Japan: Young Men’s ApparelJapan:
Market
Young Men’s Apparel Market
Page 1 of 8
Hirono Taki
09-2010
Summary
Japan continues to be a significant and attractive market for U.S. apparel suppliers. According to
statistics from the U.S. Census Bureau, U.S. apparel exports to Japan have been increasing for the last
three years and have shown more than a 10% increase for the first six months of 2010. Fashionconscious Japanese consumers are now looking for something different and exciting. This is a good sign
for U.S. apparel suppliers. This report analyzes overall trends in this market with an emphasis on men’s
casual fashion in Japan. In addition, this report will analyze unique characteristics of the Japanese
fashion industry and provide advice for U.S. manufacturers interested in expanding into this exciting
market.
Japan, with an over $95 billion apparel market, is open to imported apparel and does not have significant
tariff or non-tariff barriers to imported clothing. Clothing distribution channels in Japan are straight
forward, but do require some time and effort to develop. U.S. companies who are interested in entering
the market should have excellent business controls, dependable communication and the ability to
produce and ship their products on time in addition to a unique and exciting collection of apparel.
Market Demand
The Japanese fashion market tends to segment into two extremes: low-end products made up of basic
but inexpensive apparel and accessories and high–end products made up of branded, higher quality,
more expensive merchandise. Lately, given the softer economy, the lower-end market has been much
stronger than the higher-end. Now, however, fashion trends among Japanese youth are changing in a
favorable direction for U.S. suppliers of young men’s casual fashion. A fashion-conscious younger
generation is actively looking for something exciting and new. As imported fashion products from the
United States and Europe are usually positioned in the higher priced segment, this is a favorable trend for
U.S. fashion suppliers.
The Japan Textiles Importer's Association (JTIA) described the unique characteristics of the Japanese
market in their report entitled "The Japanese Apparel Market and Imports” in 2010. Some notable points
are:
♦ The Japanese market is sophisticated and consumer-driven;
♦ The market is open but very well supplied and extremely competitive; and
♦ Consumers demand extremely high quality fashion products.
Based on these trends and market conditions, we believe it is important for U.S. companies to deliver
unique and value-added products in order to succeed in this competitive market. A “Made in USA”
designation, high-quality materials, delicate designs, great details and outstanding decorations at first
glance are good examples of attractive elements for the Japanese market. U.S. firms with an established
brand identity and a long history could be appealing to Japanese consumers and/or business partners.
However, U.S. merchandise targeted for the mass market without significant uniqueness or an
established brand identity may have difficulty succeeding in Japan.
Market Data
ƒ
Market Size: The Yano Research Institute, a private market research company, estimated the
Japanese apparel and fashion accessory retail market to be at 9,828 billion yen ($95.1 billion) in
2008 and forecasted approximately 8,845 billion yen ($94.4 billion) in 2009, a 10% decrease from
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Japan: Young Men’s Apparel Market
Page 2 of 8
the previous year. Yano Research also estimated that 2009 casual wear retail market was Yen
5,954 billion ($63.6 billion), a 10.2% decrease from the previous year.
ƒ
Apparel Imports: According to "Japan Exports & Imports Commodity by Country" from the Japan
Tariff Association, Japan imported approximately 2,300 billion yen ($24.6 billion) worth of clothing
in 2009, decreased by 10.4% when compared to the previous year. For the first six months of
2010, imports amounted to 903.3 billion yen (approximately $10.0 billion), a 6.0% year on year
decrease from 2009.
ƒ
U.S. Apparel Exports to Japan: Statistics from the U.S. Census Bureau show that U.S. apparel
exports to Japan have been increasing for the past three years. The United States exported
$188.4 million worth of apparel products to Japan in 2007, $197.7 million in 2008 and $206.9
million in 2009. For the first six months of 2010, U.S. apparel exports to Japan increased by
10.9% and with a value of more than $113.8 million. Quantity-wise, the top five items imported
from the United States, so far, in 2009 were: T-shirts, women’s jeans, women’s shirts, men’s
cotton-made pants and women’s dresses.
ƒ
rd
3 Country Suppliers: China is the dominant supplier of apparel in Japan and accounted for
nearly 84.0% of total apparel imports for 2009. Much of this imported merchandise was produced
by Japanese companies at manufacturing facilities in China. Due to increasing labor costs in
China, however, Japanese manufacturers are expanding production bases in other Asian
countries. Vietnam is a good example of this trend and has been increasing apparel exports to
Japan. The value of these exports from Vietnam was 96,298 million yen ($1,028 million) in 2009
and accounted for 4.2% of the Japanese imported apparel market.
ƒ
ASEAN-Japan Partnership: The Government of Japan signed the ASEAN-Japan Comprehensive
Economic Partnership Agreement (CEPA) in April 2008 and the CEPA came into force on July 1,
2010. All customs duties for apparel from ASEAN countries have been abolished. This
agreement will likely increase imports from ASEAN countries and may decrease imports from
China. Due to the premium allocated to U.S. and European products, however, industry experts
believe that the imports from these two regions will not be adversely impacted by the CEPA.
ƒ
Domestic Production: Japan, like the United States, has experienced a reduction in domestic
apparel manufacturers over the past 10 years. In 2009, the import penetration rate was more
than 95%. The remaining domestic Japanese apparel companies are surviving by manufacturing
high-end, high-quality product for the domestic market.
Table 1: Japan Domestic Production and Import Penetration Rate
Total
Domestic
Quantity
Import
Export
Production
Supplied to
Market
Year
Quantity
Quantity
Quantity
Quantity
(1,000 pcs.)
(1,000 pcs.)
(1,000 pcs.)
(1,000 pcs) Import
Penetration
1997
814,995
1,935,698
10,338
2,740,355
70.6%
2007
233,476
3,716,516
10,757
3,939,235
94.3%
2009
188,070
3,747,920
5,670
3,930,320
95.4%
Source: “The Japanese Apparel Market and Imports 20010” by Japan Textiles Importers Association, "Japan Exports & Imports Commodity by
Country" by Japan Tariff Association; "Textiles and Consumer Goods Statistics" by Ministry of Economy, Trade and Industry
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Japan: Young Men’s Apparel Market
Page 3 of 8
Best Prospects
Expected Upcoming Fashion Trends and Items for 2010 Fall/Winter:
For the 2010 Fall/Winter season, “military-inspired” is the most promising style. Mixing the military look
with active outdoor lifestyle items is the hottest style. Clean yet relaxed “workwear” style is also popular.
The July 20, 2010 edition of the Senken Shinbun reported that the following items are expected to sell
well during the 2010 Fall/Winter season.
4. Cardigans
5. Cargo pants
6. Chino pants
1. Military-inspired jackets
2. Leather/Polyurethane made outerwear
3. Denim jackets
Source: Senken Shinbun, July 20, 2010
Key Suppliers
According to industry experts, retailers lead the market. As retailers can receive direct feedback from
consumers, they are better positioned to propose new products that meet consumers’ demands and the
most current fashion trends than manufacturers.
Specialty stores, so-called “select shops” and manufacturing retailers, so-called SPA’s (specialty store
retailer of private label apparel) have been doing well and lead the market. Select shops have their own
store concepts and theme and purchase products that meet their concepts. Some select shops,
however, produce their own original products because of the higher margin. Examples of these select
shops are Beams, United Arrows, Baycrew’s, Ships and PAL Group.
Japanese manufacturers are the main competitors for U.S. companies in this market. These companies
produce both in Japan and in Asia and have a distinct competitive advantage as they are able to observe
trends in the market and respond quickly to changes in customer tastes.
The tables below show Japanese leading men’s wear chain stores and apparel manufacturers. Most
manufacturers in Table 4 produce their own products and run retail stores that sell directly to consumers.
To enhance their product lines at the retail store level, most of these companies also purchase product
from other suppliers including overseas companies.
Table 3: Leading Japanese Men’s Wear Chain Stores by sales in FY2009
(Unit: ¥1 million/$1 million ¥108 to a dollar)
Men’s Wear Sales
vs,
Total Sales
(million)
FY08
(million)
1
UNIQLO
9.4%
￥171,112 $1,827
￥538,100 $5,744
2
3
4
5
6
7
8
9
Aoyama Trading
AOKI Holdings
Right-On
¥161,323
¥85,905
￥49,297
Haruyama Trading
¥45,436
Konaka
¥36,891
Shimamura
￥30,737
Beams
￥28,916
United Arrows
￥25,860
$1,722
$917
$526
$485
$394
$328
$309
$276
-4.1%
161323
-1.6%
85905
-1.2%
￥100,606
-7.7%
49636
-17.6%
37336
-1.2%
￥406,020
14.0%
￥49,010
-3.2%
￥78,657
Let us help you export.
The U.S. Commercial Service — Your global business partner.
$1,722
$917
$1,074
$530
$399
$4,334
$523
$840
vs.
FY08
16.4%
-4.1%
-1.6%
-3.5%
-7.5%
-18.2%
n/a
-6.3%
2.7%
Main Category
Casual: All
Men’s Business
Suits
Men’s business
suits
Jeans
Men’s business
suits
Men’s business
suits
Casual: All
Casual: Men,
Women
Casual: Women’s
export.gov
800-USA-TRADE
Japan: Young Men’s Apparel Market
Page 4 of 8
10
Mac-House
￥24,363
$260
-13.5%
￥48,942
$522
-13.6%
Jeans
13
Baycrew's
¥ 14,047
$150
5.0%
¥ 51970
$555
7.0%
Casual: Women’s
16
Jeans Mate
¥ 11,514
$123
-9.4%
¥ 16,800
$179
-9.6%
Jeans
Source: Senken Shinbun, August 3, 2010
Table 4: Leading Japanese Apparel Manufacturers by sales in FY2009
(Unit: ¥1 million/$1 million ¥93.68 to a dollar)
Total Sales
vs.
Main Category
(million)
FY08
Women’s
World
-8.8%
￥285,880 $3,052
Onward Holdings
￥234,181
$2,500
-4.6%
Women’s
Wacoal Holdings
￥163,297
$1,743
-5.2%
Women’s underwear
Five Foxes
￥143,213
$1,529
n/a
Women’s
Renown
￥123,451
$1,318
-17.6%
Women’s
Sanei International
￥111,738
$1,193
-7.0%
Women’s
Sanyo Shokai
￥111,663
$1,192
-11.8%
Women’s
Itokin
￥99,764
$1,065
-11.8
Women’s
Gunze
￥79,278
$846
-9.2%
Underwear/Hosiery
Cross Plus
¥ 77,896
$832
-9.1%
Women’s
Source: Senken Shinbun, July 29, 2010
Prospective Buyers
These days, specialty stores, so-called “select shops,” have become a major destination for purchasing
clothing. Although department stores, which used to enjoy large apparel sales, have been losing sales
for the past decade, some stores, such as Isetan and Hankyu, are still very influential in the fashion
industry. Buyers from these stores are potential customers for U.S. companies. Japanese importers and
trading companies often place orders on behalf of their retail customers. In some cases, importers and
trading companies show interest in representing the brand in the Japanese market.
As for consumers, it is well known that Japanese consumers are hard to please. This is especially true of
the older generations in Japan. Young men, a key demographic for men’s casual fashion in Japan, are
not as picky as older males but do appreciate the value, quality and pride that manufacturers put into their
clothing.
Conducting research on the psychology of Japanese male consumers is also important. “Kodawari” and
“Authentic” are two concepts that should be considered when designing and marketing for Japanese
men. The consumers who care about “Kodawari” and “Authentic” are usually willing to pay extra for the
added-value. “Kodawari" is a key concept for attracting male customers to a brand or product. The term
means pride and/or attention to detail. In the fashion industry, this applies to the material, design,
stitching, buttons, zippers, pocket shapes and other details that have gone into a given product to make it
unique. In general, Japanese men will pay more for products that convey this sense of “Kodawari.”
Products with this appeal are actively touted by sales clerks who explain the story behind the brand and
the manufacturer's attention to detail when they discuss the product with their customers. “Authentic” is
another key concept that attracts male buyers. In this sense, Japanese male consumers like to learn the
details about a company’s brand in order to get a feel for the independence and originality of their
products. Fashions that are considered “Authentic” hark back to an earlier time period and convey a
sense of individualism and freedom to the wearer of the product.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Japan: Young Men’s Apparel Market
Page 5 of 8
Market Entry
A sound market entry strategy for American suppliers is an agent/distributor agreement. Under an
agreement, the agent/distributor does all the sales promotion, provides customer service, and maintains
inventory. With an agent/distributor, the American company may be able to expand their market in
Japan. However, it is not always easy to arrange such an agent/distributor from the time of entry.
Therefore, we encourage U.S. companies to consider working directly with retailers. As discussed earlier,
retailers lead the market and they are eager to try new products to be unique and different from other
stores.
The more retail customers a U.S. company has, the easier it is to find the right agent/distributor.
Distributors often hesitate to sign an agent/distributor agreement without thorough examination of the
marketability of the products/collection. However, if a U.S. company already has many retail customers, it
is considered as proof by the Japanese that the product can sell in Japan. Japan is basically open to
apparel imports (see “Market Issues and Obstacles”). Japanese buyers are responsible for paying
custom duties and consumption tax and for labeling any information required to sell in Japan.
Prepayment is common between U.S. and Japanese companies. Also, for small orders, credit card or
cash remittance through a bank transfer is common.
The following is industry background information and tips to build a good and long-lasting working
relationship with Japanese companies:
1. Japanese Distribution Systems
A product from a U.S. supplier usually goes to retail customers via an importer/distributor or directly to
retailers. Consignment sales still exist at department stores and other mass merchandisers. When these
stores buy from foreign suppliers, they usually have a trading company acting as an intermediary to
purchase directly from the manufacturers and then sell by consignment to the stores. It is still common
practice in Japan for small mom-and-pop stores to buy on a “cash & carry” basis from wholesalers but not
directly from manufacturers.
2. Trading Company Culture
A trading company often serves as a facilitator between a U.S. company and a Japanese buyer. This is
unique to Japanese business society. Using a trading company is commonplace in Japan, especially for
Japanese buyers with little or no English who want to purchase products from foreign suppliers but who
also want to avoid risks. In general, a trading company will handle all communications in English with
foreign suppliers and will take care of shipping, customs clearance, payment and any inspections.
Trading companies often charge a certain percentage (of the business) for their services.
3. The Importance of Trade Shows:
The best way to market products to Japanese buyers is to exhibit at industry trade shows in Japan. This
is especially true in the apparel industry where buyers need to see, feel and touch actual product
samples. It is the best to exhibit at a trade show in Japan (see “Trade Events”. Also, we encourage U.S.
firms to actively target Japanese buyers at major apparel trade shows in the United States as many
fashion buyers from Japan travel to leading industry trade shows in the United States.
4. Tips for long-lasting relationships:
Japanese companies respect long-lasting and mutually beneficial business relationships. The following
are three points U.S. companies should be aware of when considering entering the Japanese market.
1.) Timely Communication
U.S. companies should respond to any requests or inquiries in a timely manner. At a minimum, U.S.
firms who receive inquiries should acknowledge receipt of the email and advise the Japanese
customer when they can expect a full response.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Japan: Young Men’s Apparel Market
Page 6 of 8
2.) Japanese Sales Seasons: On-time/Error-free Shipment:
Japanese retailers start selling spring merchandise in early February and have clearance sales in late
June or early July for the spring/summer season collections. Companies start selling fall
merchandise from late July and begin clearance sales in early January. Delays in shipping decrease
the time frame for retailers to sell at their suggested retail price.
3.) Small Sizes/Special Request:
As Japanese people tend to have a smaller physique than Americans, Japanese buyers tend to order
more small sizes than large sizes and may have special requests. U.S. companies who can
accommodate requests from Japanese buyers for spec changes such as shorter sleeves and a smaller
bust will likely see repeat business.
Market Issues & Obstacles
Japan is open to apparel imports unless the product contains any part of a wild animal/plant protected by
the CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora). The
sale of products that infringes on another company’s intellectual property rights is also forbidden in Japan.
The following is information on the basics of Japanese duty rates, labeling requirements, sizing systems
and common payment terms between U.S. and Japanese companies.
1. Custom Duties and Consumption Tax
General duty rates are applied to products imported from the United States. However, a WTO approved
duty rate will be applied to U.S. products whenever the WTO rate is lower than the general rate. In 2010,
WTO duty rates of approximately 7.4-10.9% for knitted garments and approximately 7.4-12.8% for woven
garments will be applied to CIF costs. A 5% consumption tax will also be added to the value after
customs duties. For exact custom duties applicable to specific products, please visit the Japanese Tariff
Schedule website: http://www.customs.go.jp/english/tariff/index.htm
Japanese Customs decides which HS Code will be applied to each product. Japanese Customs offers an
“Advance Classification Ruling System” where they can advise the duty rate prior to the actual
importation. Please visit the Japanese Customs Agency website for further information on this
service: http://www.customs.go.jp/english/summary/tariff.htm#ACRS
2. Labeling
Apparel imports into Japan require labeling in Japanese with symbols that are recognized in Japan.
Importers/sellers in Japan are responsible for labeling and listing information on a label as required by the
Labeling of Household Articles' Quality Law. The Ministry of Economy, Trade and Industry (METI)
specifies the requirements. These requirements vary depending upon the type of product. Information
required for apparel includes the following:
ƒ
ƒ
ƒ
ƒ
Type of fabric and textile yarn content, with percentage figures for lining, thread, materials, etc.;
Care and washing instructions;
Size in metric measurements;
Name of manufacturer/supplier.
For more information on what information should be on a label, please visit the METI website:
http://www.caa.go.jp/hinpyo/pdf_data/handbook_e.pdf
As Japanese importers are responsible for labeling, they will sometimes send the foreign manufacturer
labels in Japanese for the manufacturer to attach to the products prior to shipping. In other cases, the
importer will just attach the labels in Japan.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Japan: Young Men’s Apparel Market
Page 7 of 8
The Japanese Standards Association (JSA) offers a booklet in English, “Care Labeling of Textile Goods”
(published Japanese Industrial Standard (JIS) number L 0217) about Japanese labeling symbols.
Interested U.S. companies can purchase a copy from the JSA
website: http://www.jsa.or.jp/default_english.asp
4. JIS Sizing Systems
JIS (Japanese Industrial Standards) for ready-made men's garments serve as a guideline to the
standardized sizing system for ready-made men's apparel. In most cases, Japanese apparel
manufacturers follow the JIS. There are three kinds of sizes: the physique classification sizes used
mainly for business suits, the singular number sizes used mainly for loose-fit jackets and pants, and the
range sizes used mainly for rather loose-fitted shirts and sweaters.
Complete information about the Japanese sizing system is available from the Japanese Standards
Association (JSA). They also publish men's clothing sizing information in English. The JIS Standard
numbers for the men’s wear is JIS L 4004. Interested U.S. companies can refer to the JSA
website: http://www.jsa.or.jp/default_english.asp
Table 5 shows average height, bust, waist, hips and weight of Japanese males by age group.
Table 5: Average height of Japanese men by age group
Age Group
18-19
20’s
Unit
cm
feet/inch
cm
feet/inch
Height
169.9
5’7”
170.6
5’7”
Bust
91.4
36.0
93.1
63.7
Waist
73.1
28.8
76.0
29.2
Hips
93.9
37.0
95.2
37.5
Weight
63.6 kg 140.2 pounds
65.4 kg
144.2 pounds
cm
169.3
94.4
80.1
92.3
66.7 kg
30’s
feet/inch
5’7”
37.1
31.5
37.5
147.0 pounds
Source: Research Institute of Human Engineering for Quality Life
5. Payment Terms:
Prepayment is common between U.S. and Japanese businesses. U.S. suppliers inform Japanese
companies when a shipment is ready and ask for payment. U.S. suppliers ship when they confirm the
payment. In some case, a U.S. supplier requires a 50% deposit at the time of order. For a large order,
an irrevocable Letter of Credit (L/C) is common, however, for small orders, payment by credit card or cash
remittance through a bank transfer is usually preferred. Factoring is not common in Japan.
Trade Events
In Japan:
U.S. Apparel Show at IFF (January 26-28, 2011, Tokyo Japan):
Organized by the Office of Textiles, U.S. Department of Commerce
Website: http://otexa.ita.doc.gov/
In the U.S.
Project Shows: Organized by Project Global Trade Shows
Website: http://www.projectshow.com/
MAGIC: Organized by Advanstar Magic International
Website: http://www.magiconline.com/
Action Sports Retailer (ASR): Organized by Action Sport Retailer
Website: http://www.asrbiz.com/
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Japan: Young Men’s Apparel Market
Page 8 of 8
Resources & Contacts
♦
♦
♦
♦
♦
♦
Ministry of Economy, Trade and Industry: http://www.meti.go.jp/english/index.html
Ministry of Health and Welfare, Office of Environmental Chemicals Safety,
Environmental Health Bureau:
http://www.mhlw.go.jp/english/index.html
Japanese Customs Agency website: http://www.mof.go.jp/english/tariff/tariff.htm
Japan External Trade Organization (JETRO): http://www.jetro.org/
Japan Textile Importers Association: http://www.jtia.or.jp/Eg/egindex.htm
Japanese Standards Association : http://www.jsa.or.jp/default_english.asp
H.S. Codes covered in this report include:
H.S. No.
6101.10 - 6114.90: Knitted or crocheted apparel and clothing
6201.10 - 6211.49: Woven apparel and clothing
Exchange rates used in this report:
- Figures for 2008: ¥108 to the U.S. dollar
- Figures for 2010: ¥90.13 to the U.S. dollar
Figures for 2009: ¥93.68 to the U.S. dollar
For More Information
The U.S. Commercial Service in Osaka, Japan can be contacted via e-mail at: [email protected]; Phone:
011-81-6-6315-5959; Fax: 011-81-6-6315-5963 or visit our website: http://www.buyusa.gov/japan/en/
The U.S. Commercial Service — Your Global Business Partner
With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of
the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S.
companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the
U.S. nearest you by visiting http://www.export.gov/.
Comments and Suggestions: We welcome your comments and suggestions regarding this market research.
You can e-mail us your comments/suggestions to: [email protected]. Please include the name of
the applicable market research in your e-mail. We greatly appreciate your feedback.
Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every
effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the
accuracy or completeness of information in this or any other United States government document. Readers are advised to
independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal
advice.
International copyright, U.S. Department of Commerce, 2010. All rights reserved outside of the United States.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE