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>Japanese consumer households continues to face significant barriers to spending post-Covid although there are clear signs of higher spending on categories like luxuries.</li>
<li>The biggest barrier is inflation, particularly in essential categories like food where there were 20,743 item price rises in the 11 months to November 2022.</li>
<li>Although wages have increased, much of the bounty is going into savings rather than higher spending.</li>
</ul>


Japanese consumer households continues to face significant barriers to spending post-Covid although there are clear signs of higher spending on categories like luxuries.
The biggest barrier is inflation, particularly in essential categories like food where there were 20,743 item price rises in the 11 months to November 2022.
Although wages have increased, much of the bounty is going into savings rather than higher spending.


Equity Bottom-Up

<ul>
<li>Yaoko opened a discount supermarket last year and added a second in March, using knowhow acquired from the Ave chain it bought in 2017. </li>
<li>The new store is purpose built to save costs and offer lower prices, and should prove popular as inflation rises, while delivering higher margins than supermarkets typically achieve.</li>
<li>The format stands in marked contrast to other discounters such as <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)'s </a>Gyomu Super but both formats show that discounters can make more money than other supermarkets.</li>
</ul>


Yaoko opened a discount supermarket last year and added a second in March, using knowhow acquired from the Ave chain it bought in 2017. 
The new store is purpose built to save costs and offer lower prices, and should prove popular as inflation rises, while delivering higher margins than supermarkets typically achieve.
The format stands in marked contrast to other discounters such as Kobe Bussan (3038 JP)'s Gyomu Super but both formats show that discounters can make more money than other supermarkets.


Discount Retail Gets Mainstream Support: Yaoko Expands Discount Supermarket

<ul>
<li>OK Super is today the biggest single chain of supermarkets in Tokyo with a strong customer following thanks to its low prices.</li>
<li>It still aims to be the cheapest store in any local area, backed by aggressive buying and low cost operations, and will expand store openings this year.</li>
<li>Although it is a private company, it is a serious competitor to any listed supermarket chain in the Kanto area.</li>
</ul>


OK Super is today the biggest single chain of supermarkets in Tokyo with a strong customer following thanks to its low prices.
It still aims to be the cheapest store in any local area, backed by aggressive buying and low cost operations, and will expand store openings this year.
Although it is a private company, it is a serious competitor to any listed supermarket chain in the Kanto area.


<ul>
<li>As more suppliers announce price increases, larger retailers are turning to discount campaigns to establish some early price credibility before competition gets even fiercer. </li>
<li>Lower prices will increasingly attract customers as price sensitivity quickly rises, benefiting discount retailers.</li>
<li>But, with the Yen so low, import prices are also set to add to the pressure pin standard price retailers – a full list of vulnerable retailers below.</li>
</ul>


As more suppliers announce price increases, larger retailers are turning to discount campaigns to establish some early price credibility before competition gets even fiercer. 
Lower prices will increasingly attract customers as price sensitivity quickly rises, benefiting discount retailers.
But, with the Yen so low, import prices are also set to add to the pressure pin standard price retailers – a full list of vulnerable retailers below.


Japan's Big Retailers Resist Price Pressure

<ul>
<li>The latest figures show that Japanese incomes fell for the first time in five years in 2021. </li>
<li>But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth</li>
<li>We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.</li>
</ul>


The latest figures show that Japanese incomes fell for the first time in five years in 2021. 
But despite this, average monthly household expenditure recovered and then accelerated at the end of the year. Online spending grew significantly, and much of this was new growth
We detail below which retailers are likely to benefit from these shifts in consumption behaviour over the next few years.


Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

Japan

Yaoko Co., Ltd. operates local supermarkets in the Saitama Prefecture. The Company handles fresh food products, daily-use sundry products, and other various goods in local area.

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Yaoko Co Ltd (8279 JP)

Japanese Consumer Markets in 2023

Japanese consumer spending is rising again but there are headwinds such as fears over inflation and social security reforms. There is more...

Michael Causton

Discount Retail Gets Mainstream Support: Yaoko Expands Discount Supermarket

Discount retailing continues to boom in Japan and now even the best mainstream supermarket chains like Yaoko are entering the market. The high...

Michael Causton

OK Super: Winning in Inflation Era

OK Corporation runs Japan's most successful discount supermarket operation and is a benchmark to measure its listed competitors. It is likely to...

Michael Causton

Japan's Big Retailers Resist Price Pressure

The pressure on costs should just mean that retailers raise prices but with competition so intense, standard retailers are trying to resist raising...

Michael Causton

Japanese Household Expenditure in 2021 and Beyond: Which Retailers Will Benefit?

Japanese spent more on homes and less on clothes in the last two years but they also added to their savings. This insight analyses the key...

Michael Causton

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