News On Japan

Growing Japan's Kids' Wear in Shrinking Market

TOKYO, Mar 20 (News On Japan) - The children's clothing market in Japan is undergoing a "drastic change." According to the Ministry of Health, Labour and Welfare, the number of births has decreased for eight consecutive years, forcing manufacturers to focus on new strategies in a shrinking market.

Last month, Workman, a workwear manufacturer, announced its full-scale entry into the children's clothing market. There was a strong demand for matching outfits for parents and children, a feature that Workman offers. They plan to expand this line to 20 billion yen. The women's brand "Workman Plus," launched in 2020, has successfully attracted female customers in their 30s and 40s, doubling sales.

Workman's children's clothing line offers T-shirts for 980 yen and durable, water-repellent clothing for both land and water at 980 yen. The low prices are a key selling point. "I end up looking at children's clothes even though I'm supposed to be working," says a customer. "My kids come home covered in dirt every day, so it's great that I can tell them to go ahead and get dirty without worrying about the cost."

In the face of rapid population decline, why enter the children's clothing market now? "There is a need for replacement purchases as children grow quickly," explains a Workman representative.

Meanwhile, some children's clothing manufacturers are expanding overseas. MIKIHOUSE, known for its high-quality products, has T-shirts priced in the 20,000 yen range and shoes in the 10,000 yen range. Despite not being cheap, the brand attracts a constant stream of tourists. "We've had customers returning since the rebound from the pandemic," says a MIKIHOUSE representative. "They buy everything from head to toe."

The number of domestic MIKIHOUSE stores was 189 in 2000 but has decreased to about half, with 99 stores now. On the other hand, the number of overseas stores has doubled in the past five years, surpassing 100 last year, with overseas sales overtaking domestic sales.

MIKIHOUSE opened its first overseas store in Paris in 1987 and has since expanded to prestigious locations like Harrods in London. The 2010 Shanghai Expo was a turning point for the brand's overseas expansion. "The response at the Expo was unexpected, and we saw a significant increase in customers at our traditional shops," says a MIKIHOUSE representative.

MIKIHOUSE's popularity in China is immense. The brand's main overseas staff includes employees from China and Vietnam, accounting for 10% of all employees. They play a crucial role as the link between Japan and the local stores, which are managed by local owners. "Shoes are very popular in China, so we're expanding the sales area for them," says a MIKIHOUSE employee in charge of a Shanghai store.

Two years ago, MIKIHOUSE launched a high-end line called "Gold Label," using premium materials like baby cashmere. Prices are two to three times higher than standard products, with items like a baby mantle made of vicuña fiber costing 1.1 million yen. "The Gold Label products are being ordered one after another. The softness and quality of vicuña are incredible, and I think everyone is happy to buy them for their children," says a Beijing store owner who ordered over 3,000 items.

MIKIHOUSE's president admits that the current situation is beyond expectation. "I thought it would be 50% overseas and 50% domestic, but now it's over 60% overseas. Perhaps the population decline in Japan is more than expected. We hope to be used by people all over the world, not just in Asia," he says.

Source: MBS

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