Japanese Fashion Business: Tradition & Innovation

COVER STORY • 3 Japanese Fashion Business: Tradition & Innovation By Ohara Yoko

1. Introduction with age-old business practices remaining goods. However, more recently, young very much intact. Japanese tend to put greater emphasis on Japanese fashion, one may say, resembles On the innovative side of Japanese fash- individual feeling; they now have a prefer- a Japanese townscape – a mixture of tradi- ion, one can count the “discovery of the ence for a new kind of fashion, in things tion and innovation. To put it nicely, a color black” by Japanese fashion creators, that are “kawaii” (cute) and “cool.” highly refined blend of tradition and inno- something that shocked the world around Business: Competition is stiff due to the vation. This is because the Japanese fashion 1980; the presentation of fashion concepts maturation of the market and too many industry has developed by riding on the that destroyed established Western ideas; shops. And rivalry is spurred by a rapid fashion tradition and fashion business from and more recently, the emergence of pop encroachment of shopping centers and Europe and the United States, while latch- culture and “street fashion” born out of the aggressive campaigns in the Japanese market ing itself onto Japan’s long history and cul- feelings of young people on the street. In by foreign-brand goods. As the apparel ture as well as the domestic textile industry, the field of fiber and textile processing tech- market has matured, business has been which has grown as a key industry since the nology, Japan has also led the world in inno- growing in other fields of lifestyle goods, Meiji Era (1868-1912). vations. Based on the history and current such as shoes, handbags and accessories. Japanese clothing, based on kimono situation of the Japanese fashion business, Business has also been expanding in food, (which literally means “clothing”), rapidly this article intends to explore the prospects dining and interior decorations. Instead of became westernized after World War II and and future of the Japanese fashion industry. simply selling things, some companies are thus Western-style fashion was born. In so involved in offering things that project a far as the Western-style fashion in Japan has 2. Traits of Japanese Fashion & new value, such as organizing events, been grafted onto Japanese culture and tra- Fashion Business arranging live-experience entertainment and dition, it enjoys a certain degree of freedom providing solutions to problems. from the European and US history, thus Japan, the world’s second largest market, Industry structure: The structure of the capable of being innovative and capable of is perhaps a leading country in terms of per- Japanese fashion and apparel industry is a becoming a symbol of the “post-modern” capita personal spending on fashion goods mixed bag of the old and the new. The pro- culture. and in terms of sensitivity toward fashion duction and distribution process still has a The educational institute in Paris called trends. Here are some of these characteris- multilayered structure and functions are frac- IFM (Institut Français de la Mode) held a tics, as seen from a number of perspectives. tionalized, dragged down by old business forum in 2005 under the theme, “Is Japan a Market: With respect to the characteristics practices such as manufacturers regarded as New Cultural Reference Point in the 21st of the market, Japan is extremely conscious subcontractors and department stores buying Century?” The forum reported a positive of fashion trends and fashion news. Market goods from fashion houses generally on con- consensus on the proposition that “Japan changes are fierce and the cycle of fashion is signment. At the same time, innovative new will create new culture values.” People short as many Japanese consumers go after ventures and business practices have sprung overseas are highly interested in Japanese whatever is novel and innovative, whether it up, as evidenced by the emergence of verti- culture, particularly anime and manga, is fashion goods or events. That said, they cally integrated businesses that engage in games and culinary culture. In 2006, Paris are very demanding on quality and are very both manufacturing and retailing. Online staged the seventh “Japan Expo,” the largest partial toward brand names. Virtually all shopping is also making a splash in Japan. so far, and the event was a boon for exciting brand-name products have a presence in young Japan fans. Japanese fashion is really Japan. Magazines and other media outlets 3. History of Development & rooted in a breeding ground of new cultures have great sway on the taste of Japanese con- Innovation and forms part of the new cultures itself. sumers. Because public interest in fashion is Among the traditional aspects of Japanese strong, many young people in Japan want to The history of Western-style clothing in fashion one finds a culture that has been become designers or fashion creators. Japan is short. The habit of wearing bred for more than a dozen centuries, a Fashion trends: Trends are focused on casu- Western-style clothes picked up quickly after sense of beauty, a value system, or traditional wear and youngsters lead the way. Young World War II, and as interest in trendy wear al artisan techniques as reflected in the people in Japan have more money to spend grew, the country placed more emphasis on ukiyo-e art of genre painting in the Edo Era and more time to spare than many of their design and moved to establish fashion as a (1603-1867) and traditional Japanese archi- counterparts elsewhere in the world, and business. The fashion industry in the six tecture. In the business arena, however, cer- many foreigners must be surprised to see the decades since the war is a chronicle of learn- tain distribution and commercial transac- way young Japanese, obviously as a state- ing the fashion creation chiefly from Europe tions are also wrapped in pre-modernity, ment of status, buy famous brand-name and the way of doing business from the

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United States as the industry develops and 1970s: Fashion industry’s adolescence 1990s: Collapse of bubble economy & nurtures the domestic market while riding The 1970s marked the adolescence and a business transformation the wave of rapid economic growth in Japan. period of fast growth of the fashion industry. The 1990s were marked by changes in There have been various factors contributing Fashion made swift inroads with the general the business structure with the collapse of to the innovation of the fashion industry. public as a host of magazines like “an.an” hit the bubble economy and the rise of a “price the bookshelves while apparel companies destruction” phenomenon. There was a 1950s: Dawning era aggressively lined up licensing partnerships spate of challenges for change in the high- Historically, the Japanese textile industry with European and US brand owners. It was cost distribution structure and new forms of received support from the state in the 1950s, during this period that the leadership in the business appeared on the scene, such as a being designated as a key industry to earn industry shifted to apparel wholesalers, which vertically integrated manufacturer-retailer foreign exchange for postwar restoration. As took the risk-bearing practice of developing business model represented by Uniqlo and typified by Bunka Fashion College, the pro- trendy goods. Such change is worthy of note Tabio, specialized discount stores and high- liferation of dressmaking schools contributed since it gave rise to a Japanese-style business ly fashion-sensitive “select shops.” to home-sewing of Western-style clothes and system such as the department store practice In parallel with “cheap chic” (low priced established the foundation for a shift to of buying on consignment. and fashionable), “real clothes” and “street ready-to-wear apparel, which was still unde- For the apparel industry itself, a matter of fashion” also emerged on the scene. Toward veloped at the time. At the same time, urgency at that time was to train profession- the end of the 1990s, “Shibuya 109” (the department stores sought partnerships with als in the fashion business. In 1970, Asahi name of a fashion building in Shibuya, haute couture in Paris and synthetic fiber Chemical held a seminar in partnership with Tokyo) and “Urahara” (in a back street in manufacturers developed new materials the FIT of New York. For 28 years since Tokyo’s Harajuku area) became boom cen- (such as nylon), and together they left a big then, more than 10,000 people in the indus- ters and what had been a subculture has risen mark on the Japanese fashion industry. try studied the European and US models of into the mainstream in the fashion world, fashion business. The spirit of such “indus- something that has sustained to this day. 1960s: Rapid growth try education” has been inherited by the In the 1960s, riding the crest of the coun- Institute for the Fashion Industries (IFI), 2000s: Global competition try’s high economic growth, ready-to-wear which was established in Tokyo in 1992. In The 2000s and the present are the time of clothing expanded, with a boom in 10 years between the beginning of 1970 and global competition and multi-channeling. knitwear leading the way. Mori Hanae put the beginning of 1980, the Japanese apparel Faced with a stagnant home market, on fashion shows in New York and the Ivy retail market grew 2.5 times, from ¥4 trillion European and American luxury brand mak- Look came into fashion in Japan. However, to more than ¥10 trillion. ers launched aggressive marketing cam- what triggered a growth explosion in the paigns in Japan. On the other hand, con- Japanese fashion industry was the introduc- 1980s: Diversification & sophistication sumers, swamped by a sea of goods, have tion of the US model of fashion business. I The 1980s witnessed a period of diversifi- begun to seek “emotional” values in addi- happened to be studying at the Fashion cation and sophistication. The attraction of tion to “material” worth. It has become Institute of Technology (FIT) in New York the fashion business drew designers and entre- important to turn stores into a place that in 1968 and the scales dropped from my preneurs to new businesses and they created a would turn on customers, a place where the eyes when I read a textbook titled “Inside string of distinctive brands, putting their feelings of consumers are pampered. Young the Fashion Business” (coauthored by stamp on a period that has become known as fashion creators are conspicuously active, Jeanette A. Jarnow and Beatrice Judelle). I an era of “DC (designer/character) brands.” such as Minagawa Akira and Takahashi Jun, translated it into Japanese and the Japanese While Japanese designers, led by Takada who create clothing that is combined with edition was published by Asahi Chemical Kenzo and Miyake Issey, started to participate originality in materials and hold new con- Industry Co. (now known as Asahi Kasei in the Paris Collection in the 1970s, cepts in design. Corp.). At that time, there was not even a Kawakubo Rei and Yamamoto Yohji became After having maintained a dominating suitable Japanese term for “fashion busi- the talk of the town in 1981 with their “kuro- position in fashion, department stores are ness.” After a lengthy discussion on no shogeki” (shock of the black) and “boro now exposed to competition from many whether an equivalent Japanese term was rukku” (rag look), sparking a Japan boom. other forms of business, while Internet available, it was decided to use the English The sharp rise in the value of the yen, shopping has lured away customers. Yet term in Japanese, which turns into “fatshon triggered by the 1985 Plaza Accord, and the another new business model has come to bizinesu.” The authors held forth the vision subsequent asset-inflated bubble economy the fore: While enjoying a fashion show or a that fashion is not only a matter of design, in Japan not only dealt a blow to the live music performance, customers can now but it has the potential to become a major domestic base of production from the grow- place orders on the spot with their mobile industry when combined with business. ing import of low-priced products but also phones. The Tokyo Girls Collection, as This opened the way for the fast growth of accelerated the encroachment into the seen in the picture on the next page, is an the Japanese apparel industry. Japanese market by upscale foreign brands. example. (Photo)

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Photo: 2006 Autumn/Winter Tokyo Girls Collection Photo: Xavel, Inc.

of fact, the Japanese vertical- (3) Japan Fashion Week ly integrated manufacturer- The Japan Fashion Week is also an retailer fashion business leads important policy measure implemented by the world with its system of METI. It offers a venue for the fashion planning and distributing industry and designers to work together fashion goods in a short and launch their fashion collections so the cycle, keeping abreast of the world at large can become aware of out- changing preference of con- standing Japanese creations. The Japan sumers in fashion. Fashion Week is described in detail elsewhere, but one point needs to be noted (2) IFI Business School: here: Inside METI, a department in charge professional training of textile materials and the textile manufac- While the need to train turing industry is also vigorously grappling professionals in the fashion with policy measures related to fashion cre- business had been felt a long ation. time ago, it was against the The fashion business is expanding into multiple channels. Consumers can order clothes on a real-time basis by mobile backdrop of increasing glob- 5. Future of Japan’s Fashion Industry phone while watching a fashion show (a scene from Xavel’s al competition that in 1989 Tokyo Girls Collection). METI (then known as What should Japan think about in order MITI, the Ministry of to lead the world in fashion? 4. Government Contribution to International Trade and Industry) put for- As a basic stance, Japan should first of all Industry Development ward a new policy for the textile industry reassess the strength of its domestic market: with the conclusion that a graduate-level The presence of consumers who are keenly The Japanese government has played a professional educational facility was indis- interested in fashion, highly sensitive to big role in nurturing the Japanese fashion pensable for the fashion industry. The changes and very demanding in product industry and bolstering its competitive edge nonprofit Institute for the Fashion quality. These “hard-to-please consumers” in the global market. Here are three such Industries was established under the min- contribute greatly to product innovation projects, launched after 1990. istry’s leadership. and the reform of business models, both The institute is unique because it was set leading to the development of new markets. (1)Quick response, supply chain management up at the initiative of the trade ministry Japan should capitalize on such demanding The concept of QR (quick response) rather than the Education Ministry. Its consumers and develop novel products and emerged in the United States in the mid- doctrine is to provide a “practical curricu- new business models, setting their eyes on 1980s, something that later evolved into lum.” Its students are mainly the people the world market. To achieve this, a global SCM (supply chain management), a busi- working in the industry while lecturers are and strategic vision is critical. Here are ness process that entwines all stages of the drawn from career professionals at the fore- three business areas with great potential. industry. In Japan, it was the Ministry of front of fashion business. The school trains Economy, Trade and Industry (METI) that its sights on the trinity of “creation, produc- (1) Japan’s “soft power” played a leading role in promoting and tion and commerce,” the three fundamental A French scholar on Japan once said, implementing these concepts and business functions of the industry. At the same time, “Japan is the only country in the world models for the Japanese fashion business. it is aimed to train people capable of seeing where high culture and mass culture sit side Unlike in the United States where the pri- the future of the textile, apparel and retail by side.” It is a country where the art of tea vate sector takes the lead in business devel- businesses in a vertical manner in associa- ceremony, the sense of quiet simplicity, and opment, a government role was deemed tion with the multi-layered apparel indus- excellent traditional art and craft coexist necessary in Japan due to a complex pro- try. The curriculum covers a broad spec- with the world of anime, manga and action duction and distribution system, a corpo- trum of subjects with the main focus on figures. The country should make the most rate structure where small and mid-sized three career courses designed for young of its outstanding culture, which forms the firms make up the bulk of business activi- workers, mid-career professionals and busi- root of such a phenomenon. Last year, ties, and the prevalence of antiquated business executives in order to train buyers, Japan Fashion Week organizers held a sym- ness practices. merchandisers and management personnel, posium under the theme “How the World With the introduction of the QR/SCM respectively. The school also offers lan- Sees It” and speakers such as Suzy Menkes, concepts, while Japan still lags behind the guage courses to help people in the fashion the globally known fashion editor of the United States in overall reform of the fash- industry develop skills to communicate in a International Herald Tribune, spoke of the ion industry, many original business models foreign tongue, which is a challenge for importance for Japanese to have confidence have emerged in this country. As a matter many Japanese. (Chart 1) in the value of Japanese fashion and culture,

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Chart 1: Structure of professional education at IFI Business School Chart 2: A-POC design concept (1998 Spring/Summer Issey Miyake Collection)

Typically, a garment-making process is divided into making fabrics and garments, and each step handled by separate companies. The A-POC process, innovative design/production architecture, not only integrates these steps into one but also allows custom adjustment by a consumer.

world in the field of synthetic fiber, produc- (3) Innovation of manufacturing architecture ing cutting-edge high-performance materi- Planning and production of fiber, cloth Educational programs are offered according to career levels ranging from new graduates to als and production techniques. Even in the and apparel in the fashion business have been business executives. A course for young world of wool and cotton, fabrics elaborate- carried out by separate industries until now. people gives priority to understanding the ly crafted in unique style and with unrivaled However, if these production processes are whole picture of “creation, production and commerce” in the fashion industry. techniques are accepted by top apparel mak- seen as an integrated value chain, product ers and designers in the world. planning, production planning and distribu- including things that they are not even Exceptionally well-made materials are tion/sales planning can be integrated with the aware of, and share them with the world. prone to be expensive and may plunge into use of information technology. It means a They also spoke of Japan as a post-moderni- a vicious cycle of failing to attain big scale in process reengineering of the fashion industry. ty standard-bearer and a seismic center of sales and production. However, I believe a A good example of this is Miyake Issey’s new creations. virtuous cycle can be attained if unsparing “A-POC” (a piece of cloth) concept. While There is the world of “Super Flat” created efforts are made in public relations and the project has now developed to a new by Murakami Takashi, who studied marketing on a global scale and business high of sophistication, the initial concept Japanese-style painting, or the idea of “min- agreements forged on the strength of “high was that ”a piece of cloth can be cut to the imalism” beloved in the world of MUJI- fashion” created with great sensitivity. liking of consumers and become clothing.” brand products. There is the traditional There are also expectations that Japan As the chart demonstrates, a piece of cloth Japanese sense of design as crystallized in will play a leading role in the field of ecolo- knitted in partially closed tubes by a special- the idea of simplicity and sensitivity, and gy policy. Based on the traditional concept ly designed machine on the basis of design “natural greige.” And then there is the of coexistence with nature and the idea of and production information can turn into apparel of “a piece of cloth” from Miyake “mottainai” (zero waste), Japan should be clothing of one’s own liking by cutting the Issey and Kawakubo Rei created from tradi- able to develop goods and processing tech- cloth into different parts. (Chart 2) There tional materials. None of these creations is niques both effective and resource-friendly. are other examples of innovative design found in Europe or the United States. Besides globally valued synthetic fabric recy- achieved through technological develop- Japan could break new ground in the fash- cling, examples abound: The creative use of ments in special post-production finishing. ion world if it has the ability to create “high the healing effect of “kumazasa,” a kind of Given these developments, the future of culture” excelling in quality and sensitivity wild, low-growing bamboo also known as Japanese fashion looks bright. What is and make such creations available for enjoy- Veitch bamboo, the use of materials from needed first of all is that Japanese must have ment in day-to-day life. fast-growing bamboos. Minimizing the loss confidence in their own culture, the fashion of materials is another example. Japanese they have created, their inherent sense of (2) Excellent materials people used to dye their kimono several value and the technology they have devel- Japanese textiles, whether in the form of times during the kimono lifetime, change oped. It is on this basis that instead of fiber or fabric, receive high marks in the design and sew them anew to be worn by going after European or American models, world. Historically, the transaction of silk children. When kimono finally wore out, they can create their own original products fabric in Japan was conducted with the cloth was cut up for use as dusters or and strike it out in the world. “momme” (a Japanese weight standard rags, and old rags were chopped into tiny Ohara Yoko is President, IFI Business equivalent to 3.75 grams) as a basic unit. pieces for use as plaster mix, thus going School, Institute for the Fashion Industries. At present, Japan is at the forefront of the back to the earth eventually.

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