Introducing Oshibori Hand Towels to The World

Japan has a unique history with wet towels, with oshibori believed to have originated during the Edo Period as a gesture of hospitality for travelers, by offering them a way to refresh themselves. Over time, it became more widespread, evolving into a symbol of Japanese hospitality, especially in restaurants and hotels. Today, oshibori, or hot towels, are provided in various settings including flights, green cars of the Shinkansen, and beyond. They are even offered in Japanese restaurants worldwide and serve as a symbol of Japan’s renowned culture of hospitality. What makes Japan’s wet towel culture unique, and why do you think oshibori play such a significant role in Japanese hospitality?

Oshibori originated in the Edo Period, which were offered in inns where travelers stayed. Back then, Japan was very humid, and due to the Japanese shoes “waraji”, they wore, travelers were often covered in dust after traveling. Travelers soaked a tenugui cloth in a tub provided by the innkeeper and squeezed it to wipe their dirty hands and feet at the entrance to the inn. In Japanese the word for squeeze is ‘shiboru’, and that is where the name ‘oshibori’ came from.

Japanese people have a unique sense of hygiene and hospitality. When the weather is hot, people sprinkle water on the streets to keep the dust out and the temperature down. And on rainy days, when people pass each other, they move their umbrellas so the other person would not get wet. Oshibori culture is also part of this unique sense of hospitality that you can find in Japan. It began as a culture and then evolved into an industry.

I am a second-generation president of this company. When I began working for this company, I happened to read a magazine article featuring Madonna, the Queen of Pop, in which she was asked what impressed her most about Japan. She answered that it was the electric bidet seat and oshibori. I was convinced that oshibori have universal value. Japanese people are very keen on hygiene and Japanese culture has a high sense of hospitality. That is the backdrop against which oshibori developed.

Over the next 15 years, Japan anticipates significant demographic shifts characterized by both an aging population and a declining population. This of course will lead to both labor shortages and a shrinking domestic market. To be more specific, the country expects a labor shortage of around 11 million people by the year 2040. Can you talk about some of the challenges and opportunities this creates for your company and how you are navigating the challenges and capitalizing on the new opportunities that are being presented?

When I became president 10 years ago, the declining birthrate and aging population were already big issues. What is worrying is that our industry is very labor-intensive, with many people involved in the making of a single oshibori. People are also required for the delivery and collection services as well. As Japan’s population is declining, if the labor shortage situation continues, we may be unable to produce oshibori.

It is important to not focus on quantity but rather focus on hygiene technology so that we can produce added-value high-quality products. For example, when I visited Paris, I learned about environmentally friendly disposable oshibori. We want to produce these types of products and sell them both overseas and in Japan. We also want to supply our products to clients beyond restaurants such as offices, hospitals, and general consumers. That will be very important going forward and I want to devote my energy to such initiatives.

In the context of the shrinking domestic market, you mentioned the desire to expand overseas. What opportunities do you see beyond the Japanese market and which countries are you targeting?

For the past 10 years, the oshibori culture is spreading, and there are oshibori makers in China, South Korea, and other Asian countries. We initially looked to expand in China and South Korea. However, cheap products are in demand in those markets, and if we tried to add value using hygiene technology, the product price would go up. We then looked for a market where we could sell more expensive products. That was how we began to target the US market. There are also many Japanese restaurants in the US, from Los Angeles to New York. Right now, there are around 20,000 restaurants, and that number is increasing. Also, trade relations between Japan and the US have been very strong. That is why we have decided to focus on the US market.

We are not yet a big company globally. That is why we have chosen to first focus on the US market before expanding to other areas. For the past seven years, we have been conducting research and applying for patents and finally, last September, we were able to launch our products in the US. In the future, we would like to focus on the French market and incorporate their environmental regulations and know-how into our products. Japanese people are becoming more environmentally conscious, so learning about the environment will help us produce better products.

FSX offers both reusable cloth and single-use disposable options. Your products include aroma-infused towels and antiviral and antibacterial towels as well as the VB-COSME series which is an advanced line that combines antiviral properties with skincare benefits suitable for both hand and full-body use. What are your strengths as an oshibori manufacturer, and which of your oshibori products do you see as most in demand?

We have been focusing heavily on hygiene technology and have our own laboratory where we research the effects of our products on people’s skin. Our strength lies in our organizational structure and our product development. All of our products use VB-COSME-(anti-aging care) or VB(virus block) technology. We give licenses to other companies in the industry and we provide technology to linen suppliers and other industries as well. Our mindset is to add value to products and this is something that the consumers associate with our company.

When it comes to the demand for our products, products with fragrances such as our aroma series are growing in demand although initially, they did not do very well. In terms of technology, adding an aroma to oshibori is easy. However, it is difficult to produce a large number of varieties in small quantities. We have obtained patents and polished our know-how which has allowed us to provide a wide range of aromas, from Japanese to Western. In the future, I believe that we will be able to produce hundreds of different aromas.

Your VB series features patented technology that eliminates over 99.99% of viruses and bacteria. VB-COSME- series is an advanced version of VB. Its innovative wipes provide anti-aging skincare benefits and it was the industry’s first cosmetics-certified oshibori wipe. The product was also introduced to the US market in September of this year in Pasadena, California. How does this series stand out technologically, and what makes this product series so innovative?

The VB series started when we met professors from Tokyo Institute of Technology and Keio University. As you mentioned VB technology can eliminate 99.99% of viruses. Nevertheless, it stands out when it comes to safety for your skin. There are many other products could kill viruses and bacteria such as alcohol, for example. However, they cause skin irritation as well. Good medicine can have side effects. Similarly, killing viruses and bacteria can also damage your skin. We used a unique compound, which are metal-oxide cluster substances proved to be safe and highly effective. We applied it to our oshibori and other products to ensure the safety of the user’s skin.

VB-COSME- series is an advanced version of VB, it has the potential not only to enhance hygiene but also to offer anti-aging skin care benefits. The research theme for my PhD thesis is about the better effects that VB technology has on skin. I believe that we can improve the health of our skin by using VB-COSME- technology. If we can actually achieve that, I think our oshibori can become a two-faced, antiviral and anti-aging care, like Shohei Otani.

Why did you decide to introduce the product in the US, and how was the product received when you introduced it in Pasadena?

For a long time, I am big fan of Major League Baseball and I have adored the US and its culture. In recent years, Asian culture is quite prevalent in Los Angeles. As I mentioned earlier, the number of Japanese restaurants in the US is increasing. We successfully cleared the FDA regulations for cosmetics, which will make it easier for us to sell our products in other countries in the future. Those are the reasons why we have been focusing on the US market for the past seven years.

This Last April, we sold our products in LA on a trial basis and received positive feedback. So we were not worried about the MTC Expo in Pasadena. However, I heard that the market on the East Coast is quite competitive with other manufacturers offering cheaper products. I was therefore a little worried about New York before attending the MTC Expo. Initially, we received some harsh feedback. However, in the end, it went very well. One of the people involved told us that we scored 120 out of 100. We also received inquiries from Boston, Florida, and Washington DC.  In addition, buyers from Paris and London were also in attendance the MTC Expo in New York. It was there that I heard that Omakase-style restaurants are increasing in London.

While we were treading water at first when we went to New York, overall, we received very positive feedback. This was especially the case in Florida, where a lot of money is concentrated. There are also many trendy restaurants in Washington DC, and we were very happy to receive inquiries from those places as well. I feel that we have gained some momentum in the US.

FSX’s core business is your rental oshibori business specializing in developing, producing, and delivering high-quality rental towels catered for restaurants, offices, and various other facilities. This service also extends to the hairdressing and cosmetology industry reflecting your commitment to support the hospitality sector with reliable and professional solutions. What are your competitive advantages as a rental company and how do your services enhance the efficiency and quality of the businesses you work with?

The first point I would like to make is that we are the only company that plans and develops oshibori from fabric in-house. Twenty years ago, we established a base in Hanoi, Vietnam to develop the fabric with a local family business. In Japan, restaurants are raising their prices, so our oshibori must be in line with the products they offer. For example, we recently launched a new fluffy oshibori product. We develop our own products based on the needs of our customers. That allows us to produce unique colors and textures that are highly durable. That is what gives us an advantage. Our products have tags that serve as a symbol of our responsibility to be our own product

The second important point I would like to make is that we deliver consumables for kitchen in addition to our oshibori products. We have also developed private brand kitchen products. While our oshibori are a little expensive, our kitchen goods are cheaper. Our delivery people listen to the demands of our customers and we deliver consumables alongside our oshibori products without any additional shipping fees. Furthermore, we offer our know-how to other companies in the industry and receive license fees from them.

E-commerce has experienced significant growth across all sectors with your company standing out as a leader in this space. You operate one of the largest wet towel E-commerce platforms in Japan, e-SHIZAI Market, which has become a key player in the industry. Additionally, you expanded your reach with an overseas mail-order business option in 2021 further solidifying your presence in the global market. What role does E-commerce play in your business model, and how are you using it to reach customers both domestically and internationally?

We not only offer oshibori to restaurants through B2B business, but also listen to the needs of general customers. There are very few E-commerce platforms that focus on oshibori, so that we decided to launch our E-commerce website. We offer our kitchen goods and sanitary products alongside our unique disposable oshibori on the platform. It enables us to provide our products to small shops, hotels, and general customers Those are the reasons why our E-commerce platform became popular.

e-SHIZAI Market platform

We also do face-to-face BSB business by selling and delivering our oshibori, but our sales area is inevitably limited. However, launching the E-commerce website allowed customers across Japan from Hokkaido to Okinawa to buy our products, and our sales have been increasing as a result.

When it comes to overseas expansion, it is an ongoing project, and we hope to expand further in the future. During the COVID-19 pandemic, we started test marketing on Amazon.com in the US. Every Japanese person knows about oshibori and can buy our products on our E-commerce website. However, we did not know if American consumers would be interested, so we started test marketing our products. We found that customers from Hong Kong and Toronto and restaurants from New York were interested in our products. They began to buy them using our online platform and many of them are repeat customers. We have now decided to develop a fully-fledged E-commerce site for the US and preparations are currently underway.

Partnerships play an important role for your company, whether it is building partnerships with hotels or restaurants through your rental business or building OEM partnerships to lend your manufacturing services to others. Your FSX Partner business also serves as a provider of products and services to other businesses within your industry. Are you interested in expanding your international partnership network, and if yes, which partnerships and which countries would be most valuable for you and your company?

We are interested in expanding overseas in the future. Currently, we have partnerships with dry cleaners in Beijing and provide them with our VB technology. This year, we will establish a local subsidiary in Hanoi, Vietnam, and provide technology for cosmetics and linen cleaning. However, we are still an SME, instead of expanding overseas quickly, I would like to make the oshibori industry stronger so that oshibori will be recognized across the globe. So while it is important to increase our partnerships and increase our revenue, my goal is to energize and boost Japan’s oshibori industry. That is my priority.

Your company is this year celebrating its 58^th anniversary. Please imagine that we come back two years from now for your 60^th anniversary and have this interview with you all over again. What would you like to tell us? What dreams would you like to have accomplished over the next two years, and lastly, how would you like your company to be seen in the eyes of the global audience?

Oshibori are commonplace in Japan and you can get them for free in any restaurant. Japanese people therefore do not really think about oshibori. On the other hand, as FSX, INC. is a family business, I have been pursuing my ideals and trying to expand overseas. Some people told me that it would be impossible and others even laughed at the idea. However, I put my efforts into it and we have been making steady progress.

I used to read Newsweek when I was in university and believed that reading such a magazine was quite cool. I would like to say that I really appreciate Newsweek focusing on oshibori which are not considered cool by Japanese people. In the next two years, I would like to not only offer oshibori but also further develop our hygiene technology and add more products to our lineup. Furthermore, I want to increase the number of companies in the oshibori industry that use our products. Finally, I want oshibori to become a common word globally. Instead of saying ‘hand wet wipes’ or ‘wet towels’, I want people to learn and use the word ‘oshibori’. Those are my goals for the future.

For more information, please visit their website at: https://www.fsx.co.jp/