Japanese Fashion Market

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CONTENTS Executive Summary 1. Introduction 2. Principal characteristic of the Japanese Market 2.1 Population 2.2 Japanese standard of living 2.3 GNP 2.4 Main import and export 2.5 Space contains 2.6 Physical condition 3. The Fashion Market 3.1 Life style by generation 3.2 The relationship between capital income and consumption 3.3 Personal expenses in clothing 3.4 Aspects to determine the patterns of consumption 4.The fashion Industry 4.1 Size 4.2 Department stores 4.3 GMS (General Merchandising Stores) 4.4 Specialty stores 4.5 Domestic apparel companies 4.6 Trading companies 4.7 Advertisement 5.Strategies 5.1 Foreign companies entering the Japanese market 5.2 Possible strategies for Brazilian companies entering The Japanese market 6.Conclusion Reference; Map of fashion areas
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Executive Summary
The purpose of this research is to provide you with basic information about the Japanese fashion industry in order to broaden knowledge for the Brazilian fashion companies planning to enter the Japanese Market. The Japanese economy is viewed as being on its recovery stage. Although consumers are trying to save more money to prepare for an unstable future, they also have a strong desire to spend money on fashion. The Japanese fashion market has very unique features compared to that of other countries. 1) The real estate-related costs in Japan are high and the sales per square feet have been highest in the world. It is about 10 times as that of the United States. 2) Most of the Japanese retail fashion business stands on consignment. As a result the retailers do not have the decision making power to merchandise and determine the retail price. The market size for people in their 20s is the largest. This is because most of them still live with their parents and don’t need to pay living expenses. The largest market for most countries is in the 40–year old age group. 4) The Japanese are very loyal to foreign prestigious fashion brands such as Louis Vuitton and Gucci. The sales of these companies have been growing steadily with support from young consumers. Japanese consumers are sensitive to trend cycles in the international fashion market. They are significantly influenced by Fashion Magazines.

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The Japanese fashion market has a big potential for the Brazilian Fashion companies. At the same time it is easy to drop out from this highly competitive market. It is imperative for Brazilian fashion companies to make clear strategies for entering the Japanese market.

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In Chapter 2 of this study. is intense and companies that choose to place their products in that country should be aware that Japanese buyers prefer to maintain long relationships with vendors rather than one point buying.1. important data regarding the setting for the development 4 . gaiety and color that may constitute interesting particularities for the prospective Japanese buyer. It is therefore highly important to frequently travel to Japan to present new lines of apparel to demonstrate a determined strategy to become a player in the market. It contains data that should provide designers and apparel firms with the necessary basic information necessary to better understand the inner workings of the Japanese fashion market and establish an outline for their strategy for entry into the archipelago. Typically. The Japanese seem curious about Brazil especially after the very important World Cup victory in June of this year. prospective clients will start with a small order to verify the reaction of the buyers and may eventually increase their orders. which allows anyone to have access to precious information available at homepages of designers and apparel brands and facilitating access to foreign products. This market study has the objective of assisting the Brazilian fashion industry to better place itself in Japan. These changes occurred thanks to many phenomena such as the greater utilization of the internet. because doubts about the future of the economy. have made Japanese consumers become increasingly cost and quality conscious and constantly scanning for "new" and "different" merchandise. Evaluated at over US$ 5 billion.INTRODUCTION The Japanese fashion market maintains its position as one of the largest in the world and has been facing important changes. nevertheless. The shear size of the market and the changes that are taking place constitute an opportunity for the Brazilian fashion industry and principally for those companies that have already begun a phase of consolidation of their image in both Europe and the United States. Competition in the Japanese market. the Japanese fashion market will therefore be receptive to those Brazilian companies interested in offering their apparel in the country. Specifically in Japan. The Brazilian fashion industry has the qualities of youthfulness. principally those that are determined to place their products by resorting to medium and long-term strategies and hiring qualified professionals in Japan to perform marketing tasks.

of the Japanese fashion industry. Chapter 4 contains all the specific basic data that are important to evaluate the size of the market and become familiar with the main "players" of the market. physical and other determining factors that make Japan's apparel industry quite unique. 5 . The Conclusion suggests recalls some of the basic points described in this study and stresses recommendations made in this study to increase the chances of success of Brazilian fashion and apparel companies. distributors. These experiences are especially valuable for companies that are newcomers in the market. trading and specialized media companies. This section will permit the reader to better understand the economic. Chapter 3 presents the basic information on the most important factors influencing the buyers' consumption patterns. Motivational aspects for consumer buying and consumer buying patterns are discussed in this section. Chapter 5 discusses strategies that have been undertaken by non-Japanese companies to enter the market. Specific attention is given to the profile description of the different categories of entities involved in the industry such manufacturers. geographic.

1.2. [Chart2. The population is greatest along the Pacific seaboard where the weather is mild and the transportation and industrial facilities are most highly developed.1 Japanese population by Age and Sex] 6 . approximately 70% of the nation’s people live on the strip of coastal plain between Tokyo and the northern part of Kyushu. Advancing industrialization has been accompanied by a population shift toward the large cities and a marked population decline in the agricultural areas. It is in eighth place after China.1 Population Japan has a population of 126. In fact. the United States.2 shows twelve cities in Japan with populations of over one million. half that of the United States. Chart 2. Brazil.Principal Characteristics of the Japanese Market 2.1.92million (2002). Indonesia. Pakistan and Russia. India.

The average annual income per household (two persons or more) was about 6. they lag behind (see Chart 2.1).2). and Japanese life is full of affluence and convenience. is far below European or American standards.3. automobiles.5.1 Japanese Standard of Living Japan ranks top class in investment and consumption with rapid economic growth.2 Population of selected Cities in Japan] 2. Ownership of consumer electronics. In one report it is on a par with or even exceeds western standards (see Chart 2. However statistics give a mixed picture of the Japanese standard of living. We will refer to housing in Chapter 2.2. and in other respects such as social capital and housing. which further confirms the idea that people are generally satisfied.447) in 2000.[Chart2.2.1. and other durables is widespread. However the social capital such as paved roads. sewer system and so on.2. What do the Japanese themselves think of their standard of living? The results are presented in Chart2.73 million yen (US$ 62. 7 .

1 3.1% 53.2% 17.8% 55.5% 60-69 25.2% [Chart2.8% 26.2% 60.0 29.5% 31.0 100.0% 38.9% 98.1 Ownership of Consumer Durables by Japanese Households] Item Air conditioners Refrigerators Microwave ovens Vacuum cleaners Washing machines Color TV sets VTR Stereos CD players Automobiles Personal computer Japan 81.4 99.2.5% 40-49 19.2% 76.0 100.[Chart2.1 70.5% 25.6% 30.8 72.6% 50-59 33.0% 98.2 Social capital] Japan recreational park area per person (square meters) percentage of paved roads percentage of underground.3 Satisfaction with their standard of living] age satisfied more or less satisfied dissatisfied more or less dissatisfied 20-29 23.3% 99.3% 99.9% 20.1 58.5% 10.1 99.8% 15.1 62.1% 25.2% 30-39 16.4 100.0 Italy 11.0% 83.0 USA 29.2 92.0% 25.8 France 11.2.electric wires percentage houses connected to sewer systems 3.5% 8 .0 76.0% 33.8% 45.0 60.1 [Chart2.8 100.5% 20.8% 7.1% 91.2.7 Germany 27.

400 9 .A Korea 4.351 28.918 40.9 29.7 52.3. first from agriculture to manufacturing. etc Total (2000 The World Bank Group) Japan 1. [Chart2.048 19.9 100.1 Breakdown of Domestic GDP by industry](%) Sector Agriculture Industry Services.0 Italy 2.3 GNP Japanese industrial structure changed dramatically after World War .959 4. and clothing requirements and to diversify demand into cultural. recreational.4 100.7 100.0 [Chart2. GNP and Capital income in Japan are very high compared to other countries.1 70.610 France 153.0 U. manufacturing fell slightly from 33% to 29%.0 France 2. agriculture fell from 20% in 1955 to 2% in 1999.1 66. In terms of percentage. shelter. manufacturing up from 25% to 31%.361 26.5 32.880 Brazil 70.S.6 64. and then from manufacturing to services.2 GNP and Capita Income] Japan GNP ($billion) Per Capita Income ($) (1997) 514.940 U.270 Italy 114. This shift to services is common to all industrial countries. and other non-essential areas. The changes in the share of total employment between 1955 and 1999 are even more dramatic: agriculture down from 41% to 5%.4 28.5 67.313 10.9 26.A 743.2.S. and services up from 34% to 64%. Rising incomes have enabled people to meet their basic food.3. while services grew from 47% to 69%.020 Korea 48.0 100.6 100. educational.6 42.0 Brazil 7.

came China. imports in clothing 0. In1997. Japan imports more clothes than any other countries.6% automobile components 3. Each accounted for 2-7% of exports. The U. Germany and the top of the list.3). as in exports.4. and China second with 13%.0%). Korea. Indonesia and Germany with 3-4% each. Chart2. Thailand.S. Taiwan. Italy 4. The top ranking countries are always pretty much the same.2% of world imports. TRANSPORT LOGISTICS Transport logistic varies with each company.3% in 2000. making it by far the largest export product category.4 Main Import and Export Product Japan ranks third in international trade volume after the United States and Germany.6%. Taiwan. Other major categories include precision machinery 4.2).S.4%.0%. Machinery (total of general machinery and electrical machinery. but not including transportation machinery) accounts for 46.9% (Petroleum 8.2. 10 . the EU for 16%.9% of world exports and 6. ASEAN15%. Usually. steel 2. but today Japan’s major export is machinery.4. organic chemicals 2. the U. was by far the biggest customer with 30%. Coming next were Korea. textiles were the major export.7% of the total value of exports. payments are made either in Euros or in US dollars. with 24%.4 shows the total value of imports in the last 5 years. the U. The next largest category is automobile at 15.8%. OPEC 15%. By country. Chart2.4.2%. Australia. France 3.4% and ships 2.6%. was at the top.S. although with some change in ranking. After the U. the companies use FOB (Free on Board) or CIF (Cost Insurance & Freight) and L/C (Letter of Credit) or T/T remittance.9% and clothing 5.2%. By country. raw materials and fuels 13. and OPEC for 4%.5 indicates the tariff for clothing and footwear. Singapore.4%. By region. it accounted for 7. EXPORTS At one time. Imports by region were: the EU13%. Usually.4. Due to the Japanese boom of import luxury brands.9% and Brazil 0.S. Italy and France also benefit greater from the Japanese market (see Chart2. Japan imports clothing mostly from China (see Chart2. Malaysia. foods 6. IMPORTS The major import categories during 1998 were machinery 22. the Newly Industrialization Economies (NIES) accounts for 24% of Japan exports: the Association of South-East Asian Nations (ASEAN) for 17%. NIES 10%.

4. Air transportation is preferred because they are more expeditious. Most companies leave import business to trading companies and agents having branches abroad. If the imports amount to a large volume and weight. London or Milan in Europe. The companies collect export goods either in New York or Los Angeles in the USA and in Paris. Companies having a division to deal with import business. choose to import directly from venders. [Chart 2. sea transportation may be used.1Export and Import] 11 .Companies use different logistics to import their products according to the type of business they operate.

3Import of Clothing by the Country (Price)] 12 .4.4.2Import of Clothing by the Country (Quantity)] [Chart 2.[Chart 2.

5 3.610 6.2 100.91/$ in 1999 107.718 -5.8 Italy 110.252 12.77/$ in 2000 Quantity 5.0 Price 1.109 191.3 -8.9 2. 108.856 30.8 Vietnam 51.030 -11. rate of increase compared with previous year Average exchange rate.6 37.1999 Quantity Rate % China 3.1 13.020 -8.3 1.6 7.901 90.3 Vietnam 138.7 Korea 109.581 0.255 49.1 12.7 USA 53.7 Total 5.367 -15.7 1.683.6 3.2 31.683.7 1.542.1 France 30.822.961 12.4Total Value of Imports in the last 5 years] Fabric Knit Price Rate Price Rate 1996 1.1 3.2 2.858.1 8. 113.0 Total 1.7 8.8 Indonesia 189. rate of increase compared with previous year 113.199 -4.300 17.7 Korea 446.6 -18.1 4.5 782.846 207.8 % 75.8 74.189 189.5 1998 900.294 -9.99/$ in 1997 130.3 1997 995.9 -17.2 100.563 2000 Rate 20.091 63.7 1.6 6.9 24.0 70.1 2.985 2.1 1.823 47.702 -3.3 719.383 -25.905 -3.91/$ in 1998 13 .275.212 27.8 2.0 [Chart 2.133 47.621.213 12.6 1999 902.5 770.2 9.763 -23.0 Rate.6 -13.5 782.865 482.0 1.8 100.6 6.5 1.4 Average exchange rate.8 4.765.2 3.91/$ in 1999 107.1 2.730 24.185.3 808.111 2000 Rate 36.803.4 100.048 33.6 % 77.4.3 -10.419 51.013.77/$ in 2000 Total Price Rate 1.415 -1.794.076.7 Thailand 168.77/$ in 2000 1999 Price Rate % China 1.7 3.4 Rate.550 95.78/$ in 1996 120.1 Thailand 33.91/$ in 1999 107.034.191 60.873 70.0 1. 113.2 2000 1.512 23.905 1.601 -3.303 -7.007 -9.077.0 Rate. rate of increase compared with previous year Average exchange rate.800 4.

4 6.8-12.0 14 .5 Yen 7.6 8.0 10.0 10.9-13.2-10.[Chart 2.8 4362.5 5.5Tariff] Item Fur Coat Leather Coat Jacket (fabric) Underwear (fabric) T-shirt Sweater Swimming Suit Tie Scarf Sport Shoes (leather) Shoes (leather) more than 12.907Yen Shoes (leather) less than 12.1-10.0 33.0-30.6-12.6 10.906Yen Non-Leather Shoes Tariff (%) 20.7 10.7 10.6 27.4.

S. can only afford a small house. among the highest in the world. distant and small. 38 square meters in Germany. but the area of each unit averages only 83 square meters (1998). According to the Ministry of Construction.5. 59. In 2001.5 square meters in France.5 Space constraints Housing in Japan’s principal metropolitan areas has been characterized as expensive.A 162 ('93) 60 ('93) Germany 94.S.5 times the average working household’s annual income. people have to live in the distant suburbs and even then. such costs are.2. in fact. The average house floor per person is 33 square meters in Japan. the average floor area for a new house is 162.8 square meters in Germany. 37 square meters in France. [Chart2. 60 square meters in the U.0 square meters in the U.8% of Japanese owned their homes. The cost of house plots and construction is very high.3 square meters in Japan. The Japan of today has more housing units than households.. Buying a new 70 square meters condominium in the Tokyo area during the “bubble” years of the late 1980s cost 8.1 House Floor Area](square meters) Japan 83 ('98) 33 ('98) U. and only 89.8 ('91) 38 ('93) France 105. the government’s goal is that a similar condo should cost up to 5 years’ wages has yet to be achieved.5 ('88) 37 ('92) New house Per person 15 . Since land is expensive. While land prices are still coming down. 94. Almost all privately owned houses being built are single-family units. 105.S.

5 108.0 158.3 167.5 27.4 23 171.2 158.2 155.0 103. However.3 65.1 52.2) Chart 2.6 Physical Condition In the past Japanese people were though to be short and small.2 30. [Chart 2.4 52.0 10.9 64.6.4 48.3 152.2.6 102.3 65. KG) Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Male Female Male Female Age Height Weight Height Weight Height Weight Height Weight 79.6 14.0 41.9 121.0 43.0 50.5 65.4 158.4 157.8 78.8 54.0 133.8 95.4 115.7 68.2 53.8 150.9 170.7 155.1 Japanese Average Height and Weight](CM.8 50.7 152.9 127.5 48.4 137.1 51. their life style has changed to a Western style.8 57.2 24 170.4 164.3 54.8 4049 168. (See chart 2.1 22 169.8 127.4 140.2 21 171.0 62.7 159.2 34.0 51.5 64.4 over 70 159.1 18.1 14.6 3039 170.0 157.7 157.6 158.5 158.3 96.1 17 171.0 64.5 51.3 145.0 50.5 61.6.9 88.4 19 172.6.6 16.2 25 171.2 145.4 23.6 10.4 35.9 155.4 109.7 64.4 65.1 50.2 52.1 16 .8 87.7 6069 162.2 52.5 158.3 12.7 23. The physical condition of young Japanese people is very similar to that of Europeans and Americans.5 12.0 18 171.8 157.0 64.9 19.9 122.1 158.7 21.2 50.4 56.0 53.5 20 171.6 157.5 133.3 61.5 21.3 67.0 30.6.7 2629 170.1 and 2. Most young people are thin.8 115.2 38.9 50.9 150.3 shows the size measurement according to JIS (Japanese Industrial Standard).8 144.6 26.6 5059 165.2 37.6 157.9 16.8 48.1 48.7 66.

[Chart 2.6.6.2 Percentage of Physical Condition by age] [Chart 2.3 Measure of Size] Size (cm) Bust Hip Height Waist 7 80 89 158 61-64 9 83 91 158 64-67 11 86 93 158 67-70 13 89 95 158 70-73 [Chart 2.6.4 Equivalent to Other Countries] Japanese Size French Size Italian Size US Size 7 36 38 2 9 38 40 4 11 40 42 6 13 42 44 8 17 .

life styles and a description of the women in the generation are given below. the generations are divided by the years of birth (see Chart 3.484. Each generation has its own characteristic caused by the historical and the economic background.000 YOUNG FAMILY Second Baby Boomers 11.1Life Style by Generation In Japanese market.702.000 Hanako Generation 9.1.644.612.000 Life Stage Baby Boomers 12.000 FAMILY GROW-UP Banana Generation 10.3.841.000 SINGLES Pocket Beeper Generation 6.1).584.879.The Fashion Market 3.1 Generation] Year of birth 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 Age 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 Generation Cinema Generation Population 16.000 STUDENTS 18 .000 FAMILY MATURE Designer and Character Brand Generation 11. [Chart 3. Detailed accounts of their characteristics.1.

which has not been great thus far. since the retirement age has become younger and younger. -Many women not only have some concerns about their future life as senior citizens but they are also currently taking care of their parents and/or their husbands.1. 2) Baby Boomers -People who were born between 1946 and 1951. They are the First Baby Boomers and consist of the first generation after World War .2 shows that their disposal income is higher than other generations. Japanese cinema also peaked and played an integral part in the culture for young people. -People who were born in 1948 account for the largest percentage in this generation. and their children have grown up. They experienced the “entrance examination war” to get into universities.1.3 indicates. can be expected. 19 . -They are now in their late 50s and have latitude both in terms of time and finance because their children have grown up. their burden of educational expenditure is decreasing. Women of this group are enjoying their second adolescence and men are looking for a life apart from the companies where they have been working for many years as their retirement draws near. The future expansion of their consumption appetite. corporate restructuring activities are rampant due to the current recession. Chart 3. Their movement and activities merit attention as they still play the core role in the forthcoming aging society. They are the parents of the Second Baby Boomers and the Pockets Beeper Generation to which we will refer later in this document. -When people in this generation were in the middle of their adolescence. They grew up in a competitive society. Many women have part-time jobs as Chart 3. Even though they are still repaying substantial housing mortgages.1) Cinema Generation -People who were born between 1936 and 1945. -They are now faced with a turning point. -They are now their early 50s and have children who are either students or working. Hence the name was given.

There are also an increasing number of married couples who live together with the wife’s family or who live close to the wife’s family. -They are the products of the highly consumption-oriented society of the 80s that is often dubbed “light. women of this group have recently gained attention as a group with new characteristics. and some are married and have small children. most women of this group are working on a part-time basis rather than on a full-time basis. They actively enjoyed consumption in order to differentiate themselves from others.e. They are married and have children who are either infants or elementary school students.” They were the pioneers in developing styles for young people. However. 4) Hanako Generation -People who were born between 1959 and 1964. some are married and working together. thin. Notes Designer and character brands (abbreviated as DC brands): This term refers to the brands that were successively introduced by many Japanese designers from the latter half of the 70s. -Since their children are still small. some are still single. -People of this group changed the image “rebellious young people” that was created by the baby boomers into “fashionable young people. -They are now in their mid-forties. -They are now in their middle to late 30s. As people tend to get married at an older age. Yohji Yamamoto. short. -In terms of family finance. Rei Kawakubo. including educational costs. the member of this group are in different life stages. The Hanako magazine (see Notes) was regarded as the Bible for women of this generation and the expression “Hanako women” (see Notes) became popular.3) Designer and Character Brand Generation -People who were born between 1952 and 1958. i. they have some latitude and actively get involved 20 .such as Issei Miyake. and the character brands that took advantage of this development and offered highly individualistic clothes without showing designer’ names. Hence the name of this group was given. wearing fashionable and highly individualistic clothes of designer and character brands (see Notes) and enjoying themselves at many different leisure spots. and small”(see Notes). They have huge housing mortgages to repay and big expenses for their children.

are not as active in consumption as the Hanako Generation. Sister brands 21 . Whereas women of the Hanako Generation wanted to have everything. bars. Hence the name of this generation was given. Hanako. There are many fans of Banana Yoshimoto. and others. and rich enough to satisfy their own daily desires. having a baby. a novelist (see Notes). They prefer to be moderately individualistic rather than differentiating themselves through consumption. -They now have some disposable income and enjoy being single. Female office workers who got heavily involved in status-conscious consumption. short. However. restaurants. -People of this group. Even after getting married and having their own household. and small: This term was coined because popular products in the 70s tended to be light. Tsugumi. who grew up in an affluent society. and small. were called Hanako Women. free.in consumption because many of them are either single or many of the wives are working. Notes Light. they effectively generate latitude in terms of time and finance by taking advantage of assistance from their parents. and beauty in a catalogue manner. 5) Banana Generation -People who were born between 1965 and 1970. thin. “Olive fashion” (see Notes) became popular. using this magazines as their Bible. short. among them and many of them share some traces of personality with the characters who appear in her novels. and work. women of this group try to treasure what they are able to have without over-extending themselves Notes Banana Yoshimoto: She is the daughter of Takaaki Yoshimoto. The author of Kitchen. detailed information about fashion. When they were in their teens. Olive Fashion: This term refers to the girlish and pretty fashion trends that were often introduced in the Olive magazine launched in 1982. Amuria. a critic. -Women are now in a position to think about how to find a balance between marriage. thin. she was born in 1964. they affect fashion less than Hanako Generation. Hanako women: The Hanako magazine that was launched in 1988 offered abundant.

6) Second Baby Boomers -People who were born between 1971 and 1976. Initially. this fashion also served as backlash against the boom in expensive imported brands 22 . account for the largest percentage in this group. such as a polo shirt and a pair of imported jeans. -They are the children of the Baby Boomers. Young people mainly in the Shibuya area increasingly followed a casual style that consisted of basic yet high-quality products. Notes Shibukaji: It is an abbreviation of Shibuya Casual. Not only in fashion but also in life. they have longer arms and legs compared with previous generations and their waistline is positioned higher than previous generations. People. -This group also attracted attention not only due to its size but because its members have their own new views on family and values. They began to attract attention around the time when they became high school students as they formed a large market as a group of consumers. Although they are not very intent on consumption. -Since they have led a Western life style (using table and chairs instead of tatami-style seating). -They were the main contributors to the development of Shibukaji (see Notes) when they were in the late teens. they have strong likes and dislikes because they were surrounded by affluent living conditions since birth and also because their parents gave them a great deal of freedom when they were young. who were born in 1973. they are casualness-oriented.of designer and character brands that were at the peak of their popularity at that time also became very popular. around 1988.

-The styles of singers and popular artists have a strong influence on the lifestyle of this generation. hence the name. Their parents help their finance and most people of this generation have part time jobs. Their disposable income is high. fathers of the members of this group belong to the Baby Boomer generation. [Chart 3.1. this group of people may also be regarded as the Second Baby Boomers. -They show a strong preference in using pocket beepers as an important tool in socializing.7) Pocket Beeper Generation -People who were born between 1977 and 1980.77/$ in 2000 23 . Whereas mothers of the Second Baby Boomers belong to group of Baby Boomers.2 Income and disposal income]( per month) Average exchange rate. 107. -They are in their early 20s. Consequently. and people of this group and the Second Baby boomers share some characteristics.

1.[Chart 3.3 Percentage of workingwomen by age] 24 .

9% 7.1% 17.0% 17.7% 10.272 170.1 shows that the more income they can get.5% 2.4% 6.8% 722.3% 9.6% 9.635 29.9% 332.155 30.9% 420.0% 26.2% 22.2% 9.2.7% 9.5% 15.0% 2.178 22.5% 8.0% 7. the higher percentage of clothing they consume.2% 13. Fuel and water Furniture and Household articles Clothes and footwear Medical Transportation/ correspondence Education Culture and Amusement Others Average exchange rate.4% 3.5% 8.4% 9.2.540 213.6% 462.4% 2.554 241.2The Relationship between Capital Income and Consumption Chart 3.7% 2.9% 8. [Chart 3.4% 16.4% 3.1% 914.2% 15.0% 29.897 263.914 28.4% 6.5% 629.555 20.0% 30.9% 5. Fuel and water Furniture and Household articles Clothes and footwear Medical Transportation/ correspondence Education Culture and Amusement Others Average Households Income Average Expenditure Food Shelter Light.7% 12.6% 10.6% 13.3.8% 25.8% 24.8% 15.767 416.6% 6.2% 25 .5% 9. 144.5% 13.3% 13.159 26.5% 14.4$ in 1990 252.1 Relation between Capital income and Consumption] ( per month) Average Households Income Average Expenditure Food Shelter Light.3% 531.5% 13.7% 16.100 27.2% 7.6% 9.2% 22.3% 23.7% 11.1% 6.9% 18.109 284.6% 2.9% 574.1% 3.8% 11.5% 14.742 27.0% 3.3% 27.6% 16.1% 12.919 335.152 24.3% 26.3% 2.148 25.397 500.593 370.6% 376.521 316.

Chart 3.3. (see Chart 3.208 13.3. there has been a marked increase in family spending on recreation.1%.8% 25.3.543).3. Women who are 20s and 50s spend higher than others. Neither the Engel coefficient used to measure the percentage of household expenditures spend on food.323 36.1 Expense to Clothes]( per month) Yen Total Expenditure Food Shelter Light.042 Yen (US$ 2.2). while average expenditures are 335.188 11.3 shows that the percentage of expenses in clothing in Japan is less than that in Europe. shelter and clothing is an adequate indicator of the quality of consumer life in today’s affluent Japan. 107.160 Yen (US$ 4.133 73. to 56. [Chart 3.353 80.7% in 1980.1 and Chart 3. Fuel and water Furniture and Household articles Clothes and footwear Medical Transportation/ correspondence Education Culture and Amusement Others Average exchange rate.3.302 [Chart 3.860 37.3Personal Expenses in Clothing According to an annual survey of household accounts by the Statistics Bureau of the Prime Minister’s Office.0% 23.787 21.4 shows the percentage of consumption to fashion goods. In contrast.757). Chart 3.2) and the ratio has decreased every year.3.3% 317.018 16.4% 4.77/$ in 2000 Ratio 100. 45.5% 5.0% in 1970. nor the percentage spend on the basic necessities of food.1% 3.6% 11.4% 11.477 11. 16.188 Yen (US$150. The ratio of the food-shelter-and-clothing has decreased steadily since 1970.8% 3.3% 6.2 Expense to Clothes in recent years]( per month) 26 .3. 49. average monthly household income for 2001 is 551.3% in 1990 and 43. entertainment and education.844 20.6% 6.7% in 1999. Clothing accounts for 5.

1% USA 4.77/$ in 2000 [Chart 3.91/$ in 1999 107.0% Italy Germany 9.91/$ in 1998 113.3.3 Percentage of Clothing and Footwear by Countries] Japan 5.5% 27 . 120.Average exchange rate.99/$ in 1997 130.0% 5.

[Chart 3.3.4 Percentage of Spending Fashion Goods] 28 .

4.1 The annual events and the weather] 29 .4Aspects to determine the Pattern of Consumption It is a remarkable phenomenon that Japanese people purchase clothes according to annual events and the season (see Chart 3.1).4. [Chart3.3.

30 .

-Diversified consumers’ needs. it is clear that women’s clothes have not dropped as much. -Increased demand for Import luxury brands -New style of retailing for suit stores. The Fashion Industry 4. The shares of specialty have increased every year for these 3 years (see Chart 4. -Increasing sales areas in department stores. bringing about deflation.1. The yearly rate of increase compared has decreased every year for 5 years (see Chart 4.1. -Rate of decrease compared with last year is 3%. -Bankruptcy of Mycal.215 billion yen (US$122. [Chart 4.3 billion) and others (mail-order business) 13. -Overwhelming growth of Uniqlo.946 billion Yen (US$361.1Size Since the bursting of the economic bubble.2 billion). Japanese economic growth has been weak and personal consumption has continued to flounder.449 billion Yen (US$338.1). [Circumstances in 1998] -Restructuring (laying off employees) in major department stores and GMS.6 billion). [Circumstances in 1999] -Foreign capital advanced into Japanese market.1.969 billion Yen (US$1.4. department stores 36.001 billion) in 2000. -Magnified difference between winners and losers. [Circumstances in 2000] -Dragging economy and consumption. In regard to the rate of decrease compared with last year.359 billion Yen (US$179.1 Net sales and Clothing sales](Billion Yen) 31 . About the sales amount of every channel. the sales amount of total clothing in the retail market was 107.6 billion). GMS 19.2). -Self-merchandising by department stores. More and more goods are being sold at prices below their original price. specialty stores 38. Under this economic situation.

3 -5.5 -0.7 0.663 6.9 -3.3 2.210 3.344 3.9 0.282 26.3 -2.160 12.727 21.964 -2.77/$ in 2000 [Chart 4.2 -3.898 4.057 10.225 11.818 33.0 -2. 108.278 3.214 23.983 5.6 -1.705 -0.Total Total Year 1996 1997 1998 1999 Men 2000 1996 1997 1998 1999 Women 2000 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 Sales 115.7 -1.2 -4.0 -4.483 38.247 112.285 10.345 11.656 11.5 0.611 32.017 67.311 5.215 5.811 69.5 -1.9 Others Sales Rate 14.2 Specialty stores Sales Rate 39.957 -3.449 10.1 Sales Rate 39.7 39.082 10.669 6.492 34.224 2.662 25.638 109.552 6.2 -1.315 3.2 2.4 -1.689 9.2 7.182 1.977 23.896 2.510 40.2 -7.400 -1.332 11.78/$ in 1996 120.294 6.7 -4.819 6.4 -1.1 -6.316 9.4 -1.969 35.8 -0.3 -3.2 -1.8 -2.650 24.075 2.282 12.91/$ in 1998 113.9 -2.938 3.596 6.638 38.212 37.99/$ in 1997 130.844 19.6 -2.104 2.7 -2.000 -2.1 21.355 3.382 3.3 4.0 -1.453 27.3 -6.6 -7.9 -1.3 -3.176 2.943 115.1.3 -1.3 -6.1 -3. rate of increase compared with previous year Average exchange rate.705 11.675 13.8 Babies and Children Rate.979 2.2 38.171 13.508 12.254 107.0 1.531 -1.5 -6.4 13.513 11.5 -1.4 -2.8 Department stores GMS Sales Rate 21.359 6.888 Rate -0.182 31.5 -2.4 -2.7 -7.307 13.235 2.1 2.9 -3.6 -2.0 1.8 -3.2 share by Channel] 32 .875 23.205 2.8 -2.019 8.309 11.686 12.2 -0.8 3.990 65.7 -2.5 -4.0 -3.9 3.381 5.377 25.871 3.528 22.756 36.425 68.5 -2.6 -4.766 -2.1 -1.0 -1.9 -1.075 2.804 3.6 -2.283 2.777 3.412 11.3 -1.4 0.0 -3.946 13.141 26.103 4.91/$ in 1999 107.4 -1.9 -8.220 5.407 20.9 -0.020 1.980 6.682 65.

2Department stores According to the statistics of Retail sales in 2000. the share of women’s sales has increased every year (see Chart4.4.011billion Yen (US$92. men’s clothing sales has decreased the most. the total sales of all department stores were 10. the rate of increase compared with last year is –2. 33 . the rate of increase compared with last year is –2. Isetan Shinjuku in Eastern Japan and Hankyu Umeda in Western Japan are very influential players in the department store business.2. department stores have started to shift away from consignment.3).8 billion). Isetan and Seibu are the front-runners of this new trend. Making a deal with either one would be very lucrative.2. and Fukuya (see Chart4. They are taking more risks and buying products on their own.2. Hankyu. total sales was 5. The department stores whose clothing sales amount are better than last year‘s are Mitsukoshi. In order to survive the decrease in consumer consumption and the competitive nature of the fashion industry. Takashimaya. In the sales of the 21 major department stores. In regard to clothing.2).7%.9billion). Due to the fact that most department stores have increased the size of the women’s section.065 billion Yen (US$46.8% (see Chart4.1).

91/$ in 1998 113.041.77/$ in 2000 34 .99/$ in 1997 130.346.4 -5.8 1.9 -5.9% 3.4 -8.9 901.5 828.4% Men 9.2.3 5.396.3 821.1 -8.8% 2.1 Rate 3.625.5 3.7 770.3 1997 Sales 1.6 1998 Sales 1.0 -2.0% 3.4 779.2% 5.0 5.5 -4.9% 6.5 326.5 93.059.028.[4.9 Rate -2.1Sales of Clothing](Billion Yen) 1996 Sales Total Clothing men women.580.3% 3.4 1.8 -8.8 -6.7% 4.0 90.1 -3.0% 3.8 0.9 -3.5 Rate 0.1% 4.5 484.78/$ in 1996 120.1 284.6 Rate -4.049.249.7 367.8 -10.6% 6.2% 4.409.653.4 432.2 Best21 Department stores' Clothing Sales](Billion Yen) 1996 Sales Total Men Women Children Other 1.038.3 151.042.2 968.065.0 1999 Sales 1.285.5 1.6 1999 Sales 10.0 5.2. 108.983.7 -8.6 97.9 1.4 -2.1% 68.0 519.5 Rate -2.3 1.049.5 122.1 Rate.9 -1.8% 4.5 1997 Sales 11.6 308.5% 2.5 95.6 2.7 -0.0% Average exchange rate.109.1 97.342.5 775.5% 60.5% 59.0 -6.9 2.7% 3.8 -11.9% 61.6 0.6 -6.5% 6.6 165.1% 2.6 -3.9 -0.2 -2.6 1.9% 4.211.8% 2.4 3.5 134.4 5.0 -3.6 Rate -3.1 2.031.4 116.91/$ in 1999 107.5 1. rate of increase compared with previous year [4.011.3 Share in major Department stores' Clothing Sales by Items in 2000] Total Takashimaya Seibu Mitukoshi Isetan Daimaru Matuzakaya Hankyu Kintetu Tokyu Others 7.9% 2.3 -2.0% 6.4% 2.7 -0.2% 5.7 -2.1% Women 8.8 Rate -4.965.5 Rate -3.816.4 Rate.7% 2.2 -1.1 -2.8 2000 Sales 1.0 1998 Sales 10.2.1 -8.1 2000 Sales 10. rate of increase compared with previous year [4.7 394. children others belongings 11.053.0 6.9 316.9 5.2 -6.9% 2.3% Children 10.7% 5.1 1.3% 4.9 267.1% 5.873.9 803.280.1 1.7% 2.3 2.8 2.

9 Others 427.4.3 -7.1 1.1 3.4 -5.8 -6.6 Rate.9 409.5 -0.9 598.9 2000 Sales Rate 12.8 71.6 -4.3 666.3 174. Aeon Group.2 310.9 3. Yuni and Izumiya have shown sales increase in recent years (see Chart4.0 -0. In order for GMS to perform well in this struggle economy.5 -7.8 -1.6 192.2 Clothing Sales of Major 8 GMS](billion Yen) 1996 Daiei Ito Yokado Mycal Jusco Seiyu Yuni Kotobukiya Izumiya Total Sales 528.6 324.3 36.78/$ in 1996 120.9 448. rate of increase compared with previous year [4.2 304.7 186.8 326.7 -9.4 -4.77/$ in 2000 35 .8 210.0 -0.2).0 91.1 -6.3 -0.2 -0.9 425.2 1.021.591.094.8 7.0 287. The clothing sales total of GMS are 2.3 82.486.1 471.1 348.4 2.9 12.4 -1.0 659.3.509. Seiyu-WalMart.7 81.8 3.731billion Yen (US$25. G M S can be divided into many groups (ex.7 69.8 3. children 1.7 631.3 billion) approximately 30% of that of department stores.3 -2. [4.091.9 -3.161.9 416.036.3.7 Sales Rate 516.2 -10.1 Sales](Billion Yen) 1996 Total Clothing Men Sales 11.7 -2.0 -3.3 1. WalMart and Seiyu).9 74.8 Belongings 511.7 81.99/$ in 1997 130.0 -6.175.6 8.91/$ in 1998 113.9 -2.7 2.731.5 450.1 2.5 -2.839.1 -2.8 199.3 -5.0 -3.9 -9.109.4 1999 Sales Rate 428.8 -3.6 2.2 -4.5 466.6 200.622.8 -6.7 1.3 -0.8 0.1 2.0 2.4 -1.3 76.2 -1.8 -2.3 -1.0 487.510.4 -6.5 72.7 2000 Sales Rate 364.131. Jusco.8 -6.6 1999 Sales Rate 12.91/$ in 1999 107.1 214.7 295.3 3.0 2.4 1997 Sales Rate 12.0 -7.6 Rate.6 2. rate of increase compared with previous year Average exchange rate.2 1997 1998 Sales Rate 476. they have made contracts with companies outside their genre (ex. Seven-eleven and Ito Yokado) and companies from other countries (ex.1 1.1 272.525.1 3.3.3.4 181.6 -9.5 2.3GMS The clothing sales have been at a minus for these 3 years and the rate of decrease compared to the previous year has been worse every year (see Chart4.2 445. Ito Yokado Group).2 1998 Sales Rate 12.9 -4.1).5 -3.6 194.8 510. 108.7 -0.7 -11.1 551.303.384.4 women.1 337.8 497.7 -2.0 -4.4 191.7 85.1 399.3 -1.5 383.6 -1.937.1 -15.4 340.919.7 -5.

1 7.9 Sales 19.6 9.0 13.6 9.2 17.2 48.5 1. This age group spends the most out of all the age groups (see Chart4.4.7 93. have gained the support of the people in their 20s. They are called “Gosanke” which means “three major families”.0 Rate 0. The reason for their success is their ability to follow fashion trends.9 1998 Sales Rate 24.3 Rate. developing and selling 4) Using information from around the world 5) Customer satisfaction 6) Low cost operation (warehouse-type store) 7) Strong publicity 8) Avoiding sold out items. rate of increase compared with previous year Unlike the “Gosanke”.2).561 million Yen.5 24. Their products.5 14.3 8.A 18. advertisements and concepts. United Arrows and Ships. [4.3 16. Fast Retailing was able to succeed using basic items. age group or economic group.8 18.1Sales of Clothing of Three Shops](billion Yen) 1996 Sales Beams U.4%(see Chart4.4. they try to reach every consumer. and the rate of increase compared to last year is 68.6 1997 Rate 8.2 21.1).4 2000 Sales 26. These are the reasons for their success.3 -28.7 19. Instead.4Specialty stores The 3 major specialty stores in Japan are Beams.0 15. The net sale of their shops “Uniqlo” is 418.4 6.4. They don’t target a specific sex. flexible returns and exchanges 36 . 1) A clear concept 2) Supplying basic items at a reasonable price 3) Vertical integration for planning.0 1999 Sales Rate 26. Uniqlo uses a “fast food concept”.6 11.4.3 Ships 10.

78/$ in 1996 120.8 33.9 1598 26.7 368 9.985 418.6 33.120 111.7 519 19.91/$ in 1998 113.1 46.[4.1 276 20.2Sales of Uniqlo] (billion Yen) Net Sales Amount 14.5 336 21.081 228.1 23.1 798 39.3 Rate 74.339 25.1 10.0 1055 11.1/$ in 1993 102.77/$ in 2000 121.99/$ in 1997 130.6 229 30.020 83.5 397 35.1 25.9 111 33.5 572 7.692 59.0 534 34.6 106.4.959 75.2/$ in 1994 94.037 33.53/$ in 2001 37 .91/$ in 1999 107.8 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Average exchange rate.7 176 58.1 82.5 950 19.336 48.9 Employee Amount Rate 202 294 45. 126.1 1265 19.561 Stores Amount Rate 62 83 33.1/$ in 1995 108.1/$ in 1992 111.5 433 17.

3 -2.445 4. Since apparel companies don’t make large profits by selling to department stores. Opaque.887 212.0 112.180.7 -6.778 1.685.826 -8.707.079 -5.91/$ in 1999 107.1).911 1.4.354 -6. In the past few years.805 -3.1 1.521.394.664 -2.6 -8.1 -3.077 231.5 Domestic Apparel Companies According to the newspaper.4 4.458 116.633.931 -2. The babies and children category decreased the most.4 170.075 0.054 -8.326 170.531 643.2 shows the six companies that have increased sales for the 4 consecutive years.2 1.2% (see Chart4.1Sales of 276 Apparel companies](billion Yen) 1997 1998 1999 Sales Sales Rate Sales Rate 1. Chart 4.5.465 -5.571.591 Rate.519 million Yen and the rate of increase compared with last year is –1.727 232.8 Total apparel Men apparel Ladies apparel Uniform Jeans Inner Babies and Children TOTAL 4.7 170.5.5.5 115.0 -3.889 0.623.147 -5.9 1.8 247. they have stopped being dependent on them. many apparel companies have opened their own stores to sell their products. with a rate of 1.370 -5.858 -4.626 1. “SENKEN Shinbun”.9 2000 Sales Rate 1.0 179.0 127. Net sales of the top 30 companies is 2.811. Dressteria etc Onward. rate of increase compared with previous year Average exchange rate.7 -2. Acquagirl.2 605.242 -5.516 261.1 563. 120.845 218.888 0.662.492. Index. World.473 0. Comme ca comme ca [4.868 -5.77/$ in 2000 38 .4%. Via bus stop Five foxes.998 224.975.5 678. Ladies apparel is on the rise.7 233.99/$ in 1997 130.9 1.91/$ in 1998 113.600.714 4.

113 11.789 18.91/$ in 1998 113.100 25.280 144.505 7. 107.075 3.5 Tomorrow land 12.0 13.424 1.3 Impact 21 13.606 120.816 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 World Onward Five foxes Itokin Wacol Sanyoshoukai Renown Gunze Sakurayashouji Java group Frandol Sanei international Oonishiiryou Naigai Takihyo Tokyostyle Fukusuke Mizuno Goldwin Desant Kosugisanngyo Takisada Gunze Sangyou Kaitakku group Molilin Average exchange rate.542 57.2 Rate.500 68.519 19.663 99.4 Cross plus 61.4 55.8 68.256 17.381 73.449 67.971 8.767 1.256 134.413 8.114 61.390 122.110 161.8 13.980 67.1 67.927 3.9 14.2 55.217 48.349 45.773 65.557 50.77/$ in 2000 1999 Sales Rate 122.5.6 [4.5.676 0.925 45.8 67.147 9.4 113. rate of increase compared with last year Average exchange rate.6 65.4 18.655 3.[4. 120.3 Best 25 of Apparel Companies](billion Yen) Net sales 193.2 Clothing Sales of 6 Apparel companies](billion Yen) 1997 1998 Sales Rate Sales Rate Five fox 101.402 53.000 49.828 14.2 66.196 3.673 9.99/$ in 1997 130.017 81.449 1.595 11.581 45.8 2000 Sales Rate 144.820 51.3 61.1 Frandol 35.438 10.4 61.272 52.2 16.350 60.0 Sanei international 49.834 45.5 14.91/$ in 1999 107.77/$ in 2000 39 .276 11.078 47.

6 13.6 10.857.9 74.5 2.016.5 11.752.005.7 Rate.8 -8.4.78/$ in 1996 120.8 1998 Sales 10.227.5 Rate -0.219.9 -4.252.9 14.0 9.3 0.9 62.498. trading companies have become more involved in the consumer-oriented retail sales market.0 3.2 -11.001. Examples of this involvement include the collaboration between Sumitomo shoji and Seiyu.3 -26.0 3.1 8.9 1.3 13.0 -15.6 -20.927.2 987.460.1 shows the growth of Mitsubishi Shoji and the decline of Marubeni and Itochu Shoji.6Trading Companies With in the fabric sales.8 11.3 8.858.0 -15.0 2.2 2.874.6 2.485.4 12.1 Rate -12.488.2 1997 Sales 12.S.500.0 -8.213.6 -5.2 -14.9 5. domestic businesses tend to show a large decrease.1Total Sales of Major 9 general trading companies](Billion Yen) 1996 Sales Mitsubishi Shoji Mitsui Bussan Itochu Shoji Sumitomo Shoji Marubeni Tohmen Nichimen Sumikin Bussan Chori Total 11.6 55.9 -6.77/$ in 2000 40 .680. the price of exports dropped because of economic struggles in the U.2 3.7 -18.9 4. Marubeni and Daiei Group.8 -13.710.9 854. Mitsui Bussan and Ito Yokado.827.5 -15.6 -21.2 -3.6.676.7 1.3 -19.4 9.9 12.7 Rate 4.6 Rate 0.5 -10.8 -16.6 10.9 -4. [4. 108.6 591.1 820.179.1 611.372.7 14.2 -4.753.5 13. rate of increase compared with previous year Average exchange rate.899. The total amount of imports increased greatly in 2000.176.4 10.499.5 502.0 10.5 4.969.3 2000 Sales 10. On the other hand.672.99/$ in 1997 130.6.8 2.339.2 14.1 -7.1 476.7 -17.388.660.046. Itochu Shoji and Seibu.3 827.1 -3.2 10.2 -6.0 9.659.6 456.0 -5.341.1 -4.3 -0.9 1999 Sales 10.9 -31.917.4 1.522. The role of a Trading company 1) Financial and Property Support 2) Finding Buyers 3) Giving ideas for new business & collaborating with other companies 4) Helping companies adapt to cultural differences 5) Handling arrangements for imports and exports Since last year.465.1 -3.9 75.Chart4.91/$ in 1999 107. Because many buyers directly buy fabrics and garments in recent.91/$ in 1998 113.154.6 53.011.2 -4.4 -16.052.

91/$ in 1999 107.8 2.78/$ in 1996 120.689 1.2 -11. 108. rate of increase compared with previous year Average exchange rate.200 388.087 5.2Textile goods Sales of Major 9 general trading companies](Billion Yen) 1996 Sales Itochu Shoji Marubeni Sumitomo Shoji Mitsui Bussan Tohmen Mitsubishi Shoji Chori Sumikin Bussan Nichimen Total 1.3 -31.0 -9.786.900 253.4 -14.168 476.7 -5.2 1999 Sales 956.99/$ in 1997 130.100 283.0 -23.8 -11.2 -24.400 126.767 469.600 476.5 32.077 466.7 1998 Sales 1.825 249.708 449.7 2000 Sales 761.136.400 268.300 3.77/$ in 2000 [Chart 4.4 Rate.304 292.200 779.592.6 1.6 -3.509 Rate -7.379.700 133.800 366.1 -5.662 188.886 259.151.8 -13.5 -5.700 355.4 -2.3 Share of Textile Goods Sales of Major 9 Trading Companies] 41 .4 1.200 3.6 -7.6.4 -17.2 -2.0 -8.600 368.4 -5.653.1 -20.500 263.174 Rate -22.9 -10.600 342.2 -9.5 -8.4 -2.300 347.276.276.366 1.6.979 218.301 191.4 -3.0 -30.557 373.900 Rate -25.539 984.900 178.900 360.302 414.0 -13.700 Rate -20.2 -15.[4.126 279.91/$ in 1998 113.1 -1.814.7 4.260 330.422 552.473.1 -5.344 4.4 -1.300 182.148 436.730 206.118 5.773 504.5 -5.900 533.400 461.755 1997 Sales 1.

000 ¥ 550. Chart 4.000 ¥ 1.1 Price List for advertising in Fashion Magazines] Name of Magazine CUTIE Space Size(mm) 280*200 297*420 297*210 297*210 297*420 297*210 297*210 266*60 266*60 150*100 265*235 297*470 297*470 297*235 297-235 297*235 273*70 273*70 150*100 277*200 297*420 297*420 297*210 297*210 266*60 150*100 Price ¥ 2.500.000 ¥ 1.000 ¥ 1.000 Beginning or Center-Two page spread Price 420Yen 4Cuts 1Page 1Cut 1Page 4Cuts 1/3Page 1Cut 1/3Page Postcard Back page spring Two page spread (next to cover page) Semi Weekly Next to Back page First Publish in 1996.000 ¥ 3. The fashion magazines play a large role on setting trends and sparking consumer interest.000 ¥ 400.500.000 4Cuts 1Page Price 380Yen 4Cuts 1/3Page mini Postcard 42 .000 ¥ 3.300.8 Next to Contents Circulation 450.300.000 ¥ 3.7.2 Next to Contents Circulation 450. [Chart4.000 ¥ 1.000 ¥ 3.000 ¥ 450.000 ¥ 2.000 Back page Two page spread (next to cover page) Semi Weekly Next to Back page First Publish in 1989.500.000.000 ¥ 2.100.000.2 shows the popular magazines for the different sexes and age groups.7.100.500.000 ¥ 650.000 ¥ 1.000 ¥ 2. It is important to pick the right magazine for a specific brand.000.4.700.500.000 ¥ 1.000 ¥ 2.300.0 00 ¥ 1. shows the price for advertising in the magazines.000 ¥ 2.7Advertisement Advertisement is vital in the fashion industry.000.000 ¥ 1.000 ¥ 1. Chart4.7.000 ¥ 550.500.600.000 4Cuts 1Page Price 460Yen 1Cut 1Page 4Cuts 1/3Page 1Cut 1/3Page Postcard Back page Two page spread (next to cover page) Monthly Next to Back page First Publish in 2000.000 ¥ 770.600.9 Next to Contents Circulation 700.000 ¥ 1.300.200.

900.100.000 Price 650Yen 650Yen Back page Two page spread (next to cover page) 1Cut 1Page Postcard smart 277*200 297*420 297*210 297*210 297*210 297*210 266*60 266*60 150*100 286*222 296*464 296*464 296*232 150*100 286*222 296*464 296*464 296*232 150*100 286*222 296*464 296*464 296*232 150*100 286*212 296*444 296*444 296*222 150*100 277*200 287*420 287*210 287*210 ¥ 2.300.000 ¥ 1.000 ¥ 3.000 ¥ 2.4 1Cut 1Page Circulation 230.000 Postcard Price 670Yen Back page VERY Two page spread (next to cover page) Monthly Two page spread First Publish in 1995.000 ¥ 550.3 Circulation 85.Back page Two page spread (next to cover page) Semi Weekly Next to Back page First Publish in 1995.000 ¥ 3.200.000 ¥ 1.100.700.000.9 1Cut 1Page Circulation 140.500.6 1Cut 1Page Circulation 360.000 ¥ 2.000 ¥ 3.100.700.000 ¥ 3.300.400.000 ¥ 1.000 ¥ 2.000 ¥ 1.000 ¥ 1.000 ¥ 3.800.000 ¥ 400.500.300.000 ¥ 3.500.000 ¥ 2.000 Postcard Price BRIO Monthly First Publish in 1999.300.000 ¥ 1.000 ¥ 4.400.000 ¥ 1.000 ¥ 4.000 ¥ 2.000 ¥ 2.500.000 ¥ 1.000 ¥ 1.000 ¥ 3.600.300.4 1Cut 1Page Circulation 640.800.000 ¥ 2.000 4Cuts 1Page Price 390Yen 1Cut 1Page 4Cuts 1/3Page 1Cut 1/3Page Postcard Back page JJ Two page spread (next to cover page) Monthly Two page spread First Publish in 1975.300.800.000 Postcard Price CLASSY 600Yen Back page Two page spread (next to cover page) Monthly Two page spread First Publish in 1984.000 ¥ 3.000 ¥ 1.10 Next to Contents Circulation 550.200.200.500.000 ¥ 770.000 ¥ 2.000 ¥ 1.700.000 Postcard Price GAINER 620Yen Back page Two page spread (next to cover page) Monthly Two page spread First Publish in 1990.500.000 43 .100.

2 Matrix of Magazines] >>> Female 44 .[Chart4.7.

>>> Male 45 .

1.6 2 GUCCI 26.600 Rate 16. It was established in 1988 right after Louis Vuitton Inc.265 -9.950 10.9 6.5.210 14.6 6 HERMES 23.450 24.2 1.000 30.1Sales Ranking of Import Luxury Brands](billion Yen) 1998 1999 Sales Sales Rate 1 LVMH 76.300 13.0 Rate.240 13. The company was divided 5 different divisions: ( ) Wines/ Sprits ( ) Fashion/Leather goods ( ) Fragrance/Cosmetics ( ) Watch/Jewelry ( ) Selective/Retailing Each division of LVMH has the freedom to create their own strategies for 46 .0 5.000 28.630 3.5 0.600 16.800 7. [5.1) such as LVMH ( Louis Vuitton Moet Hennessy) and Gucci Group.7 3 PRADA 21. category killers such as ToysRus.0 -1.480 19. Eddie Bauer and Zara.2 17.1 7 CHANEL 26.9 -27.000 86. and Moet Hennessy Inc. rate of increase compared with previous year 2000 Sales 100.000 28.200 26.Strategies 5.2 4 REVIS 30.8 5 Sanki Shoji 32. and SPAs (Specialty stores and Private Label of Apparel) such as GAP.116 26.4 -8.780 -7.0 9 MAX MARA 15.1.355 29. joined forces.100 27.861 16.567 1.918 25.382 19.7 10 Eddie Bauer 14.5 1) LVMH LVMH has been one of the most successful foreign fashion companies in Japan.890 24.8 8 ARMANI 19.400 35.700 25.000 7.719 -16.300 33.1Foreign Companies that entered the Japanese Market Foreign companies who have been active in the Japanese Fashion market are import luxury brands (see Chart5.8 -3.

However. LVMH tried to keep its traditional brand image. GAP did marketing research 3-4years before they entered the Japanese Market. Zara employed different strategy.S. Their size gives them an advantage over the Japanese companies. because of this inadequate preparation. A board that consists of the top management from each division makes decisions that influence the entire company. The public already knew about the brand. GAP USA sent daily VMD (Visual Merchandise) instructions to GAP Japan. ToysRus offers wide variety of toys and clothes. Zara These two SPA brands entered the Japanese Market with different strategies. and have very large supply. it had to make a deal with apparel maker Bigi. As a result. they did not have enough time to prepare for entering the Japanese market. GAP is filling for chapter 11 Bankruptcy. However the consumers are not satisfied with these brands. and magazines. billboards.increasing sales. As a member of luxury import market. they were late in making this deal. They advertised constantly. However. Zara has yet to flourish. They are responsible for the growth and profits of each brand. GAP is one of the most successful foreign SPA brands. so GAP Japan experienced tremendous growth. In the beginning. using TV commercials. personnel. There are a lot of Japanese companies that make clothes and toys for babies and children. without support from Japanese companies. 47 . they are looking to expand and advertise new products. They opened GAP Japan. Now. All of the divisions benefit from the wealth. so GAP Japan is not performing well. This balance has made LVMH a very successful foreign company in Japan 1) ToysRus ToysRus is an American toy store that has targeted the suburban area of Japan. and that it was doing well in the U. sales and publicity that come as a result of being a part of LVMH. and made sure that business was running efficiently and effectively. 2) GAP. At the same time. Since no one knew about Zara prior to its arrival in Japan.

-The brand needs to carry out an advertising campaign to publicize the brand history and other information in order to give consumers some background. it should be carried in station building such as Lumine. [Necessary Factors for Success in the Japanese Market] -Be fashionable: Offer new products every season that reflect the latest fashion trends. -Since fashion trends come and go. you have to make sure those Japanese buyers and consumers are aware of the existence of Brazilian fashion. They tend not to buy the low quality products even if the price is low. -If the product is mass targeted with a reasonable price line. -Control the image of products. or in well-known fashion select shops. -Be high quality: Japanese consumers are very quality conscious. or in freestanding stores in a busy area. -Be exposed to the market constantly through advertising. they should be carried in freestanding stores in a prestigious area.5. -Then. the name and logo of the brand needs to be widely known. [Store Selection] -It is very important to offer products through the right channel. etc. the brand must continually offer new products and topics of conversation in order to be remembered by consumers. [Sales Promotion] -It should regularly carry out press contact activities thorough the Japanese 48 .2Possible Strategies for Brazilian Companies to the Japanese Market [High Awareness] -First of all. magazines. in department stores. It should be easy to remember. and possibly even stores of the brand. -If the products are prestigious or creative. Usually promotional division of the brand handles the advertisement. in general merchandising stores.

press. It is very important to work with the press who understands the character of the brands and the designer, and have many contacts with effective people from magazines, stylist, etc. -Japanese Fashion market is highly competitive. To be successful in this market, it is recommended that each company clarify its brand concept, clarify the consumer target, and select the distribution channel. If necessary, they should select a Japanese company as a partner and conduct further investigations.

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6.Conclusion
In this study it was stressed that the Japanese market is large in terms of purchases (107,969 Billion Yen, or US$ 1,001 Billion in 2000) and opportunities are available for companies determined to operate in this relevant market in the medium and long terms. Economic stagnation over the past decade has not led necessarily to diminished sales -- many companies have even increased investments to promote sales in the country -- by the fashion industry but is provoking changes in the buying habits of consumers. The market is dynamic and permanently in use with fashion trends established through the main fashion capitals around the world. It is also very demanding in terms of quality and design. In terms of marketing, an interesting "fashion image" should be projected by the product and an impeccable after sales service is required by both the retailer and the customer. The Brazilian fashion industry is apparently determined to become another supplier to this important apparel market and should consider all of facts contained in this study. It should also strongly consider the following additional recommendations: 1) Working on design In the Japanese market of today there are already many different domestic and imported merchandise with interesting qualities and reasonable prices. In order for the Brazilian fashion companies to achieve success as newcomers in the market they must attempt to differentiate their products from those that are available on the shelves of the department stores and boutiques. Japanese buyers are particularly sensitive to new and interesting articles. 2) Forms and shapes As demonstrated in the contents of this study, most Japanese are thin and have different body shapes from those of Brazilians. Brazilian manufacturers do not need to adjust sizes of casual wears such as T-shirts and jeans. In the case of jackets and dresses, however, a careful adjustment should be made in the both size and style. Sizing and patterns are the second most important factors to

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determine the purchase by the buyers. 3) Be consistent It is important to communicate with the buyers on a frequent basis and maintain a close relationship with prospective clients. Participating in Tokyo's International Fashion Show is an important initiative and provides chances for buyers from all over Japan to become accustomed to the presence of Brazilian fashion. Purchases may not be made on-site but the presence in a trade fair in Japan may facilitate future sales. To support sales to Japanese buyers it is important that integrated showrooms in Paris, Milan and New York should be organized because in those cities buyers verify which are the latest trends in world fashion. By comparing/contrasting quality and price Japanese buyers, already accustomed to seeing Brazil at the trade fair in Tokyo, might feel comfortable to make purchases overseas rather than in Japan. In sum, the Japanese economy has provoked changes in the consumers' buying habits but overall the people continue to be avid shoppers. Special care and effort to enter the Japanese market is necessary and the risks are not to be underscored but the rewards. Profit is the benefit of taking these risks.

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Map of Fashion Area [Shinjuku] 52 .

[Marunouchi] 53 .

[Ginza] 54 .

[Aoyama] 55 .

[Harajuku] 56 .

[Shibuya] 57 .

[Daikanyama] 58 .

[Osaka] 59 .

[Shinjuku] 60 .

[Shinjuku] 61 .

[Ginza] 62 .

[Aoyama] 63 .

[Aoyama] 64 .

[Shibuya] 65 .

[Shibuya] 66 .

[Daikanyama] 67 .

[Osaka / Umeda] 68 .

[Osaka / Minami Horie] 69 .

[Osaka / Shinsaibashi] 70 .

[Osaka / Nanba] 71 .

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