March 06, 2014

Luxury goods sales picking up at department stores

Major department stores in Japan say sales of luxury goods are picking up on the back of bullish stock markets.

Sales at 4 major department store chains were up in February compared to the same month last year even though February 2012 had one more business day because it was a leap year.

Department store officials say consumer sentiment has gradually improved with the recent increases in stock prices and the weaker yen.

(March, 2013)
posted by atfuji at 19:20 | Retail

May 30, 2013

Benefits from Abenomics reach to the night streets

Effect of Japanese Prime Minister Shinzo Abe's policies, known as "Abenomics,” which attracts consumption of luxury goods is spreading to the nightlife circuit such as Ginza, Tokyo. Busy customer traffic has returned to the exclusive club and well-established sushi shop. However, most of restaurants are not crowded at all compared with those were in the past and the recovery seems to be unstable.

Individual investors who received benefit from the high stock price caused by Abenomics and corporate employees who belong to a part of companies which brought back social expenses support the prosperity at the nightlife district. According to JCB, a Japanese credit card company, the amount of payment by corporate credit cards at Ginza from January to March in 2013 increased by 27.7 percent year-to-year basis. In April 2013, the amount jumped up by 41.6% compared with the same month of the last year.

Social expenses were reintroduced in some companies because of their business recovery. According to SMBC Nikko Securities, the amount of profit among all companies listed on the first section of the Tokyo Stock Exchange in March 2013 increased by 24.1 percent compared with the last year. The amount still seems to increase by 48.4 percent this year.

Small-to-middle-sized companies also have some benefit from the new policy. The maximum amount of annual social expenses which can be included in deductible expenses was raised to 8M JPY because of the tax reform in 2013.

On the other hand, securities only accounts for 13 percent of domestic households’ financial assets and only a part of restaurants such as expensive restaurants benefit from the high stock price.

(May 30, 2013)
posted by atfuji at 19:22 | Retail

February 23, 2013

Louis Vuitton Japan Increase Prices due to weakening yen

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Louis Vuitton Japan raised some prices by an average 12 percent to offset the impact of the yen’s plunge on sales. Analysts said other price increase by luxury goods retailer in Japan in future weeks would come as no surprise.

The spokeswoman of the Louis Vuitton brand said the company raised prices Feb 15 because of the weakening yen and rising raw material prices. The yen has depreciated about 20% against the euro in the past three month.

However, analysts said the higher price increase probably wouldn’t drive away customers. Brand goods had low price sensitivity and luxury brand buyers wouldn’t be so frugal as to care about another 10,000 yen, a retail analyst said.

(Bloomberg, February 2013)
posted by atfuji at 19:19 | Retail

February 17, 2013

Estimated E-commerce market for fashion/interiors/sundries in Japan expanded to 702B JPY in 2012

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According to a survey by Yano Research Institute, estimated size of E-commerce market for fashion/interiors/sundries in Japan expanded to 702B JPY in 2012, 110.3% of the previous year. The institute also reported that the size in 2013 would rise up to 753.5B JPY, 107.3% of the previous year.

Due to the robust growth, E-commerce channels are expected to be the promising sales channel for various companies in acquiring potential customers. The institute reported that growing number of companies began opening and operating in-house EC sites to expand their customer basis.

Fashion/interiors/sundries market in general cannot expect expansion considering economic recession in Japanese market. However, E-commerce market continues a steady growth.

(February 2013)
posted by atfuji at 19:18 | Retail

January 23, 2013

Roppongi Hills Renewal First Time In The Five Years

Roppongi Hills, a New Urban Centre and one of Japan's largest integrated property developments, will be refurbished its commercial facility area for the 10th anniversary on April 25th this year. Mori Building, an owner of the property, aims to develop a new customer base with the refurbishment including introduction of brands which open stores in Japan for the first time.

It will be the first refurbishment for the building in five years. More than 30 new brands will open shops there. Especially on the second floor where luxury brand shops and select shops gather, Alexander McQueen, Issa London and STELLA McCARTNEY will join.

Spokesman of Mori Building said “Investment will be a large amount. Our goal is raising the sales up to the same level as that in 2006.”
posted by atfuji at 12:35 | Comment(0) | TrackBack(0) | Retail