The secret of the strength of Japanese apparel model “Adastria” and the unexpected influence of the popular explosion See-in _Retail and logistics industry news site[Diamond Chain Store Online]

China’s Shein has created a real store in Harajuku, Japan, and it has become a hot topic that 4,000 people have formed a line there. In November, there were a series of acquisitions of major retailers and apparel companies by foreign companies. For companies competing solely in the ever-shrinking Japanese market, it is inevitable that even greater difficulties await them. Under such circumstances, Adastria should be a role model for Japanese apparel. We analyzed the secret of the company’s strength, the feasibility of the medium-term management strategy, and the “anxiety factors” that I dare to mention. In addition, Shiin’s strategy for Japan is likely to have some impact on Adastria.

Sogo/Seibu acquires Mash Holdings

11In the middle of the month, Sogo/Seibu and Mash Holdings,2000Two mega deals of corporate acquisitions exceeding 100 million yen continued. Moreover, it is common that foreign funds have taken away the apparel that many Japanese think of as “Owakon”.
As long as employment is protected, management is normalized, and corporate taxes are paid to Japan, it doesn’t matter what nationality the shareholders of that company are. In terms of strategy, department stores will change their business format, and apparel companies will bet their survival by going overseas. In the end, it seems that the Japanese are unable to make rational decisions on their own to increase their “competitiveness.” Unfortunately, it seems to carry the same sad nature as it did then.
However, there are also “traps” lurking in large-scale acquisitions. Whether it’s the stubbornness of the fund or the sales principle of the consultant who evaluates the business, if the variation (corporate valuation) is too high, you will have to pursue a high return, which raises the hurdle.for example2018I wonder if it will be a repeat of World, where the stock price fell as soon as it was relisted in 2016.
This is because even though the cause is a “man-made disaster” due to overestimation, it is summed up as “apparel is ugly after all.”

Due to the spread of the recognition that “apparel = Owakon”, the investment priority of domestic forces is extremely low. In fact, apparel has been sitting at the bottom of the industrial portfolio, with no significant deals after the failure of Renown failed to find buyers. Although the apparel business is one of the few industries in Asia that is growing significantly, it sees only the shrinking Japanese market.

TOKYO BASEdeficit is not a slumpResults of “defensive management and aggressive investment”

The low level of Japanese media literacy is also a problem. In my “Apparel Remodeling Theory”, Shein, which appeared a year ago and has been talked about thoroughly, can be said that the recent exposure of Shein on TV is the result of a typical “strategic PR”. It is easy to understand. It can be said that it shows the national character that is easy to be danced by the media and PR.
There are also problems with media that easily publish critics who do not know the basics. In one mediaTOKYO BASEforecasts a sluggish deficit in China.” If you read it carefully, the full-year earnings forecast for the fiscal year ending January 23 will be sluggish due to the spread of corona with no end in sight and the slump in commercial facilities due to the cat-and-mouse game of the zero-corona policy.Due to the closure of some stores, sales decreased by 2.1 billion yen compared to the previously announced forecast, and operating income remained the same.13100 million yen decrease,1100 million yen deficit.In addition, an extraordinary loss of approximately 400 million yen was recorded due to the withdrawal.resulting in a total lost profit of15billion yen, resulting innet profit7This means a deficit of 100 million yen. With this, it is “deficit due to slump in China”.

It is necessary to distinguish between benign investment deficits and malignant structural deficits. A critic reporting that“Normal Earnings Status”,They probably don’t realize that the income statement shows true competitiveness when you exclude temporary gains and losses, such as items arising from new businesses or businesses that you plan to exit.I feel the artificiality of an amateur in using operating income and net income as convenient.
Entry strategy to China easily falls under the umbrella of AlibabaECAs I have said in the past, it is important to open a store in a good location in a mall, rather than leaving it out of business.
It is important to carefully analyze the difference between Baroque Japan Limited, which is doing well thanks to its overseas strategy, and Mark Styler, which is about to be forgotten. In this way, whether intentionally or out of ignorance, we tend to easily believe in the “print”, and in the extreme, we feel like we know everything from the title alone.In this case, the correct analysis is “Sales increase due to store closures due to coronavirus measures in China.Five%down.15Expect aggressive investment in store openings.”There is a possibility that it is the correct title,There is no indication of whether the deficit that separates the winner or loser is benign or malignant.

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