From Textile Export Giant to Importer: Where Lies the Business Opportunity in the Japanese Market?
Duration:
Mar 26 - 28, 2025
Location:
Japan
In the cherry blossom season of March, Made-in-China.com, along with more than 400 Chinese enterprises, headed to Tokyo, one of the world's four major fashion capitals, to participate in FaW TOKYO, a semi-annual Japanese fashion and accessories exhibition. Although not large in scale, the spring exhibition featured a total of 550 exhibitors. Like most textile industry exhibitions around the world, whether exhibitors or attendees, Chinese compatriots were seen everywhere.
Tariff Fluctuations Lead to a Decline in Orders in the First Quarter
"The industry is facing tough times now," said Manager Li, who is in the fabric business.
Manager Li's hometown, Keqiao in Shaoxing, is known as "the city on the cloth," with a high foreign trade dependence of over 70%. Manager Li told us that he was very dissatisfied with the first quarter of this year. This view is also confirmed by the latest report from the China Textile Industry Federation, which states that in January and February of this year, China's cumulative exports of textiles and garments amounted to 42.88 billion U.S. dollars, a year-on-year decrease of 4.5%.
Why is this happening?
Through communication, we learned that European and American buyers placed orders in advance last year due to tariff expectations, which made the foreign trade export data for November last year very impressive. However, this also overdrawn the demand for the first quarter of 2025 to some extent, resulting in a gap in orders after the holiday. Additionally, the rapid changes in attitude towards tariffs in Europe and America could pose significant risks, so many potential orders are still in a wait-and-see state, with buyers hesitant to commit.
From Export to Import, from Low-End to High-End
Japan is the country where the textile industry developed earliest in Asia and possesses the world's most advanced textile technology. However, due to high labor and production costs, Japanese products can no longer compete with imported products in the mid-to-low-end market. Over the past 10 years, the number of Japanese textile manufacturing companies and employment has decreased by 40%-50%, and the country has shifted from a major exporter of textile fabrics to a major importer. Today, Japan relies on imports for 80% of the natural raw materials needed for its textiles and 50% of finished products such as clothing, with Chinese products undoubtedly occupying a significant market share.
At the FaW TOKYO exhibition site, there were not many Japanese local booths, but they tended to be uniquely styled and well-organized, making them easily distinguishable. Many Japanese exhibitors hire professional exhibition planning companies to design their booth image, with attention to detail down to the size of each logo and the angle at which each product is placed. The prices of products on Japanese booths often deter visitors, but the long-term accumulation of technological development and product planning capabilities has led the industry as a whole to shift towards the high-end. It is in the field of high-end textiles that Japan is increasingly gaining importance. The targets for Japanese exhibitors are profitable products such as high-end fashion garments, industrial textiles for automotive and medical use, which have a higher added value.
Seizing the "Quality Dividend" to Reshape Competitiveness in the Japanese Market
At the FaW TOKYO exhibition site, the booth of China Manufacturing Network garnered the attention of many buyers. Through communication with end consumers, we found that they often show a strong interest in products with innovative designs and eco-friendly concepts. Environmentally friendly recycled fibers (such as recycled polyester) and bio-based materials (such as PLA fibers) are gradually becoming popular in the Japanese market. Consumers are increasingly concerned about whether the production process of the fabric meets environmental standards, and apparel and bags made from some natural and sustainable materials often attract inquiries.
In response to this trend, Chinese manufacturers are focusing on the "quality dividend." By enhancing product quality and incorporating eco-friendly practices, they can meet the growing demand for sustainable and high-quality goods in Japan. This approach not only aligns with global environmental trends but also taps into the high-end market segment that values sustainability and innovation.
Chinese companies are leveraging advanced technology and sustainable materials to develop products that cater to this market. By doing so, they are not only complying with environmental standards but also differentiating themselves from competitors through unique and high-value offerings. The emphasis on quality and sustainability is reshaping the competitive landscape in the Japanese market, allowing Chinese manufacturers to gain a foothold in the high-end sector and potentially capture a larger share of the market.
Japanese buyers are famously "picky," but behind this pickiness lies a vast space for premium pricing. A fabric supplier from Jiangsu shared with us the secret to breaking into the Japanese market. Last year, his company collaborated with a Vietnamese subcontractor. China provided antibacterial fabric that complied with Japanese Industrial Standards (JIS), and after the fabric was sewn in Vietnam, it was exported to Japan. This increased the profit margin by 8% compared to purely domestic processing.
Additionally, by working with a local Japanese agent, they were able to shorten the service radius and successfully gain the trust of many Japanese customers. Moreover, once Japanese buyers decide to establish a partnership, they are not likely to easily replace suppliers, ensuring long-term cooperation. This strategic approach not only ensures compliance with Japanese standards but also increases profitability and fosters strong, lasting relationships with Japanese clients.
In summary, the key to success in the Japanese market lies in understanding and meeting their high standards, providing excellent service, ensuring reliable and consistent quality, and building long-term partnerships.
From January to February 2025, business opportunities for major light industrial products on Made-in-China.com increased by 34% year-on-year. Among them, the opportunities for apparel accessories increased by 45% year-on-year. In response to the fragmented procurement, high degree of personalized customization, and frequent purchasing of light industrial products, MIC International Station will collaborate with the Global Buyer Service Center located in the Philippines to provide full-cycle services from demand matching to after-sales support.
The Tokyo exhibition is not only a milestone for Made-in-China.com in connecting global business opportunities, but also a significant stepping stone for Chinese textile and clothing enterprises towards high-end and international markets. In the future, we will continue to empower Chinese enterprises through data and resource integration, helping them seize the initiative in the new round of global supply chain adjustments!
Tariff Fluctuations Lead to a Decline in Orders in the First Quarter
"The industry is facing tough times now," said Manager Li, who is in the fabric business.
Manager Li's hometown, Keqiao in Shaoxing, is known as "the city on the cloth," with a high foreign trade dependence of over 70%. Manager Li told us that he was very dissatisfied with the first quarter of this year. This view is also confirmed by the latest report from the China Textile Industry Federation, which states that in January and February of this year, China's cumulative exports of textiles and garments amounted to 42.88 billion U.S. dollars, a year-on-year decrease of 4.5%.
Why is this happening?
Through communication, we learned that European and American buyers placed orders in advance last year due to tariff expectations, which made the foreign trade export data for November last year very impressive. However, this also overdrawn the demand for the first quarter of 2025 to some extent, resulting in a gap in orders after the holiday. Additionally, the rapid changes in attitude towards tariffs in Europe and America could pose significant risks, so many potential orders are still in a wait-and-see state, with buyers hesitant to commit.
From Export to Import, from Low-End to High-End
Japan is the country where the textile industry developed earliest in Asia and possesses the world's most advanced textile technology. However, due to high labor and production costs, Japanese products can no longer compete with imported products in the mid-to-low-end market. Over the past 10 years, the number of Japanese textile manufacturing companies and employment has decreased by 40%-50%, and the country has shifted from a major exporter of textile fabrics to a major importer. Today, Japan relies on imports for 80% of the natural raw materials needed for its textiles and 50% of finished products such as clothing, with Chinese products undoubtedly occupying a significant market share.
At the FaW TOKYO exhibition site, there were not many Japanese local booths, but they tended to be uniquely styled and well-organized, making them easily distinguishable. Many Japanese exhibitors hire professional exhibition planning companies to design their booth image, with attention to detail down to the size of each logo and the angle at which each product is placed. The prices of products on Japanese booths often deter visitors, but the long-term accumulation of technological development and product planning capabilities has led the industry as a whole to shift towards the high-end. It is in the field of high-end textiles that Japan is increasingly gaining importance. The targets for Japanese exhibitors are profitable products such as high-end fashion garments, industrial textiles for automotive and medical use, which have a higher added value.
Seizing the "Quality Dividend" to Reshape Competitiveness in the Japanese Market
At the FaW TOKYO exhibition site, the booth of China Manufacturing Network garnered the attention of many buyers. Through communication with end consumers, we found that they often show a strong interest in products with innovative designs and eco-friendly concepts. Environmentally friendly recycled fibers (such as recycled polyester) and bio-based materials (such as PLA fibers) are gradually becoming popular in the Japanese market. Consumers are increasingly concerned about whether the production process of the fabric meets environmental standards, and apparel and bags made from some natural and sustainable materials often attract inquiries.
In response to this trend, Chinese manufacturers are focusing on the "quality dividend." By enhancing product quality and incorporating eco-friendly practices, they can meet the growing demand for sustainable and high-quality goods in Japan. This approach not only aligns with global environmental trends but also taps into the high-end market segment that values sustainability and innovation.
Chinese companies are leveraging advanced technology and sustainable materials to develop products that cater to this market. By doing so, they are not only complying with environmental standards but also differentiating themselves from competitors through unique and high-value offerings. The emphasis on quality and sustainability is reshaping the competitive landscape in the Japanese market, allowing Chinese manufacturers to gain a foothold in the high-end sector and potentially capture a larger share of the market.
Japanese buyers are famously "picky," but behind this pickiness lies a vast space for premium pricing. A fabric supplier from Jiangsu shared with us the secret to breaking into the Japanese market. Last year, his company collaborated with a Vietnamese subcontractor. China provided antibacterial fabric that complied with Japanese Industrial Standards (JIS), and after the fabric was sewn in Vietnam, it was exported to Japan. This increased the profit margin by 8% compared to purely domestic processing.
Additionally, by working with a local Japanese agent, they were able to shorten the service radius and successfully gain the trust of many Japanese customers. Moreover, once Japanese buyers decide to establish a partnership, they are not likely to easily replace suppliers, ensuring long-term cooperation. This strategic approach not only ensures compliance with Japanese standards but also increases profitability and fosters strong, lasting relationships with Japanese clients.
In summary, the key to success in the Japanese market lies in understanding and meeting their high standards, providing excellent service, ensuring reliable and consistent quality, and building long-term partnerships.
From January to February 2025, business opportunities for major light industrial products on Made-in-China.com increased by 34% year-on-year. Among them, the opportunities for apparel accessories increased by 45% year-on-year. In response to the fragmented procurement, high degree of personalized customization, and frequent purchasing of light industrial products, MIC International Station will collaborate with the Global Buyer Service Center located in the Philippines to provide full-cycle services from demand matching to after-sales support.
The Tokyo exhibition is not only a milestone for Made-in-China.com in connecting global business opportunities, but also a significant stepping stone for Chinese textile and clothing enterprises towards high-end and international markets. In the future, we will continue to empower Chinese enterprises through data and resource integration, helping them seize the initiative in the new round of global supply chain adjustments!