanese electronics retailers will face a similar problem as inflation feeds through to weaker consumption of high-end goods  


Walmart Shocker #2 - Sell Japanese Electronics Retailers

Japan

YAMADA DENKI CO., LTD. operates consumer electronic mass sales stores throughout Japan.  The Company sells home appliances, audio & visual systems, office automation equipment, telecommunication equipment, software, and computers. The Company also provides repair services for its merchandises.

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Yamada Denki (9831 JP)

Yodobashi to Become Top 10 Retailer in Sogo Seibu Deal with Fortress

The sale of Sogo Seibu won't make much difference to Seven & I but if the sale to Fortress goes ahead will make Yodobashi Camera into one of...

Michael Causton

Nitori to Ramp up N+ Clothing Chain – ¥500 Billion in New Sales?

Nitori has been underestimated before and now apparel retailers believe Nitori doesn't have the experience to take them on. They are wrong. It...

Michael Causton

Japan's Consumer Electronics Retailers Face Tough Outlook

Don't expect much growth from Japan's consumer electronics retailers. With market saturation and waning demand, there is trouble ahead and possibly...

Michael Causton

Last Week in Event SPACE: SOHO China, Nikkei 225 Review, SK Chemicals, SingTel, Porsche, Tyro

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Walmart Shocker #2 - Sell Japanese Electronics Retailers

We have a Bearish trading call on the Japanese electronics retail sector. Walmart surprised the market by citing inflationary impact on electronics...

Mark Chadwick

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