Japan's Clothing Industry Is Declining, Is There Any Data?

The overall trend is down, almost plummeting.

In 2018, the supply of clothing market in Japan reached 2 billion 900 million, 2.5 times that of 1990, and consumption was about 1 billion 300 million. The digestibility was about 46.9%, which fell to about half of that of 30 years ago.

The performance of department stores in the main channel of clothing sales decreased from 9 trillion and 731 billion yen in 1991 to 5 trillion and 887 billion yen in 2018, down 40%.

Among them, department store clothing sales performance from 2 trillion and 713 billion 300 million yen in 2008, narrowed to 1 trillion and 772 billion 500 million yen in 2018, the rate of decline is faster than the overall department store performance.

The supply is too large, the consumption shrinks and divides. According to the survey conducted by 40 garment enterprises, the fixed sale rate in 2018 was 73.3%, 6.1% lower than that in 2008. Too much pursuit of sales and neglecting the transformation of values makes garment industry more and more close to disorder.

As the main category supporting the performance of department stores, clothing sales have declined for 30 consecutive years. This trend should be attributed to the more essential social and cultural value factors. In January 23, 2019, the sales data of Japanese national department stores released in 2018 showed that women's wear and men's wear decreased by 2.8% percentage points year-on-year, and women's clothing has been declining for 5 years.

In 2010, the number of women's clothing in department stores dropped to 82.3%, while men's clothing decreased to 91.4%. From the sales performance of rental shops in comprehensive commercial facilities, men's clothing fell to 91.6% compared with women's clothing, and men's clothing appeared to be better than women's clothing. The consumption differentiation of women's clothing was even more pronounced than 100.

Representative businesses and enterprises declined seriously.

In June 15, 2019, Japan's four largest men's clothing enterprises announced the 2018 annual settlement. The results show that the overall performance of the company has declined, with a reduction in profits and losses. The largest Castle Peak business, sales fell 1.8%, to 250 billion 300 million yen, operating profit decreased 29%, 14 billion 600 million yen, net profit decreased 50.1%, 5 billion 700 million yen, which is a rare low level in recent years.

Another major AOKI holding company consolidated final accounts show that sales decreased by 2.3%, to 193 billion 900 million yen, operating profit decreased by 10%, to 13 billion 300 million yen, and net profit decreased by 37.6% to 4 billion 600 million yen. Sales of suits decreased by 3.8% from the previous quarter to 1 million 247 thousand units, and the unit price of sales decreased by 2.3%, to 25 thousand and 500 yen.

In the fast fashion industry, once the top quality Island Village in 2009 as the national fashion leader, young people are always proud of the island as a whole. Now the island village's clothing is already in a state of dismal state. Kitajima, President of the island village, often said that the sales price of the PB brand in the island village was about 77% in 2018, down 7% from the same period last year, down 10% from 2016.

In February 2019, sales fell 3%, to 545 billion 900 million yen, and operating profit fell 41%, to 25 billion 400 million yen. In the face of great pressure, in December 25, 2018, Nonaka Masahito, chairman of the village village, announced his resignation on the grounds of physical discomfort. With the popularity of Internet dissemination, the island village has lost the control power of the popular front line.

Big clothing website "ZOZOTOWN" is constantly breaking. In 2018, a "social contribution service" was put forward. Unified discounts and partial discounts were undertaken by ZOZO. However, considering the loss of brand autonomy value, a large number of famous brands such as "23 districts" were released.

The average price of ZOZO in the second quarter of 2018 was 3655 yen, which was nearly 3 less than that of 5011 yen 5 years ago, and the brand value and material design sense were drowned.

ZOZO launched an intelligent customized PB suit design marketing plan in early 2018. Due to disputes such as delay in delivery, by March 2019, the PB sales target was 20 billion yen, and only 2 billion 700 million yen actually completed, resulting in a deficit of 12 billion 500 million yen.

Foreign brands are leaving the Japanese market one after another. Following GAP, the latest case is the American Eagle. In June 7, 2019, Castle Peak announced that it would terminate the contract with the US hawk (AEO) in advance of the February 2022 contract period. The joint venture company is a franchise company established in 2010 by 90% of Castle Peak commercial investment and 10% of investment in gold products.

In April 2012, shop No. 1 opened on Meiji Road, the peak of business appeared in early 2017, and the sales volume of 34 stores reached 14 billion 800 million yen. Then, due to the ebb tide of domestic leisure chain stores and fast fashion shops, the sales volume of shops decreased rapidly. By March 2019, sales accounted for 12 billion 300 million yen, and the profit loss expanded to 1 billion 300 million yen, which had to be dissolved.

Network, human nature, clothing supply and demand value destruction

According to the statistics of the Japanese government, the consumption of Western family clothing in 2018 was 4976 yen, and in 2000 it was 8782 yen, which was reduced by more than 4. The latest booking sales mode, the general combination set less than 20 thousand yen, suit suit price in 30 thousand to 40 thousand yen, and department store similar clothing price comparison, there is a big gap. How do we see this evolution?

First, pursue sales simply, lengthen the cycle and depress the vitality of the scene.

Since 1990s, garment production has accelerated to overseas. In recent years, China has shifted from high cost China to lower cost South Asia. The cost of purchasing production has been declining, and its output has continued to expand rapidly.

Correspondingly, there is a strange cycle of elongated logistics cycle, increasing production volume and continuous advance of subscription bands. In Japan, it takes 3 weeks from order to brand warehouse, which takes 6 weeks in China's coastal area and 12 weeks in South Asia, resulting in a reduction in hit rate for short cycle demand points.

At the store site, hot marketable products are decreasing, POS data can not accurately feedback store configuration, appeal, on-site can not edit inventory, sales theme, balanced sales chain was broken. Clothing and food have one thing in common, that is, territoriality is very strong. On-site flexible editing can largely control the sales rate. Just obey the headquarters scheduling, can only sacrifice the vitality of the site. Related, Chinese store stores are deeply trapped in it, it is difficult to extricate themselves.

Train of thought two, networking, eliminated the opaque value gathering guest marketing theory.

As early as in 1920s, first in France, members of the fashion women's wear Association joined together with fashion magazines and newspapers to form the theme of marketing publicity, and to create a market suspense in one dimension and win the middle-level consumer groups. This game soon spread to the United States, relying on the value of opaque commodities and gathering customers for sale.

Over the next few decades, the parties devoted efforts to shaping brand themes, further lifting consumer psychological expectations and consuming appetite. By 1980s, there was a combination of sports brands and fashion magazines, forming a dynamic brand marketing trend. Supply instability, asymmetric information and opaque value made the brand marketing theory flourish.

With the rise of fast fashion brands and the transparency of network SNS information, the opaque brand marketing theory has quickly hit the soft spot. Especially after the successful transformation of SPA mode, cross channel agents and intermediary buyers have butted the production end and consumer end customers, and the opaque marketing value chain has been overturned, and the data marketing mode has completely changed the value of clothing brand.

Japan is a full market mechanism. It has undergone a relatively complete historical process of interlocking and destruction of supply and demand value. In particular, clothing is a typical representative of social and cultural values. When people see their needs clearly, that is, the products that are suitable for their own personality, and do not require the clothing brand to attach (some) value, the clothing changes from the brand attachment puppet to the human nature symbol.

Where can the clothes be sold?

In July 3, 2018, Japan's Asahi Shimbun reported that a large number of corrugated boxes were filled with clothing to be processed in an industrial warehouse in Osaka, including many new products with unfashionable brands and lagging PB products.

Yamamoto Masahito, the head of the business, said that in recent years, 600 companies, including clothing operators and processing plants, could receive about 5000000 items of clothing and 300 thousand -40 shares a year. They usually buy around 10% of the price, take down the labels and brand nameplates, rearrange photographs, packages, divide specifications and add labels with the price 17-18%, and do short term sales on their own website platforms or promotional markets. Some are new products, some are used as second-hand goods.

Besides selling a small part in Japan, the external sales area is mainly in mainland China, including Western Asia, Africa and other places (the picture is a warehouse in Western Asia).

How many garments from mainland China such as online platform sales, physical store, OEM sales and so on? Please contact the author with relevant information.

According to people's customary business ideas, some clothing brands will start selling at a fixed price, and they will soon organize 40 percent off big price cuts, and there will be a 70 percent off sale at the end of the season. Even then, it seems to be profitable. But in recent years, under the impact of the network sales platform, the rhythm has been disrupted. Those who imitate and follow the wind and take the quantity of brands are even more difficult to control the rhythm. Some famous international brands are unwilling to treat the backlog products as second-hand goods. In order to maintain the so-called brand value, they secretly burn in large quantities.

For example, in July 2018, Bo Bailey was discovered in 2017, burning 4 billion 200 million yen in the backlog of goods, mostly the design of strong fashion products, but the stronger the sense of design, market adaptability may be weaker, not enough to turn around sales, resulting in a large backlog. BBC led the very strong media condemnation. In September 8, 2018, burberry was forced to issue a statement that it would strictly prohibit incineration of surplus commodities in the future.

Where is the way out? Is network data reliable?

Combined with the reality analysis of Japanese department stores and 100 garment enterprises, the basic state is:

First, the combination of brand and category and floor area is missing. Brand stores are stuck to traditional ideas, unwilling to combine with other brands, and stick to the image of single sex products.

Second, the adjustment cycle is not willing to change, can not jump out of the pre-set annual business routines. We should shorten the cycle of commodity combination change, deal with the trend of consumption change, and control the sales fluctuation in the monthly time limit.

Third, shops lack personality and vitality, lifeless. Even chain stores, the monthly hot goods composition of each store is different. There is a best combination rule in regional passenger demand and geographical culture, which can not be seen.

Fourth, suppliers should keep up with the hot consumption elements of the network and make short distance quick replenishment turnover. At present, there is no such flexible personality method, only rigid discount.

In July 30th, Professor Tanaka Daoaki of Japan's University of education led a team of 18 people to visit Hangzhou Yintai department store. The members included brand developers and real estate developers. They were very concerned about "Yintai manufacturing", and the channel value sharing of clothing brands is undoubtedly a key point.

Obviously, at home and abroad, all eyes of different color temperature are looking at Yintai. Why? Two examples.

Look at Amazon's data, how to do it?

According to Cohen, an American research firm, Amazon's share of the US apparel market will expand from 6.6% in 2016 to 16.2% in 2021. In terms of sales, it has increased by about 3 times in 5 years. Amazon launched a time service project "gold suit", with gold members charged for tolling. Members pick over 2 items from the Amazon channel and try them for a week. If they do not like them, they will be sent back free of charge.

In the United States, more than 100 million members of gold have been exchanged for customers' value in time, and fashion consumption information has been continuously concentrated on Amazon. In this connection, Amazon has created more than 60 PB brands in the field of clothing, putting real name data resources into planning and development, and is expected to create products that meet individual tastes and realize community customization. The introduction of this service in Japan in 2018 will affect the extent to which it will affect the Japanese apparel industry.

Look at the data of Yi Shi Dan, how to do it?

San Yue Yi Dan Dan has been sticking to the direction of commodity management. Since 2018, value orientation has shifted from fashion Yi Dan to "IT platform, shop and manpower" platform. The emphasis is on three aspects.

First, set up a photographic studio to start with the new store of Yi shdan and register all the goods in the website, expand online transactions; two, optimize online reception consultation, add on-site service consultants, and launch service software; three, collect customer data, carry out 7 projects, including personal modeling, integration of makeup brand resources, regular home delivery, customized services, online gifts, online SPA, sharing participation and so on.

The joint customization service under clothing online and offline is a new bright spot. The department store of Gao Dao and other department stores are adopting this method. From the national market, it reaches about 20% of the Western clothing market in 2018. But considering the yield and the expansion of production, how to maintain sustainable development is a difficult problem without the data support from Amazon.

Comparing Amazon, or even Yintai, the measures of Yi Dan Dan appear to be relatively sprouting, but their value orientation is shifting to the strategy of data transformation, and there is nothing wrong with the general direction.

There are also things I don't want to do. It has been said that the business plan of Qingshan business has increased to 1.5 times the proportion of garments and other clothing business by 2028, accounting for 40% of the total performance, and the main income is getting rid of the dependence on clothing.