February 2001

• Unit prices continue to fall
  The expansion of ¥100 Shop and Uniqlo, the poor showing of Muji, and the entry of Carrefour encourage the downward trend in retail prices and the sliding value of customer purchases. The Japanese press are now calling it the “Internationalization of Pricing”. Well perhaps a small improvement.
• Franchise contracts to be scrutinized
  There are moves afoot to introduce stricter controls on franchise chains in Japan. The government wants to help the little guy yet again.
• Character goods still a big contributor to the kitty
  Product based on famous cartoon characters continues to be a safe bet for licensed manufacturers–and i-mode startups.
• Retail Gold Rush: top overseas brands pour in
  Top overseas brands have been making headlines as they opened new, large format stores over the last two to three years. Now, following the lead of companies such as LVMH, Prada, Carrefour and others, the pace of new entries looks set to increase further.
• Uniqlo changes Japan yet again
  Fast Retailing has forced a number of changes on a reluctant retail industry. Now it is doing the same to graduate recruitment and human resource management.
• Daiei restructuring quickly, but doubts remain
  Changes are on track but new plans for giant specialty stores leave analysts cold. Daiei needs to quickly come up with something interesting.
• Amazon looking good after first 3 months
  Original ideas and name value makes Amazon look set to succeed despite the competition. Expect good first year results.
• Haggling in Shibuya
  It may look like just another cluster of fashion boutiques, but something doesn’t sound right. Japanese stores are frequently noisy, but here it isn’t the background music, its the sound of haggling between the customers and shop assistants. This is the brave new world of the barter market, Korean style.
• ¥100 Shop a fashion destination, sales up 54%
  ¥100 Shop continues to open 2 stores every 3 days. It is also now a shop for the young and trendy as its Shibuya branch shows.
• Shoppers looking for lower, or higher, prices
  Consumers in Japan are often said to be difficult to understand, but sometimes expert opinions don’t help very much. Consumers are looking for lower prices, but many would have us believe otherwise.
• Discounting: Beauty treatments too
  New self service beauty treatments show that the discount phenomenon is not just limited to apparel and cosmetics, service industries are now being reformed too.
• Hair salons go for a cut
  The stories of charismatic hair stylists becoming as famous as television personalities are mostly in the past. Like with many other services, new, low price options are becoming increasingly popular.
• Jusco Drugstores pose threat to existing chains
  The Jusco drugstore affiliation is shaking up Japanese drugstore retailing even before it reaches maturity. Other organizations are seriously worried. Niddo now demands its members don’t deal with Jusco.
• Made in Japan or not, they’re all hit products
  TVs, Coca Cola and miniskirts are voted some of the top products of the century.
• FOCUS: Seibu Department Store's SP21 Project
  A department store willing to change: Seibu comes good with a new marketing strategy
  Seibu was once the biggest and most exciting department store in Japan. Now, having got through its own financial crisis, the company is again strong enough to takeover and lead Sogo out of bankruptcy. Not only that, Seibu management has prepared a wide ranging and innovative new marketing strategy called SP21. Unlike most department stores, Seibu’s new ideas are aimed at changing traditions as well as improving results.
• FOCUS: Department Store Interim Results
  Critical year for department stores
  Seibu, a privately owned company, may have plenty to look forward to, but it is very much in the minority among Japanese department stores. The majority are struggling under heavy debts and have few new ideas. Interim results for the second half of 2000 are abysmal and a number of stores look set only to get worse. 2001 will be a make or break year for many of Japan’s traditional stores.
• RETAIL DATA
• NEWS CLIPS
  Louis Vuitton-¥800 million a month?
  Karuizawa Prince Shopping Plaza attracts 110,000
  Soccer gets a kick
  Muji checks out European competition
  Sankyo Seiko grabs Lacroix
  Jusco cancels joint venture with OfficeMax
  One in two own a mobile
  Starbucks: who needs smoking areas anyway?
  Pet Phone, dogs dinner
  Triumph splits marketing strategy
  Xebio concentrates on own brands
  Hello, hello, hello, MICA cops a new president
  Netprice growing into a new rival for Rakuten
  Lego expands sales of branded apparel
  Levi’s Japan 2000
  Supermarket sales down again
  Hot Spring forced to allow foreigners to bathe
  New Balance drops 9%
  Police kit a hit on Yahoo!