In recent years, Japan has seen significant moves in investor activism, primarily driven by institutional giants like Oasis, Elliott Management, and the Murakami Fund. While there have been standalone cases of retail activism, such as with Future Venture Capital, the movement has largely been dominated by these institutional players. However, the recent activism surrounding Mercari highlights a new and noteworthy trend: the growing influence of social media and the increasing number of followers backing retail activists. This shift is certainly worth paying attention to as it unfolds.
The Mercari-Antlers Controversy
Among the most symbolic figures of this new wave of retail investor activism is Shintaro Tabata, a YouTuber and activist who has been making waves with his pointed critiques and strategic proposals. His influence, particularly through social media, has been gaining considerable traction, drawing comparisons to other notable voices that have influenced the market, such as “Roaring Kitty” in the GameStop saga in the US. (If you don’t know what happened with GameStop, check out the movie “Dumb Money.”) While Roaring Kitty wasn’t an activist, his strong voice and substantial following demonstrated how retail investors can significantly impact the market.
Tabata’s latest focus is on Mercari, a leading Japanese e-commerce company with a market cap of over $3 billion. In 2019, Mercari acquired the Kashima Antlers, a prestigious J1 League football club. Since the acquisition, the Antlers have struggled both on and off the field, failing to secure any titles and posting consecutive annual deficits. Tabata’s recent posts on social media platform X (formerly Twitter) have highlighted these issues, questioning the governance and strategic synergies of Mercari’s ownership of the football club.
In his critiques, Tabata did not hold back. He pointed out the stark realities: “Since Mercari took over the Antlers in July 2019, the team has not won any titles and has been in a financial slump for two consecutive years.” He further questioned, “What good has come from Mercari managing the Antlers? What’s going on with governance?”
Tabata also directly addressed Fumiaki Koizumi, the Chairman of Mercari and the CEO of Kashima Antlers FC, urging him to reconsider the impact of the football club’s performance on Mercari’s overall financial health. “It’s great that you love soccer, but don’t let consecutive annual deficits affect the parent company’s profit and loss statement. The team has also failed to win any titles for three years. What synergy does this bring to the core business?” he demanded.
The Future of Japanese Retail Investor Activism
The rise of figures like Shintaro Tabata signifies a potential new era in Japanese corporate governance, where retail investors could become more vocal and influential. Their ability to leverage social media to rally support and drive change is reshaping the dynamics between companies and their shareholders. This movement is particularly notable among the younger generation of investors in Japan, who have primarily experienced a rising market and are more active in their investment activities.
The parallels between Tabata’s activism in Japan and the GameStop movement in the US underscore the global nature of this shift. Retail investors worldwide are realizing their power and using it to challenge traditional corporate practices. As Japan embraces this wave of retail investor activism, the landscape of corporate governance is set to evolve, promising a more dynamic and engaged shareholder base.
In conclusion, the era of Japanese retail investor activism is approaching, and figures like Shintaro Tabata are leading the charge. Their influence, amplified by social media, is compelling companies to rethink their strategies and governance practices. This movement not only empowers individual investors but also ensures that corporate actions are more closely aligned with the interests of all stakeholders. It’s worthwhile to watch how this develops and the impact it will have on the investment world.
