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Japanese Eyewear Market’s Domination Overseas

Jun 4, 2018.Tokyo, JP
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In the second quarter settlement of accounts announced in April this year by JINS, the largest eyewear company in Japan, sales rose 6.2% to 25,294 million yen, with an operating income of 2,177 million yen (7.8%) and net income increased to 1,034 million yen (up to 15.6% year on year).

Compared with the performance of domestic eyewear companies, JINS is actively engaging in overseas activities. JINS 's net income fiscal since 2017 has steadily expanded overseas with 100 of China's total of 449 stores in China, 10 in Taiwan, and 4 in North America, an increase of 40% from the previous year. Meanwhile, net income for meganeSUPER, which operates 381 shops in Japan only, has decreased by 44.6% from the previous term.

Speed is of the essence in overseas expansion. OWNDAYS, which increased sales by 25% (15 billion yen) in the fiscal year end of February 2018, has expanded its overseas business for the first time over five years in nine countries: Singapore, Taiwan, Thailand, Cambodia, Philippines, Australia, Malaysia, Vietnam, and Indonesia. The number of domestic stores totals to 112 and overseas being 120 with sales of 8.5 billion yen. Clearly, the overseas business is expanding rapidly in comparison to its domestic counterpart. It’s a tremendous expansion and including another well known eyewear company, Zoff who started its expansion in 2017, has a net profit of the same amount in 2010 launching only 22 stores overseas. In comparison to JINS overseas expansion, its relatively behind.

In addition, when comparing JINS who first opened in China in 2010 withPARIS MIKI HOLDINGS(a.k.a. PARIS MIKI) which opened its first overseas store in Paris 1973, PARIS MIKI has a total of 878 stores (out of it 75 being overseas), JINS which has 449 in total (out of it 114 overseas with both sales amounting to 50 billion yen. Though the number of stores PARIS MIKI has is twice of JINS, it’s slowly catching up.

The market size of JINS domestic eyewear was at 5,045 billion yen in 2016 and is expected to be 512 billion yen in 2017. Compared with the two circulation markets that have reached a scale of 1 trillion yen in several years, JINS growth is not expected to have a huge increase in the decades to come. Fashion glasses like sunglasses are less likely to be affected by trends than clothes and cosmetics and normally, people don't frequently buy vision correction glasses giving an overall low turnover rate. Given these factors, it is only natural to see business opportunities in overseas markets.

 

*Intemestic, Zoff, OWNDAYS data from the final report, meganeSUPER data from April 2016’s final settlement

 

*JINS data from August 2017, PARIS MIKI HOLDINGS and AIGAN data from the April 2016 final settlement. OWNDAYS data from the final report of February 2017

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