Export Finland is publishing market research of the Fashion Markets in Asia. The fashion in Japan market holds many interesting opportunities for Finnish fashion industry companies. Opportunities vary from mass production to niche-products. Common feature for all imports in Japan is demand for high quality craftsmanship and materials.

1. 2015/11/1
2
©
Finpro1
asads
Fashion
market
overview:
Japan
Business
opportunities
for
Finnish
companies

2. Authors
• Tsuyoshi
Ichikawa,
Finpro’s partner
consultant
in
Japan
(AIBA
certified)
• Michio Akutsu,
Finpro’s partner
consultant
in
Japan
(AIBA
certified)
• Seiichi
Yamanaka,
Finpro’s partner
consultant
in
Japan
(AIBA
certified)
• Masahiro
Kimura,
Finpro
Japan
August
2015

3. Contents
1. Executive
Summary
2. Japanese
Fashion
Market
A)
Characteristics
of
Japanese
Fashion
Market
(Overview)
B)
Latest
trends-­‐ Reports
from
JFW-­‐IFF
(July
22
– 24)
C)
Market
size
D)
Trends
in
each
market
segment
E)
Successful
cases
in
each
market
segment
F)
Market
of
Import
Brands
G)
Distribution
channels
H)
Online
shops
3.
Legislation
and
Regulations
A)
Regulations
and
Requirements
at
the
time
of
import
B)
Regulations
and
Requirements
at
the
time
of
sale
C)
Laws
and
Regulations
relating
to
online
shops
4.
Market
Entry
Strategy
and
opportunities
(Recommendations
to
Finish
companies)
5.
Useful
information
A)
List
of
relevant
business
organizations
B)
List
of
Trade
Fairs
and
Exhibitions

4. Executive
Summary
1
• Japanese
Fashion
Market
in
general
– The
Japanese
fashion
market
is
large
enough
for
Finish
SMEs
and
even
niche
items
are
interesting
and
attractive
for
Finnish
SMEs
in
terms
of
sales
amount.
– However,
to
enter
the
Japanese
market,
Finnish
SMEs
should
pay
attention
to
the
unique
features
of
the
market
summarized
in
pages
9
and
12.
– As
you
can
see
from
the
chart
"Population
by
ages“
in
page
9
and
10,
the
generation
from
40
to
70
years
old
might
be
the
interesting
target
ages
for
Finnish
SMEs.
• Market
Size,
Trend
and
Successful
Cases
– Japanese
fashion
market
shrunk
at
the
global
Lehman
Shock
recession,
but
is
recovering
since
2011
having
Yen
9.29
trillion
of
overall
apparel
retail
sales
as
the
third
largest
market
after
USA
and
China.
– Men’s,
ladies’
and
baby/children’s
apparel
retail
sales
market
sizes
are
taking
quite
similar
market
size
trend
pattern
with
overall
apparel
market,
turning
down
from
2008
till
2010
and
growing
since
2011.
– Japanese
fashion
trend
is
generally
following
the
trends
in
Europe
and
USA,
with
some
exception
of
peculiar
fashion
trend
born
out
of
fashion
sensitivity
of
streets
and
Japanese
culture
as
a
source.
Both
men’s
and
ladies
wear
are
becoming
more
easy
and
comfortable
to
wear
and
coming
closer
to
casual
fashion.
– Successful
companies
of
apparel
retail
sales
are
either
taking
aggressive
policy
in
expanding
their
sales
channels
at
the
prime
locations
or
eager
in
utilizing
e-­‐commerce
by
web/SNS
or
both.

5. Executive
Summary
2
• Market
of
Import
Brand
– The
sales
volume
has
continued
to
grow
from
the
bottom
of
2,23
trillion
Yen
in
2010.
– Sales
amount
of
China
and
ASEAN
countries
accounts
for
more
than
90%
of
overall
import
sales
but
these
countries
products
usually
do
not
carry
their
own
brands.
– The
total
sales
of
EU
countries
including
Eastern
Europe
and
Western
Asian
countries
amounts
to
4,7%
and
0,8%
of
25
billion
yen
are
shared
with
the
EU
countries
excluding
Italy,
France,
Romania
and
Turkey.
– Japanese
import
market
has
segmented
into
two
price
zone;
high-­‐priced
and
medium-­‐
priced
ranges,
both
demanding
high
quality
along
with
fine
craftsmanship
using
quality
materials.
• Distribution
channels
– Since
distribution
channels
need
to
be
less
complicated
to
keep
competitive
pricing
structures,
some
of
successful
import
brands
have
entered
into
Japanese
market
through
SELECT
SHOP,
who
purchase
directly
from
the
overseas
manufactures
by
selecting
new
brands
on
their
own
through
exhibitions
held
overseas
as
well
as
domestic
or
visits
to
manufacturer’s
showroom
in
their
countries.

6. Executive
Summary
3
• Although
some
of
leading
Department
Stores
are
in
good
shape,
it
is
hard
for
new
comers
from
import
brands
to
enter
into
business
relationship
with
them
direct,
due
to
the
Japanese
traditional
business
customs
such
as
consignment
purchasing,
invoicing
pricing
system
etc.
• General
Merchandising
Stores
(GMS)’s
share
has
continued
to
shrink,
although
some
of
leading
GMS’s
have
developed
their
PB,
but
mainly
made
up
of
basic
and
conventional
design
manufactured
in
Asian
countries.
• Shopping
Centers
have
continued
growing
in
number
since
1990’s
taking
the
form
of
outlet
malls,
station
buildings
and
underground
shopping
malls.
The
key
to
success
for
the
new
comers
from
abroad
is
how
they
can
locate
potential
partners
who
run
their
stores
in
these
kinds
of
mega
malls.
• Fashion
Stores
have
been
dominant
in
the
Japanese
fashion
market,
but
to
enter
into
this
field,
great
amount
of
initial
investment
and
marketing
knowledge
are
needed.
Also,
need
effort
to
keep
design
novelty
and
low
labor
and
material
cost.
• Concept
Store
is
rather
a
new
business
category
developed
from
SELECT
SHOP
going
beyond
not
only
selling
products,
but
also
offer
catering
services,
such
consumers.

7. Executive
Summary
4
• Online
sales
– The
ratio
of
Internet
Sales
has
continued
to
increase
rapidly.
Almost
all
successful
shops
have
E-­‐commerce
and
M-­‐commerce
site.
Also,
they
have
made
contract
to
Shopping
Mall
Operator
like
ZOZOTOWN
who
has
succeeded
in
sales
of
fashion
apparels.
At
the
same
time,
they
also
have
their
own
shopping
site
to
attain
one-­‐to-­‐one
marketing
with
their
regular
customers.
– Fashion
items
were
not
considered
as
items
which
will
be
sold
through
online
shops
in
the
past
because
of
its
various
sizes
and
details
which
might
be
difficult
to
see
through
online
display
but
nowadays,
it
is
one
of
the
most
increasing
areas
in
internet
sales.
– There
are
many
ways
of
selling
items
through
internet
as
we
categorized
and
explained
,
however,
it
is
little
effective
to
sell
items
through
online
shops
in
Finland
directly.
Some
persons
who
have
no
problem
in
communication
in
English
started
buying
directly
from
online
shops
in
foreign
countries
but
we
can
not
expect
that
this
sales
will
increase
dramatically.
• TV
shopping/Catalog
shopping
– TV
shopping
and
catalog
shopping
have
long
been
well-­‐established
in
Japan.
• Legislations
and
Regulations
– There
are
regulations
and
requirements
both
at
time
of
import
and
at
time
of
sale,
overseas
makers
and
suppliers
of
apparel
products
should
pay
close
attention
to
what
are
prohibited,
and
what
are
required
in
order
to
introduce
their
products
to
Japan.

8. Contact
us!
• Read
more,
contact
us
and
download
full
report:
http://bit.ly/1SKyWPu