Tag: Japan

  • Muji enters Chapter 11 owing US$65 million in USA

    Muji enters Chapter 11 owing US$65 million in USA

    Japanese homewares and lifestyle retailer Muji has placed its US business in Chapter 11 bankruptcy protection with debts of US$64 million.

    The company said the measure was the result of having to continue to pay rent in high-profile locations while stores were shuttered due to the Covid-19 pandemic. Landlords had shown little flexibility despite stores not being able to trade.

    Under bankruptcy protection, the company’s parent, Ryohin Keikaku, has six months to submit a restructuring plan.

    After launching in 2006, Muji US has opened just 19 stores there. But it chose high-profile locations like 5th Avenue and Times Square to establish brand exposure.

    In the year to February, the company achieved sales of $102.5 million but reported a loss of $16.8 million.

    Muji has no intention of closing or exiting the US. Ryohin Keikaku, president Satoru Matsuzaki, said he would personally oversee the restructuring of the US business.

    “The US is the cornerstone in building name recognition,” Matsuzaki was quoted in the Nikkei.

    Muji US has reopened 10 stores, but total sales are running at just 20 percent of the level of pre-Covid-19.

  • Uniqlo to open 24th store in Australia in September

    Uniqlo to open 24th store in Australia in September

    Japanese clothing retailer Uniqlo will open a new store in the country at Bondi Junction this September, taking its store count in Australia to 24.

    The new store at Westfield Bondi Junction, which will span 1323sqm, will be the retailer’s ninth store in New South Wales.

    Uniqlo said this store will feature the biggest LED screen installation ever seen in the retailer’s Australian stores and will offer a full line-up of the brand’s LifeWear apparel for men, women, kids, and babies.

    Kensuke Suwa, company chief operating officer, said since they’ve opened their first store in Australia in 2014, they have been able to consistently grow their retail footprint by leveraging their keen understanding of the local consumer and ensuring their products align with their needs.

    “We hope to keep the momentum going and look forward to making the brand even more accessible to Australians,” Suwa said.

    “We are excited by this milestone of bringing LifeWear from Tokyo to a truly iconic location in Australia and are looking forward to becoming a positive part of the Bondi community”.

    This Uniqlo store is its eighth store with the Westfield Group, following Hurstville, Hornsby, Chatswood, Parramatta, Miranda, Chermside, and Carousel.

  • FamilyMart Japan subject of US$5 billion takeover bid

    FamilyMart Japan subject of US$5 billion takeover bid

    Japanese convenience-store chain FamilyMart will be sold outright to local trading company Itochu, according to reports.

    The buyer, which currently holds 50 percent of FamilyMart business, made the decision to fully purchase the chain last Wednesday in a transaction that is expected to cost between US$4.6 billion and $5.5 billion.

    The business media say the joining of the two businesses will result in a deeper level of cooperation in food procurement, consumer-goods retailing, customer-data analysis, and digital payments, among other areas.

    In Thailand, the FamilyMart business was completely bought out last May by local operator Central Retail as a precursor to expanding the network in the territory.

    The brand has shown signs of instability that date back before the advent of the coronavirus pandemic. Last November, FamilyMart Japan reduced its operational costs by letting go 800 employees, about one in 10 of its total staff count, and made moves to allow franchisees to operate shorter opening hours.

  • Takashimaya plunges into the red as Covid-19 eats into sales

    Takashimaya plunges into the red as Covid-19 eats into sales

    Takashimaya, the Japanese department store operator, has reported a loss of US$190 million in the May quarter as it faced extraordinary payments related to the Covid-19 pandemic and falling sales.

    The company was forced to effectively close 22 stores in Japan from April 8 after Prime Minister Shinzo Abe declared a state of emergency. Only the food departments were allowed to continue to trade as the government ensured social-distancing measures.

    Sales in May plunged by more than 60 percent as a result, but last month’s decline was a much less dramatic 16 percent as cities began to reopen and consumers ventured out shopping again. For the full quarter, sales were down by 48 percent to $1.08 billion.

    As well as reduced domestic spending, Takashimaya sales were impacted by the absence of tourists as borders were closed as a Covid-19 prevention strategy.

    For the May quarter, Takashimaya recorded a one-off loss of $79.8 million relating to pandemic costs, including paid leave for staff unable to work due to the shutdown.

    The company did not release any figures on the performance of its overseas stores in Vietnam, Singapore, Thailand and Mainland China and it declined to proffer earnings guidance for the full year.

  • Japanese entrepreneur revisits nation’s golden apparel era with Factelier

    Japanese entrepreneur revisits nation’s golden apparel era with Factelier

    Toshio Yamada, the founder of Factelier, is a young Japanese entrepreneur who wants to preserve the craftsmanship of his country’s apparel industry.

    Yamada has created his own uniquely Japanese brand Factelier which designs and sources clothing and accessories for men, women and babies from experienced, typically family-owned, clothing factories spread all over the nation. They are sold online and shipped to 100 countries, through a small network of boutiques in Japan and Taiwan, and in selected department stores.

    Yamada’s vision is to preserve the rich heritage of apparel manufacturing and let the suppliers he works with emerge from the unavoidable anonymity that comes with supplying global brands.

    Thirty years ago, Japan, one of the world’s largest apparel markets, used to produce 50.1 percent of its domestic sales. Today, thanks to the rise of fast fashion and the outsourcing of manufacturing to countries like China, Bangladesh and Vietnam, that share has slumped to just 3 percent. More than three-quarters of the companies manufacturing clothing in Japan in 1990 are no longer trading today.

    Yamada was born into a family that ran a women’s clothing store for 100 years in Kumamoto, on the island of Kyushu. Living upstairs, he helped out on the shop floor from early childhood, surrounded by quality locally made clothes in an era when ‘made in Japan’ was familiar.

    Later, as a student, Yamada interned with luxury label Gucci in Paris. There the realization dawned on him that labels like Gucci, Hermes, and Louis Vuitton were all born in factories. “So they respect craftsmanship. Now I’m hoping to revive the local craftsmanship in Japan.

    “Our dream is to create world-class brands made in Japan, and build a sustainable and profitable link between these local artisans and consumers around the world, by selling clothes from Japanese factories directly to consumers, cutting out the middleman,” he told Inside Retail Asia.

    Factelier was created via an astonishing commitment to researching the industry. Yamada personally visited some 600 factories the length and breadth of Japan before selecting 55 of them as suppliers, all of them with experience in supplying top international brands.

    “A lot of these companies did not have a homepage, right, and Google did not know about them. So I would take a train and get off at a station and go to a telephone box and use the telephone book to find them.” He would then phone the factories he found listed and ask if he could stop by.

    Somewhat surprised, they invariably welcomed him. “It was a very old style approach,” he recalls.

    Having built the network he not only maintains constant personal contact with his suppliers, but their company names appear beneath Factelier on the clothing labels. The connection between craftsmanship and consumer runs even deeper: Yamada’s company runs regular factory tours for customers so they can see the art and commitment that goes into the clothing they buy.

    “We know the stories behind the factories, how they make the products, and it’s very interesting – when our customers go to the factories and they see the craftwork behind the clothes they become loyal customers.”

    It took Yamada three years to build the base of the business, living off a part-time job as he traveled from factory to factory and developed designs and products. Eight years since his mission began, Factelier has grown to a 50-strong team with four stores and a warehouse in Japan, two stores in Taipei – and even a cafe. Sales are currently doubling twice a year with 80 percent of orders from Japan. The largest overseas markets are the US, Mainland China, Taiwan and Hong Kong.

    “Fashion manufacturing used to be a declining industry in Japan, but I think if we have the passion and the vision, I think we can revive it. And more importantly, [our customers] will spend more for better products.”

    Factelier’s garments are of similar quality (but not design) to those being supplied to the likes of Gucci or Hermes – but sell for about half the price. It helps, of course, that Factelier is not paying for massive international advertising budgets and other overheads associated with luxury brands. Typically the factory gets a higher price for the clothing it produces for Factelier because the two parties jointly decide on the retail price, rather than the label dictating pricing and how much the factory gets for making it.

    “It’s a very, very different business model from traditional brands,” says Yamada.

    That said, the factories could not survive on Factelier alone – the Japanese label typically only accounts for between 5 and 10 percent of a partner factory’s production. But they are getting a better deal and Yamada says many are finding themselves able to employ more graduates to expand their business.

    The closer relationship between brand, manufacturer, and the customer has produced an unexpected spinoff: consumers are starting to influence the range and style of clothing being produced, especially in the field of functional clothing.

    “One day a customer asked us to manufacture clothes that would repel mosquitos. That’s a very, very difficult request.” Diligently working with factories and textile suppliers Yamada’s team succeeded, by incorporating a herb in the fabric that sends the mozzies packing.

    During our conversation, Yamada wore a stylish blue wrinkle-free jacket. “If I pack it in a trunk, it does not crease.” Another product uses baseball-uniform techniques to create 3D pattern effects.

    And Factelier sells stain-proof white jeans. Spill soy sauce, wine, coffee or ketchup over the denim and it comes off immediately without leaving a stain. This was another product designed to fulfill a customer’s request.

    Besides his interest in functional clothing, Yamada is committed to sustainability. The company uses natural fibers and biodegradable fabrics and it recently planted an organic cotton farm near Mount Fuji. Japan imports 99 percent of its cotton and he wants to change that reliance on other countries.

    Yamada is optimistic there is a strong future for direct-to-consumer brands. “The size of the B2C market in Japan expanded to US$180 billion in 2018. It grew by $160 million, or 9 percent, in that year.

    “Yes, craftsmanship is very big. I want to spread the idea of craftsmanship all over the world.”

  • Chinese tea brand Nayuki opening in Japan

    Chinese tea brand Nayuki opening in Japan

    Chinese fruit-based cheese tea brand Nayuki is making its debut in Japan, opening its first cafe in the Zero Gate shopping complex in Osaka.

    The new 200sqm store features a teahouse experience similar to the brand’s locations in its home market, incorporating special details to match modern Japanese culture.

    “As a brand dedicated to becoming the innovator and promoter of the tea culture, we wish to deliver an exceptional experience for the local residents, one that reflects our passion for creating unique tea-based drinks for tea lovers worldwide,“ said Nayuki founder Peng Xin.

    The new outlet serves a wide range of tea drinks made by tea baristas as well as low oil and sugar-content soft-euro bakes.

    Nayuki operates nearly 400 stores in China, ranging from 1200–11,000sqft in prime locations across the country and also has stores in Singapore.

  • Espoir enters offline channels in Japan

    Espoir enters offline channels in Japan

    Amorepacific’s makeup brand Espoir has entered Japanese offline retail channels after making an online debut in April.

    The South Korean brand expanded into some mainstream multi-brand shops in Japan including @Cosme, Loft and Tokyu Hands. The brand’s top-selling products such as Pro Tailor Be Glow Cushion, Water Splash Suncream or Real Eye Palette are now on sale at these stores.

    “We plan to broaden our product range in response to the demand of local customers,” said Jieun Lee, brand communication manager at Espoir. “Starting with the Japanese multi-brand shop channel, we will expand the global retail network further.”

    Espoir entered the Japanese beauty market through several online channels in the country including Qoo10, Rakuten, Yahoo Japan and Amazon Japan. Since then, the brand has attracted many local customers who are fond of South Korean makeup.

  • Lawson Japan to stock Muji products

    Lawson Japan to stock Muji products

    Japanese convenience-store business Lawson will cooperate with local home-goods network Muji in a sales and brand development partnership, according to a Nikkei Asia report.

    The deal will see Muji products stocked in Lawson Japan outlets as well as the development of further daily-use products under a new private brand, which may lead to a fresh store concept. It replaces Muji’s previous supply contract with rival chain FamilyMart.

    The move will take advantage of shifting consumer behaviors as more Japanese shoppers purchase daily items from convenience store chains in the wake of the coronavirus outbreak.

    Around 20 percent of items currently stocked at Lawson are likely to be replaced with Muji-branded products, most probably goods such as eco-friendly detergents and nutritional pre-packaged foods, in high demand since the advent of Covid-19.

    Early customer response to the change in a small number of outlets will determine how broadly the initiative is applied across Lawson’s 15,000-store network.

    The agreement also addresses shrinking opportunities to expand given the gradual decline in Japan’s population, providing a broader product range in existing stores.

    Muji currently operates more than 400 locations in Japan.

  • Japanese department store Odakyu launches service to serve Chinese at home

    Japanese department store Odakyu launches service to serve Chinese at home

    Japanese department store Odakyu has partnered with Taeltech marketplace to launch service in China.

    Through the Taeltech ecosystem, Odakyu Department Store will trial a selection of products including Japanese accessories, apparel and cosmetics, in the first few months in a pilot before the official launch in more than 500 cities in China.

    Shuji Kawate, business creation department GM at Odakyu Department Store, explained the reason for the partnership with Taeltech is that Odakyu saw a “unique business opportunity” as most inbound tourism revenue is generated by Chinese tourists. The company also saw “the potential to provide the best customer service, in this partnership with Chenggan (Taeltech) by catering to their continued needs, thus expanding the department store experience into China in the future.”

    Taeltech has also created a “Odakyu Zone” in its marketplace, which functions as an extension of the department store experience for customers who have returned home. In return, the department store will provide promotional opportunities in prime locations to Taeltech.

    “Not only does this partnership give Chinese consumers the opportunity to order high quality and verifiable authentic Odakyu Department Store products from their homes, in the future it also introduces the Tael Ecosystem to Chinese tourists within Japan, connecting our target market both domestically and internationally,” said Alex Busarov, CEO at Taeltech.

    Founded in 2014, Taeltech’s ecosystem has more than 50,000 users across China.

  • Ecoalf opens first Japanese flagship

    Ecoalf opens first Japanese flagship

    Spanish fashion brand Ecoalf has opened its first Japanese flagship store, in Tokyo.

    Located in Shibuya district, the Ecoalf store spans two floors and offers a wide selection of products including the label’s latest collection.

    Designed by Japanese architect Yohei Sakamaki, the store features a sustainability concept ‘Sharing Ecology’, using natural materials such as Japanese bamboo, stone and sand. Interior features include a giant rock named “Date-Kanmuri-Ishi” and wooden panels to create a warm yet modern ambiance.

    A black staircase leads customers to the upper floor which is dedicated to #Actnows, a monthly event held by the brand to raise awareness of sustainability issues.

    “Our aim is to raise awareness of the need to protect the planet and we will continue to accelerate this message,” said Javier Goyenechem, president and founder of Ecoalf.

  • Ikea opens first compact store in Tokyo, Japan

    Ikea opens first compact store in Tokyo, Japan

    Ikea Japan has opened its first concept downtown store in Tokyo.

    Ikea Harajuku, modeled on smaller compact inner-city Ikea stores popping up in Paris and New York, targets urban apartment dwellers with a smaller range of about 9500 goods selected from its big-box destination shops.

    The new Ikea Japan store is located adjacent to the Uniqlo Harajuku which opened about a week ago, occupying a two-story, 2500sqm space.

    “One of the store’s keys focuses will be sustainability and circular living, with a buyback service and sustainably sourced food”, the company said in a statement.

    Besides featuring homewares products for small-living areas, the Ikea Harajuku houses a Swedish Cafe, where customers can find a Swedish flatbread menu, and Swedish Combini which offers a wide range of snacks and beverages including cups of plant-based instant noodles.

    Plans to open the Ikea Harajuku store were revealed two years ago. The store was scheduled to open on April 25 this year, however that was postponed until June 8 due to the Covid-19 pandemic.

  • Mitsui Outlet Park planned for Taichung, Taiwan

    Mitsui Outlet Park planned for Taichung, Taiwan

    Japanese developer Mitsui Fudosan is set to open a Mitsui Outlet Park in Taichung, Taiwan.

    The plans, which will include a Mitsui LaLaport shopping mall, have been given official approval by the area administration following a delegation to led by Taiwan Mitsui Fudosan Group chairman Shitamachi Ichiro, which was granted an audience with Taichung’s Mayor Lu Shiow-yen.

    The agreement brought a successful conclusion to discussions that had been underway since March last year. It is Mitsui Fudosan’s second LaLaport project in the country.

    The site will undergo initial development work at the end of this month, aiming for an opening date during 2022. The complex is likely to generate employment for 3500 staff in the region.

    A Taichung City government press release indicated a surge in Japanese investments into the area and a generally favorable outlook for the city’s consumer market.

  • Taiwan’s O’right makes Japanese start

    Taiwan’s O’right makes Japanese start

    Taiwanese beauty brand O’right is to make its debut in Japan this week. O’right’s first store will open in Isetan Shinjuku on June 10, followed by a second store in Yurakucho Marui the next day.

    “It shows the brand’s confidence in Japan’s path to economic recovery and its determination to establish a foothold in the Japanese beauty market,” the company said in a statement.

    The O’right Japan stores will feature a wide range of plant-based products, including the brand’s limited edition Caffeine Botanical Scalp Revitalizer. As the Tokyo 2021 Olympics Games’ key theme is sustainability, the zero-carbon beauty brand sees a timely opportunity to introduce its products in the Japanese market.

    During the openings, customers will be given gifts including high-quality hydrating hand sanitizer and exclusive discounts.

    Founded in 2006 as a hair-care brand, O’right has evolved into a “green-style” beauty brand, aiming to redefine the beauty market by introducing zero-carbon, sustainable products that “deliver on a promise of a greener tomorrow”.

  • Uniqlo opens new Vietnam store, goes online in the Philippines

    Uniqlo opens new Vietnam store, goes online in the Philippines

    Japanese fast-fashion retailer Uniqlo is to open its third store in Ho Chi Minh City this week and will debut online in the Philippines.

    Less than a month after the opening of the Ho Chi Minh’s second store at SC Vivo City, Uniqlo Vietnam is to launch another store in the country’s tallest building Landmark 81 this Friday (June 5).

    Occupying a 2000sqm area, the Uniqlo Landmark 81 store features the brand’s LifeWear products for males, females and kids. The store also features Uniqlo’s latest collections including the Billie Eilish x Takashi Murakami UT. To celebrate the opening, Uniqlo Landmark 81 is running several promotions such as giving away Uniqlo’s mugs and Landmark 81 SkyView tickets.

    Meanwhile, in the Philippines, the fast-fashion brand says it will launch online in the second half of this year.

    “An online store will provide local Uniqlo customers a faster and easier way of purchasing their favorite LifeWear items,” said Masayoshi Nakamura, COO at Uniqlo Philippines.

  • Liverpool FC opens E-commerce platform in Japan

    Liverpool FC opens E-commerce platform in Japan

    Liverpool FC has partnered with soccer shop Kamo to launch its first online store in Japan.

    The Liverpool FC online store offers a wide range of replica kits and the brand’s authentic merchandise, apparel and fashion accessories, including the exclusive Hello Kitty x LFC Collection.

    “As a key player in the football and sports-retail industry, we know this store has been a long time coming for Liverpool FC fans here,” said Ken Kamo, president of Kamo.

    “We’re looking forward to working together to bring supporters here closer to the club they love.”

    Launched in 1968 as a small football shop, Kamo operates 23 brick-and-mortar stores and an e-commerce site, offering a selection of sport brands including Puma, New Balance and Adidas.

    Senior VP at Liverpool Football Club Mike Cox, said: “I’ve been able to see first-hand how passionate our fanbase is here and as one of the world’s premier shopping destinations, it’s an exciting opportunity for the club to connect with supporters in the region.”