Apparel and Footwear Specialist Retailers in Japan

PROSPECTS

Leveraging digital technologies

Apparel and footwear specialist retailers continues to act as a front runner in leveraging digital technologies and changing the role of bricks-and-mortar stores. Areas in which apparel and footwear specialist retailers have utilised digital technologies include the introduction of personalised sizing for products, developing direct-to-consumer brand strategies and the improvement of supply chain efficiency.

C2C poses a growing threat but presents some opportunities

C2C (Consumer-to-Consumer) transactions continued to grow in Japan in 2018 and 2019. According to the Ministry of Economy, Trade and Industry (METI), total sales through “flea market applications” increased by 32% in 2018.

Emergence of rental and sharing services presents a challenge to retailers

While still an emergent phenomenon, fashion is showing signs of a shift from products to services in some parts of the industry. As younger consumers, in particular, shift the emphasis of their spending towards experiences rather than possessions, supported by social media’s capacity to make experiences socially visible in a manner comparable to possessions, it is becoming less important to own items of clothing.

COMPETITIVE LANDSCAPE

Uniqlo moves beyond fast fashion

Fast Retailing Co Ltd remained the largest player in apparel and footwear specialist retailers in 2019, with its share continuing to grow during the year as the LifeWear concept successfully targeted the athleisure trend and enabled the company to compete with the likes of Nike and adidas. By developing a broad offer, including formalwear, casualwear, underwear and sportswear, the company’s Uniqlo brand has managed to reposition itself beyond fast fashion, as that segment has seen its performance slow down.

Beginning of the end for fast fashion?

Forever 21 has withdrawn from the Japanese market, while brands such as H&M are not performing particularly well, suggesting the beginning of the end for fast fashion. Consumers are becoming more selective about apparel and footwear, looking for more durable, higher-quality products that are less affected by rapidly changing fashion trends.

New stores aim to enhance consumer experience of brands

As the ongoing development of digital technology and e-commerce exerted a growing influence on store-based retailing, apparel and footwear specialist retailers opened flagship stores intended to enhance the consumer experience and better communicate brand concepts. In 2019, Levi’s closed its first outlet in Japan, located in Harajuku, Tokyo and opened a flagship store in a nearby area.

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