Core Viewpoint - The article discusses how Japanese restaurants, particularly conveyor belt sushi chains like Sushiro and Hamazushi, have thrived in China amidst a challenging domestic dining environment, leveraging lessons learned from Japan's "lost 30 years" of economic stagnation [4][15]. Group 1: Performance of Japanese Sushi Chains - Sushiro and Hamazushi have become popular in China, with long wait times and impressive market performance, as evidenced by Sushiro's parent company Food & Life's stock price increasing 2.7 times over two years [4]. - The average customer spending at Sushiro is around 120 RMB, while Hamazushi is about 80 RMB, which is relatively high compared to other domestic dining options like Haidilao and Green Tea [7]. - Sushiro's table turnover rate can reach 10 to 15 during peak times, allowing for a quick return on investment, reportedly within 1 to 1.5 years [7]. Group 2: Cost Control and Efficiency - Japanese sushi chains have developed operational efficiencies that allow them to thrive despite high ingredient costs, with raw material costs accounting for 40-50% of total costs in Japan [9]. - Technological advancements have significantly reduced waste rates in conveyor belt sushi restaurants from around 13% to 1%, enhancing profitability [11]. - The business model of conveyor belt sushi has evolved to prioritize efficiency, with a focus on minimizing service time and maximizing table turnover [12]. Group 3: Impact of Japan's Economic History - The "lost 30 years" in Japan led to a culture of cost-cutting and efficiency, shaping the operational strategies of successful restaurant chains like Sushiro and Salvia [15][17]. - Salvia's success is attributed to simultaneous optimization of store layouts and supply chains, allowing for faster service and reduced operational costs [16]. - The vertical supply chain model has been crucial for Japanese restaurants, enabling them to maintain quality and lower prices by controlling the entire production process [17]. Group 4: Unique Business Models and Innovations - The article highlights the importance of "performance" in the dining experience, where Japanese restaurants excel in creating engaging environments that enhance customer satisfaction [21]. - Innovations in the sushi industry, such as automated systems for order processing and freshness management, have contributed to operational efficiency and customer experience [10]. - The emergence of new dining concepts in Japan, such as conveyor belt barbecue, indicates a trend towards innovative dining experiences that could be adapted in other markets [13]. Group 5: Challenges and Opportunities for Chinese Restaurants - Chinese restaurants looking to expand into Japan must understand the cultural differences and adapt their business models accordingly, as Japanese dining culture emphasizes a unique customer experience [39][40]. - The article suggests that successful Chinese brands entering Japan should focus on performance and customer engagement to differentiate themselves in a competitive market [42]. - The long-term stability of restaurant operations in Japan, despite lower profit margins, presents an opportunity for brands willing to invest in the market [46].

Core Insights - Japanese conveyor belt sushi restaurants, Sushi郎 and 濱寿司, have gained immense popularity in China, attracting long queues and achieving significant stock market success, with Food & Life's stock price increasing 2.7 times over two years and 泉膳控股's stock rising for 25 consecutive years [1] - These companies have thrived despite Japan's "lost 30 years," a period marked by economic stagnation and deflation, which forced them to develop cost-cutting and efficiency-enhancing strategies [1][13] - The unique dining experience offered by these sushi restaurants, characterized by entertainment elements and high perceived value, has contributed to their success in the competitive Chinese market [3][39] Group 1: Business Model and Performance - Sushi郎's average customer spending is around 120 RMB, while 濱寿司's is about 80 RMB, which is relatively high compared to other domestic dining options, indicating a strong value perception among consumers [3] - Sushi郎 has a table turnover rate of approximately 6 during regular days and can reach up to 15 during peak times, allowing for a quick return on investment, reportedly within 1 to 1.5 years [3][5] - In Japan, the average investment for a conveyor belt sushi restaurant ranges from 10 to 15 million yen, with a payback period of 5 to 6 years, while in China, the lower labor costs and higher customer spending enhance profitability [5] Group 2: Technological Innovations - Japanese conveyor belt sushi restaurants have implemented various technological advancements to improve operational efficiency, such as automated checkout systems and freshness management systems [6][7] - The reduction in food waste from approximately 13% to around 1% has been achieved through demand forecasting and customized services, showcasing the effectiveness of technology in enhancing operational efficiency [9] - The integration of RFID technology for inventory management has further optimized the supply chain and reduced losses [7] Group 3: Market Dynamics and Consumer Behavior - The "lost 30 years" in Japan has reshaped consumer spending habits, leading to a focus on high value for money, which has been successfully leveraged by companies like Sushi郎 and 濱寿司 [13][15] - The competitive landscape in China has prompted a shift towards cost efficiency and value perception, with Japanese restaurants adapting their models to meet local consumer expectations [1][39] - The success of these sushi brands in China highlights the importance of creating a unique dining experience that resonates with local consumers, balancing standardization with entertainment elements [39][41] Group 4: Challenges and Opportunities - Japanese companies face challenges in international markets due to cultural differences and communication barriers, which can hinder their operational effectiveness [41][42] - The potential for Japanese restaurants to expand in China exists, particularly for those that can offer unique experiences and adapt to local preferences [49][50] - The long-term stability of restaurant operations in Japan, despite lower profit margins, presents an opportunity for sustained growth in international markets [50]

Core Viewpoint - The article discusses Japan's "lost 30 years," highlighting the challenges faced by the asset management industry in a prolonged bear market and low interest rate environment, and how these conditions have shaped the industry's evolution and strategies [3][4]. Macro Perspective - Japan transitioned from a phase of anti-inflation to a deflationary spiral in the 1990s, following the asset price bubble burst in the late 1980s. The economy's potential growth rate plummeted from approximately 4% in 1990 to about 1% in 1995 due to weak domestic and external demand [6]. - The government's restrictive policies and corporate cost-cutting measures led to a vicious cycle of reduced consumer spending and increased unemployment, further entrenching the economy in stagnation and deflation [6]. Financial System Perspective - The banking sector faced escalating non-performing loans as real estate and construction companies struggled financially. The Japanese banks opted for "evergreen" loans to mask these bad debts, which ultimately exacerbated the financial crisis [7]. - Regulatory bodies were slow to address the bad debt issues, hoping for a recovery in real estate prices, which led to a prolonged deterioration of the financial environment and wasted public resources [7]. Capital Market Perspective - The collapse of asset prices initiated a "balance sheet recession," shifting the focus of private sectors from profit maximization to debt minimization. This shift resulted in a significant decline in financing demand, leading to a "capital shortage" in the market [8]. - Despite interest rates dropping to near zero since 1995, financing demand remained low, causing a concentration in government bonds and highlighting the "asset shortage" faced by Japanese financial institutions [8]. Resident Asset Allocation Perspective - In a challenging investment environment, Japanese residents favored cash and foreign investments, particularly in foreign bonds and forex trading. The participation of Japanese households in the forex market was notable, with retail investors accounting for 20% to 30% of total trading volume [9]. - The popularity of Uridashi bonds, which provide exposure to foreign currencies, reflected the search for higher yields amidst domestic low-interest rates [9]. Asset Management Strategies - In a low-return environment, asset management institutions adopted various strategies to cope with the challenges. Banks increased their holdings in government bonds and extended bond durations to secure positive returns [11][12]. - Insurance companies shifted towards foreign securities and extended the duration of their domestic bond holdings to improve returns, especially after several mid-sized life insurers collapsed in the late 1990s due to unsustainable promised returns [13]. - Public funds saw a significant decline in the scale of medium- to long-term bond funds, with money market funds becoming dominant as low-interest rates persisted, leading to a shrinking number of bond fund managers [14][15].