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. 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. 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. These changes occurred thanks to many phenomena such as the greater utilization of the internet. prospective clients will start with a small order to verify the reaction of the buyers and may eventually increase their orders. 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. gaiety and color that may constitute interesting particularities for the prospective Japanese buyer. nevertheless. This market study has the objective of assisting the Brazilian fashion industry to better place itself in Japan. Evaluated at over US$ 5 billion. The Brazilian fashion industry has the qualities of youthfulness. 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. the Japanese fashion market will therefore be receptive to those Brazilian companies interested in offering their apparel in the country.INTRODUCTION The Japanese fashion market maintains its position as one of the largest in the world and has been facing important changes. important data regarding the setting for the development 4 . Competition in the Japanese market. 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. which allows anyone to have access to precious information available at homepages of designers and apparel brands and facilitating access to foreign products. 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. The Japanese seem curious about Brazil especially after the very important World Cup victory in June of this year. Specifically in Japan.

Chapter 5 discusses strategies that have been undertaken by non-Japanese companies to enter the market. geographic. Chapter 3 presents the basic information on the most important factors influencing the buyers' consumption patterns. Specific attention is given to the profile description of the different categories of entities involved in the industry such manufacturers.of the Japanese fashion industry. 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. trading and specialized media companies. This section will permit the reader to better understand the economic. physical and other determining factors that make Japan's apparel industry quite unique. Motivational aspects for consumer buying and consumer buying patterns are discussed in this section. 5 . 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. These experiences are especially valuable for companies that are newcomers in the market.

2 shows twelve cities in Japan with populations of over one million. In fact. the United States.92million (2002).1 Population Japan has a population of 126.1. India.Principal Characteristics of the Japanese Market 2.1. It is in eighth place after China. Chart 2.2. Advancing industrialization has been accompanied by a population shift toward the large cities and a marked population decline in the agricultural areas. Pakistan and Russia. Indonesia. Brazil. approximately 70% of the nation’s people live on the strip of coastal plain between Tokyo and the northern part of Kyushu. The population is greatest along the Pacific seaboard where the weather is mild and the transportation and industrial facilities are most highly developed. [Chart2. half that of the United States.1 Japanese population by Age and Sex] 6 .

which further confirms the idea that people are generally satisfied.73 million yen (US$ 62.2 Population of selected Cities in Japan] 2.2.[Chart2. automobiles.1.1 Japanese Standard of Living Japan ranks top class in investment and consumption with rapid economic growth. However the social capital such as paved roads. However statistics give a mixed picture of the Japanese standard of living. Ownership of consumer electronics. What do the Japanese themselves think of their standard of living? The results are presented in Chart2. We will refer to housing in Chapter 2. they lag behind (see Chart 2.2. In one report it is on a par with or even exceeds western standards (see Chart 2. and in other respects such as social capital and housing. and other durables is widespread.2). sewer system and so on.5. and Japanese life is full of affluence and convenience.2.447) in 2000. The average annual income per household (two persons or more) was about 6.1). is far below European or American standards. 7 .3.

8% 55.3% 99.1 58.8% 7.1 [Chart2.2% 60.4 99.2 Social capital] Japan recreational park area per person (square meters) percentage of paved roads percentage of underground.5% 20.2% 30-39 16.0 60.2% 17.0% 83.3 Satisfaction with their standard of living] age satisfied more or less satisfied dissatisfied more or less dissatisfied 20-29 23.1 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 81.8 100.0 100.2.1 99.5% 8 .6% 30.7 Germany 27.1 3.2.1% 91.8% 15.0% 33.8% 26.0 USA 29.1 70.5% 40-49 19.9% 98.2.5% 10.electric wires percentage houses connected to sewer systems 3.6% 50-59 33.8 72.2 92.[Chart2.0 76.0 29.9% 20.5% 25.1 62.0% 25.2% 76.3% 99.2% [Chart2.0 100.4 100.8% 45.1% 25.1% 53.0% 38.5% 60-69 25.0 Italy 11.0% 98.8 France 11.5% 31.

4 28.351 28. manufacturing up from 25% to 31%.048 19.9 29. etc Total (2000 The World Bank Group) Japan 1.S.6 64.0 [Chart2. [Chart2. shelter.6 42.1 Breakdown of Domestic GDP by industry](%) Sector Agriculture Industry Services. and other non-essential areas.959 4.A 743.0 100.020 Korea 48. Rising incomes have enabled people to meet their basic food. and then from manufacturing to services.361 26.3 GNP Japanese industrial structure changed dramatically after World War .7 100.4 100. The changes in the share of total employment between 1955 and 1999 are even more dramatic: agriculture down from 41% to 5%. first from agriculture to manufacturing. and clothing requirements and to diversify demand into cultural.S.1 70.0 Italy 2. agriculture fell from 20% in 1955 to 2% in 1999.1 66. while services grew from 47% to 69%.9 100.610 France 153.270 Italy 114.A Korea 4. GNP and Capital income in Japan are very high compared to other countries.400 9 .7 52.313 10.880 Brazil 70.918 40. recreational.3.0 France 2.2 GNP and Capita Income] Japan GNP ($billion) Per Capita Income ($) (1997) 514.3. In terms of percentage.5 67. manufacturing fell slightly from 33% to 29%. educational. This shift to services is common to all industrial countries.6 100.9 26.0 Brazil 7.2.0 U.940 U. and services up from 34% to 64%.5 32.

After the U. textiles were the major export.5 indicates the tariff for clothing and footwear. Korea. Japan imports more clothes than any other countries. was at the top. Chart2. as in exports.4 shows the total value of imports in the last 5 years. Coming next were Korea.9% and Brazil 0. payments are made either in Euros or in US dollars. Indonesia and Germany with 3-4% each. Italy 4.0%). Singapore. Due to the Japanese boom of import luxury brands.6% automobile components 3. the U. Taiwan.2%.6%. Germany and the top of the list. NIES 10%.S. foods 6.4. OPEC 15%. By country.4. it accounted for 7. imports in clothing 0. Machinery (total of general machinery and electrical machinery. but not including transportation machinery) accounts for 46.0%. the EU for 16%.S. organic chemicals 2. France 3.7% of the total value of exports. raw materials and fuels 13.S. In1997. steel 2. ASEAN15%.2%.4%. Thailand.2% of world imports.4 Main Import and Export Product Japan ranks third in international trade volume after the United States and Germany.9% of world exports and 6.8%. and China second with 13%.6%. Japan imports clothing mostly from China (see Chart2. By region.3% in 2000. and OPEC for 4%. EXPORTS At one time. with 24%.4. the Newly Industrialization Economies (NIES) accounts for 24% of Japan exports: the Association of South-East Asian Nations (ASEAN) for 17%. Australia. Other major categories include precision machinery 4. the companies use FOB (Free on Board) or CIF (Cost Insurance & Freight) and L/C (Letter of Credit) or T/T remittance. Each accounted for 2-7% of exports. Usually.3). making it by far the largest export product category. Taiwan.4%.4% and ships 2. TRANSPORT LOGISTICS Transport logistic varies with each company. although with some change in ranking. The top ranking countries are always pretty much the same. Imports by region were: the EU13%.9% (Petroleum 8. came China.9% and clothing 5.4.2). IMPORTS The major import categories during 1998 were machinery 22. but today Japan’s major export is machinery. the U. Malaysia.S. Usually.2. was by far the biggest customer with 30%. By country. The next largest category is automobile at 15. Chart2. 10 . Italy and France also benefit greater from the Japanese market (see Chart2. The U.

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

2Import of Clothing by the Country (Quantity)] [Chart 2.3Import of Clothing by the Country (Price)] 12 .[Chart 2.4.4.

2 3.6 1999 902.873 70.1 2.7 1.199 -4.0 1.856 30.77/$ in 2000 Quantity 5.4.7 Thailand 168.550 95.2 9.255 49.794.109 191.5 782.7 Total 5.800 4.1999 Quantity Rate % China 3.581 0.294 -9.007 -9.91/$ in 1998 13 .7 1.7 USA 53.905 -3.702 -3.77/$ in 2000 1999 Price Rate % China 1.6 -13.415 -1.8 Italy 110.563 2000 Rate 20.8 100.1 4.858.77/$ in 2000 Total Price Rate 1.034. rate of increase compared with previous year Average exchange rate.542.8 Vietnam 51.99/$ in 1997 130.8 74.1 Thailand 33.5 770.8 4.212 27.111 2000 Rate 36.6 3.91/$ in 1999 107.601 -3.4 100.985 2.763 -23.512 23.6 -18.9 2.6 6.3 808.4Total Value of Imports in the last 5 years] Fabric Knit Price Rate Price Rate 1996 1.730 24.961 12.6 37.2 100.91/$ in 1999 107.1 3.091 63.718 -5.3 1.213 12.803.013.7 1.030 -11.1 8.683.5 782.275.3 719.9 -17.8 Indonesia 189.0 Total 1. rate of increase compared with previous year 113.9 24.185.7 3.7 Korea 446.905 1.0 [Chart 2.2 100.91/$ in 1999 107.5 3.419 51.765.3 Vietnam 138.077.0 Rate.1 13.303 -7. rate of increase compared with previous year Average exchange rate.076.4 Average exchange rate.1 1.822.5 1.2 2.1 France 30.367 -15.3 1997 995.78/$ in 1996 120.683.8 % 75.6 7.1 2.621.610 6.901 90.7 8.048 33.846 207.4 Rate.0 Rate.2 31.865 482.1 12. 113.020 -8.2 2000 1. 108.5 1998 900.3 -10. 113.0 70.3 -8.300 17.0 1.6 % 77.133 47.0 Price 1.8 2.823 47.189 189.7 Korea 109.6 6.383 -25.191 60.252 12.

6 10.9-13.6 27.5Tariff] Item Fur Coat Leather Coat Jacket (fabric) Underwear (fabric) T-shirt Sweater Swimming Suit Tie Scarf Sport Shoes (leather) Shoes (leather) more than 12.1-10.8 4362.2-10.5 Yen 7.0-30.8-12.6 8.4.4 6.906Yen Non-Leather Shoes Tariff (%) 20.907Yen Shoes (leather) less than 12.6-12.0 10.7 10.5 5.0 14 .[Chart 2.0 33.0 10.7 10.

The average house floor per person is 33 square meters in Japan.1 House Floor Area](square meters) Japan 83 ('98) 33 ('98) U.S. Buying a new 70 square meters condominium in the Tokyo area during the “bubble” years of the late 1980s cost 8. 105. such costs are.3 square meters in Japan. The Japan of today has more housing units than households.A 162 ('93) 60 ('93) Germany 94.S. the government’s goal is that a similar condo should cost up to 5 years’ wages has yet to be achieved.0 square meters in the U. but the area of each unit averages only 83 square meters (1998). people have to live in the distant suburbs and even then. Almost all privately owned houses being built are single-family units. among the highest in the world. The cost of house plots and construction is very high. in fact.5 ('88) 37 ('92) New house Per person 15 . [Chart2.5. can only afford a small house.8% of Japanese owned their homes. the average floor area for a new house is 162.S. 59. 94.8 ('91) 38 ('93) France 105. and only 89. 60 square meters in the U. While land prices are still coming down. Since land is expensive. According to the Ministry of Construction.5 square meters in France.2. 38 square meters in Germany. In 2001.8 square meters in Germany.5 Space constraints Housing in Japan’s principal metropolitan areas has been characterized as expensive.5 times the average working household’s annual income. distant and small. 37 square meters in France..

6 Physical Condition In the past Japanese people were though to be short and small.9 64.3 61.0 157.7 64.5 21.4 140.4 158.6.9 127.0 50.9 150.0 53.8 150.8 4049 168.0 51.2 53.2 21 171.7 159. [Chart 2.8 48.0 133.2.4 23.4 109.2 38. Most young people are thin.4 137.1 52.8 144.3 54.0 41.2 24 170. their life style has changed to a Western style.5 12.9 121.3 96.6 158.6 14.1 17 171.9 122.5 20 171.8 78.6 157.7 152.4 164. (See chart 2.9 88.6 26.8 157.1 and 2.6 102.6.2 52.8 87.4 65.2 50.4 over 70 159.3 65.8 50.3 shows the size measurement according to JIS (Japanese Industrial Standard).6 5059 165.3 12.0 64.8 57.1 158.0 62.4 115.1 51.8 54.4 35.5 158.7 155.2 158.5 65.4 56. The physical condition of young Japanese people is very similar to that of Europeans and Americans.6 16.0 30.1 22 169.5 51.1 50.0 10.0 50.3 65.1 Japanese Average Height and Weight](CM.7 157.2 37.4 23 171.0 64.4 157.7 66.5 108.2 25 171.7 21.2 34. 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 79.0 43.5 48.5 64.8 115.2 145.3 152.7 2629 170.5 27.7 6069 162.6.9 19.0 158.2 155.1 16 . However.9 170.3 67.5 61.7 23.0 18 171.1 14.1 48.7 68.6 10.8 95.6 3039 170.3 145.5 158.6 157.9 50.1 18.4 48.6.2 30.4 19 172.0 103.9 16.3 167.2 52.4 52.9 155.2) Chart 2.8 127.5 133.

6.6.[Chart 2.2 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 .

584. the generations are divided by the years of birth (see Chart 3.000 Life Stage Baby Boomers 12.484. Each generation has its own characteristic caused by the historical and the economic background.702. Detailed accounts of their characteristics.000 FAMILY MATURE Designer and Character Brand Generation 11.1 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 16.1.000 YOUNG FAMILY Second Baby Boomers 11.879.000 FAMILY GROW-UP Banana Generation 10.1).841. life styles and a description of the women in the generation are given below.000 SINGLES Pocket Beeper Generation 6.644.000 STUDENTS 18 .1Life Style by Generation In Japanese market.3.612.1.The Fashion Market 3. [Chart 3.000 Hanako Generation 9.

which has not been great thus far. -They are now their early 50s and have children who are either students or working. The future expansion of their consumption appetite. Many women have part-time jobs as Chart 3. Chart 3. corporate restructuring activities are rampant due to the current recession. their burden of educational expenditure is decreasing. Hence the name was given.1) Cinema Generation -People who were born between 1936 and 1945. since the retirement age has become younger and younger. 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. They are the First Baby Boomers and consist of the first generation after World War . -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. Their movement and activities merit attention as they still play the core role in the forthcoming aging society.1. -They are now faced with a turning point.1. 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. can be expected.3 indicates. 2) Baby Boomers -People who were born between 1946 and 1951.2 shows that their disposal income is higher than other generations. Even though they are still repaying substantial housing mortgages. and their children have grown up. They experienced the “entrance examination war” to get into universities. -When people in this generation were in the middle of their adolescence. -They are now in their late 50s and have latitude both in terms of time and finance because their children have grown up. 19 . They grew up in a competitive society. They are the parents of the Second Baby Boomers and the Pockets Beeper Generation to which we will refer later in this document.

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

and work. -They now have some disposable income and enjoy being single. free. However. who grew up in an affluent society. and small: This term was coined because popular products in the 70s tended to be light. Sister brands 21 . Hanako women: The Hanako magazine that was launched in 1988 offered abundant. were called Hanako Women. Notes Light. short. -People of this group. Tsugumi. and rich enough to satisfy their own daily desires. a critic. she was born in 1964. Amuria. restaurants. The author of Kitchen.in consumption because many of them are either single or many of the wives are working. and others. 5) Banana Generation -People who were born between 1965 and 1970. they effectively generate latitude in terms of time and finance by taking advantage of assistance from their parents. Hence the name of this generation was given. and small. detailed information about fashion. When they were in their teens. are not as active in consumption as the Hanako Generation. Female office workers who got heavily involved in status-conscious consumption. “Olive fashion” (see Notes) became popular. having a baby. There are many fans of Banana Yoshimoto. Hanako. thin. and beauty in a catalogue manner. They prefer to be moderately individualistic rather than differentiating themselves through consumption. 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. Even after getting married and having their own household. among them and many of them share some traces of personality with the characters who appear in her novels. thin. short. they affect fashion less than Hanako Generation. a novelist (see Notes). using this magazines as their Bible. -Women are now in a position to think about how to find a balance between marriage. Whereas women of the Hanako Generation wanted to have everything. bars. Olive Fashion: This term refers to the girlish and pretty fashion trends that were often introduced in the Olive magazine launched in 1982.

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

77/$ in 2000 23 . -They are in their early 20s. Whereas mothers of the Second Baby Boomers belong to group of Baby Boomers. [Chart 3. 107. -The styles of singers and popular artists have a strong influence on the lifestyle of this generation. Consequently. Their disposable income is high.7) Pocket Beeper Generation -People who were born between 1977 and 1980. fathers of the members of this group belong to the Baby Boomer generation.2 Income and disposal income]( per month) Average exchange rate. -They show a strong preference in using pocket beepers as an important tool in socializing.1. and people of this group and the Second Baby boomers share some characteristics. Their parents help their finance and most people of this generation have part time jobs. this group of people may also be regarded as the Second Baby Boomers. hence the name.

3 Percentage of workingwomen by age] 24 .1.[Chart 3.

109 284.9% 8.4% 3.178 22.1% 3. the higher percentage of clothing they consume.1% 17.6% 2.6% 9.6% 16.3.6% 462.0% 17.0% 3.555 20.6% 10.0% 30.540 213.3% 9.272 170.5% 14.9% 18.148 25.9% 574.8% 11.5% 9.1% 6.4% 6.4% 9.5% 14.7% 12.3% 23.3% 2.6% 376.2% 9.3% 26.4% 6.9% 7.9% 5.4% 16.3% 531.1 Relation between Capital income and Consumption] ( per month) Average Households Income Average Expenditure Food Shelter Light.4% 2.2% 22.7% 9.5% 629.554 241.897 263. Fuel and water Furniture and Household articles Clothes and footwear Medical Transportation/ correspondence Education Culture and Amusement Others Average exchange rate.767 416.397 500.4% 3.2.3% 13.159 26.100 27.7% 10.0% 29.5% 13.6% 6.2The Relationship between Capital Income and Consumption Chart 3.2% 25 .1 shows that the more income they can get.152 24. [Chart 3.2% 15.8% 722.6% 9.2% 7.5% 8. 144.8% 15.635 29.2% 22.1% 12. 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.8% 25.5% 8.742 27.7% 16.8% 24.7% 11.0% 7.9% 420.155 30.5% 13.5% 2.521 316.2% 13.0% 26.6% 13.914 28.4$ in 1990 252.5% 15.2.0% 2.593 370.7% 2.3% 27.919 335.9% 332.1% 914.

208 13.860 37.3. Neither the Engel coefficient used to measure the percentage of household expenditures spend on food. entertainment and education.042 Yen (US$ 2.477 11.188 Yen (US$150.543).7% in 1999.2 Expense to Clothes in recent years]( per month) 26 .4% 4.3. there has been a marked increase in family spending on recreation.3Personal Expenses in Clothing According to an annual survey of household accounts by the Statistics Bureau of the Prime Minister’s Office.1% 3.018 16. Clothing accounts for 5.3.302 [Chart 3. (see Chart 3.8% 3.3% 317. 45.7% in 1980.787 21.3.323 36. 49. Women who are 20s and 50s spend higher than others.188 11. Fuel and water Furniture and Household articles Clothes and footwear Medical Transportation/ correspondence Education Culture and Amusement Others Average exchange rate.3. shelter and clothing is an adequate indicator of the quality of consumer life in today’s affluent Japan. Chart 3.2).77/$ in 2000 Ratio 100.1 and Chart 3. while average expenditures are 335.3.8% 25.3.2) and the ratio has decreased every year.1 Expense to Clothes]( per month) Yen Total Expenditure Food Shelter Light.4% 11. In contrast.5% 5.6% 6. nor the percentage spend on the basic necessities of food. to 56.353 80.3% 6.160 Yen (US$ 4.6% 11.0% in 1970. average monthly household income for 2001 is 551. 107.757).844 20. Chart 3.3 shows that the percentage of expenses in clothing in Japan is less than that in Europe.0% 23.4 shows the percentage of consumption to fashion goods. 16. [Chart 3.3% in 1990 and 43.1%. The ratio of the food-shelter-and-clothing has decreased steadily since 1970.133 73.

1% USA 4.3.91/$ in 1999 107.99/$ in 1997 130.0% Italy Germany 9.0% 5. 120.3 Percentage of Clothing and Footwear by Countries] Japan 5.Average exchange rate.77/$ in 2000 [Chart 3.5% 27 .91/$ in 1998 113.

4 Percentage of Spending Fashion Goods] 28 .[Chart 3.3.

3. [Chart3.4Aspects 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 3.4.1).4.1 The annual events and the weather] 29 .

30 .

The shares of specialty have increased every year for these 3 years (see Chart 4. -Bankruptcy of Mycal. -Magnified difference between winners and losers. specialty stores 38.1Size Since the bursting of the economic bubble. [Circumstances in 1999] -Foreign capital advanced into Japanese market. -Self-merchandising by department stores. The Fashion Industry 4.2). Japanese economic growth has been weak and personal consumption has continued to flounder.6 billion). department stores 36. The yearly rate of increase compared has decreased every year for 5 years (see Chart 4.001 billion) in 2000. -Diversified consumers’ needs. GMS 19. [Chart 4.946 billion Yen (US$361.2 billion). the sales amount of total clothing in the retail market was 107.4. -Increased demand for Import luxury brands -New style of retailing for suit stores.449 billion Yen (US$338. -Rate of decrease compared with last year is 3%.1.1.1). bringing about deflation. -Increasing sales areas in department stores. it is clear that women’s clothes have not dropped as much. [Circumstances in 1998] -Restructuring (laying off employees) in major department stores and GMS. [Circumstances in 2000] -Dragging economy and consumption. -Overwhelming growth of Uniqlo.969 billion Yen (US$1.6 billion).359 billion Yen (US$179.1.1 Net sales and Clothing sales](Billion Yen) 31 .3 billion) and others (mail-order business) 13. More and more goods are being sold at prices below their original price.215 billion yen (US$122. About the sales amount of every channel. Under this economic situation. In regard to the rate of decrease compared with last year.

3 -6.3 4.727 21.311 5.282 26.315 3.425 68. rate of increase compared with previous year Average exchange rate.844 19.896 2.650 24.176 2.2 7.210 3.705 11.294 6.212 37.160 12.2 2.9 -3.017 67.980 6.4 -1.359 6.075 2.332 11.7 0.0 -3.675 13.3 -1.686 12.0 -3.205 2.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 115.818 33.531 -1.224 2.171 13.957 -3.663 6.0 1.309 11.3 -2.596 6.412 11.382 3.2 38.777 3.103 4.1.669 6.6 -2.278 3.9 3.513 11.6 -2.3 -6.7 -4.0 -1.819 6.2 -0.254 107.1 -6.3 -1.4 -1.235 2.969 35.453 27.215 5.638 109.6 -7.4 0.91/$ in 1999 107.0 1.1 -3.3 -5.104 2.000 -2.99/$ in 1997 130.4 -1.345 11.1 21.1 Sales Rate 39.552 6.979 2.8 -2.5 -2.5 0.766 -2.5 -0.449 10.020 1.307 13.4 -2.247 112.4 -1.3 2.8 Department stores GMS Sales Rate 21.662 25.946 13.381 5.0 -2.898 4.377 25.2 -3.6 -4.214 23.9 -0.4 -2.2 share by Channel] 32 .057 10.8 -2.510 40.0 -4.082 10.689 9.8 -0.182 1.508 12.7 39.019 8.9 -8.611 32.705 -0.8 3.990 65.6 -1.075 2.871 3.682 65.0 -1.225 11.1 -1.938 3.355 3.407 20.888 Rate -0.5 -6.220 5.483 38.9 -3.4 13.285 10.9 Others Sales Rate 14.9 -1.1 2.492 34.3 -3. 108.7 -1.91/$ in 1998 113.8 Babies and Children Rate.2 -7.78/$ in 1996 120.5 -4.3 -3.282 12.2 Specialty stores Sales Rate 39.875 23.7 -2.811 69.756 36.283 2.6 -2.943 115.5 -1.182 31.977 23.983 5.528 22.5 -2.804 3.656 11.2 -1.7 -2.400 -1.638 38.2 -4.9 -1.2 -1.344 3.8 -3.316 9.9 0.5 -1.77/$ in 2000 [Chart 4.964 -2.9 -2.141 26.7 -7.

Takashimaya. department stores have started to shift away from consignment. the total sales of all department stores were 10. and Fukuya (see Chart4.2. In the sales of the 21 major department stores.3).065 billion Yen (US$46. Isetan and Seibu are the front-runners of this new trend. Hankyu.9billion). Due to the fact that most department stores have increased the size of the women’s section.8 billion).2. In order to survive the decrease in consumer consumption and the competitive nature of the fashion industry.011billion Yen (US$92.2). They are taking more risks and buying products on their own.7%. men’s clothing sales has decreased the most. 33 . In regard to clothing.8% (see Chart4. The department stores whose clothing sales amount are better than last year‘s are Mitsukoshi. 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. Making a deal with either one would be very lucrative. the share of women’s sales has increased every year (see Chart4. the rate of increase compared with last year is –2.1).2Department stores According to the statistics of Retail sales in 2000.4. total sales was 5.

0 90.7% 4.6 1999 Sales 10.5 326.625.8 1.2% 5.031.396.6 165.3 1.6 308.0 519.2 -1.1% 2.1Sales of Clothing](Billion Yen) 1996 Sales Total Clothing men women.7 -0.3 5.1% 5.0 1999 Sales 1.965.6 0.77/$ in 2000 34 .9 316.9 -1.285.8% 2.0 1998 Sales 10.9% 4.2 968.1 284.0% 3.9 901.5 134.1 Rate 3.5 484.3% 3.2 -2.8 Rate -4.4 Rate.3% 4.8 2000 Sales 1.6 97.3 821.5 93.042.9% 3.4 -2.5% 59.049.5 Rate -3.5% 6.3 2.6 1998 Sales 1.4 779.2.9 1.0 5.5 1997 Sales 11.4 -5.2 Best21 Department stores' Clothing Sales](Billion Yen) 1996 Sales Total Men Women Children Other 1.109.409.049.8 -8.0% 3. rate of increase compared with previous year [4.7 367.983.2.342.211.7 770.5 Rate 0.0 -3.5 Rate -2.9 Rate -2.7% 2.065.9 -0.038.249.0% 6.3 Share in major Department stores' Clothing Sales by Items in 2000] Total Takashimaya Seibu Mitukoshi Isetan Daimaru Matuzakaya Hankyu Kintetu Tokyu Others 7.1 -2.7 -2.4% 2.011.5 775.816.6 -6.1 Rate.4 5.580.2. children others belongings 11.0 -6.7% 3.1 -8.9 2.5 95.053.6 1.6 Rate -4.1 97.028.280.6% 6.9% 61.6 -3.0 -2.4 432.6 Rate -3.1% 68.91/$ in 1998 113.9 267.5 1.7% 2.7 394.99/$ in 1997 130.059.7 -8.4% Men 9.2% 5.3 -2.9 -3.8% 2.1% Women 8.91/$ in 1999 107.3% Children 10. 108.1 2.5 1.9 -5.0 5.1 1.1% 4.[4.653.041.4 -8.8 -10. rate of increase compared with previous year [4.5 828.9% 6.4 1.8 0.346.5 -4.8 2.9% 2.5% 60.8% 4.873.7 -0.1 1.4 3.5 122.8 -6.0 6.1 -3.2 -6.1 2000 Sales 10.0% Average exchange rate.78/$ in 1996 120.5% 2.9 5.3 1997 Sales 1.8 -11.6 2.9 803.1 -8.9% 2.3 151.4 116.2% 4.5 3.7% 5.

303.8 -6.1 399.91/$ in 1999 107.0 2.7 81. The clothing sales total of GMS are 2.9 -4.1 551.1). Seven-eleven and Ito Yokado) and companies from other countries (ex.9 448.2 1997 1998 Sales Rate 476. rate of increase compared with previous year [4.78/$ in 1996 120.9 598.4 -5.622.9 -3.937.1 3.0 487.1 337.8 3.2 -4.1 471. Ito Yokado Group).919.5 466.99/$ in 1997 130.8 71.3.3.1 -15.131.5 450. children 1. Yuni and Izumiya have shown sales increase in recent years (see Chart4.0 91.9 12.9 2000 Sales Rate 12.91/$ in 1998 113.731.3GMS 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 Chart4.7 1.6 194.8 510.6 Rate.6 -9. Aeon Group.509.3 76.3 666.1 1.5 -0.5 72.1 214.8 -2. 108.7 186.8 497.3 -0.7 81.175.0 2. G M S can be divided into many groups (ex.1 1.2 445.5 383.091.3 1.2 -1.2 Clothing Sales of Major 8 GMS](billion Yen) 1996 Daiei Ito Yokado Mycal Jusco Seiyu Yuni Kotobukiya Izumiya Total Sales 528.2 -10. rate of increase compared with previous year Average exchange rate.839.7 -2.6 2.3.0 -4.7 295.4 -1.6 -1.6 2. they have made contracts with companies outside their genre (ex.77/$ in 2000 35 .1 2.3 174.3 -0. Jusco.6 324. In order for GMS to perform well in this struggle economy.9 -9. WalMart and Seiyu).4 -1.3 -5.1 -6.731billion Yen (US$25.2 1. Seiyu-WalMart.9 3.6 200.4 2.109.9 425.3 3.3 36. [4.0 -6.7 85.7 69.161.8 199.4.0 -3.8 3.4 191.3 -1.7 2.510.9 -2.1 348.2 304.1 272.4 -6.9 Others 427.8 210.8 -3.0 -7.2 -0.0 287.486.6 -4.9 74.021.3 -2.7 -11.591.3 -1.0 -0.4 women.1 3.5 2.2).4 1997 Sales Rate 12.5 -3.8 Belongings 511.3 82.8 -6.6 8.384.0 -3.5 -7.7 2000 Sales Rate 364.2 1998 Sales Rate 12.525.7 -2.3 -7.8 -1.0 659.6 192.6 Rate.7 -5.0 -0.8 -6.036.7 -9.4 340.9 409.7 -0.5 -2.4 1999 Sales Rate 428.6 1999 Sales Rate 12.2 310.094.3.8 326.1 -2.8 7.1 Sales](Billion Yen) 1996 Total Clothing Men Sales 11.7 Sales Rate 516.7 631.3 billion) approximately 30% of that of department stores.4 -4.1 2.8 0.9 416.4 181.

6 11.2).2 48.4Specialty stores The 3 major specialty stores in Japan are Beams. They are called “Gosanke” which means “three major families”.0 13.4 6.4.561 million Yen. 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.5 1.4%(see Chart4.6 9. The net sale of their shops “Uniqlo” is 418. Instead. [4. 1) A clear concept 2) Supplying basic items at a reasonable price 3) Vertical integration for planning.4. Their products. These are the reasons for their success.6 9.3 16.8 18. flexible returns and exchanges 36 .4 2000 Sales 26.3 -28. age group or economic group.4. United Arrows and Ships. Fast Retailing was able to succeed using basic items.0 1999 Sales Rate 26. and the rate of increase compared to last year is 68.0 15.4.7 19.9 1998 Sales Rate 24. They don’t target a specific sex. Uniqlo uses a “fast food concept”. The reason for their success is their ability to follow fashion trends.2 21. have gained the support of the people in their 20s.3 Ships 10.1 7.A 18.6 1997 Rate 8. rate of increase compared with previous year Unlike the “Gosanke”.1Sales of Clothing of Three Shops](billion Yen) 1996 Sales Beams U. This age group spends the most out of all the age groups (see Chart4.0 Rate 0.1).3 8.5 24. advertisements and concepts.3 Rate. they try to reach every consumer.5 14.2 17.7 93.9 Sales 19.

3 Rate 74.1 25.2Sales of Uniqlo] (billion Yen) Net Sales Amount 14.959 75.1/$ in 1993 102.0 1055 11.5 572 7.1 276 20.1 23.1 798 39.1/$ in 1995 108.336 48.9 Employee Amount Rate 202 294 45.081 228.[4.6 229 30.5 336 21.91/$ in 1998 113.561 Stores Amount Rate 62 83 33.8 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Average exchange rate.91/$ in 1999 107.020 83.4.120 111.6 33.9 111 33.99/$ in 1997 130.985 418.7 368 9.1/$ in 1992 111.0 534 34.9 1598 26.5 397 35.339 25.53/$ in 2001 37 .692 59.6 106. 126.8 33.77/$ in 2000 121.78/$ in 1996 120.1 1265 19.1 82.2/$ in 1994 94.1 10.5 950 19.7 519 19.1 46.5 433 17.7 176 58.037 33.

9 1. Opaque.445 4.2 shows the six companies that have increased sales for the 4 consecutive years.1).5.4 4.075 0. with a rate of 1.2 605.370 -5.4 170.3 -2.4.1 1.465 -5.473 0.623.180.931 -2.354 -6.458 116. Ladies apparel is on the rise.9 1.7 -2.7 -6.531 643.99/$ in 1997 130.0 112.054 -8.571.5.888 0. “SENKEN Shinbun”.714 4.826 -8.7 170. rate of increase compared with previous year Average exchange rate.077 231.8 Total apparel Men apparel Ladies apparel Uniform Jeans Inner Babies and Children TOTAL 4. Acquagirl.91/$ in 1999 107.805 -3.685.2 1.5.147 -5.0 127.858 -4.2% (see Chart4. Via bus stop Five foxes.664 -2.845 218.0 179.079 -5. 120.6 -8.5 Domestic Apparel Companies According to the newspaper.707.633. Chart 4. many apparel companies have opened their own stores to sell their products.0 -3.626 1.600.1 563.242 -5.516 261.5 678.492.4%. they have stopped being dependent on them.868 -5. Index.778 1. Since apparel companies don’t make large profits by selling to department stores.1Sales of 276 Apparel companies](billion Yen) 1997 1998 1999 Sales Sales Rate Sales Rate 1.9 2000 Sales Rate 1.911 1.975.521.91/$ in 1998 113.591 Rate. Net sales of the top 30 companies is 2. The babies and children category decreased the most.519 million Yen and the rate of increase compared with last year is –1.326 170.662.727 232.8 247. Comme ca comme ca [4. Dressteria etc Onward.811.5 115.7 233. World.889 0.77/$ in 2000 38 .998 224.1 -3.887 212.394. In the past few years.

rate of increase compared with last year Average exchange rate.606 120.449 67.8 13.971 8.4 18.113 11.276 11.381 73.1 67.8 2000 Sales Rate 144.3 61.834 45. 120.8 68.217 48.5 14.542 57.927 3.402 53.272 52.2 Clothing Sales of 6 Apparel companies](billion Yen) 1997 1998 Sales Rate Sales Rate Five fox 101.078 47.256 134.980 67.9 14.663 99.500 68.5 Tomorrow land 12.816 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.5.4 61.280 144.114 61.673 9.91/$ in 1998 113.4 Cross plus 61.390 122.1 Frandol 35.828 14.2 66.5.017 81.519 19.196 3.2 Rate.3 Impact 21 13.000 49. 107.773 65.147 9.77/$ in 2000 1999 Sales Rate 122.77/$ in 2000 39 .91/$ in 1999 107.2 55.449 1.110 161.0 Sanei international 49.100 25.767 1.676 0.581 45.350 60.4 55.557 50.789 18.655 3.4 113.424 1.349 45.075 3.438 10.820 51.2 16.[4.413 8.505 7.256 17.99/$ in 1997 130.0 13.6 65.8 67.925 45.6 [4.3 Best 25 of Apparel Companies](billion Yen) Net sales 193.595 11.

On the other hand.0 3.6 53.6.460.4 12.9 -4.659.672.485.001.2 1997 Sales 12. domestic businesses tend to show a large decrease.6 10.9 14.9 74.9 -4.9 -31.0 -15. 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.9 5.2 2.1 -3.Chart4.0 2.91/$ in 1998 113.5 502.8 -16.499.77/$ in 2000 40 .660.S.2 -4.522.5 2.498.1 -3.9 854.4 1.0 10.7 -17.6 10.78/$ in 1996 120.1 820.5 11.6 456.388.9 1999 Sales 10.0 9. [4. Examples of this involvement include the collaboration between Sumitomo shoji and Seiyu.2 -6.8 11.91/$ in 1999 107.8 2.927.8 1998 Sales 10.2 -3.4 -16.858.005.6 2.6 -5. the price of exports dropped because of economic struggles in the U.341.680.5 4.3 827.4 9.8 -8.7 14.052.154.7 1.1 8.4.6 55.5 13.9 -6.3 13.7 -18.1 -7. Itochu Shoji and Seibu.1 -4.3 -19.219.4 10.1Total 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 11.6.2 -4.046.1 476. Marubeni and Daiei Group. 108.372.8 -13.7 Rate.9 4.969.2 987. Because many buyers directly buy fabrics and garments in recent.2 -11.5 Rate -0.753.1 shows the growth of Mitsubishi Shoji and the decline of Marubeni and Itochu Shoji.252.2 3.3 2000 Sales 10.213.1 Rate -12.9 1.1 611.2 -14.011.9 62.016.0 -8.465.752.827.6 Rate 0.899. The total amount of imports increased greatly in 2000.2 14.179.6 -21.99/$ in 1997 130.6 -20.7 Rate 4.5 -10.2 10.488.3 -0.6 13.500.6Trading Companies With in the fabric sales.3 0.676.857. rate of increase compared with previous year Average exchange rate.874.227.0 9.5 -15. trading companies have become more involved in the consumer-oriented retail sales market. Mitsui Bussan and Ito Yokado.3 -26.6 591.176.339.3 8.9 75.710.0 3.0 -5.9 12.917.0 -15.

979 218.3 -31.301 191.1 -5.2 -11.473.4 -5.653.91/$ in 1998 113.91/$ in 1999 107.100 283.509 Rate -7.5 -8.700 133.379.302 414.[4.260 330.5 -5.2 1999 Sales 956.7 1998 Sales 1.200 3.786.700 Rate -20.539 984.366 1.2 -2.9 -10. 108.7 -5.7 4.276.689 1.6 -7.0 -23.8 2.4 Rate.1 -20.4 -1.500 263.2 -24.200 388.700 355.6 1.767 469.148 436.304 292.151.99/$ in 1997 130.600 368.900 253.755 1997 Sales 1.168 476.557 373.087 5.4 -14.592.200 779.900 Rate -25.300 182.126 279.708 449.344 4.400 461.136. rate of increase compared with previous year Average exchange rate.0 -13.5 -5.5 32.600 476.7 2000 Sales 761.077 466.118 5.174 Rate -22.422 552.6.814.800 366.400 126.3 Share of Textile Goods Sales of Major 9 Trading Companies] 41 .0 -9.8 -13.6 -3.730 206.300 3.900 533.0 -8.773 504.4 -3.900 178.1 -1.600 342.6.400 268.0 -30.4 -2.4 1.2 -15.2Textile 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 1.886 259.300 347.662 188.900 360.8 -11.78/$ in 1996 120.825 249.1 -5.276.77/$ in 2000 [Chart 4.4 -17.4 -2.2 -9.

000 ¥ 1.000 ¥ 1.300.000 ¥ 770.1 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 ¥ 2.000 ¥ 450.9 Next to Contents Circulation 700. Chart4.500. It is important to pick the right magazine for a specific brand.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. Chart 4.300.000 ¥ 400.7. The fashion magazines play a large role on setting trends and sparking consumer interest.000 ¥ 2.000.000 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 ¥ 2.7Advertisement Advertisement is vital in the fashion industry.500.100.000 ¥ 1.300.000 ¥ 550.500.000 ¥ 3.600.000 4Cuts 1Page Price 380Yen 4Cuts 1/3Page mini Postcard 42 .000 ¥ 1.7.000 ¥ 2.100.000.000 ¥ 1.2 shows the popular magazines for the different sexes and age groups.8 Next to Contents Circulation 450.000 ¥ 1.000 ¥ 2.000 ¥ 1.000 ¥ 1.000 ¥ 3.4.000 ¥ 550.000 ¥ 650.300.000 ¥ 2.000.500.0 00 ¥ 1.500.000 Back page Two page spread (next to cover page) Semi Weekly Next to Back page First Publish in 1989.000 ¥ 3.200. [Chart4. shows the price for advertising in the magazines.700.500.2 Next to Contents Circulation 450.600.000 ¥ 1.7.000 ¥ 3.

000 Postcard Price CLASSY 600Yen Back page Two page spread (next to cover page) Monthly Two page spread First Publish in 1984.6 1Cut 1Page Circulation 360.600.000 Postcard Price BRIO Monthly First Publish in 1999.500.700.300.300.000 Postcard Price GAINER 620Yen Back page Two page spread (next to cover page) Monthly Two page spread First Publish in 1990.000 ¥ 1.000 ¥ 3.800.000 ¥ 3.000.000 ¥ 1.Back page Two page spread (next to cover page) Semi Weekly Next to Back page First Publish in 1995.700.000 ¥ 1.500.000 ¥ 1.000 ¥ 4.200.800.200.000 ¥ 3.500.000 ¥ 1.000 ¥ 1.000 ¥ 3.000 ¥ 770.300.000 ¥ 3.10 Next to Contents Circulation 550.000 ¥ 3.500.000 ¥ 2.4 1Cut 1Page Circulation 640.000 ¥ 2.000 ¥ 2.700.000 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 ¥ 2.000 ¥ 1.300.200.000 ¥ 1.000 ¥ 2.000 ¥ 2.100.000 43 .400.100.000 ¥ 2.500.000 ¥ 550.000 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 1975.000 ¥ 1.000 ¥ 3.000 ¥ 3.400.100.000 ¥ 1.9 1Cut 1Page Circulation 140.000 ¥ 2.000 ¥ 1.000 ¥ 4.000 Postcard Price 670Yen Back page VERY Two page spread (next to cover page) Monthly Two page spread First Publish in 1995.100.4 1Cut 1Page Circulation 230.300.900.300.800.3 Circulation 85.000 ¥ 2.500.000 ¥ 400.

7.2 Matrix of Magazines] >>> Female 44 .[Chart4.

>>> Male 45 .

7 10 Eddie Bauer 14.5.0 Rate.4 -8.000 28.9 6.719 -16.240 13.890 24. joined forces.6 2 GUCCI 26.000 30.100 27.5 0.0 9 MAX MARA 15.800 7.2 1.300 13.918 25. [5.8 5 Sanki Shoji 32.567 1.1.1 7 CHANEL 26. category killers such as ToysRus.2 4 REVIS 30.Strategies 5.1Sales Ranking of Import Luxury Brands](billion Yen) 1998 1999 Sales Sales Rate 1 LVMH 76. 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 .2 17.9 -27.861 16.630 3.0 -1.300 33.1.1) such as LVMH ( Louis Vuitton Moet Hennessy) and Gucci Group. rate of increase compared with previous year 2000 Sales 100.5 1) LVMH LVMH has been one of the most successful foreign fashion companies in Japan.0 5.210 14.480 19.1Foreign Companies that entered the Japanese Market Foreign companies who have been active in the Japanese Fashion market are import luxury brands (see Chart5. It was established in 1988 right after Louis Vuitton Inc.600 Rate 16.780 -7.450 24.000 7.265 -9.6 6 HERMES 23.700 25.000 28.382 19.8 8 ARMANI 19.355 29. and SPAs (Specialty stores and Private Label of Apparel) such as GAP.7 3 PRADA 21. and Moet Hennessy Inc.8 -3.400 35. Eddie Bauer and Zara.950 10.000 86.600 16.116 26.200 26.

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

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. the brand must continually offer new products and topics of conversation in order to be remembered by consumers. Usually promotional division of the brand handles the advertisement. -The brand needs to carry out an advertising campaign to publicize the brand history and other information in order to give consumers some background. [Sales Promotion] -It should regularly carry out press contact activities thorough the Japanese 48 . etc. in general merchandising stores. or in freestanding stores in a busy area. you have to make sure those Japanese buyers and consumers are aware of the existence of Brazilian fashion. [Store Selection] -It is very important to offer products through the right channel. -Then.2Possible Strategies for Brazilian Companies to the Japanese Market [High Awareness] -First of all. -Since fashion trends come and go. -Be high quality: Japanese consumers are very quality conscious. [Necessary Factors for Success in the Japanese Market] -Be fashionable: Offer new products every season that reflect the latest fashion trends.5. -Control the image of products. magazines. the name and logo of the brand needs to be widely known. in department stores. or in well-known fashion select shops. and possibly even stores of the brand. they should be carried in freestanding stores in a prestigious area. -If the products are prestigious or creative. -Be exposed to the market constantly through advertising. it should be carried in station building such as Lumine. It should be easy to remember.

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 .