Shiseido’s Profits Plunge

Due to a slow-recovering Japanese-economy Shiseido reported a drastic fall in net profits of 62% to 9 billion yen in their previous nine-months ending 31 December 2010, forcing them to slash their forecasts for the full-year.

Overall, sales at Shiseido increased 4.8% to about 487 billion yen due mostly to overseas sales which increased over 20% having mostly recovered and are recovering at a much faster rate than the market in Japan.

For the year ending 31 March 2011 Shiseido has cut their net profit to 18 billion yen, down from their earlier estimate of 25 billion yen with sales dropping to 680 billion yen down from a previous forecast of 688 billion yen.

Information Shiseido Company Limited

Kao Corporation Sees Mixed Results

Kao Corporation reported an increase of 14.7% to 51.2 billion yen for net profits the nine months ending 31 December 2010. During this time operating income also increased 18.2% to 100 billion yen as well net sales increased 0.4% to about 915 billion yen – a modest increase but still an increase nonetheless especially in this contracted domestic cosmetics market.

Overall, sales from Kao’s beauty business which include such brands as Molton Brown, Bioré, Jergens and Kanebo decreased 1.8% to 409.6 billion yen.

Kao is forecasting net profits to increase over 30% to about 53 billion yen for the year.

Kao Corporation was first founded as Nihon Yuki Company a toiletry soap manufacturing company in 1887 by Nagase, Tomiro and did not fully change their name to Kao Corporation until 1985.

Data Kao Corporation

Sanei + Tokyo Style

In a merger that has been over several months in the making, Tokyo Style and Sanei International will combine operations and be under one holding company from 1 June 2011.

Sanei International established in 1949, designs, manufactures and sells women’s, men’s and kid’s RTW and ACC, as well as has a license brand business and manages specialty and outlet stores.

Tokyo Style, also established in 1949 also designs, manufactures and sells RTW and ACC for men, women and children.

Together Sanei International and Tokyo Style have sales totaling over 150 billion yen, making their new holding company the third largest Japanese apparel company after Onward Holdings and World Co.

Information Sanei International Co. & Tokyo Style Co.

President of Isetan Chosen to Lead Holding Company

Onishi, Hiroshi president of Isetan (since 2009) has been hand-picked to become the president of the new Isetan Mitsukoshi Holdings Ltd. which will become one company from 1 April 2011.

The holding for Isetan & Mitsukoshi company was formed 2008 and currently has close to 19,000 employees with Isetan and Mitsukoshi as 100% subsidiary firms.

Information IMHDS

It’s been a Very Good Year for Lapine

Lapine, which designs, manufactures and sells women’s RTW experienced strong sales in department stores and specialty stores this season with success on their core product line of jackets, blouses, skirts, pants, suits, coats and dresses.

The Japan-based apparel company is forecasting 100 million yen for their group net profit for the year ending 31 March, a slight increase from their original estimate of 10 million yen. Lapine is also forecasting about 13 billion yen in sales, another increase though not as large as their group net profit. Lapine is also expecting 200 million yen in operating profit another increase from their original estimate of 150 million yen.

Either all of their original forecasts were way off or Lapine has had an incredible sales year.

Information Lapine Co. Ltd.

11th Spring/Summer Tokyo Girls Collection

This March Branding Inc. will host the 11th Spring/Summer Tokyo Girls Collection. This year TGC will be held at Yoyogi National Stadium on Saturday 5 March and the theme is Tokyo Romantic Fever.

Tokyo Girls Collection was launched in 2005 and is a semiannual fashion event. The event showcases the season’s trends by all Japanese brands. The collections are usually modeled by popular celebrities from the entertainment industry and popular magazine models not professional models.

In the past TGC has been a boon for sales for Japanese brands. In just one weekend in the 2009 Spring/Summer collection TGC sold a record high of 57 million yen in merchandise.

For those of you who have attended Tokyo Girls Collection in the past you know it's more than just a show; it's entertainment with celebrities, celebrity models, music, stylish clothes and open-to-the-paying-public that are mostly female in their late teens to early twenties who use their mobile phones to buy online. It is a great way to present and sell merchandise all at one venue, all at one time. Maybe Milan, Paris and New York can learn a few things about presentation from Tokyo Girls Collection. What do you think?

Tickets from the TGC website are already sold out – over 20,000 sold - if you can make it I hope to see you there!

Matsuzakaya Goes Tokyo Girls Collection

Next month to coincide with a Nagoya-based rendition of Tokyo Girls Collection, Matsuzakaya Nagoya will sell merchandise shown at the Tokyo Girls Collection – the first time Tokyo Girls Collection merchandise will be sold retail.

The promotional campaign will happen 16 February to 28 February and be showcased in a 200sqm space at Matsuzakaya. With merchandise priced at about 10,000 yen Matsuzakaya will target women in their 20’s and 30’s.

Matsuzakaya established in 1611 and one of the oldest department stores in Japan, is operated by J. Front Retailing.

Tokyo Girls Collection launched in 2005 is a semiannual fashion festival showcasing fashion streetwear by Japanese brands, modeled by popular celebs and professional models.

Information Tokyo Girls Collection and Matsuzakaya Department Store

N+A

Japanese sisters Noriko and Akiko, founders and designers of N+A have moved their designs to New York and are retailing at Lori McLean and Peipers + Kojen boutiques. If you are in New York check them out as the prices for their jewelry range from only $20 to $100 USD.

Lori McLean 49 Grove Street New York, NY 10014, United States (212) 242-3204

Peipers + Kojen 968 Madison Ave New York, NY 10021-2610, United States (212) 744-7878

Samantha Thavasa Airline

In an attempt to increase their brand recognition, handbag and accessory company Samantha Thavasa is collaborating with Japan Airlines. The partnership will consist of Samantha Thavasa branding the outside of one JAL plane flying domestic routes and on the inside of the plane branding cups and headrests.

With both Samantha Thavasa and JAL’s sales decreasing the questions is - who needs the collaboration more?

Information Samantha Thavasa Japan Ltd.

Bluebell to Distribute Balmain

Starting from the Fall/Winter 2011 collection Bluebell Japan will have exclusive distribution rights for Balmain in Japan. Bluebell will open the first Balmain flagship in Tokyo this year and which will carry the Balmain women’s RTW collection as well as men’s accessories including shoes and bags.

Balmain, based in France and founded in 1945 by Pierre Balmain is now designed by Christophe Decarnin.

Information Bluebell Japan

Raf Simons Cancels Partnership with Futurenet

Futurenet Group, exclusive license holder for Raf Simons via joint venture with Japan’s Mitsui Group has suspended all deliveries of the fall/winter collection due to the cancellation of their partnership by Raf Simons.

No reason was given for the termination of the partnership and Futurenet Group expects the collection to ship as soon as possible.

Raf Simons and Futurenet through their joint venture with Matsui run two Raf Simons’ flagship stores in Tokyo and Osaka.

Information Futurenet Group

Yurakucho Hankyu Renovates

Closing for renovations this July, H2O Retailing will complete the renovations and reopen their Yurakucho Hankyu store this fall.


The store located in the Yurakucho Marion commercial complex will be remodeled as a high-end department store and will house a Hankyu Men’s store modeled after their successful Hankyu Umeda store in Osaka and carry men’s apparel and accessories.

Information H2O Retailing Corporation

REDValentino Opening in Aoyama

Next month, REDValentino will open their first flagship store in Japan. The new store in Aoyama will be two floors spread out over 230sqm, with a rooftop terrace for special events. The first floor will be dedicated to shopping where clients can purchase the latest REDValentino collection, while the second floor will be a dedicated showroom.

The interior of the store blends romance and technology - all-white vintage furniture, wood panels, upholstery and trunks, surrounded by lacquered paneling create a chill retro feel in contrast to the raw metal, mannequins on rotating podiums and video images playing throughout the store.

To celebrate the store opening, REDValentino will host an event on Thursday 10 April with DJ Van Cliffe.D spinning tracks while guests sip and enjoy cocktails and have the opportunity to view a beautifully designed, Aoyama-exclusive point d’espirit dress.

To pick up the REDValentino collection visit 5-2-11, Minami Aoyama, Minato-ku, Tokyo 107-0062.

Tao Kurihara is Hanging it Up

Tao Kurihara, of Comme des Garçons is putting an end to Tao Comme des Garçons. The sub-label she began from Comme des Garçons in 2005 will cease after the spring/summer 2011 collection, the last collection. Moving forward Kurihara will focus her time and energy on Tricot Comme des Garçons, another sub-label she began from Comme des Garçons.

Information Comme des Garçons

Japan Department Store Sales Down for 2010

For the second straight month and the thirty-third out of thirty-five months, Japan Department Store sales were down 1.5% in December 2010, falling to 724.6 billion yen. Sales at department stores in the Tokyo area were not immune to the sales decrease either as their sales fell 0.3% to 178.5 billion yen.

Overall Japanese Department Store sales fell 3.1% to 6.29 trillion yen for 2010, the fourteenth straight year for declines.

Data Japan Department Stores Association

Kao Goes Eco

Cosmetics company Kao Corporation is jumping on the “eco” bandwagon and plans on introducing environmentally-safe packaging for their beauty care products. Kao, founded in 1887 by Nagase Tomiro, will replace up to 70% of their packaging currently using plastic covers with a new, thinner film which is just as strong as plastic but carry a much smaller carbon footprint – up to 80% smaller.

From next month Bioré will be the first brand to launch with the new thinner films, followed by their Liese hairstyling products and eventually more. In addition to phasing out plastic covers Kao will also switch from clear plastic cases to paper boxes for most of their products by 2012 – clear plastic or paper boxes – which is worse?

Let’s hope Kao’s attempt at going eco is more successful than their Econa cooking oil products.


Information Kao Corporation

Renown Bounces Back

Renown Inc. reported a 1.3 billion yen net profit for the nine-month period March to November (2009), up from the previous year where they were are at a loss of 3.9 billion yen.


With the news of their net profit increase Renown’s stock also increased 41 yen, or 19.8%, to 248 yen to end trading on Friday.

Information Renown Inc.

Shibya Seibu to Renovate

In an effort to attract more women in their 30’s and 40’s, Seven & i Holdings, operator of Seibu will renovate their Shibuya department store.

Work will begin this past Saturday on about 7,000 sqm of the department store and is due to complete this March.

Departments and floors affected in the renovation include the food section in the basement which will introduce fourteen new tenants as well as the addition of a book corner, US chocolate shop (Godiva?) and a hobby section for women.

First opened in 1968 Seibu Shibuya has experienced two straight years of sales declines and projects a 10% increase by next year after the renovations are completed.

Do you believe renovations at Seibu Shibuya will make it a better department store and help increase sales?

Information Seven & i Holdings Co.

Fast Retailing

Fast Retailing’s Uniqlo reported a 35% drop of net profits for the September to November (2009) quarter, bringing their net profit to 22.7 billion yen. Along with the steep fall in net profit Uniqlo also experience a 5% dip in sales to about 251 billion yen with operating profits falling 18% to about 50 billion yen. Continuing an almost year long trend Uniqlo also suffered a 12% decrease in same-store-sales for the quarter – ending what is by far one of the worse years in recent times for Uniqlo – in Japan. That being said or written in this case Uniqlo did experience strong sales overseas for the year, reporting a 29% increased to about 27 billion yen. The strong overseas sales came from several geographic regions including Greater China, Hong Kong, South Korea as well as the US and Europe. For the quarter ending September to November Uniqlo reported a 12% increase in overseas sales and are forecasting sales overseas to be over 100 billion yen.

This is all well and good but…

Fast Retailing is depending on Uniqlo in Japan to be their treasure chest for overseas expansion including opening over 200 new stores a year, though with decreased sales at Uniqlo in Japan the way they were in 2009 they will not be able to expand very far let alone 200 stores.

Fast Retailing should build a combined strategy of overseas expansion while addressing the problems that are making the sales decrease in Japan i.e. merchandising, oversaturation (too many stores) and not just overseas expansion but localization to the market – this added to their innovation and Yanai-san’s business acumen will propel Fast Retailing to the next level and equal to Inditex, Zara, H&M and GAP.

Until then Fast Retailing has to fix their retail woes at home before trying to conquer the retail world.

Data Fast Retailing Co.

Tokyo Fashion Daily in Today's Japan Times

I would like to thank Paul McInnes for his article on Tokyo Fashion Daily in today's Life & Style section of Japan Times.

You can check out the article here.

Thank you from Tokyo Fashion Daily

Sazaby's Takeover

Sazaby League is in the midst of an internal takeover in order to improve efficiencies to improve business and overall sales.

Current Sazaby League Director Tsunoda, Ryota, nephew of Sazaby’s founder, made a successful tender offer through his investment firm AHA to gain over 91% ownership of Sazaby.

After the management buyout is complete Sazaby plans on delisting the stock as well as restructuring the company.

Sazaby, established in 1972 was originally set up as a wholesale company importing furniture before expanding to design, manufacture and apparel and accessory sales.

Information Sazaby League Ltd.

Shiseido Appoints New CEO

Shiseido, long in talks to make a change at the senior management level has finally done so by appointing 29 year-veteran executive Suekawa, Hisayuki as new CEO and president, replacing Maeda, Shinzo who will become chairman of Shiseido in April this year.

Established in 1872 by Fukuhara, Arinobu, Shiseido is not only the fourth largest global hair care and cosmetics producer but also the oldest cosmetics company in the world.

Information Shiseido Co. Ltd.

Its Official – Versace Japan

Beginning with the fall 2011 season, Versace Japan will sell Versace, Versace Collection and Versace Jeans in select luxury department stores in Tokyo and Osaka.

Attempting to make a comeback in Japan, Versace SpA has named Saito, Hiroshi the new Japan CEO. Saito-san formerly of Jil Sander Japan, Prada Japan and Gucci has over thirty years experience working in the luxury fashion market in Japan and Italy.

Versace left Japan in the summer of 2009 and since then has been planning their return.

Information Versace SpA

Japan Department Stores off to a Good Start in 2011

Department Stores in Japan have finally picked up some new year’s luck this year so far. Same-store-sales between 2 January and 10 January increased for both Takashimaya 4.5% and Daimaru Matsuzakaya 3.3% from last year.

Expecting sales to finish the month stronger than last year department stores are hoping the strong sales are not just from the discounted sale season and will continue throughout the year.

With consumer spending in Japan, which accounts for 60% of gross domestic product, improving for six straight quarters since April-June 2009, department stores’ hopes may become a reality as an improved income situation appears to be driving consumer spending - not only in department stores but online as well where according to Nomura Research Institute ecommerce is expected to top 7 trillion yen for the fiscal year 2010, surpassing Japan Department Store sales for the first time ever.

Could 2011 be the year of the rebound? It is too early to tell though if the beginning of the year is any indication the economy is off to a good start in 2011.

Data Japan Department Stores Association & Nomura Research Institute

Takashimaya's Earnings Increase but at What Cost?

For the September to November quarter in 2009, retailers overall saw a boost in earning. The earnings increase did not come from increased sales but from government stimulus and across the board cost cutting.

Takashimaya for example saw earnings increase 83% to 3.7 billion yen for the quarter as the cut costs just about everywhere they could be cut especially in terms of payroll = people.

Do you think employees let go from Takashimaya will continue to shop there or go to Isetan?

Data Takashimaya Co.

Onward's Profits Jump Upward

Onward Holdings, parent company of Onward Kashiyama, apparel and accessories design and manufacture company, saw net profit increase 74% to 4.6 billion yen from this time last year.

With sales of the company’s main brands increasing, Onward’s stocks rose 6.1% or 44 yen to 761 yen in this morning’s trading.

Onward Kashiyama has the Japan license for brands such as Jil Sander, Joseph, Bus Stop, Calvin Klein, Donna Karan and many more.

Data Onward Holdings

Shimamura, Ginza?

Following their strategy of opening more stores in major urban areas, apparel retailer Shimamura is planning on opening an outlet in Tokyo’s Ginza area as early as 2012.

Upon entering Ginza Shimamura will join other fast-fashion giants Fast Retailing’s Uniqlo, H&M, and Forever 21, in continuing the trend of opening in Ginza and truly changing the brand landscape Tokyo’s most luxury urban center.

Acknowledging higher rents in Ginza than their traditional suburban locations Shimamura will realize savings through cost-cutting staring in their distribution locales and carrying only trendy apparel and accessories that have a higher rate of turnover, up to 30%.

In addition to Ginza, Shimamura will also open their first Fashion Center in Osaka, followed by Nagoya, Fukuoka and additional sites in urban Tokyo.

Information Shimamura Co.

ABC Mart's Same-Store-Sales Increase

ABC Mart reported a slight increase of 0.5% in same-store-sales for this past quarter, bettering the previous quarter by 4%. Although customer visits decreased on a store-to-store basis ABC Mart still opened 32 new shops now totaling 572 in Japan.

Along with an increase in same-store-sales for the quarter starting September and ending in November ABC Mart also reported a 10%, 6.2 billion yen gain in operating profit, with sales for the year also increasing about 10% to 31 billion yen.

ABC Marts gains are attributed to improving the merchandise and focusing on quality instead of lower prices, though with their average dress shoes still selling for 10,000 yen they are still affordable and fashionable.

Data ABC Mart Inc.

Uniqlo Sales Close Down for a Tough Year

Fast Retailing’s Uniqlo’s December same-store-sales fell 15.5%, the fifth consecutive month their sales have dropped and about the ninth month of declines in the 2010 calendar year. Along with same-store-sales falling, Uniqlo also reported a 10% drop in customers in December who also spent 6.1% less.


Once the fast-fashion darling of Japan what went wrong for Uniqlo in 2010, and will they be able to repeat their success from 2009 in Japan and globally?

Data Fast Retailing Co.

Onassis - No, Not Jacqueline

New York-inspired Onassis will open their first Japan store this coming March. The store will be located in Tokyo’s Shibuya ward. After the launch of the store Onassis will open their office building in June in Tokyo's Daikanyama.

Onassis continues the recent trend of American brands expanding and entering Japan (part of the American Invasion); though in this case unlike the other US-based brands A&F, Hollister, AEO etc…Onassis is a craftsmanship brand – a collection of handmade, versatile pieces crafted with an exceptional attention to detail.

With New York City as their backdrop Onassis provides the next level of American-craftsmanship imported to Japan.

Look for the new Onassis store this March in Shibuya.

Information Onassis New York, NY

Japan Department Stores Up for 3 out of 5 in December

With the year closing in December, department stores in Japan made their final push for sales and more than half saw an increase in same-store-sales.

Both Isetan Co. and Mitsukoshi Ltd. saw sales increase by 0.5% from last year while Hanshin Department Stores experienced a 1.1% increase. While these three enjoyed a slight increase in sales both Takashimaya and Daimaru Matsuzakaya both watched as their same-store-sales dropped; Takashimaya falling 0.7% and Daimaru Matsuzakaya falling 1.5%.

Although the end of the year was not great even those department stores with a slight increase, overall, sales from Japanese Department Stores since December have been positive reflecting the New Year sales.

Can Japanese Department Stores sustain the sales increase after the New Year sales are over?

Information Japan Department Stores Association

Fast Retailing's Ambitious Plans

Fast Retailing, parent company of Uniqlo, UJ, GU, +J, Helmut Lang, Theory, Comptoir Des Cotonniers, Princess Tam-Tam and PLST has doubled their global sales forecasts for 2020 to 2 trillion yen for Uniqlo and re-forecasted their global sales forecast from 2015 to 2020 for the group company to 5 trillion yen with 1 trillion yen each coming from Japan, China, the US & Europe and the rest of Asia. The other 1 trillion yen is expected to come from Fast Retailing’s other diverse low-cost apparel brands.

In order to reach such lofty sales goals Fast Retailing is focusing on opening more and more stores globally with about another 200 in the US, and 300 in Europe as well as strategic acquisitions that will generate sales and produce cost-savings.

Fast Retailing is currently the world’s number fourth largest apparel company in terms of sales after Inditex, H&M, and the GAP and followed by Limited Brands.

Data Fast Retailing Co.

Happy New Year Japan Department Stores

The yearly anticipated New Year’s sales have proven a much needed blessing for Japanese Department Stores.  Performing better than last year department stores in Japan are off to a good start for 2011. 

Takashimaya experienced increased sales of 3% in Tokyo, while Isetan Shinjuku saw sales increases 5%.  Sales at Mitsukoshi in Nihonbashi were also up 5% and a huge increase of 40% at Mitsukoshi Ginza.  Seibu Ikebukuro of Sogo & Seibu also experienced a 5% sales increase, and in Osaka J. Front Retailing’s Daimaru`s Shinsaibashi saw sales increase 11%.

I guess rubbing the rabbit foot for luck is so far working for Japan’s Department Stores.  Hopefully the luck will last throughout 2011 and continue.

Data Japan Department Store Association