EXPLORE APPAREL & FASHION OPPORTUNITIES IN JAPAN - FASHION INSIGHT & INSPIRATION FROM JAPAN - Business Sweden
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EXPLORE APPAREL & FASHION
OPPORTUNITIES IN JAPAN
FASHION INSIGHT & INSPIRATION FROM JAPAN
BUSINESS SWEDEN, JANUARY 2018
FASHION INSIGHT & INSPIRATION FROM JAPAN | BUSINESS SWEDEN | 1EXPLORE JAPANESE
FASHION & APPAREL
OPPORTUNITIES
Japan presents some of the most exciting fashion and apparel opportunities globally. With highly
enthusiastic and sophisticated consumers, Tokyo is a key trendsetter and an excellent test market
for further expansion in Asia. The appreciation for high quality products and services has directed
much of the consumers’ curiosity and eagerness towards foreign brands.
JAPAN IS A MAIN TRENDSETTER IN ASIA WITH Japan’s distinct culture makes Tokyo a very
HUGE MARKET FOR APPAREL & FOOTWEAR inspiring fashion environment with a lot to offer in
both haute couture high-end fashion as well as
Japan has the fourth largest apparel market in
affordable, yet exciting, budget alternatives.
the world, after China, USA and Germany. Sales
Tokyo has wide range of subcultures and
of apparel and footwear reached almost 9 trillion
clothing styles that produces a stark contrast
JPY in 2015 (100 JPY ≈ 7,98 SEK as of May
between trendy streetwear select shops in
2017). Japan is also a trendsetter for other
Harajuku or Shibuya and exquisite premium
countries in Asia. High-end imported European
brand and department stores in Ginza.
fashion items and sportswear are very popular in
Japan. Although spending on clothing remain Clothing store chain Uniqlo, by the company Fast
stable, consumers increasingly seek high quality Retailing, is the market leader with a market
products at an affordable price level. share of 9.2% and offers inexpensive basic
casual clothing and accessories.
Japanese fashion is heavily influenced by
worldwide fashion trends, most importantly New Key take-away: Japan offers some of the most
York, London, Paris, and Milan collections, but interesting retail opportunities in Asia as well as
has its own unique features and consumer a source of inspiration. Scandinavian design is
preferences. Made in Japan denim and premium well known and Swedish fashion and apparel
clothing items are widely appreciated globally. brands have a lot more to discover in Japan.
2 | BUSINESS SWEDEN | FASHION INSIGHT & INSPIRATION FROM JAPANFigure 1 – Japanese apparel & footwear market share of top 10 retailers in 2015 (by sales)
10 9,2
Market share (%)
8
6 4,7
3,5
4 2,4 2,1 2 1,8 1,7 1,6 1,4
2
0
Source: Yano Research Database 2016
Top 10 apparel retailers together make up 30% Figure 2 – Japan apparel & footwear market by
of the total apparel and footwear market in segment in 2015 (by sales)
Japan. But the total market share of retail chains Other
has decreased as the market offering is Accessories 7%
5%
becoming increasingly diverse. Several
international apparel retailers have entered the Kids
10% Ladies
Japanese market in recent years, offering 39%
consumers a greater choice of affordable
clothing and new design. In addition to the
Footwear
success of international sports brands Adidas, 14%
Nike and Puma have GAP, Zara and H&M
successfully established themselves in Japan.
H&M opened up its first Tokyo store in 2008 and
Men
currently have more than 50 stores. 25%
The market for apparel and footwear in Japan is Source: Yano Research Database 2016
open to international brands and there are no
Luxury menswear products perform well in the
significant tariffs or non-tariff barriers apart from
on certain products, e.g. as leather items. It is market with jumpers being one of the main items.
Wealthy young generation in their 30s is the
significant is to devote enough time and effort to
most important consumer group.
the market in order to succeed. Timely delivery,
responsive communication, correct labelling, Sportswear indicate strong growth, increasing by
attention to detail and sizing considerations are 20% from 2011 to 2015. Athleisure is a growing
necessary to adapt to Japanese expectations. apparel retail trend in recent years, sportswear
LADIES IS THE LARGEST SEGMENT, that is actually used in every day life. The same
SPORTSWEAR HIGH GROWTH AREA trend is also reflected in the footwear market.
Nishimatsuya and Shimamura are market
Ladies wear’ account for almost half of the
leaders within the kids segment with affordable
market by sales. Working women have large
casual wear on the increase, further indicated by
disposable incomes and find interest in high
the success of Uniqlo, H&M, Zara kids brands.
quality fabric products and unique items. Ladies
apparel segment mainly consists of low-end Fashion accessories is an important niche
affordable basic apparel and high-end goods. segment with elegant items typically in demand
Imported goods from Europe are typically to make an outfit more complete and interesting,
premium products. Even mid-income consumers not least regarding business wear for women.
look for at least one premium accessory to wear Scarfs are in high demand as well as hats and
at all times, one item that stands out. caps, especially for UV protection.
FASHION INSIGHT & INSPIRATION FROM JAPAN | BUSINESS SWEDEN | 3Glasses, sunglasses as well as hats and caps Figure 4 – Import goods by category in 2016 (value)
have become important fashion accessories and Belts Other
Scarfs etc. 2% 3%
are widely used as fashion statements in Japan. 4%
Footwear
Cosmetics, especially organic and natural 15%
Bags &
cosmetics, make-up, skin care and other leather items
42%
products is an increasing market segment in
Japan closely linked to the fashion industry. Men's
clothing (incl. Ladies'
Japan has a strong reputation within denim and kids)
14%
clothing (incl.
kids)
is often described as the best producer of jeans. 20%
Japanese denim is well known for craftsmanship
both in the weaving and dyeing process and
local producers are able to sell their products to Source: Yano Research Database 2016, *Estimate
many of the leading luxury brands.
JAPAN HAS SIMILAR CONSUMER BEHAVIOUR
IMPORT OF FOREIGN BRANDS INCREASING & TRENDS, BUT CERTAIN UNIQUE FEATURES
While the overall Japanese market for apparel Tokyo is one of the main places to be for fashion
and fashion accessories indicate limited growth, and apparel brands with international ambitions.
the market for imported brands has increased Even though Japanese consumer preferences
significantly in recent years. Imported products are influenced by international fashion trends
make up approximately 15 % of the total market. foreign brands still need to consider Japanese
Most of imported products are produced in low consumer characteristics and behaviour.
cost countries and sold in Japan by Japanese or
Clothing preferences tends towards simple and
international retail chains. 92% of imports come
from Asia (by value). European brands typically discreet outfits with not to much color, with the
focus on the premium segment in Japan. exception of certain sub-cultures.
Figure 3 – Import of apparel & footwear 2012-2016 Both male and female fashion is typically more
feminine in Japan compared to Sweden. A lot of
1 400 1 254 1 287 1 252
Billion JPY
1 167 attention is put on cuteness for girls.
1 200 971
1 000 Japanese consumers are generally less
800 conscious about sustainability, but sales of
600
organic and recycled materials is increasing.
400
200 Single women under the age of 34 spend about
0 twice as much as men in their age group on
2012 2013 2014 2015 2016*
fashion.
Source: Yano Research Database 2016, *Estimate The average age at which Japanese marry is
Almost half of imports are are made up from increasing and there are more single working
bags and leather items. Imported luxury items women with incomes to spend.
and fashion accessories are popular additions to
Japan has a huge and wealthy elderly
everyday casual and business clothing in Japan.
popluation, creating a large “silver market”.
Growing import segments apart from premium
clothing and goods are sportswear, sneakers, Japan has seen a surge in inbound tourists in
compression tights for running and different recent years and shopping is one of their main
types of functional clothing. It is important to be past times during their visit. Many Asian tourists
odourless, both for businesswear but especially shop clothing, shoes and accessories in Japan
for sportswear, which can be seen in the growth due to huge selection and lack of counterfeits,
of these types of functional clothing.
making Japan one of the main trendsetter in
Asia (in competition with Seoul and Shanghai).
4 | BUSINESS SWEDEN | FASHION INSIGHT & INSPIRATION FROM JAPANBLOGGERS & FASHION MAGAZINES ARE SELECT SHOPS & DEPARTMENT STORES ARE
IMPORTANT MARKETING CHANNELS MAIN SALES CHANNELS FOR IMPORT ITEMS
Fashion magazines and bloggers play an Leading department stores such as Isetan and
important role in creating and spreading fashion Mitsukoshi are still a main sales channels for
trends. Printed media is on the decline in Japan, premium products while many internationally
as globally, but is still relatively important. well-known fashion brands also decide to open
Fashion magazines publish detailed clothing and up their own brand flagship stores. “Select shop”
matching guides on how to combine different stores with multiple brands is also one of the
items including the voice of the main stylist. main sales channels for imported fashion brands
Celebrities appearing in magazines and on TV in Japan, especially for more trendy clothing and
also heavily influence consumer preferences. accessories, e.g. Beams, United Arrows and
Featuring your products in these channels will Ships. Typically trendy brands need to be
give you a lot of attention when entering the successful or at least visible in above mentioned
Japanese market. channels to make an impact and reach sales.
QUALITY CONTROL & PROPER LABELLING Many international brands choose to work with
ARE KEY NECESSITIES TO SUCCESS an importer and/or distributor in Japan. There are
pro’s and con’s of such an approach. Regardless
The Japanese market is highly competitive and are regular visits and contacts with business
sophisticated. A company’s products needs to be partners and the fashion community important.
of high quality and perceived as something Visits by the designer help increase media
unique to stand out in the market. coverage and relationships. Overall is active
Quality materials, finish and fit are the most partner management key to success in Japan.
important purchasing factors. Defects and RAPIDLY INCREASING & SOPHISTICATED
returns could be fatal to a brand’s reputation. JAPANESE E-COMMERCE MARKET
Some brands make special collections made for Japan has the world’s fourth largest E-commerce
Asia with sizing and color preferences in mind. market after the US, China and UK. The market
is growing fast and is expected to continue
Japanese consumers seek items with a strong
growing annually by about 10 % in the coming
brand and design story. Many want to know the
years. Fashion and apparel are the most
origin of the brand, designer, inspiration, where commonly sold goods (19%). Fashion is the
and how the products are produced. Design and second fastest-growing segment (after food) with
made in Sweden are aspects to highlight. 7.9% growth in 2015. Online fashion sales is
forecasted to have doubled in 2017 from 2010. If
Timely communication, proper labelling, on-time
you are interested in knowing more, please read
and correct delivery are of utmost importance. more in Business Sweden’s E-commerce guide.
Imported apparel require labeling in Japanese.
Developing a digital presence is key from a
JAPANESE BUYERS TEND TO VISIT MAIN marketing perspective but it is still important to
TRADE FAIRS IN PARIS AND ITALY be visible in physical stores to make a greater
impact on the market and allow for sales online.
Attendence at any major trade fair in Paris is
important to attract the attention of Japanese Key take-away: The Japanese fashion market
offers great retail and E-commerce opportunities
buyers for womenswear. For mens apparel and
as well as inspiration for Swedish brands. Some
accessories, Pitti Uomo in Italy is of key importance
of the segments that indicate the highest
to be visible to Japanese buyers. For fashion potential for foreign companies are sportswear &
accessories in general are major trade fairs in Italy functional clothing, fashion accessories and
and Paris key locations. footwear (sneakers). The Japanese market can
be very rewarding for unique and quality brands.
FASHION INSIGHT & INSPIRATION FROM JAPAN | BUSINESS SWEDEN | 5BUSINESS SWEDEN Box 240, SE-101 24 Stockholm, Sweden World Trade Center, Klarabergsviadukten 70 T +46 8 588 660 00 F +46 8 588 661 90 tokyo@business-sweden.se www.business-sweden.se Business Sweden’s purpose is to help every Swedish company to reach its full international potential and help companies abroad to reach their potential by investing in Sweden. The purpose is operationalised through 450 staff deployed at 14 offices in Sweden and at 55 offices in 49 key markets abroad. Feel free to contact us for any questions regarding Swedish international trade or foreign investments in Sweden.
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