Jeans in Japan

2021 DEVELOPMENTS

Modest recovery, with little difference in performances across price platforms

Jeans had already been struggling to achieve growth over the decade preceding the COVID-19 crisis, but was hit even harder in the first year of the pandemic, in 2020, seeing double-digit retail volume and current value declines due to the temporary closure of non-essential retailers and consumers’ reluctance to spend. Jeans returned to growth in Japan in 2021, but this was at a slow pace.

Itochu Corp leads, while runners-up Fast Retailing and GU gain share

Thanks to maintaining a high share in premium jeans, Itochu Corp continued to lead jeans in Japan in value terms in 2021. The company owns multiple premium jeans brands in the country, including Edwin, and also has licences in Japan for international brands such as Wrangler and Lee.

Collaborations to attract consumers’ attention continue

Jeans brands in Japan are actively collaborating with pop culture icons from games and anime. Edwin from Itochu Corp collaborated with a legendary anime series called Gundam in June 2021.

PROSPECTS AND OPPORTUNITIES

Recovery set to be slow in jeans over the forecast period

Jeans is expected to post positive but only low current value growth in Japan over the forecast period, with retail volume sales expected to return to decline by 2024. Even in value terms, by the end of the forecast period in 2026, sales of jeans are not forecast to have returned to the pre-COVID-19 level, seen in 2019.

Major players keen to improve the sustainability of jeans production

The sustainability of producing jeans, especially light coloured jeans and jeans with vintage effects, is often questioned. For example, when producing light coloured jeans, a large amount of water is used to create the faded colour on the denim.

Lasting shift to e-commerce expected, but this presents challenges

The shift towards e-commerce seen during the COVID-19 pandemic, underpinned by home seclusion, remote working and studying, store closures and concerns about viral transmission through social contact, is likely to have an enduring impact on consumer behaviour during the forecast period. This is set to lead to a lasting shift from store-based sales (particularly from department stores) to online sales.