Explore Maruhisa's journey from traditional tabi sock production to pioneering the global apparel market. With a commitment to quality and innovation, Maruhisa navigates evolving trends, collaborates for growth, and sets new standards in the industry. Discover how this Japanese brand blends heritage with modernity to shape the future of fashion.
Japan’s clothing industry has a rich cultural heritage spanning many eras. However, in recent decades, we have witnessed the emergence of formidable regional competitors. Brands like Uniqlo have exemplified a path for Japanese companies to venture into international markets. In your opinion, how would you characterize the distinctiveness of the Japanese clothing industry, and what do you perceive as its core strengths and advantages?
When considering the clothing industry, it's noteworthy that Japanese adoption of Western attire is relatively recent. Prior to this shift, kimonos were prevalent attire. Maruhisa, founded in 1959 but with roots tracing back to 1900, initially specialized in producing tabi, the socks traditionally worn with kimonos. Our origins lie in crafting traditional Japanese clothing, with Naruto City's historical prominence in tabi production influencing our family's business inception.
The expertise required for crafting tabi socks has been inherited through generations, and I represent the fifth generation in my family to uphold this craft. Adapting to evolving societal needs across different eras, we diversified our clothing production. Despite our 120-year history, we are not considered an aged company in Japan's context, given the presence of even older establishments.
While our foundation lay in tabi sock production, we later diversified into crafting traditional Japanese innerwear. Given Japan's hot and humid summers, woven innerwear became a necessity, leading us to become the primary supplier in our region during subsequent company generations.
Upon assuming leadership following my graduation from Keio University, I decided to expand into outerwear production. Influenced by a classmate, the scion of Ito-Yokado's founder, I recognized the imperative for our company to venture into this domain to thrive.
Rather than outsourcing, we established our own brand and production facilities, supplying outerwear to Ito-Yokado for two decades, eventually becoming their top supplier. Our approach involved designing and producing garments in Shikoku and distributing them to Tokyo-based companies.
Post-Plaza Accord, amidst a strengthening Japanese yen, we discerned the necessity for overseas production. Consequently, we expanded our operations to Thailand, China, and Bangladesh, while retaining our commitment to traditional attire alongside catering to diverse market demands. Presently, we're recognized as a specialized manufacturer of CUT & SEW products, engaging in end-to-end processes encompassing design, fabric production, sewing, and sales across various clothing categories.
The global apparel market, estimated at approximately JPY 1.7 trillion, is projected to reach JPY 2 trillion by 2027. How do you anticipate the next 12 months unfolding for your business, and what factors do you foresee driving growth during this period?
In response to evolving market dynamics, we've adapted our product portfolio. Commencing with traditional attire, we've leveraged accumulated expertise to innovate and produce contemporary clothing. Notably, we maintain an internal production model, eschewing subcontracting. This ensures meticulous control over design and production processes.
The shift from traditional Wafuku to predominantly Western attire post-WWII underscores the industry's dynamic nature. Recent years, notably impacted by the pandemic, witnessed a decline in outerwear sales, with casual wear gaining traction while formal attire struggled. This transformation underscores the necessity of addressing new challenges for sustained relevance.
The pandemic-induced market downturn notably affected outwear makers, contributing to a contraction in market size. While luxury brands faced challenges, fast fashion entities like H&M and Uniqlo thrived. The evolving landscape underscores the importance of quality and adaptation, with Japanese brands facing intensified competition from foreign counterparts.
Collaborative initiatives are pivotal for navigating market complexities and fostering growth. As exemplified by our partnership with the Institute for the Fashion Industries, collective dialogue facilitates insights and strategies essential for industry resilience.
Your market research division emerges as a standout performer, offering proposal-based planning grounded in macro trends and market insights. What distinct capabilities does this division possess, and how do you ensure efficiency and cost-effectiveness?
With a predominantly offshore production model, our workforce comprises 120 employees, primarily university graduates, reflecting our commitment to quality and expertise. Across five specialized groups catering to diverse clothing categories, each team oversees end-to-end processes encompassing production, marketing, and sales, with dedicated merchandisers conducting comprehensive market research.
Acknowledging Japan's declining population, we've expanded distribution to Europe and the US via our self-established network, bypassing trading companies. The Bangladesh facility, housing approximately 1850 employees, epitomizes our commitment to quality outside Japan.
Partnerships play a pivotal role in our business model, particularly in augmenting production capacity. Collaborating with factories in Bangladesh, we leverage their expertise while imparting quality standards. Mutual trust underpins these partnerships, emphasizing equality and shared goals.
In envisioning the future, achieving a 30% sales increase in Europe and the US within five years is a central objective. Focusing on Western markets aligns with our strategy to deepen insights into Western clothing dynamics, leveraging our manufacturing prowess for global expansion.
For more details, see: www.maruhisa.co.jp/en
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