Published on September 29, 2015
1. 29/09/15 © Finpro 1 asads Fashion market pre-‐study: Japan Business opportuni6es for Finnish companies
2. Authors • Tsuyoshi Ichikawa, Finpro’s partner consultant in Japan (AIBA cer6ﬁed) • Michio Akutsu, Finpro’s partner consultant in Japan (AIBA cer6ﬁed) • Seiichi Yamanaka, Finpro’s partner consultant in Japan (AIBA cer6ﬁed) • Masahiro Kimura, Finpro Japan August 2015
3. Contents 1. Execu6ve Summary 2. Japanese Fashion Market A) Characteris6cs 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) Distribu6on channels H) Online shops 3. Legisla6on and Regula6ons A) Regula6ons and Requirements at the 6me of import B) Regula6ons and Requirements at the 6me of sale C) Laws and Regula6ons rela6ng to online shops 4. Market Entry Strategy and opportuni6es (Recommenda6ons to Finish companies) 5. Useful informa6on A) List of relevant business organiza6ons B) List of Trade Fairs and Exhibi6ons
4. Execu1ve Summary 1 • Japanese Fashion Market in general – The Japanese fashion market is large enough for Finish SMEs and even niche items are interes6ng and a_rac6ve for Finnish SMEs in terms of sales amount. – However, to enter the Japanese market, Finnish SMEs should pay a_en6on to the unique features of the market summarized in pages 9 and 12. – As you can see from the chart "Popula6on by ages“ in page 9 and 10, the genera6on from 40 to 70 years old might be the interes6ng 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 aeer USA and China. – Men’s, ladies’ and baby/children’s apparel retail sales market sizes are taking quite similar market size trend pa_ern with overall apparel market, turning down from 2008 6ll 2010 and growing since 2011. – Japanese fashion trend is generally following the trends in Europe and USA, with some excep6on of peculiar fashion trend born out of fashion sensi6vity 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 loca6ons or eager in u6lizing e-‐commerce by web/SNS or both.
5. Execu1ve Summary 2 • Market of Import Brand – The sales volume has con6nued to grow from the bo_om 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 craesmanship using quality materials. • Distribu1on channels – Since distribu6on channels need to be less complicated to keep compe66ve pricing structures, some of successful import brands have entered into Japanese market through SELECT SHOP, who purchase directly from the overseas manufactures by selec6ng new brands on their own through exhibi6ons held overseas as well as domes6c or visits to manufacturer’s showroom in their countries.
6. Execu1ve 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 rela6onship with them direct, due to the Japanese tradi6onal business customs such as consignment purchasing, invoicing pricing system etc. • General Merchandising Stores (GMS)’s share has con6nued to shrink, although some of leading GMS’s have developed their PB, but mainly made up of basic and conven6onal design manufactured in Asian countries. • Shopping Centers have con6nued growing in number since 1990’s taking the form of outlet malls, sta6on buildings and underground shopping malls. The key to success for the new comers from abroad is how they can locate poten6al 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 ini6al investment and marke6ng 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. Execu1ve Summary 4 • Online sales – The ra6o of Internet Sales has con6nued 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 6me, they also have their own shopping site to a_ain one-‐to-‐one marke6ng 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 li_le eﬀec6ve to sell items through online shops in Finland directly. Some persons who have no problem in communica6on in English started buying directly from online shops in foreign countries but we can not expect that this sales will increase drama6cally. • TV shopping/Catalog shopping – TV shopping and catalog shopping have long been well-‐established in Japan. • Legisla1ons and Regula1ons – There are regula6ons and requirements both at 6me of import and at 6me of sale, overseas makers and suppliers of apparel products should pay close a_en6on 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: h_p://www.exporoinland.ﬁ/web/eng/market-‐opportunity/asia-‐fashion-‐studies