Japan apparel market analysis: apparel exporter needs to know exploring the market

Japan has one of the world’s largest apparel consumption markets, with retail sales totaling $100billion in 2021. In 2023, it exceeds $105 billion. To meet this huge amount of apparel consumption, Japan does not only produce it locally, also sources from different countries.

Japan -- the top 3rd apparel importing nation in the world just after the European Union ($215 bn) and United States ($115 bn) - imported $27 billion worth of apparel products from the world in 2022,according to the data published by Statista. Japan’s big apparel market creates a considerable sourcing and market access opportunity for apparel manufacturing countries in the globe, including Bangladesh.

Why Japan is the vibrant non-traditional apparel export destination for Bangladesh

As Bangladesh is observing order drop in its top readymade garments (RMG) export destination like EU and USA for inflation, overstocked retail stores, global unstable political situation etc., the country is vigorously looking for new markets. As a result we see garment shipment to non-traditional markets are increasing significantly. It grew 11.69 percent year-on-year to $5.46 billion in July-January of the current fiscal year (2023-24).

According to Bangladeshi apparel manufacturers, they have identified several potential export markets, notable among them are Japan, Korea, India, the Middle East and the African continent. Of them, Japan is a the most potential market from where Bangladesh bagged apparel export earnings of worth $1.09 billion in FY22 and set a target of doubling it by FY23. Japan -- the number one non-traditional apparel export destination for Bangladesh – is also trying to take advantage of the increasingly popular China-plus-one strategy – in which Japanese companies avoid investing only in China and expand their businesses to alternative destinations.

As Chinese product became more costly, among other factors, China’s market share fell in Japan. Japanese fashion brands and retailers actively seek China’s alternatives and apparel imports from Vietnam, Bangladesh, Turkey and Indonesia have grown fast.

According to International Trade Centre (ITC) data, since 2017, Bangladesh's share in the Japanese clothing market has been growing and reached nearly 5% in 2021.Japan –the fourth largest economy of the world - has strong bilateral trade with Bangladesh. The country sets a lower tariff barrier for apparel than other leading import countries. Japanese retailers expressed their desire to continue duty-free market access between the nations after the graduation from least developed country (LDC) status in 2026.Japan is also working to establish standards in tariffs and trade rules as Bangladesh explores a free trade agreement with China.

Besides, many buyers and brands are expressing interest in investing in Bangladesh's man-made fibre industry, according to many industry people.

Which apparel items Japan sources from Bangladesh

Several Japanese apparel retailers including Fast Retailing (parent company of Uniqlo and five other retailers), Adustria, BAPE, GU, Muji procure millions of products from around 300-350 Bangladeshi factories including Pacific Jeans, Euro Bangla Textile, Urmi Group, Envoy Textiles, Cute Dress Ltd. Kimberley Design, Al Muslim Group, etc. If more garments exporters want to explore Japan apparel market, they need to analyze the market as they can decide the proper marketing strategy that will reach and resonate with the most brands and buyers of the country.

There are top 10 apparel exporting items from Bangladesh to Japan in Table 1, Table 2 and Table 3during the Fiscal Year 2021-22, 2022-23 and last 8 months of the running Fiscal Year. (Data Source: EPB)

Top apparel items Japan sources from the World

Knowing the top apparel exporting items from the world is as important as knowing the top Bangladeshi apparel export items in Japan. It is essential for Bangladeshi apparel exporters who are keen to explore Japanese market to have knowledge about the product ranges the country’s buyers are sourcing from the world.

In Table 4 (knitted) and Table 5 (non-knitted) you will find top apparels items (6 digits HS Code) those are sourced by Japan from all around the world. (Source: ITC Trade Map).

Some top apparel brands of Japan

Knowing about brands who can be your potential client is paramount to explore any market. There are top 20 apparel brands name whom an apparel exporter can approach to make them potential clients.

Finally, huge investment in research and development (R&D), maintaining shipment time, assuring product quality, proper inspection and capturing the fast-changing fashion trends of Japan are a must to explore this market.