Desire to consume, accumulating magma
May 16, 2021 (Sun) Cloudy
- Craving consumption, accumulating magma, high quality, suburbs... Brands that shine in the fog
People are swaying between the risk of infection from the novel coronavirus and the urge to spend that cannot be restrained.
They avoid the densely crowded central areas and seek a bit of luxury with high satisfaction.
The keywords of the new normal are high quality, suburbs, and anti-COVID “3 Complements.”
- Craving consumption, accumulating magma, high quality, suburbs... Brands that shine in the fog
According to Mizuho Research & Technologies,
the amount of “excess savings” after subtracting consumption expenditure from disposable income rose by nearly 29 trillion yen at the end of 2020, the largest increase since 1995.
The market is embedding magma with the United States in mind, where consumption is restarting.
- The rapid rise in U.S. prices is shaking global stock markets.
Sell-offs spread due to concerns over rising long-term interest rates from inflation and economic stagnation due to supply shortages.
The Nikkei Stock Average dropped below the 28,000 level for the first time in three months on the 13th.
From the 11th for three days, the Nikkei fell by over 2,000 yen; the Dow Jones Industrial Average fell by over 1,000 dollars for three days from the 10th, and the Taiwan Weighted Index, which has many semiconductor stocks, also fell sharply.
U.S. authorities have not wavered from the stance that current inflation is “temporary” and will not impact monetary policy.
On the 13th, yields and expected inflation leveled off, and the Nikkei rose 636 yen on the 14th.
- Craving consumption, accumulating magma, three “Koumei” companies illuminated
Even as the state of emergency is extended, consumer spending faces fierce headwinds. Among consumer-related companies with solid stock prices, three common themes emerge.
“High quality,” “suburbs,” and “anti-COVID.” Companies that fit these criteria are.
- Craving consumption, accumulating magma, three “Koumei” companies illuminated
【High Quality】Self-investment, money not spared; anti-aging cosmetics “Duo” are doing well; organic vegetables also popular
Oisix ra daichi <3182> [Close 3,105 yen] Profit margin up 33%; comparing 2020-3/19 to 2021-5/13, up 103%; meals kits centered on organic vegetables are doing well
Nextage <3186> [Close 1,669 yen] 61% 150%; higher-priced imported used cars are growing compared with domestic cars.
Milbon <4919> [Close 5,950 yen] 0.4% 11%; premium hair care brand “Aujua” is strong; operating profit in the first quarter rose 58%.
Premier Anti-Aging <4934> [Close 11,870 yen] 166% 97%; anti-aging themed cosmetics brand “Duo” doing well
Seiko Holdings <8050> [Close 2,080 yen] 151% 15%; high-end brand “Grand Seiko” sales are strong
- Craving consumption, accumulating magma, three “Koumei” companies illuminated
【Suburbs】Shopping and leisure nearby; Kojima, actually increasing sales / Globe Ride, riding the fishing boom
Kojima <7513> [Close 892 yen] profit increase 22%; comparing 2020-3/19 to 2021-5/13, up 175%; centered on suburban stores; sales strong even under the state of emergency
Treasure Factory <3093> [Close 1,116 yen] 652% 96%; suburban-store-centered second-hand shop; people sell old items at home due to staying indoors
Snow peak <7816> [Close 3,775 yen] 37% 519%; camping is booming in the suburbs; outdoor goods are strong
Globe Ride <7990> [Close 4,105 yen] 8% 124%; outdoor boom boosts fishing gear; many new entrants are purchasing
Gift <9279> [Close 2,163 yen] 134% 140%; ramen tune “Machida Shoten” is doing well; store openings mainly on suburban roadside
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