Beware the weak yen that is squeezing company profits

A weak yen has raised input prices, which could squeeze company profits, says Michael Lindsell

The Japanese consumer's longstanding appetite for new, seasonal and limited edition products has led to a culture of frequent new product launches and therefore bloated brand portfolios among consumer goods companies. Some consumer goods companies have begun to streamline their product portfolios and improve efficiency to reinvent themselves as viable global competitors. This coincides with government backed initiatives to improve corporate governance. Shiseido, the oldest cosmetics company in Japan, is a good example of these winds of change. The company is undergoing a radical restruct...