March 2016 T-Point Price Index (TPI) and New Consumption Index Initiatives

2016.04.07 Press Releases
CCC Marketing Co., Ltd. / Culture Convenience Club Co., Ltd.

--Down 0.11% compared to the same month last year, with the highest increase of 0.36% for women aged 59-60 and the lowest decrease of 0.45% for women aged 20-39.-

CCC Marketing Co., Ltd. (hereinafter "CCC Marketing"), a company engaged in database marketing, and Culture Convenience Club Co., Ltd. (hereinafter "CCC") have announced the launch of the "T-POINT Price Index (TPI)," a new price index that utilizes T-POINT data, as part of a joint project with the Watanabe Tsutomu Laboratory at the Graduate School of Economics, The University of Tokyo. We are pleased to announce that the TPI for March 2016 has been released.

In addition, as the second joint project with the Watanabe Tsutomu Laboratory at the Graduate School of Economics, the University of Tokyo, we will launch a project to create and publish a new, timely consumption index, the "T-POINT Consumption Index (TCI)" (hereinafter "TCI")

In this project, we will measure "nominal consumption" (consumption based on monetary value) and aim to calculate "real consumption" (consumption based on quantity) by combining this nominal consumption with the "Price Index" (TPI) that we have developed and published so far. In creating the TCI, we will measure nominal consumption by generation and calculate real consumption by generation, following the generational price index measured by the TPI.

Real consumption is an important component that accounts for approximately 60% of real GDP, the most widely used measure of a country's economic activity, and we believe that prices and consumption are two wheels necessary for understanding the economic activity of consumers. The new consumption index, "TCI," will serve as a barometer showing the level of economic activity and can be used by national and local governments as basic information when making important decisions regarding consumption, as well as by companies and consumers as reference information for comparing their own company's sales performance and their own consumption activities with others.

CCC Marketing hopes to continue planning and providing value to Japanese society as a whole by developing and publishing these indices using T-CARD data.

March 2016 T-POINT Price Index Digest

●The T-POINT Price Index (TPI) for March 2016 was down 0.11% compared to the same month last year, and down 0.3% compared to the previous month.
TPI uses T-CARD-related purchases at T-POINT partner stores such as supermarkets, drugstores, convenience stores, and restaurant chains. The TPI for March 2016 was down 0.11% compared to the same month last year, a decrease of 0.3% compared to the previous month. Looking at the types of businesses, supermarkets showed an upward trend of 1.08% compared to the same month last year, while drug stores and convenience stores remained flat at 0.29% and 0.15%, respectively.

The largest increase was among women aged 50-69, at 0.36%, while the largest decrease was among women aged 20-39, at -0.45%.
Looking at the TPI for March 2016 by gender and age group, the highest rate of increase was for women aged 50-69 at 0.36%, followed by men in their 50s-60s at 0.26%. As with the previous month, the price index for those in their 50s-60s was the highest of all age groups. On the other hand, among those in their 40s and 50s, the rate remained flat at 0.00% for men and was down 0.14% for women, while among those in their 20s and 30s, the rates were the lowest at -0.08% for men and -0.45% for women. The largest decrease compared to the previous month was among women aged 20 to 39, at -0.4%.

*You can view data by selecting from three business types: "supermarket," "drugstore," and "convenience store."Please note that "restaurant chains" cannot be selected and viewed by business type.
*Daily index data is up to three days prior.

What is TPI?
The Consumer Price Index (CPI) is known as an economic thermometer that indicates economic trends. On the other hand, the TPI is an index compiled based on purchase price data accumulated daily through T-POINT partner companies across Japan. Specifically, this price index was derived by aggregating, tabulating, and analyzing purchase amounts obtained from T-CARD purchasing data, which is used by 55.67 million people across Japan (number of members after name matching as of the end of December 2015) and has related sales of over 5 trillion yen, which accounts for approximately 2% of Japan's total consumption.

About TPI
The data currently used by TPI collects the amount of purchases involving T-CARDS at T-POINT partner stores such as supermarkets, drugstores, convenience stores, and restaurant chains. Store areas are as follows: supermarkets are mainly in the Tokyo metropolitan area and Kyushu, drugstores are mainly in Kanto, Kansai and Kyushu, and convenience stores and restaurant chains are nationwide. Currently, the number of products (SKUs) covered by TPI is approximately 110,000, with 191 of the 580 items being utilized, resulting in a coverage of 23.4% when the Ministry of Internal Affairs and Communications CPI is taken as 100%. The amount used to calculate TPI is excluding consumption tax (excluding tax). Additionally, while no special consideration is given to sale items, all products with sales history for both the previous and current periods are used to compile TPI. Please note that the number of members covered by TPI, as well as the transaction amount and number of uses, have not been disclosed.

TPI Features
The features of TPI are that it allows you to see the price index by gender and age group, and that it is a price index based on buying prices rather than selling prices. The TPI is calculated using the Tornqvist method, which is the same as the University of Tokyo Daily Price Index. This calculation method places more weight on products purchased in larger quantities, and there is a consensus among researchers that it is the best method for creating a price index.

About the T-POINT Consumption Index (TCI)
"Real consumption" is an important component that accounts for approximately 60% of "real GDP," an indicator widely used to measure a country's economic activity. TCI measures "nominal consumption," which is consumption based on monetary value, based on purchase price data accumulated daily through T-POINT partner companies, and calculates "real consumption," which is consumption based on quantity, by combining this with the "price index" that has been developed and published to date. Through these efforts, we plan to create and publish timely consumption indices by age group and area.

[Disclaimer]
*These results are from a beta version and may be subject to change without notice.
*This information is not intended for use in any investment or economic transactions, and no express or implied guarantees are made, including as to its commercial usefulness or usefulness for any particular purpose.
*Please fully understand the nature of this index and use it at your own risk.
*We are not responsible for any losses resulting from investments or transactions based on this index.
*We do not assume any liability (direct or indirect) arising from the use of this index.
*No representations or warranties are made regarding the accuracy, completeness, precision, reliability, etc. of this index.
*Reproduction of this content without permission is strictly prohibited.

Materials related to this matter

March 2016 T-POINT Price Index (TPI) and New Consumption Index Initiatives

Inquiries regarding this matter
■Inquiries regarding TPI and TCI
CCC Marketing Co., Ltd. Data Science Lab
MAIL: tpi-pj@ccc.co.jp

■Inquiries from the press
CCC Marketing Co., Ltd. Public Relations
TEL: 03-6800-4464