Childrenswear in Japan

2021 DEVELOPMENTS

Challenging economic environment and lack of special occasions hamper demand

The negative impact of the COVID-19 crisis on childrenswear was less marked than on other apparel and footwear categories in 2020. This is largely because children require clothing to be replaced as they grow.

Shimamura extends its lead with the support of its own e-commerce site

Shimamura remained the largest player in childrenswear in value terms in 2021, extending its lead during the year with its Shimamura and Birthday brands. In common with its nearest rivals, Nishimatsuya Chain and Fast Retailing, Shimamura registered an increase in its value share in 2021, as these low-priced players benefited from strong brand awareness, extensive distribution and competitive pricing.

Fast Retailing focuses on expanding its childrenswear line-up

Fast Retailing aims to develop sales of childrenswear by expanding its line-up. Uniqlo has introduced childrenswear in collaboration with famous brands every season since the spring/summer of 2020.

PROSPECTS AND OPPORTUNITIES

Accelerated fall in the birth rate implies a further decline in the consumer base

Even after the threat from COVID-19 diminishes, childrenswear manufacturers in Japan will continue to face the challenge posed by the shrinking domestic consumer base due to the country’s declining birth rate. Moreover, the pandemic has severely accelerated this issue.

Intense price competition set to continue

The forecast period is expected to see an intensification of the price competition in childrenswear. Before the outbreak of COVID-19, the childrenswear category was already exposed to intense competition from the second-hand market, which is particularly attractive to consumers in childrenswear because of the speed with which children grow out of their clothes.

Increasing emphasis on overseas expansion

Given the domestic challenges facing Japanese childrenswear players, overseas expansion is becoming an increasingly important development strategy. Miki House has been aggressively increasing the number of stores in Asia, expecting to exceed 100 outlets by the end of FY2021.