Born of commerce and complexity, Tokyo is the very definition of a metropolis. Twenty-three wards, 39 municipalities, and 31.7 million people join to form Japan’s capital. But beyond the city’s busy streets and seemingly endless metropolitan sprawl is the very lifeblood of international business. Tokyo is the premier portal to world business in this part of the globe, with the largest metropolitan economy in the world. Tokyo has a totalGDP of USD 1.9 trillion and home to 43 Fortune Global 500 companies, second to Beijing, China.
As noted by several renowned business news outlets, including the BBC’s latest post on Japan in June 2015, Japan is experiencing sharp growth in its GDP, consumer purchasing power and local and international tourist consumption. The Nikkei Stock Market Exchange has been posting consistent stock price growth in the nation’s top 100 firms, which is reported to be a direct result of Prime Minister Abe’s policies on regulation and the Japanese currency. These policies and the positive anticipation of the 2020 Olympic and Para-Olympic games are contributing to the record numbers of international tourists, retail goods consumption and the value of commercial and residential real estate in Japan’s larger markets.
Notwithstanding the positive economic growth, Tokyo’s major retail neighborhoods have also been experiencing strong results for their brand’s bottomline. Particularly Ginza, Omotesando and Shinjuku, where we are seeing stronger sales results YOY and a strong uptick in the volume of new market-entry brands opening flagships and competing for local and tourist business. According to Japan’s Wall Street Journal and the Nikkei Shinbun, Japan is experiencing sales results and record tourist numbers that are far-exceeding those of the “Bubble Economy” experienced from the late 1980s to the early 1990s.
Ginza, comprising Chuo Dori Avenue and Harumi Dori Avenue, is the long established retail leader in Tokyo. It enjoys a strong presence of department stores and flagships from industry leading retailers. There are a number of well-established department stores including Wako, Matsuzakaya, Matsuya, and Mitsukoshi.
Shinjuku speaks for itself by name and reputation. It is home to the biggest train station in the world, with an astronomical 4 million commuters per day. Every imaginable type of retail can be found around this sprawling station, including department stores, standalone retail, F&B, electronics and sports. This city is literally the hub of Tokyo due to its supreme accessibility to other Tokyo locales and the Greater Tokyo area.
Omotesando is known as Japan’s Champ Elysees, this pleasant tree-lined avenue has been gaining in stature as one of the two key premiere retail destinations for luxury brand flagships in Japan since the late 1990s, when European brands first started building flagships here as a distinct alternative to the more stuffy Ginza.
Minami Aoyama is the next door neighbour of Omotesando but much quieter and low-key due to it being a predominantly residential area. Minami Aoyama holds its own avant-garde feel by maintaining its tradition as an underground yet sophisticated fashion area. Brands such as Comme de Garçons and Yohji Yamamoto help to give Minami Aoyama its originality and creativity.
Harajuku has consistently kept its place as the birthplace of Japanese underground fashion for well over 40 years. This area by no means lags in the amount of young fashionistas that it attracts. In an almost cult-like manner, Harajuku shoppers are knowledgeable about their style and are the driving force behind the underground street fashion originating here. Brands such as the Bathing Ape were born in the backstreets of this dynamic retail area. In recent years, popular casual fashion brands like H&M and Forever 21 have built large flagships here, and Harajuku has emerged as one of the few major retail locations in Japan which is completely independent of department stores.
Lazona KawasakiLazona Kawasaki is the highest grossing shopping center in in Japan, and has been for the last seven years. In 2014, Lazona Kawasaki generated approximately USD 774 million annually in annual sales. Lazona Kawasaki is unique such that the mall is directly connected to Kawasaki Station, and Kawasaki station is a major station between Yokohama and Tokyo with approximately 370,600 users per day. The other unique aspect of Lazona Kawasaki is its large outdoor plaza which boasts a capacity of over 10,000, where concerts and other promotional events are often held.
LaLaport YokohamaLaLaport Yokohama serves the Yokohama metro and greater Yokohama areas which is the second largest populated area in Japan next to Tokyo. The mall is home to international retailers such as Hollister, Zara Home, OLD NAVY, Charles & Keith, and Tommy Bahama.
LaLaport Tokyo-BayThe largest (1,226,332 SF), and first super regional mall in Japan. The catchment profile are residents living in western Chiba prefecture commuting to work in Tokyo, and residents in eastern Tokyo.
NEW CENTER: LALAPORT EXPOCITY
Lalaport Expocity will be the largest in terms of both size and annual sales projections of Mitsui Fudosan’s new shopping centers expected to open in Fall 2015 at Banpaku Memorial Park in Osaka. The new flagship mall will feature an array of international and domestic tenants, a 20 screen Cineplex, multiple themed entertainment parks for children and the region’s largest selection of food & beverage of all cuisines. Mitsui Fudosan will also open Lalaports Ebina and Tachikawa in Fall 2015.
MARKET OVERVIEW KEY AREAS
CENTERS CONSUMER PROFILE MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000SQFT RANGE
OF UNIT SIZES Ginza Customers range from well-to-do local shoppers, mature shoppers 50+, and fashion connoisseurs. Tourists from Asia, particularly China also make their appearance in this acclaimed retail area
Louis Vuitton, Chanel, Apple, Tiffany, Bvlgari, Gucci, Hermes, Armani, Chaumet, Bottega Veneta, DeBeers, Coach, Burberry, Furla, Dunhill, Abercrombie & Fitch, Zara, H&M, Forever 21, Uniqlo, Diesel, Paul Stewart, Panerai, Loewe, Max Mara, Emilio Pucci
USD 850.00 ~ 1,500.00/SQM/Month 200SQM = USD 300,000 per month 30SQM ~ 500SQM
Omotesando Shoppers in this area range from fashion-conscious professionals, working women aspiring for the best, tourist, and wealthy local residents looking to shop and stroll through a pleasant avenue in style Ralph Lauren, Paul Stuart, Louis Vuitton, La Perla, Emporio Armani, Chanel, Christian Dior, Burberry, Nine West, Bvlgari, Gucci, Fendi, Celine, Donna Karan and Tod’s USD 700.00 ~ 1,000.000/SQM/Month 200SQM = USD 200,000 per month 30SQM ~350SQM
Shinjuku Shoppers in Shinjuku range from all markets; young, mature, professional, fashion-conscious, and families
Louis Vuitton, Tiffany, Coach, Loewe, Hermes, Chanel, Gucci, ZARA, Forever 21, Topshop, BEAMS and Uniqlo
USD 500.00 ~ 700.00/SQM/Month 200SQM = USD 140,000 per month 30SQM ~ 500SQM
Harajuku Harajuku has consistently kept its place as the birthplace of Japanese underground fashion for well over 40 years. This area by no means lags in the amount of young fashionistas that it attracts. In an almost cult-like manner
Forever 21, H&M, ZARA, GAP, Topshop, SKECHERS, NIKE, Puma, Kitson, Mango, Uniqlo, and Birkenstock USD 600.00 ~ 900.00SQM/Month 200SQM = USD 180,000 per month 90SQM ~ 500SQM
Shibuya Customers are a broad mix of school-aged shoppers to fashionable young couples and professionals Tokyu 109 (the Mecca of young women’s fashion), Forever 21, Zara, H&M, MIU MIU, Addidas, GAP, United Arrows, Disney, Uniqlo, ABC Mart, and many others
USD 400.00 ~ 700.00/SQM/Month 200SQM = USD 140,000 per month 30SQM ~350SQM
Ikebukuro Similar to Shibuya, Ikebukuro is primarily gathering place for Tokyo’s youth and opportune area for a casual brand flagship
Armani Exchange, Uniqlo, g.u., American Eagle (coming soon), MUJI, Zara
USD 217.89 ~ 435.77/SQM/Month
200SQM = USD
87,154 per month
90SQM ~ 500SQM
Data as of August 2015
As Tokyo is a commuter-oriented city with one of the most efficient transportation systems in the world, famous restaurants, family-friendly dining, and quick service restaurants can be found at almost every major train or metro station in the city. During the bubble economy in Japan, there was an influx of fine dining locales which sprang up throughout the metropolitan area, but have since been concentrated in the more urban city center.
Tokyo enjoys periodic and seasonal trends in food & beverage known as “booms” where a particular style of dining or cuisine becomes popular and a number of restaurants in that trend start to spring up at train stations that receive high amounts of daily users and sometimes even rare less trafficked residential train stations.
Current trends include family restaurants, quick service Japanese cuisine such as “kaiten” sushi, Japanese restaurants/bars that cater to groups and serve a variety of appetizers and inexpensive alcohol, and new “novelty” brands such as Krispy Kreme, Auntie Anne’s and Ben & Jerry’s. Health-oriented, or “calorie-watcher” restaurants and cafes are starting to gain popularity in the market now.
A plethora of Tokyo’s local F&B retailers are run by group companies, each holding a number of brands and chains in different cuisine and price categories, while many major international F&B retailers and franchises typically enter the market with a local partner. Smaller international franchises can sometimes be found operating without partners, for example the quick service burrito retailer Frijoles.
Many international F&B retailers have found success here in Tokyo including the TexMex chain Zest, Bubba Gump’s Shrimp, Tony Roma’s, Wendy’s, Burger King, McDonald’s, Auntie Anne’s, and Krispy Kreme. Delivery service has also increased with international competitors Domino’s Pizza and Pizza Hut. Many local restaurants have joined the delivery competition by offering delivery services as an option to their already present restaurant.
MARKET OVERVIEW KEY AREAS CONSUMER PROFILE FOOD & BEVERAGE OPERATOR INCLUDING RENT FOR 3,500 SQFT UNIT Akasaka Primarily business people and a sprinkling of well-to-do residents from surrounding city wards.
High-end to casual local restaurants and cafes offering Japanese, Italian, Asian, Belgian, and other cuisines. A small amount of international retailers are present such as McDonald’s, Burger King and Starbucks. Hooters has also made their debut in 2010.
USD 25,421 per month
Shibuya Well-known for its massive crowds of young people and tourist, Shibuya also attracts young professionals looking for casual dining and night-life.
A smorgasbord of budget, casual, and high-end Japanese and international restaurants of every cuisine; Legato, McDonald’s, Burger King, KFC, Outback Steakhouse, T.G.I. Fridays, and a wide-variety of Japanese restaurants.
USD 30,503 per month
Ebisu Ebisu has become an enclave of trendy and stylish young professionals, as many trendy and unique restaurants have opened up here and Ebisu Station is centrally located on two major commuter lines.
There are a host of trendy locally-run Japanese restaurants as well as a few international ones. Ebisu also has its own line-up of quick-service restaurants such as McDonald’s, KFC and Ramen Noodle shops (26,000 tsubo)
USD 33,047 per month
Shinjuku Shinjuku has one of the most varied consumer profiles in Tokyo as patrons range from the wild youth of the Kabukicho area to the sophisticated shoppers at Isetan Department Store.
Fine dining available at many of Shinjuku’s upscale hotels like the Park Hyatt, as well as casual dining of all cuisines. All of the top quick-service restaurants are present here.
USD 38,129 per month
Data as of August 2015