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>Gaining sufficient scale to get out of the shadow of the Big 3 online malls in Japan is providing tough for <a href="https://www.smartkarma.com/entities/locondo-inc" target="_blank" data-smartkarma-citation="entities:26993:1" rel="noopener">Jade Group (3558 JP)'</a>s Locondo.</li>
<li>The number of active users on Locondo has fallen in recent quarters, causing concern for merchants and investors alike. </li>
<li>Jade Group, is hoping that sales of major brands like Reebok will attract more users while also bringing higher levels of growth.</li>
</ul>


Gaining sufficient scale to get out of the shadow of the Big 3 online malls in Japan is providing tough for Jade Group (3558 JP)'s Locondo.
The number of active users on Locondo has fallen in recent quarters, causing concern for merchants and investors alike. 
Jade Group, is hoping that sales of major brands like Reebok will attract more users while also bringing higher levels of growth.


Jade Hopes for Growth Through Reebok as Locondo Slows

Private Capital Markets

<ul>
<li>Qoo10 has been quietly growing its share of the Japanese e-commerce market. </li>
<li>Despite relentless competition from the big 3, Qoo10 has managed to increase members from 10 million in 2018 to 23 million through event marketing and close attention to customer demands.</li>
<li>While cosmetics and fashion are the current focus, Qoo10 is also strengthening other categories like food, stationery and electronics.</li>
</ul>


Qoo10 has been quietly growing its share of the Japanese e-commerce market. 
Despite relentless competition from the big 3, Qoo10 has managed to increase members from 10 million in 2018 to 23 million through event marketing and close attention to customer demands.
While cosmetics and fashion are the current focus, Qoo10 is also strengthening other categories like food, stationery and electronics.


Ebay's Qoo10 More than Doubles Users to 23 Million in 5 Years

Equity Capital Markets

<ul>
<li>Zozo may lead in online fashion malls but its customer base, while young, is getting older.</li>
<li>In 2020, it acquired a majority stake in Yutori, a fledgling fashion mall targeting the young, which will now list this month.</li>
<li>Yutori has grown sales to ¥2.47 billion since launching five years ago. As well as Japan, it sees a major opportunity across Asia given Japanese street fashion popularity there.</li>
</ul>


Zozo may lead in online fashion malls but its customer base, while young, is getting older.
In 2020, it acquired a majority stake in Yutori, a fledgling fashion mall targeting the young, which will now list this month.
Yutori has grown sales to ¥2.47 billion since launching five years ago. As well as Japan, it sees a major opportunity across Asia given Japanese street fashion popularity there.


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>There were a lot of rebalance implementations in China on Friday, plus a few upcoming index changes that were announced during the week.</li>
<li>There are a lot of implementations this week, with <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150</a> on Thursday and then others across a bunch of countries on Friday.</li>
<li>There were big inflows to <a href="https://www.smartkarma.com/entities/tracker-fund-of-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:29257:1" rel="noopener">Tracker Fund of Hong Kong (2800 HK)</a> during the week taking units outstanding to a new high. ETF inflows continue even as the market drops.</li>
</ul>


There were a lot of rebalance implementations in China on Friday, plus a few upcoming index changes that were announced during the week.
There are a lot of implementations this week, with KOSPI 200 and KOSDAQ 150 on Thursday and then others across a bunch of countries on Friday.
There were big inflows to Tracker Fund of Hong Kong (2800 HK) during the week taking units outstanding to a new high. ETF inflows continue even as the market drops.


Index Rebalance & ETF Flow Recap: NKY, TW Div+, ASX200, NZX50, Mom30, Top10EW, MVW, Rakuten Bank

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> March rebalance ends end January. There could be three changes at the rebalance with sector balance in focus.</li>
<li>Depending on the changes, passives trackers will need to buy 2.4-22.5x ADV (10-24% of real float) on the inclusions and sell between 3.5-42.5x ADV on the deletions.</li>
<li>
<a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a> capping, <a href="https://www.smartkarma.com/entities/nitori-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20386:1" rel="noopener">Nitori Holdings (9843 JP)</a> increase in PAF, a big funding trade, and potentially new stocks being added in two-steps. </li>
</ul>


The review period for the Nikkei 225 (NKY INDEX) March rebalance ends end January. There could be three changes at the rebalance with sector balance in focus.
Depending on the changes, passives trackers will need to buy 2.4-22.5x ADV (10-24% of real float) on the inclusions and sell between 3.5-42.5x ADV on the deletions.

Fast Retailing (9983 JP) capping, Nitori Holdings (9843 JP) increase in PAF, a big funding trade, and potentially new stocks being added in two-steps. 


Nikkei 225 Index Rebalance Preview (Mar 2024): Update on Ranking, Capping, Funding & Other Changes

Japan

ZOZO Inc operates internet shopping sites for apparel.  The Company also provides communication services relating to apparel such as blogs by fashion moguls and internet chat room for users.

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ZOZO Inc (3092 JP)

Jade Hopes for Growth Through Reebok as Locondo Slows

Locondo struggles to compete with Japan's top online malls, as active user numbers decline. Jade Group aims to boost growth by selling major...

Michael Causton

Ebay's Qoo10 More than Doubles Users to 23 Million in 5 Years

Ebay's Qoo10 quietly expands in Japanese e-commerce market, doubling members in 5 years through event marketing and customer focus. Now expanding...

Michael Causton

Zozo-Owned Yutori IPO This Month

Zozo-owned Yutori aims to tap into the growing popularity of Japanese street fashion in Asia. Yutori has real promise and its IPO this month could...

Michael Causton

Index Rebalance & ETF Flow Recap: NKY, TW Div+, ASX200, NZX50, Mom30, Top10EW, MVW, Rakuten Bank

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Nikkei 225 Index Rebalance Preview (Mar 2024): Update on Ranking, Capping, Funding & Other Changes

There could be 3 changes at the March rebal. Socionext moves up the add list following the stock split. Fast Retailing is back above 11% index...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Jade Hopes for Growth Through Reebok as Locondo Slows

​Locondo struggles to compete with Japan's top online malls, as active user numbers decline. Jade Group aims to boost growth by selling major...

Michael Causton

Ebay's Qoo10 More than Doubles Users to 23 Million in 5 Years

Ebay's ​Qoo10 quietly expands in Japanese e-commerce market, doubling members in 5 years through event marketing and customer focus. Now expanding...

Michael Causton

Zozo-Owned Yutori IPO This Month

Zozo-owned Yutori aims to tap into the growing popularity of Japanese street fashion in Asia. Yutori has real promise and its IPO this month could...

Michael Causton

Index Rebalance & ETF Flow Recap: NKY, TW Div+, ASX200, NZX50, Mom30, Top10EW, MVW, Rakuten Bank

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Nikkei 225 Index Rebalance Preview (Mar 2024): Update on Ranking, Capping, Funding & Other Changes

There could be 3 changes at the March rebal. Socionext moves up the add list following the stock split. Fast Retailing is back above 11% index...

Brian Freitas

Locondo struggles to compete with Japan's top online malls, as active user numbers decline. Jade Group aims to boost growth by selling major...

Ebay's Qoo10 quietly expands in Japanese e-commerce market, doubling members in 5 years through event marketing and customer focus. Now expanding...