¥100 stores

Japanese 100-Yen Shop President Says Penny-Pinching Mindset Persists

As Japan’s economic landscape shifts, Eiji Kawai, president of Seria, one of the country's prominent 100-yen store chains, remains confident that the demand for affordable goods will persist. Despite various efforts by businesses and the government to rejuvenate the economy and combat deflation, Kawai believes that consumers will continue to seek out low-cost options for their daily needs.

Japan has been undergoing significant economic changes. The government, led by Prime Minister Fumio Kishida, has pushed for substantial wage increases as part of his "new capitalism" initiative. This year’s wage negotiations resulted in the highest pay raises in 33 years. Additionally, the Bank of Japan raised interest rates for the first time in 17 years on March 19, aiming to control inflation and stabilize the economy. Despite these measures, core inflation has remained above the 2% target for 23 consecutive months, reflecting ongoing economic pressures.

Consumer behavior in Japan shows a marked shift. With the post-pandemic resurgence of travel and dining out, people are becoming more selective about their spending. While occasional expenditures like dining out may be accepted with higher prices, daily expenses are being scrutinized more closely. “People will probably accept price hikes for occasional activities, but they are economizing on day-to-day expenses,” Kawai told Nikkei Asia.

Seria operates around 2,000 stores nationwide, offering a range of items priced at 100 yen (about 65 cents). These stores, known for their affordability, have become emblematic of Japan’s historical deflationary environment. While competitors like Daiso and Can Do have adjusted their pricing strategies in response to rising costs and a weakening yen, Seria remains committed to its 100-yen price point.

Daiso, another major player in the 100-yen store market, has begun to expand its product range beyond the 100-yen threshold. With many items now priced around 300 yen, Daiso aims to cater to a broader range of customer needs. Can Do, another competitor, has similarly introduced products at higher price points, reflecting the industry-wide trend towards more expensive items.

Despite the industry trend, Seria has stayed true to its low-cost model, even as its net profit decreased by 13.9% to 7.4 billion yen ($48 million) from April to December 2023. This drop comes amid rising prices across various sectors. Seria’s commitment to maintaining a 100-yen pricing structure is part of its strategy to attract price-sensitive consumers who are looking for value amidst economic uncertainty.

Kawai acknowledges the competitive landscape but believes that Seria’s approach will continue to resonate with consumers. “There is still a large market for 100-yen products,” he said. “I think our features are standing out compared to our rivals.”

In this challenging economic climate, 100-yen stores like Seria, Daiso, and Can Do play a crucial role in offering affordable options to Japanese consumers. These stores are adapting to economic changes while striving to meet the needs of budget-conscious shoppers, demonstrating the enduring appeal of low-cost goods in a fluctuating market.

Comments

Post a Comment

Popular posts from this blog

A Woman Who Shows Age Is No Barrier to Talk Show Stardom

  1  Pushing a walker through a television studio in central Tokyo earlier this week,  Tetsuko   Kuroyanagi  slowly climbed three steps onto a sound stage with the help of an assistant who settled her into a creamy beige Empire armchair. 2  A stylist removed the custom-made sturdy boots on her feet and slipped on a pair of high-heeled mules. A makeup artist brushed her cheeks and touched up her blazing red lipstick. A hairdresser tamed a few stray wisps from her trademark onion-shaped hairstyle as another assistant ran a lint roller over her embroidered black jacket. With that, Ms.  Kuroyanagi , 90, was ready to record the 12,193rd episode of her show. 3  As one of Japan’s best-known entertainers for seven decades, Ms.  Kuroyanagi  has interviewed guests on her talk show, “ Tetsuko’s  Room,” since 1976, earning a Guinness World Record last fall for  most episodes hosted by the same presenter.  Generations of Japanese celeb...
Read more

Ohtani’s Interpreter Stole $16

Image
  Prosecutors Say Ohtani’s Interpreter Stole $16 Million From Star The interpreter, Ippei Mizuhara, was charged with bank fraud, after prosecutors said he stole money to pay his gambling debts. April 11, 2024. Prosecutors said that the money taken by Ippei Mizuhara, left, came directly from an account where Shohei Ohtani’s baseball salary was paid. Richard Vogel/Associated Press Federal prosecutors said on Thursday that Shohei Ohtani had been the victim of a “fraud on a massive scale,” releasing a detailed complaint that claimed Ippei Mizuhara, the baseball star’s former interpreter, exploited his access and the fact that Ohtani did not speak English to steal $16 million from him to feed his gambling addiction. The account provided by the authorities largely confirms what Ohtani told the public in late March, shortly after reports first surfaced that $4.5 million had been transferred from Ohtani’s account to Mizuhara. At that time, Ohtani explained how he believed Mizuhara had stol...
Read more

Stadiums: past, present and future

 1. Stadiums are among the oldest forms of urban architecture: vast stadiums where the public could  watch sporting events were at the centre of western city life as far back as the ancient Greek and Roman Empires, well before the construction of the great medieval cathedrals and the grand 19th- and 20th-century railway stations which dominated urban skylines in later eras. 2. Today, however, stadiums are regarded with growing 1 scepticism. Construction costs can soar above £1 billion, and stadiums finished for major events such as the Olympic Games or the FIFA World Cup have notably fallen into disuse and disrepair. 3. But this need not be the case. History shows that stadiums can drive urban development and adapt to the culture of every age. Even today, architects and planners are finding new ways to adapt the mono-functional sports arenas which became emblematic of modernization during the 20th century. 4. The amphitheatre of Arles in...
Read more