July-August 2003

• Puma aims for ¥50 billion
• Puma Japan is a new entity, following the takeover of the operations of Cosa Liebermann, the former distributor in Japan. Now, like adidas before it, Puma is aiming for a three year growth plan leading to Japan sales of ¥50 billion.
• Eternal expands bag brand stores
• Some fashion distributors may be struggling to find a role. Others, like Eternal, are signing deals with up and coming overseas designers and brands, and investing in retail, with seemingly plentiful returns.
• ACE sets up Tumi Japan
• Tumi, the popular American travel and accessories brand, has put a toe in the water. Tumi Japan has been established in conjunction with Ace, Tumi’s long-time distribution partner.
• United Arrows posts record profits
• United Arrows was founded by some former employees of Beams, the originator of the select shop format in Japan and long, the largest chain by turnover. After another record year of sales and profits, United Arrows will become the largest chain this year.
• Spray on stockings and wipe off hair
• New products give a whole new meaning to hair care in Japan
• Young footwear fashions a hit with seniors too
• It is well-known that sales of premium leather, casual footwear brands have been on the increase in the last five to ten years. Less well-known is the emerging market for brands like Camper and Tod's with middle-aged women.
• Jewelry sales fall
• There have been signs of life in the jewelry business recently with investments from LVMH Watch & Jewelry, Harry Winston, and Bvlgari. Others like Tiffany's have struggled and the latest data from Jewelry Databank reveals a declining market overall-- but with further improvement at the top end.
• Magazines continue to increase license operations
• Claims of continued recession in the fashion magazine publishing business continue to astonish new arrivals when they walk into a Japanese bookstore. Nevertheless with advertising income down in the last decade, publishers have continued to look for new sources of income by exploiting the power of their titles as brands. Who are they aiming at?
• Daiei: a monster with one head
• Daiei is getting to be too much to worry about and there's not a lot good to say. While top officers seem to have lost their way, at least Daiei is at last talking about selling both baseball team and, crucially, some of its stores.
• Electrical leaders of the pack
• Electrical retailing continues to show signs of significant modernization. While other sectors flounder, the leading chains are looking stronger and stronger every year.
• Queen's Isetan clings to mother's skirts
• Queen's Isetan has confirmed a gradual, but ongoing expansion of two or three stores a year for the next three years -- but only around parent Isetan Department Stores.
• Babies R Us going well
• Toys R Us can be complimented for changing Japanese distribution single handedly. Now, with the introduction of Babies R Us, TRU Japan is again showing that is understands Japan.
• Aeon: new kings of retail Japan
• Aeon has its initial justification: it is now the biggest single large format retailer in Japan. Aeon has come a very long way in the last six years. It still has a long way to go, but the direction is positive.
• Aeon acquires 15% of Kasumi
• Selling beauty by tradition and price
• Japanese cosmetics sales have been free of retail sales maintenance since 1997. As a result, brand cosmetics are now increasingly available in both the up and coming drugstore chains and through the pharmacy corners in GMS and convenience stores. Cosmetic specialist chains have fast becoming a thing of the past.
• Millenium Retailing: new name, little change
• Seibu and Sogo have formally merged to become Millenium Retailing Group. The long awaited formalization of the merger gives hope for the future, but the biggest impact will be a shake up in the competitive structure of the sector as a whole.
• FOCUS: Japan gets the set as Tesco enters by acquisition
• With the entry of Tesco, Japan has become host to five of the world’s leading food retailers. Tesco joins Costco, Carrefour, Wal-Mart, and Metro. But in good Tesco style, the British chain store that dominates and leads retailing in the United Kingdom, has done it differently. While the other four chains have followed tried and tested models, seeking to impose well used formats from overseas on the different Japanese market, Tesco researchers clearly spent a lot of time in karaoke bars singing the most popular of all Sinatra songs on the Japanese menu—My Way. At this stage, more than a few observers are wondering why? In this month’s focus, JC again puts its readers ahead of the game.
• News in brief:
• J-Phone becomes Vodafone
  Costco plans further expansion
  Seiyu stands by Martha
  Gucci to add 3 stores
  Furla up 40%
  One cool address
  Carrefour goes native
  ABC Mart expands store size and numbers
  Retail brands taking over at convenience stores
  ¥ 3 million mattresses
  Lambretta relaunched in Japan
  Ballantyne to open in Aoyama
  Coach to double investment
  Uniqlo sees more customers…
  … and the first Skip store
  Coronet merged into Itochu Group
  A. Testoni's Japan sales to reach 20%
  Koizumi wants Japan to be attractive
  Daidoh enters China market
  ITB signs Gianni Carlini
  Zett takes control of Uhlsport distribution
  Pocket money and its uses
  3G phones not quite stillborn
  Dean & Deluca opens
  Mitsui helps Robinsons
  Don Quijote makes money
  Aeon strengthens online sales
  Aeon plans Mycal's rebirth
  Kid's stuff at convenience store
  Miyuki Life signs hLam
  Shocking development at Daimaru
  Sumitomo eyeing food distribution