Cheap clothing imports, high-quality material exports: figures reveal Japan's fashion industry

In recent years, Japan's apparel market has consistently fallen short of the nine trillion yen level seen before Covid-19.

One reason for this phenomenon is the labour shortage in the textile industry. The average annual income in the textile sector is 5.81 million yen, which exceeds the wider industry average. However, textile wages remain more than 25 percent below both the all-industry and manufacturing averages.

Another factor is the decline in Japanese purchasing power. Population decline and an ageing society have reduced the number of clothing items purchased. The spread of durable clothing from brands such as Uniqlo has also decreased replacement frequency. As symbolised by the decline of department stores and the disappearance of mid-priced brands, Japan's domestic fashion "middle market" has gradually shrunk, changing consumer choices.

Changes in company rankings

As the domestic market contracts, Uniqlo and Asics have shown growth in sales and market value. These two companies share common ground: selling high-performance, high-quality products whilst expanding overseas.

According to Uniqlo's 2024 consolidated financial results, group revenue exceeded three trillion yen for the first time. Remarkably, 55 percent of profits came from overseas operations.

Behind Uniqlo's successful global expansion lies a strategy of integrating into local cultures and lifestyles through flagship store openings. In China, for example, the brand opened a 2,200 square metre flagship store in central Wuhan and partnered with universities in the city, which boasts the world's largest student population, to host student fashion shows. Next spring, a new store is planned near the Arc de Triomphe in Paris, aiming to build a locally rooted brand experience by fusing with the area's culture and history.

Asics Credits: Asics India via Facebook

Asics' Japanese market accounts for only approximately 14.7 percent of its total business, with the remaining 86.3 percent coming from overseas. In Japan, design-focused and everyday wear lines are particularly popular. In other countries, performance-oriented running shoes for marathons dominate sales. This is influenced by the brand's community-building and lifestyle initiatives, as well as the global running boom driving demand.

Asics promotes the satisfaction gained from exercise through its products by hosting running events in countries including China and France. Beyond events and community building, Asics has enhanced its brand value through technological innovation in performance footwear such as Metaspeed, strengthened direct-to-consumer (D2C) strategies and collaborations in the fashion sector. These multiple factors have boosted its presence in global markets.

Changes in imports and exports

Since the 1990s, the emergence of low-priced products mass-produced using cheap labour in China and Southeast Asian countries has resulted in 98.2 percent of clothing in Japan being imported. In proportion to these low-priced imports, the average retail prices of blouses, jumpers and dresses in Japan fell to half their levels from 30 years ago by 2022.

According to UN Comtrade, the international trade database, the 2024 ranking of import values in the fashion and textile sector was: first, knitwear; second, clothing; third, footwear; fourth, second-hand clothing and other items; and fifth, leather goods or travel accessories.

Meanwhile, according to market research firm Imarc, Japan's textile industry is expanding export opportunities in response to growing global demand for high-quality Japanese textile products. The 2024 export value ranking shows raw materials and fabrics dominating: first, synthetic fibres; second, synthetic staple fibres; and third, non-woven fabrics. Recent bulk purchases of high-quality Japanese textile products have been driven by overseas luxury brands and some global fast fashion retailers.

Although material exports remain proportionally high, clothing exports have also increased compared to the 2010s. Clothing exports in 2023 reached 107.2 billion yen, approximately three times the 34.6 billion yen recorded in 2010, demonstrating steadily growing demand for Japanese-made apparel. Exports have expanded primarily to Asia, Europe and America, with major fabric export destinations also including Middle Eastern countries such as the UAE and Saudi Arabia.

Japan's current fashion market has two distinct characteristics: the influx of cheap clothing and the export of high-quality materials. This gap also stems from Japan's production structure. The domestic sewing industry has faced years of labour shortages and low wages, making it unable to compete with overseas mass production.

However, the materials and fabrics sector, which requires advanced technical expertise, maintains international competitiveness. To further grow Japan's fashion market, the key will be producing high-quality, environmentally conscious clothing and materials rather than competing on price. If Japan can present its unique brand value combining high-performance textiles and high-quality tailoring to global markets, Japanese clothing exports could advance to a stage where they compete on "value" rather than volume.

This article was translated to English using an AI tool.

OR CONTINUE WITH

Asics

Data

Japan

Uniqlo