A growing number of retailers wish to promote the sale of made-in-Japan products. The domestic production ratio of apparel, based on the number of items manufactured, reached 3% in 2014 (with an import penetration ratio of 97.0%). While this means Japan-made items are set apart from other products by their rarity and exclusivity, the continued decline in domestic production has remained unchanged.

 

Once a domestic production ratio has fallen to this level there is a limit as to the extent to which it can regrow. Furthermore, sustainability which now faces continued decline after previously exceeding 50% in 1990 remains an issue even for surviving manufacturers due to problems concerning matters such as facilities and successors.

Following the burst of the economic bubble, manufacturers have pushed forward with the relocation of production to overseas bases in order to be able to sell their products at low prices. Within a structure where imports form the basis of domestic supply, it is becoming increasingly difficult to support the recovery of domestic production.

Recently there has been a gradual shift away from concentration on China in the area of imports. China’s ratio which had been 90% up until 2010 has since been on a clear decline, reaching 75.7% in 2014. This can be attributed to a rise in production costs in within the country.

Furthermore, the Japanese Government’s policy of allowing the yen to depreciate during this period has also sharpened the problem of cost for import-oriented apparel.