The following research report contains market research, analysis, statistics and business intelligence relating to research on Outerwear Industry In Japan.

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ABSTRACT
The total Japanese market for all kinds of apparel is estimated at approximately yen 4,989 billion or US$ 41.2 billion. The apparel market in Japan was growing at 10-15% annually until 1996, despite the slow economy following the burst of the economic bubble in 1991 and a stagnant domestic apparel market since then. In particular, Japan's apparel imports were enjoying a remarkable increase with 15-20% annual growth until 1996. The imports from the U.S. were especially remarkable, with annual growth rates of 20-30% due to the "American Casual Fashion" boom in Japan. Major supplying countries in 1997 were China(65.9% of imports); Italy(7.7%); South Korea(4.5%); U.S.(4.3%); and Vietnam(3.1%).

The market size for women's outer garments in Japan is estimated at about yen 1,846 billion or US$ 15 billion, which is equivalent to 37% of the entire apparel market. The domestic market for women's outer garments has been shrinking by approximately 4% each year since April of 1997, when the consumption tax increased from 3% to 5%, special tax cuts were terminated, and the patient's portion of payment under national health care was increased. In addition, the Asian economic crisis since July 1997, when the Thai baht was switched to a floating exchange rate system, considerably influenced the Japanese economy. Restructure and /or scandals among major banks, stock companies, and government organizations further worsened the consumption market. Japan's gross domestic product (GDP) registered a real growth rate of 0.9% in 1997. This was the first time in three years for the figure to fall below 1% and the lowest level among major developed nations.
Imports of women's outer garments also dropped by 5% in 1997, and the industry experts are rather pessimistic of the market recovery for next couple of years. The recent yen depreciation also makes imports more difficult.

The "American Casual Fashion" boom propelled an extraordinary increase in imports from the U.S. for several years until the first part of 1997. After April 1997, Japanese importers had difficulties with further market expansion because of huge dead inventories unsold at retail shops, resulting from the difficult economic situation. However, since the spring of 1998, the Japanese young generation has again started buying "American Casual Fashion" items, such as jeans and printed T-shirts. U.S. manufacturers and exporters are encouraged to take advantage of this trend and make efforts to enter the Japanese market.

Japanese domestic apparel production is changing due to the increase in labor costs in Japan, a shortage of young labor resources, a change in consumer preference toward imported items, and the yen's depreciation. Japanese manufacturers have faced a severe shortage of labor in their sewing mills due to the aging population and rising wages. In fact, JECMA (Japan Export Clothing Manufacturers Association) invites 200-250 young Chinese sewing mill workers to Japan every year since 1991 on a one-year contract basis, sending them to small and medium scale sewing mills throughout Japan.

According to 1997 statistics compiled by the Ministry of Finance, the major countries from which apparel is imported and their respective percentages of the import market are: China (69.4%), Italy (8.2%), Vietnam (3.6%), Indonesia (2.5%) and the United States (2.4%). The high percentages from China, Vietnam, and Indonesia are due to Japanese manufacturers' increasing use of their joint-
venture sewing mills in these countries, where lower-cost labor is available. Imports from Italy have long been stable due to the deeply-implanted good brand image of Italian fashion among Japanese consumers. Italian apparel companies and related industry association are currently trying to regain their 1980's position in the Japanese market by the creation of classic-casual types of women's wear at reasonable prices.

Major buyers in Japan are women in the 20-24 year-old age group in terms of apparel volume. From the view of value purchased, women 45-49 years old are the biggest group because they purchase the most expensive suits, dresses, skirts and sweaters. Young women's preference for a prestigious image, reasonable price, multi-use, and comfort helped generate the boom for "American Casual Fashion".

As to the laws and regulations for apparel imports, the U.S. apparel exporters should understand the "Labeling Law" and the "JIS(Japan Industrial Standard) Size Standards" which are described in section D of this report.
Women's outer garments cover the following items:
(Harmonized Commodity Description and Coding System - HS)

HS 6102.10-010 HS 6104.22-020 HS 6104.43-020
HS 6102.10-020 HS 6104.23-010 HS 6104.44-010
HS 6102.20-010 HS 6104.23-020 HS 6104.44-020
HS 6102.20-020 HS 6104.29-010 HS 6104.49-010
HS 6102.30-011 HS 6104.29-020 HS 6104.49-020
HS 6102.30-019 HS 6104.31-010 HS 6104.51-010
HS 6102.30-021 HS 6104.31-020 HS 6104.51-020
HS 6102.30-029 HS 6104.32-010 HS 6104.52-010
HS 6102.90-020 HS 6104.32-020 HS 6104.52-020
HS 6104.11-010 HS 6104.33-010 HS 6104.53-010
HS 6104.11-020 HS 6104.33-020 HS 6104.53-020
HS 6104.12-010 HS 6104.39-011 HS 6104.59-011
HS 6104.12-020 HS 6104.39-019 HS 6104.59-019
HS 6104.13-010 HS 6104.39-021 HS 6104.59-029
HS 6104.13-020 HS 6104.39-029 HS 6104.61-010
HS 6104.19-011 HS 6104.41.010 HS 6104.61-020
HS 6104.19-019 HS 6104.41-020 HS 6104.62-010
HS 6104.19-021 HS 6104.42-010 HS 6104.62-020
HS 6104.19-029 HS 6104.42-020 HS 6104.63-010
HS 6104.21-010 HS 6104.43-010 HS 6104.63-020
HS 6104.21-020 HS 6104.43-020 HS 6104.69-010
HS 6104.22-010 HS 6104.44-010 HS 6104.69-020
HS 6106.10-011 HS 6106.10-012 HS 6106.10-020
HS 6106.20-011 HS 6106.20-012 HS 6106.20-013
HS 6106.20-019 HS 6106.20-020 HS 6106.90-012
HS 6106.90-013 HS 6106.90-019 HS 6106.90-020

HS 6202.11-100 HS 6204.11-100 HS 6204.44-100
HS 6202.11-200 HS 6204.11-200 HS 6204.44-200
HS 6202.12-100 HS 6204.12-100 HS 6204.49-100
HS 6202.12-200 HS 6204.12-200 HS 6204.49-200
HS 6202.13-100 HS 6204.13-100 HS 6204.51-100
HS 6202.13-200 HS 6204.13-200 HS 6204.51-200
HS 6202.19-100 HS 6204.19-100 HS 6204.52-100
HS 6202.19-200 HS 6204.19-200 HS 6204.52-200
HS 6202.91-100 HS 6204.21-200 HS 6204.53-200
HS 6202.91-200 HS 6204.22-200 HS 6204.59-200
HS 6202.92-100 HS 6204.23-200 HS 6204.61-200
HS 6202.92-200 HS 6204.29-200 HS 6204.62-100
HS 6202.93-100 HS 6204.31-100 HS 6204.62-200
HS 6202.93-200 HS 6204.31-200 HS 6204.63-200
HS 6202.99-100 HS 6204.32-100 HS 6204.69-200
HS 6202.99-200 HS 6204.32-200 HS 6204.33-100
HS 6204.33-200 HS 6204.39-100 HS 6204.39-200
HS 6204.41-100 HS 6204.41-200
HS 6206.10-210 HS 6206.10-220 HS 6206.20-210
HS 6206.20.220 HS 6206.30-100 HS 6206.30-210
HS 6206.30-220 HS 6206.40-210 HS 6206.40-220
HS 6206.90-210 HS 6206.90-220
A. MARKET HIGHLIGHTS & BEST PROSPECTS

Market Profile

Outer wear covers rain/duster coats, suits, jackets/blazers, slacks, overcoats, one-piece dresses, jumpers, skirts, and sweaters.

Although the market for women's outer garments was steadily growing until the first part of 1997, the entire Japanese economy, including the apparel industry, plunged into a stagnant phase in 1997 mainly due to the consumption tax hike in April 1997, lag after the buying frenzy to beat the tax hike, and the termination of special tax cuts. In addition, uncertainty in the financial system further worsened consumer and business confidence.

The majority of Japanese apparel manufacturers are facing very serious financial situations because of huge unsold inventories: Most of them have already started to take some action for company restructuring through personnel reduction, wage cuts, selling off of company real estate, and other means.

One of the major women's apparel makers in Japan, Renown Co. had to stop the business of their 25 brand names and discharge 700 employees, 10% of their total employees, even though they were enjoying a top-level position for years being supported by very successful business in the mass production of many best-
selling brand names.

According to the "Annual Report of National Economic Accounting" issued by the Economic Planning Agency and the "Household Surveys" conducted by the Management and Coordination Agency, the following statistics are reported as to the breakdown of apparel industry;

Men's Wear Market 23.8%
Women's Wear Market 37.0%
Children's Wear Market 8.7%
Others(underwear, socks,
stockings, etc) 21.9%
Other fashion-related
Sundry goods 8.6%
100.0%
Imports of apparel in 1997 from the U.S. were yen 136 billion or US$1.1 billion, and imports of women's outer garments from the U.S. were yen 13.6 billion or US$112 million. Imports, local production, exports, and the total market size of women's outer garments are all slowing down annually with respective declines of 6%, 3%, 1%, and 4% in 1997 from 1996. Industry experts are not optimistic of the future of this market because of economic crisis not only in Japan but also in entire Asian region.

Imports from the U.S. are also decreasing at an annual rate of 10% according to the "Japan Exports & Imports" compiled by the Japan Tariff Association. However, many Japanese travelers (approximately 16 million of people in 1997) purchase apparel, mainly women's outer garments, in foreign countries including the U.S. It is reported by travel agents that these travelers reportedly spent approximately 1% of their travel expenses for apparel. The total amount of money used for apparel purchasing is estimated at about yen 350 million or US$ 2.9 million. In addition, through international mail order catalog sales, considerable amounts of American apparel not captured in trade statistics may be entering the market.

Considering the above mentioned factors, real imports of women's outer garments might not have decreased at such high percentages as claimed by some industry experts.

Despite the shrinking market phenomenon since 1997, "American Casual Fashion" is still attracting strong consumer interest in Japan. In terms of product categories, sports/casual types of fashion such as culottes, shorts and long slacks are well received.

Statistical Data

Women's Outer Garments: (Millions of Japanese Yen)

1997 1998 1999 Est.Avg.Annual
(Est.) (Est.) Real Growth-
Next 3 yrs.
------------------------------------------
Import Market 562,227 528,493 496,783 -6%

Local Production 1,293,732 1,254,920 1,217,274 -3%

Exports 10,114 10,013 9,913 -1%

Total Market 1,845,845 1,773,400 1,704,144 -4%
(Millions of U.S. Dollars)

Import Market 4,647 4,065 4,499

Local Production 10,692 9,653 9,364

Exports 84 77 76

Total Market 15,255 13,642 13,109

Imports from U.S. 112 100 91

Exchange Rate 121 130 130
(yen per dollar)

Future Inflation Rate Assumed: 0.4%

1997 Import Market Share(percentages for the USA and major competitors): USA:2.4%; China:69.4%; Italy:8.2%; Vietnam:3.6%; Indonesia:2.5%

Sources: "Japan Exports & Imports" published by Japan Tariff Assn.; "Apparel Production Survey Report" compiled by Textile Industry Structure Improvement Council; and "Japanese Apparel Market and Imports" issued by Japan Textile Importers Association.

Receptivity Score(one:not receptive - five:extremely receptive): four
Best Sales Prospects

1. Women's suits
Classic 60s and 70s style. Material is cotton and rayon in spring/summer. In fall and winter, mainly wool. Those featuring velvet on the collar and cuffs also appeal. In addition to basic colors such as black, gray, navy, and beige, pastel colors (pink and blue) are even popular in fall and winter. The top-
sellers are exclusive Italian and French brands and also low-priced Chinese products. Prices range from Yen48,000(US$397) to Yen100,000(US$826).

2. Women's coats and jackets
Three-quarter length, super long, or medium length (ie. knee length). Box-
shaped jackets are also popular. Wool is the main seller. High-quality fabrics such as cashmere, silk, and alpaca-angora blends. The most popular colors are the basics-black, camel, gray, brown and navy blue. Lightness, good durability, easy to wear are main points for consumers preference. Items of Yen60,000(US$496)-Yen120,000(US$992) price ranges are well sold.

3. Women's pants & skirts
Tight skirts. Pants with two tucks or those with slim line. Spats. Silhouettes are at the two extremes -- slim or large. Wool, summer wool, cotton, polyester, corduroy, and stretch fabrics. In low-priced lines, acrylic wool blends, or shiny silk-satin. Colors are black, brown, gray, beige and navy blue. Should be easy to coordinate. In low-priced lines, products washable at home. Prices range from Yen30,000(US$248) to Yen60,000(US$496).

4. Women's shirts & blouses.
Items featuring famous brand logos. Tailored collars and off turtle neck. In low-priced lines, those with shape memory (ie. treated to retail their shape). Quality design. Plenty of room at the neck. Cotton, silk, polyester and rayon. Or shiny fabrics such as satin. Solid colors or glossy solid colors in white or black monotones. Can be washed at home. No-iron is desired. Retailed at the prices ranging from Yen30,000(US$248) to Yen60,000(US$496).

5. Women's knitwear(sweaters and cardigans)
Twin sets (ensembles) with rounded necks, and sweaters with turtle neck or high necks. Pure sheep's wool, pure cashmere, sheep's wool-cashmere, mohair and silk-mohair. Materials with their own unique gloss and feel such as silk, polyester and rayon. Solid colors in basic white or black. Brighter colors such as light pink or blue. Lightweight and comfortable to wear. Good fit. Best sellers prices range from 7,900 Yen (US$65) to 19,000 Yen (US$157).
B. COMPETITIVE ANALYSIS

Domestic Production The Japanese domestic production is changing due to the increase of labor costs in Japan, a shortage of resources, a speedy change of consumers tastes, and the Yen's depreciation. Total production of women's apparel in 1997, in terms of value, was Yen1,293.7 billion or US$4.6 billion, a 3 percent drop in the value of Yen from the precious year. In terms of quantity, the production by product categories follow: (unit: 1,000 pieces)

1996 1997 increase/decrease

Women's suits 4,100 4,190 +2.2%

Women's pants 3,976 3,745 -5.8%

Women's jackets 10,985 12,963 +18.0%

Women's slacks 21,941 22,968 +4.7%

Women's skirts 17,109 16,016 -6.4%

Women's sweaters 25,224 30,407 +20.5%

Women's blouses 24,768 23,507 -5.1%

Women's outer shirts 25,231 27,197 +7.8%

In Japan, apparel manufacturers have faced a severe shortage of labor in their sewing mills due to an aging population and rising wages. To resolve this problem, JECMA (Japan Export Clothing Manufacturers Association), a non-profit organization of 380 apparel manufacturers in Japan, have established reportedly 100 joint-venture sewing mills in China, Vietnam, Malaysia and other low-cost countries to cut production costs. JECMA also has invited approximately 200-250 sewing mill workers, who are working at the joint-venture sewing mills in China, to work on one-year contracts at Japanese sewing mills.

The following is the list of top five domestic manufactures/wholesalers of women's outer garments by product categories. (unit: millions of US$)
Blouse/Shirts
company name sales percentages to total sales

1. ITOKIN Co. Ltd. 128.0 11.8

2. World Co. Ltd. 119.5 11.0

3. Renown, Inc. 96.5 13.1

4. Tokyo Blouse Co. 82.0 69.0

5. Sakuraya Shoji 70.7 14.0
Blazers/Jackets

1. World Co. Ltd. 179.9 16.5

2. ITOKIN Co. Ltd. 167.5 15.5

3. SANYO SHOKAI, Inc. 157.4 23.0

4. Onward Kashiyama 136.4 21.0

5. Renown, Inc. 120.1 16.3
Coats

1. SANYI SHIKAI, Inc. 153.1 22.3

2. Onward Kashiyama 128.9 19.7

3. Tokyo Style Co. 93.1 7.2

4. World Co. Ltd. 78.6 7.1

5. ITOKIN Co. Ltd. 77.3 20.6
Suits/Ensemble

1. Tokyo Sowarl Co. 128.0 65.5

2. Lovely Queen Ltd. 91.8 64.0

3. Robe Co. Ltd. 60.3 90.0

4. Sakuraya Shoji 50.5 10.0

5. Kanebo Co. Ltd. 42.6 17.0
One-piece dress

1. World Co. Ltd. 69.1 6.3

2. Renown Look Inc. 66.2 15.2

3. ITOKIN Co. Ltd. 62.2 5.7

4. Java Group Ltd. 52.1 15.4
5. Five Fox Co. 47.3 11.7
T-shirts/Trainers/Polo shirts

1. ITOKIN Co. Ltd. 153.5 14.2

2. Sakuraya Shoji 136.3 27.0

3. Renown, Inc. 118.7 16.1

4. OHNISHI IRYO 66.1 25.0

5. Java Group Ltd. 60.9 18.1
Sweaters/Cardigans

1. World Co. Ltd. 235.7 21.7

2. Renown, Inc. 176.1 23.9

3. NAIGAI Co. Ltd. 159.0 50.0
4. ITOKIN Co. Ltd. 147.4 13.6

5. Sakuraya Shoji 126.2 25.0

Bottoms

1. World Co. Ltd. 258.6 23.8

2. ITOKIN Co. Ltd. 199.9 18.4

3. SANYO SHOKAI, Ltd. 162.6 23.7

4. Renown, Inc. 159.9 21.7

5. Singapore Co. Ltd. 159.6 79.8

Source: "Ladies Apparel Ranking" compiled by SENKEN Newspaper
Since the first part of 1997, majority of Japanese apparel manufacturers have been in a very difficult situation not only due to a lingering recession but also due to a huge stocks of dead inventory; and many of them have taken "company restructuring" action, including reduction in force, selling the company's real estate, and cutting employees' salaries and bonuses. However, some companies, who had successfully adopted efficient and productive management/operation policies, enjoy good businesses despite the slow market situation.

3rd Country Imports

According to statistics compiled by the Ministry of Finance, total apparel imports in 1997 decreased by 5% in Yen value from 1996 to Yen 1,766 billion or US$ 14.6 billion.

Imports of women's outer garments in 1997 also dropped by approximately 5% in Yen value from 1996 to Yen 562 billion or US$ 4.6 billion. Major supplying countries are China(69.4%), Italy(8.2%), Vietnam(3.6%), and Indonesia(2.5%). The U.S. import share is 2.4%.

During 1997, in percentage terms, only Vietnam and France enjoyed increases: by 25% and 1% respectively. Imports from China, Italy, Indonesia, and the U.S. decreased by 8%, 11%, 12%, and 13% respectively. The remarkable increase in imports from Vietnam was mainly due to Japanese manufacturers' increasing use of Japan-Vietnam joint-venture sewing mills for production. Industry experts predict that import from Vietnam will increase in the future as the results of the increase in the establishment of new joint-venture sewing mills. Industry experts estimate that the imports of women's outer garments will be leveling off or slowing down for the next few years unless the Japanese economy recovers by Japanese government prompt and active measures.

Although the women's outer garment market in Japan, in general, has been sluggish due to a slump in consumption, casual wear still sells well. A relatively larger percentage of the products of this kind are imported from the U.S.

Japanese imports of women's and girls' outer garments(woven)
January - December 1997 (millions of US$)

Total Suits Jackets Skirts Blouses
Coats Ensembles Dress Trousers Others

China 2777 659 152 55 195 193 232 527 398 366

Italy 449 104 47 6 87 42 35 64 58 6

France 149 22 15 1 36 20 14 20 17 4

Vietnam 102 20 0.3 0.4 3 3 4 13 7 51

USA 66 9 0.8 0.2 7 15 5 18 7 4

Indonesia 64 6 1 3 1.7 7 4.3 13 16 12

S.Korea 53 24 0.4 0.7 6 2.4 1.7 4 8 5

India 44 1.4 0 1.8 1.4 16 3.4 3.8 11 5

HongKong 43 7.8 0.5 0.4 6.8 5 3 9.5 6.5 4

Thailand 42 4 0.1 0.5 2 3.3 3.4 8.5 15 6
U.S. Market Position
Imports from the U.S. accounted for 2.4 percent of the total imports of women's outer garments into Japan in 1997, a 6% drop from 1996. Imports from the U.S. were steadily increasing for several years until 1996, and were expected to continue to increase at an approximately 10% annual growth rate. However, as a result of the consumption tax hike in April 1997, last-minute purchases to beat the hike, the termination of special tax cuts, and other factors, the Japanese market for almost all industries began to slow down from the latter half of 1997. In addition to the impact of the currency and financial crises that spread throughout almost the entire Asian region, beginning with the switch of the Thai baht to a floating exchange rate system in July, stock prices plummeted considerably, giving rise to uncertainty in the financial system. Also, financial institutions, including securities companies, banks, the Ministry of Finance, and the Bank of Japan, were implicated in a series of scandals, which constrained private-sector demand. In addition, depreciation of the Japanese Yen against the US dollar from the beginning of 1998 considerably decreased Japanese imports.

The leading supplying countries of women's outer garments to Japan are China(69.4%), Italy(8.2%), Vietnam(3.6%) and Indonesia(2.5%). Vietnam is moving up quickly, with imports that increased by 25% over the previous year, while imports from Vietnam are only 2.5% of Japan's total imports of women's outer garments. Imports from China, Vietnam and Indonesia are primarily of the products manufactured by joint-venture sewing mills between these countries and Japan. As the result of labor cost increase in Japan, domestic production facilities are moving to these countries where low-cost labor is available.

Industry experts comment that the U.S.-made women's outer garments of world-
famous brandnames such as Calvin Klein, Jantzen, DKNY, J.Press are well received by Japanese consumers, while famous brand names of France and Italy (Alene, Christian Dior, Emanual Ungaro, Nina Ricci, Fila, Mila Schon, Valentino) are very strong in Japan. However, in percentage terms, the import market share of Italian-made women's outer garments in Japan is 8.2%, and the percentage in the U.S. is still 2.4%. Industry experts anticipate that the American-made women's outer garments will be more competitive and well received in Japan because many Japanese travelers to the United States buy the U.S.-made garments in the U.S. and highly evaluate the products for their good design and unique color coordination. These experts add that the American manufacturers and designers should try to introduce and to further promote their new collections to the Japanese market through participation in trade fairs, advertisements in the fashion magazines and apparel newspapers, and other promotional means.

In addition to direct imports, many foreign brand names are manufactured in Japan under licensing arrangements. Therefore, strong and appropriate approach to Japanese trading houses and apparel manufacturers is recommended. In general, Japanese trading houses hold the master license and conclude sub-
license agreements with manufacturers for the production for the domestic market.
C. END-USER ANALYSIS.

According to the Annual Report on Household Surveys compiled by the Management and Coordination Agency, the clothing consumption expenditures per family per month was highest in 1991 (Yen 23,814), and kept slowing down after then due to an increase in other expenses including housing, transportation and education.

Consumption Expenditures Per Month Per Family (Unit: Yen)

Clothing/ Growth Women's Growth Women's Growth
Footwear suits & shirts &
Total dresses sweaters
-------- ------ ------- ------ -------- ------
1994 21,196 -0.9% 4,664 -3.4% 2,210 -3.2%

1995 20,229 -4.1% 4,435 -3.9% 2,214 +0.6%

1996 19,394 -5.1% 4,374 -2.4% 2,143 -4.5%

1997 19,336 -2.5% 4,301 -3.7% 2,157 -2.4%

As indicated in the above table, the clothing consumption has been slowing down year after year. However, the western-style casual wear is most common among Japanese young women in their 20's or early 30's. Women of middle and older ages, with higher incomes, also own a significant amount of casual wear. The generation that caused the "American Casual Fashion" boom in Japan was the youngest group (college and high school students), because they tend to have substantial disposable income from part-time jobs, while living at home with their parents or in inexpensive dormitories.

In the 1980's, backed by the booming Japanese economy, consumers spent a large amount of money on clothing, mostly of famous designer brand names. After the collapse of the "bubble economy", consumers became very sensitive to design, quality, and especially to price, because the babyboomers (age 42-51) have less disposable income for clothing, faced with high rents/mortgages, and kids' education expenses.

As described before, in recent days, consumers can be aware of the latest fashion information very quickly through fashion magazines, other mass media, and world fashion events. It means that their fashion tastes change quickly. For example, for the winter season of 1997, the long woolen coats sold well to young women in Japan; but this year their interests tend to move to short-length coats. They call it a "Jacket-Coat" which should be shorter in length, comfortable to wear, light in weight, and reasonable in price. For fall items, the combination of "casual top" and "elegant bottom" will be highlighted among young women.

In Japan, many fashion magazines are available which convey world fashion trends very quickly, and consumers are much influenced not only by the magazines but also by other mass media and world fashion shows.
C. MARKET ACCESS
1) Regulations

The "Labeling of the Household Articles Quality Law" requires all textile products to be properly labeled with certain information. Although the details, which are specified by the Ministry of International Trade and Industry, vary with the product, the type of information required includes the following:

-Type of fabric and textile yarn content, with percentage figures for lining, thread, materials, etc.
-Care and Washing Instructions,
-Size in metric system,
-Name of manufacturer/supplier or officially registered number with the Ministry of International Trade and Industry,
-Country of Origin,
-Other.

Information on exact labeling requirements can be found by contacting the MITI office listed in KEY CONTACTS list in this report.

2) Size Standards

a) As the result of a nationwide survey on the improvement of the physical build of the Japanese people conducted by MITI (Ministry of International Trade and Industry), the GOJ has revised JIS (Japanese Industrial Standards) for women's garments which serve as guidelines to the standardized sizing system for women's garments effective February 20, 1997.
b) Sizing Table:

Women's Body Types:
-------------------
A type: Body type with average measurements
Height : 142cm - 166cm
Bust: 74cm - 92cm
Y type: Body type with hip size 4cm smaller than A type
AB type: Body type with hip size 4cm larger than A type, but
bust is up to 124cm
B type: Body type with hip size 8cm larger than A type
Garments measured by sizes of bust, hip, height, and waist ----------------------------------------------------------
(Such as dress, suits, jackets, and fitted coats)

A type: (height 142cm) (unit:cm)
5APP 7APP 9APP 11APP 13APP
Bust 77 80 83 86 89

Hip 85 87 89 91 93

Waist 61-67 64-70 67-73 70-76 73-80

Height 142 142 142 142 142

15APP 17APP 19APP
Bust 92 96 100

Hip 95 97 99

Waist 76-80 80-84 88

Height 142 142 142
A type: (height 150cm) (unit:cm)
3AP 5AP 7AP 9AP 11AP
Bust 74 77 80 83 86

Hip 83 85 87 89 91

Waist 58-64 61-67 64-70 64-73 67-76

Height 150 150 150 150 150

13AP 15AP 17AP 19AP 21AP
Bust 89 92 96 100 104

Hip 93 95 97 99 101

Waist 70-76 73-80 76-84 80-88 84-92

Height 150 150 150 150 150
A type: (height 158cm) (Unit:cm)
3AR 5AR 7AR 9AR 11AR
Bust 74 77 80 83 86

Hip 85 87 89 91 93

Waist 58-64 61-64 61-67 64-70 67-76

Height 158 158 158 158 158

13AR 15AR 17AR 19AR
Bust 89 92 96 100

Hip 95 97 99 101

Waist 70-76 73-80 76-84 80-88

Height 158 158 158 158
A type: (height 166cm) (Unit:cm)
3AT 5AT 7AT 9AT 11AT

Bust 74 77 80 83 86

Hip 87 89 91 93 95

Waist 61 61-64 64 64-70 67-73

Height 166 166 166 166 166

13AT 15AT 17AT 19AT
Bust 89 92 96 100

Hip 97 99 101 103

Waist 70-73 73-76 76-80 80

Height 166 166 166 166
Y type: (height 142cm) (Unit:cm)
9YPP 11YPP 13YPP 15YPP

Bust 83 86 89 92

Hip 85 87 89 91

Waist 67-70 67-73 70-76 73-80

Height 142 142 142 142
Y type: (height 150cm) (Unit:cm)
5YP 7YP 9YP 11YP 13YP
Bust 77 80 83 86 89

Hip 81 83 85 87 89

Waist 61-64 61-67 64-70 67-73 70-76

Height 150 150 150 150 150
15YP 17YP
Bust 92 96

Hip 91 93

Waist 73-80 73-84

Height 150 150
Y type: (height 158cm) (Unit:cm)
3YR 5YR 7YR 9YR 11YR

Bust 74 77 80 83 86

Hip 81 83 85 87 89

Waist 58-61 61-64 61-64 64-70 64-73

Height 158 158 158 158 158

13YR 15YR 17YR 19YR

Bust 89 92 96 100

Hip 91 93 95 97

Waist 67-73 70-76 73-80 76-84

Height 158 158 158 158
Y type: (height 166cm) (Unit:cm)
5YT 7YT 9YT 11YT 13YT 15YT
Bust 77 80 83 86 89 92

Hip 85 87 89 91 93 95

Waist 58-61 61-64 61-67 64-70 67-70 70-73

Height 166 166 166 166 166 166

AB type: (height 142cm) (Unit:cm)
7ABPP 9ABPP 11ABPP 13ABPP 15ABPP 17ABPP
Bust 80 83 86 89 92 96

Hip 91 93 95 97 99 101

Waist 67-70 70-73 73-76 73-80 84 80-88
Height 142 142 142 142 142 142

AB type: (height 150cm) (Unit:cm)
3ABP 5ABP 7ABP 9ABP 11AB 13ABP
Bust 74 77 80 83 86 89

Hip 87 89 91 93 95 97

Waist 58-64 61-67 64-70 67-73 70-76 73-80

Height 150 150 150 150 150 150

15ABP 17ABP 19ABP 21ABP
Bust 92 96 100 104

Hip 99 101 103 105

Waist 76-80 80-84 88 92
AB type: (height 158cm) (Unit:cm) 3ABR 5ABR 7ABR 9ABR 11ABR 13ABR
Bust 74 77 80 83 86 89

Hip 89 91 93 95 97 99

Waist 61-67 61-67 64-70 67-73 70-76 70-80

Height 158 158 158 158 158 158

15ABR 17ABR 19ABR 21ABR 23ABR
Bust 92 96 100 104 108

Hip 101 103 105 107 109

Waist 73-80 76-88 80-88 92 -

Height 158 158 158 158 158
AB type: (height 166cm) (Unit:cm)
5ABT 7ABT 9ABT 11ABT 13ABT 15ABT
Bust 77 80 83 86 89 92

Hip 93 95 97 99 101 103

Waist 61-64 64-67 67-73 70-76 70-76 3-80

Height 166 166 166 166 166 166
B type (height 150cm) (Unit:cm)
5BP 7BP 9BP 11BP 13BP 15BP
Bust 77 80 83 86 89 92

Hip 93 95 97 99 101 103

Waist 64-67 64-73 67-76 70-80 73-80 76-80

Height 150 150 150 150 150 150

17BP 19BP
Bust 96 100

Hip 105 107

Waist 80-88 84-88

Height 150 150
B type (height 158cm) (Unit:cm)
7BR 9BR 11BR 13BR 15BR 17BR
Bust 80 83 86 89 92 96

Hip 97 99 101 103 105 107

Waist 64-73 67-73 70-73 73-76 76-80 80-88

Height 158 158 158 158 158 158 19BR
Bust 100

Hip 109

Waist 84-92

Height 158
Women's garments measured by the sizes of bust and height
---------------------------------------------------------
(such as loose type coats and jackets)

PP type (height 142cm) (Unit:cm) 5PP 7PP 9PP 11PP 13PP 15PP
Bust 77 80 83 86 89 92

Height 142 142 142 142 142 142

17PP 19PP 21PP
Bust 96 100 104

Height 142 142 142

P type (height 150cm) (Unit:cm)
3P 5P 7P 9P 11P 13P
Bust 74 77 80 83 86 89

Height 150 150 150 150 150 150

15P 17P 19P 21P 23P
Bust 92 96 100 104 108

Height 150 150 150 150 150

T type (height 166cm) (Unit:cm)
5T 7T 9T 11T 13T 15T
Bust 77 80 83 86 89 92

Height 166 166 166 166 166 166

17T 19T
Bust 96 100

Height 166 166
Women's garments measured by the sizes of waist and hip
(such as fitted type skirts and trousers)
58-81 58-83 58-85 58-87 58-89
Waist 58 58 58 58 58
Hip 81 83 85 87 89

61-81 61-83 61-85 61-87 61-89 61-91 61-93
Waist 61 61 61 61 61 61 61
Hip 81 83 85 87 89 91 93

64-83 64-85 64-87 64-89 64-91 64-93 64-95
Waist 64 64 64 64 64 64 64
Hip 83 85 87 89 91 93 95

67-83 67-85 67-87 67-89 67-91 67-93 67-95 67-97
Waist 67 67 67 67 67 67 67 67
Hip 83 85 87 89 91 93 95 97

70-85 70-87 70-89 70-91 70-93 70-95 70-97 70-99
Waist 70 70 70 70 70 70 70 70
Hip 85 87 89 91 93 95 97 99
73-87 73-89 73-91 73-93 73-95 73-97 73-99 73-101
Waist 73 73 73 73 73 73 73 73
Hip 87 89 91 93 95 97 99 101

76-89 76-91 76-93 76-95 76-97 76-99 76-101
Waist 76 76 76 76 76 76 76
Hip 89 91 93 95 97 99 101

80-91 80-93 80-95 80-97 80-99 80-101 80-103
Waist 80 80 80 80 80 80 80
Hip 91 93 95 97 99 101 103

84-93 84-95 84-97 84-99 84-101 84-103
Waist 84 84 84 84 84 84
Hip 93 95 97 99 101 103

88-97 88-99 88-101 88-103
Waist 88 88 88 88
Hip 97 99 101 103

92-101 92-103 92-105
Waist 92 92 92
Hip 101 103 105 Women's garments measured by the size of bust:
----------------------------------------------
(such as sweaters, cardigans, jackets, blouses, and skirts)

70 75 80 85 90 95 100 105 110 115 120
Bust 70 75 80 85 90 95 100 105 110 115 120
Women's garments measured by the size of waist: -----------------------------------------------
(such as loose type skirts and trousers)

55 58 61 64 67 70 73 76 80 84 88
Waist 55 58 61 64 67 70 73 76 80 84 88

92 96 100 104 108
Waist 92 96 100 104 108
Women's garments measured by the sizes of bust and hip: -------------------------------------------------------
(such as leotard)

3S 5S 7S 9S 7M 9M 11M 9L 11L 13L 15L
Bust 74 77 80 83 80 83 86 83 86 89 92
Hip 82-90 87-95 92-100

15LL 17LL 19LL 21LL
Bust 92 96 100 104
Hip 97-105
A general classification, which is based on the sizes of bust, height, waist and hip, is most commonly used:
---------------------------------------------------------

For height of 138 - 146cm:
MPP LPP
Bust 79-87 86-94
Height 138-146 138-146

For height of 146 - 154cm
SP MP LP LLP
Bust 72-80 79-87 86-94 93-101
Height 146-154 146-154 146-154 146-154

For height of 154 - 162cm
S M L LL 3L
Bust 72-80 79-87 86-94 93-101 100-108
Hip 82-90 87-95 92-100 97-105 102-110
Height 154-162 154-162 154-162 154-162 154-162
Waist 58-64 64-70 69-77 77-85 85-93

For height of 162 - 170cm
ST MT LT
Bust 72-80 79-87 86-94
Height 162-170 162-170 162-170
c) CS Osaka recommends that the U.S. suppliers of women's garments to the Japanese market refer to the above sizing information as one of their sales strategies to readily meet the requirements of Japanese buyers.

d) Complete information on Japan Industry Standards for clothing (English translation) is available at;
Japanese Standards Association
1-24, Akasaka 4, Minato-ku, Tokyo 107, Japan
Phone:(03)3583-8005 Fax:(03)3586-2029

Publication names/numbers and cost for each publication are as follows;
JIS L 0103 General Rule on Sizing Systems and
Designation for Clothes Yen 5,768
JIS L 0217 Care Labeling of Textile Goods Yen 3,296
JIS L 4001 Sizing System for Infant's GarmentsYen 1,236 JIS L 4002 Sizing System for Boys' Garments Yen 4,532
JIS L 4003 Sizing System for Girls' Garments Yen 4,944
JIS L 4004 Sizing System for Men's Garments Yen 3,708
JIS L 4005 Sizing System for Women's Garments Yen 5,768
JIS L 4006 Sizing System for Foundation Garments Yen 2,060
JIS L 4007 Sizing System for Hosiery Yen 1,648
JIS L 4114 Sizing System for Blouses Yen 1,648
JIS L 4117 Sizing System for Dress, Skirts Yen 2,884

The Japanese Standards Association does not mail their publications to foreign countries due to some mailing problems in the past. Therefore, foreign companies can purchase these publications through their business partners or contacts in Japan. Some of these publications may also be available through the American National Standards Institute (ANSI) in New York, NY.

American National Standards Institute
11 West 42nd Street, 13th Floor
New York, NY 10036
Phone: (212)642-4900
Fax: (212)302-1286
Distribution/Business Practices

a) Distribution

The SENKEN SHIMBUN, a major Japanese apparel/textile trade newspaper (daily, 200,000 subscription), conducted a survey to determine sales trends of the product categories of women's wear in 1997. It reported that the amount of sales of blouses/shirts by the top 20 firms totaled Yen 133,797 million or US$ 1,106 million. The sales amount of blazer/jackets was Yen 171,635 million or US$ 1,418 million. The sales of other items are:

Coats Yen 114,172 million US$ 944 million
Suits/Ensembles Yen 93,755 million US$ 775 million

One piece dresses Yen 80,518 million US$ 666 million

T-shirts/Trainers Yen 130,722 million US$ 1,080 million

Sweaters/Cardigans Yen 206,912 million US$ 1,710 million
In general, the foreign-made apparel is imported into Japan by Japanese trading houses or the representatives or subsidiaries of foreign companies in Japan, and is distributed to wholesalers; and then to retail stores (department stores, specialty stores, chain stores); and finally to consumers. Japanese department stores usually sell imported apparel on a consignment basis, returning the unsold apparel to wholesalers. However, as the sales of department stores have been slowing down for the past couple of years, some department stores have changed their buying strategies and begun to import apparel directly to keep retail prices down.

Some of leading apparel makers/wholesalers in Japan have their own retail stores, known as "antenna shops". The primary purpose of these "antenna shops" is to collect and analyze consumer preferences and reaction to their new collections, and to supply new collections as quickly as possible at reasonable prices.

It is important for American suppliers to know that the Japanese buyers, in general, start their businesses with sample orders. Japanese importers and wholesalers which purchased the samples of new collections would stage their exhibitions inviting their customers to receive the orders. Then, these importers and wholesalers place the orders from American suppliers.

b) Apparel Seasons

There are two main seasons in the women's wear market in Japan; fall/winter(F/W) and spring/summer(S/S). Imported items for the spring/summer season usually are introduced and exhibited from October to November. Fall/Winter items have longer lead times due to complexity in manufacturing. Collections are shown and exhibited from March through August or even as late as September.

However, to cope with speedy changes of consumer fashion tastes, the importers tend to stage their trade shows by each season as follows:

For Spring items November
For Summer items February
For Fall items May
For Winter items August

c) Pricing

Typical selling prices for each stage are as follows, with the retailer's price to consumers given as 100.
Consumer Retailer Wholesaler Importer Exporter
(FOB)
100 60 50 43 25

However, the pricing structure in Japan varies according to the types of distribution channels and services that importers or wholesalers provide (e.g. inventory, advertisement cost, packaging cost, financing system, acceptance of unsold/returned goods, etc.)

For the purpose of selling imported apparel to consumers at 40-50% discounted prices, some retailers import products directly. These discount outlets are increasing in number. However, the U.S. supplier should know that quantities of such retailers tend to be very small.

d) Pricing Strategy for U.S. Exporters

Japanese consumers are very conscious, particularly since the Japanese economic bubble burst, that differences in retail prices at different stores might degrade the product's reputation. In fact, some U.S. brandnames have lost their Japanese following when consumers became confused about the value and image of the product after seeing different prices for the same product at different stores.

U.S. companies entering the Japanese market should be careful when quoting prices to potential agents or distributors, paying particular attention to where the Japanese company "fits" in the distribution channel, in order to ensure that retail prices of the same goods in different distribution channels are consistent. At the same time, U.S. companies should investigate the reliability and the sales strategy of Japanese buyers, to maintain a good reputation of their products in Japan. U.S. companies are also advised to be cautious about giving the same price to partners at different ends of the distribution chain to avoid deep discounting by some retailers but not others. U.S. exporters should also make efforts to monitor the retail prices of their goods sold in Japan. If the buyer is a retailer, the U.S. company is advised to consider the pros and cons of selling products directly to him or her, and also about the best way to expand its market in Japan on a long-term basis.

3) FINANCING

Japanese commercial banks provide financing to importers based on the financial situation and credit standing of each company. Payment to the U.S. supplier is, in general, made by L/C (Letter of Credit). Therefore, the exporter receives payment from the transacting bank after the shipment is completed. For a small quantity sample order, payment by cash remittance through a bank transfer is usually preferred.

For domestic transactions, the importer normally issues a bill to the wholesaler at the end of each month, and a couple of weeks later receives a kind of promissory note called a "tegata" from the wholesaler, with a 30-60 day term. Wholesalers issue a bill to the retailer at the end of each month, and the retailer pays with a 90-120 day "tegata." The wholesalers, in some cases if necessary, provide retailers with further financial support.
4) KEY CONTACTS

1) Government Agency
Textile Products Division
Consumer Goods Bureau
Ministry of International Trade & Industry
3-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100-
0013
Phone: (03) 3501-1511 Fax: (03) 3501-0316

2) Trade Associations
Japan Textile Importers Association
1-6, Nihonbashi Honcho, Chuo-ku, Tokyo 103-0023
Phone: (03) 3270-0791 Fax: (03) 3243-1088

Japan Export Clothing Manufacturers
Association(JECMA)
Osaka YM Building
15-26, Fukushima 7-chome, Fukushima-ku, Osaka 553
-0003
Phone: (06) 453-9221 Fax: (06) 453-9220

All Japan Women's & Children's Industrial
Association
2-4, Iwamoto-cho, Chiyoda-ku, Tokyo 101-0032
Phone: (03) 3866-8920 Fax: (03) 3866-9009

3) Trade Journals
SENKEN SHIMBUN CO. LTD.
3-8-5, Kayaba-cho, Nihonbashi, Chuo-ku, Tokyo 103
-0025
Phone: (03) 3664-2311 Fax: (03) 3667-9510
Circulation: 200,000 (Daily)

WOMENS WEAR DAILY
Fairchild Mori Publications Inc.
33-4, Tomihisa-cho, Shinjuku-ku, Tokyo 162-0067
Phone: (03) 3400-9501

4) Trading Companies
Itochu Corp.
Import Ladies Wear Section
4-68, Kitakyutaro-machi, Chuo-ku, Osaka 541-0056
Phone: (06) 241-2672 Fax: (06) 241-4562
Marubeni Corporation
Women's Clothing Section
3-3, Honmachi, Chuo-ku, Osaka 541-0053
Phone: (06) 266-3459 Fax: (06) 266-4280

Mitsubishi Corporation
Textile Planning Dept.
1-1-5, Dojimahama, Kita-ku, Osaka 530-0004
Phone: (06) 348-6667 Fax: (06) 348-6679

Mitsui & Co. Ltd.
First Textile Div.
2-3-33, Nakanoshima, Kita-ku, Osaka 530-0005
Phone: (06) 226-3384 Fax: (06) 226-2188

Kakiuchi Co. Ltd.
1-5-4, Nihonbashi-Honcho, Chuo-ku, Tokyo 103
-0023
Phone: (03) 3270-8311 Fax: (03) 3273-8492

Moririn Co. Ltd.
2-4-14, Nishiki, Naka-ku, Nagoya 460-0003
Phone: (052) 202-1007 Fax: (0586) 72-1113

Sankyo Seiko Co. Ltd.
3-3, Azuchimachi, Chuo-ku, Osaka 541-0052
Phone: (06) 268-5150 Fax: (06) 261-7541

Toyoshima & Co. Ltd.
2-14-27, Nishiki, Naka-ku, Nagoya 460-0003
Phone: (052) 204-7711 Fax: (052) 204-7415

Yagi & Co. Ltd.
2-10-1, Minami Kyutaro-machi, Chuo-ku, Osaka 541
-0056
Phone: (06) 266-7300 Fax: (06) 266-7553

Yagi Tsusho Limited
3-20, Imabashi, Chuo-ku, Osaka 541-0042
Phone: (06) 227-6827 Fax: (06) 227-6855
TRADE PROMOTION OPPORTUNITIES

1) U.S. APPAREL SOLO EXHIBITION
in Tokyo, once a year (in January or February)
Contact: William Dawson or Maura Kim(Ms.)
Office of Textiles & Apparel
U.S. Department of Commerce
Washington, D.C. 20230
Phone: (202) 377-5155 Fax: (202) 501-4064

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Japan
Industry: Apparel
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000220