April 2003

• Kosugi Sangyo slashes brands and staff
• Kosugi Sangyo is one of Japan’s traditional apparel manufacturer/wholesalers, and a good example of a company that has survived entirely thanks to the beneficence of its bankers. In any other market, its failure to adapt and its inventory mountain would have caused it to go under years ago. But in time-honored fashion, it is being given another chance.
• Sumitomo buys into fashion with Renown
• Sumitomo Shoji has further indicated its ambitions in the fashion and textile industry by taking a small stake in Renown. Renown was once a leading fashion wholesaling, but has only just begun to show operating profit after more than 12 years of losses and hopes for its first net profit in FY2002. The stake is small, but that is probably just the beginning.
• Where did all the Uniqlo shoppers go?
• Uniqlo sales continue to plummet every month. Where did all those people who loved Uniqlo go? Nikkei recently surveyed shoppers to find out. Mujirushi was one beneficiary, but according to this survey many simply went back to Gap.
• Aeon works to make itself more transparent
• Size matters in retailing, but it often seems Aeon thinks of little else. Like the man with the flashy sports car, many analysts say that Aeon is compensating for weaknesses in other areas. Recent problems with own brands and buying practices have highlighted the need for more efficiency and the company is now making efforts to improve. The question is can it follow through on all those new ideas.
• Daiei: having a plan doesn’t mean it will work
• Daiei must surely be getting near the record of having the longest series of (failed) recovery plans in history—which just adds to its records of high debts and unwarranted survival. Even METI has called publicly for more realistic targets and more drastic action.
• Uniqlo to close 16 stores in UK
• Fast Retailing has taken the surprising step of slashing its UK expansion, before it has had a chance to get going. The announcement has implications for the overseas ambitions of other Japanese retailers.
• Branded tomatoes
• In the face of continuing consumer disquiet with regards to food safety, major food producers have taken the unprecedented step of branding fresh produce. This could mark the beginning of the end for traditional farming.
• Scottish cashmere brand expands in Japan
• As reported in JC November 2002, cashmere-based brands are quietly expanding their share of the Japanese luxury market. Whilst Italian companies have been leading the expansion, a Scottish company has now announced measures to take its place in the front pack.
• Box: US Luxury knitwear brand delays store opening
• Tiffany sales continue to fall
• Recently it almost seems that Tiffany’s is becoming more famous in the Japanese press for its slow Japanese sales than for its product. Results for the final quarter will add fuel to the fire but there could be signs of improvement to come.
• Hourly sales analysis keeps Jupiter on track
• Jupiter Shop Channel continues to show that TV shopping works in Japan if done right. Sales and profit were up last year as the company uses hourly sales analysis to move product.
• Home centers still want to hold hands
• Home centers still sweat under intense competition in their sector. Now, once again led by an Aeon affiliated company, a real step towards consolidation has taken place with the agreement of Homac, Daiki and Kahma to work together.
• Junko Shimada signs with Cross Plus
• Japanese brand, Junko Shimada had announced it will off load the burden of distribution and production to apparel group Cross Plus. Expansion in Asia is part of the package.
• Latest Census of Commerce announced
• Although rather dry, Japan has some of the best commercial census statistics in the world. The latest of these three year surveys has just been completed and METI has announced initial results.
• Itochu signs deal with Pollini
• Itochu Shoji has signed another fashion import deal, this time with an Italian brand, Pollini. The contract is for exclusive import rights for the Pollini brand and was signed with Pollini’s owner Aeffe, the Italian fashion house that also owns Alberta Ferretti and Moschino. Pollini was acquired by Aeffe in 2000 and now accounts for about 20% of Aeffe’s global sales but is under represented in Japan.
• News in brief:
• Wal-Mart on track with Seiyu
  Itochu expands fashion mobile business
  Five Foxes opens Artisan flagship
  Bally stores to open this year
  47 New large store applications
  Custo swaps partners
  Max Mara Japan sales flat in first half
  Big wholesalers improve
  Delica reforms, focus on Cecil McBee
  Isetan to close Vienna store
  Wal-Mart on track with Seiyu
  Lumine updates buildings
  Daks doing a Burberry
  Guess distribution shift, imports from Italy
  United Arrows reopens in Shinjuku, sales up 30%
  Misaki Shoji signs Voyage London
  Mammina to expand Anna Sui business
  Renown to open Aquascutum flagship
  Carrefour happy with Saiyama, expanding in Asia
  Toho to acquire Virgin Cinema
  Profile expands imports of Spanish leather
  Daimaru opens in Sapporo
  Sumitomo establishes Chinese bridgehead
  Samantha Tabatha opens two new stores
  New Nagoya home for electricals
  Coach to offer Shibuya exclusives