MØBLER, TEKSTIL/BEKLÆDNING OG GAVEARTIKLER

According to Danish Furniture the furniture export to Japan constituted 2.2% of the total export in 2006. After a fall in the export to Japan from 2003-2004 from DKK 502 million to DKK 405 million it went up again in 2005 to DKK 421 million but declined to DKK 359 million in 2006.

Japan faces several demographic changes like a declining birth rate, an aging population, growing number of singles and fewer weddings. These started to affect home furnishings retail during 1999 - 2004 and were expected to depress demand over the period also. Consumer expenditure levels in 1999 – 2004 were also low due to the economic recession, and Japanese consumers postponed purchases, focusing on necessities. Consequently pricing has become an even more important factor to home furnishing consumers, who turn to cheaper value-for-money alternatives over established brand names.

There are however also positive trends. In urban Japan legged furniture has made inroads and thus pawing the way for western furniture. Another advantage for Danish interior and design articles is that the National Art Center in Tokyo that opened in 2007 bought more than 1000 Danish design furniture. This will hopefully serve as a fantastic showcase for Danish design in the future.

Market
Interior and design articles have become a new trend among young people. The reason for this is that the young Japanese in contrast to earlier increasingly have begun to invite friends home instead of going out at a café or bar. This has spawned a new interest for the decoration of one’s home. It is, however, important to mention that because of limited space the Japanese also buys a smaller number of items than a Dane usually would.

In recent years stores presenting concept solutions within furniture and interior design have gained in popularity.

Expensive design furniture is mainly bought by the 30 – 60 year old Japanese with an interest in design or who wish to create an identity supported by prestige design.

Within the contract market there is a growing niche where contractors build luxury apartments with all amenities included, e.g. white goods, furniture, curtains, and design articles. The products used are in the exclusive end.

Independents continued to dominate retail distribution in home furnishings in Japan in the period 1999 – 2004. In 2000 the Large-Scale Retail Store Law was amended, and the new regulation made it easier for large retailers to operate in Japan. This led to the entry of specialists, and small and medium-sized independents struggled to maintain profit levels.

New design shops open regularly in Tokyo and especially the areas of Daikanyama, Minami-Aoyama, and Naka-Meguro are considered design centers. A dominant feature among shops in Japan is that they do not order large quantities. This is partly due to the fact that their storage possibilities are limited and partly because they wish to introduce new products as often as possible.

At the moment the Japanese economy shows strong sign of recovery and the consumers are slowly beginning to spend more money. It is therefore important to make Danish interior and design articles present in the Japanese mind.

Exporting to Japan
When looking for a partner in Japan it is important to find the right importer with the contacts that can place ones products in the stores that match the product. In Japan importers often have very static networks. An important aspect is to make sure that your product is profiled in the right way towards the consumers. This can e.g. be achieved by being present in the trend setting design shops and continually expand the brand.

Danish/Scandinavian Design
Danish interior and design articles are well known among Japanese consumers for their beautiful, simple and functionalistic design. It is a great advantage that designers such as Arne Jacobsen and Hans Wegner is known and accepted among designers and architects, as they are often the decision maker within the contract market. It is also of great advantage that more than 1.000 Danish design furniture has been used in furnishing the recently opened National Art Center, Tokyo.

It is, however, important that the Danish manufactures and designers continue to be innovative to counter the competition from Italy, the United States and the other Nordic countries.

Apparel/Fashion
Japan is perhaps a leading country in terms of per-capita personal spending on fashion goods and in terms of sensitivity toward fashion trends. It is the world’s second largest market for apparel after the US.

The total value of the retail apparel market fell to 11 billion yen in 2004 (or app. 81.226 million Euro), which represents a 9,74% decline in the market in the period 1999-2004. Even though the general apparel market declined some areas went the other way. In the period 1999-2004 clothing accessories grew with 22,4%, knitwear grew with 10,5%, and underwear and nightwear with 9,3%.

More than 60% of apparel retail is women’s clothing and according to the Ministry of Economy, Trade and Industry, 91,2% of the clothing (quantity base) in Japan was imported products.

The Japanese are very interested in fashion, and Japan has usually been the place other Asian countries look at in respect to the newest fashion trends. It can, however, be a very tough market to enter. Virtually all brand-name products have a presence in Japan. Besides this Danish companies have to remember that many Japanese do not speak English and that the sizes generally are smaller than in Scandinavia and Europe.

Market
Japan has 4 clearly defined seasons and they coordinate the clothes accordingly. The life cycle of clothes in the store is very short: the collection changes almost every week to every two weeks. New items are put into stores during the seasons, and manufactures as well as importers need to respond to this with a shortened production cycle.

With respect towards the characteristics of the market, Japan is extremely conscious of fashion trends and fashion news. Magazines and other media outlets have great sway on the taste of Japanese consumers. Market changes are fierce and the cycle of fashion is short as many Japanese consumers go after whatever is novel and innovative, whether it is fashion goods or events.

After a boom of mass-produced, inexpensive basic casual wear, consumers are looking for value-added and unique products. The Japanese consumers are, however, very demanding on quality and even the slightest flaw in a product can create a bad product experience.

For some time now fashion trends have focused on casual wear and youngsters lead the way. It is not an uncommon sight to see young people walking around in high-end fashion items holding their Louis Vuitton or Channel bag. When it comes to spending on fashion especially young unmarried women or “office ladies” are especially interesting. This group consists of app. 5 million women who use app. 10% of their salary on fashion items, which is app., three times as much as the average consumer use on clothing and footwear.

According to JETRO specialty stores or select shops have the strongest future potential. These shops have clear store concepts and sell products that match the images the stores are attempting to project.

Generally the Japanese apparel market offers excellent opportunities for Danish designers and fashion companies who produce well designed, high quality collections with attention to details.

Business
Competition is hard due to the maturation of the market and the abundance of shops. Rivalry is further spurred by the rapid encroachment of shopping centers and aggressive campaigns in the Japanese market by foreign-brand goods, such as shoes, handbags and accessories.


Links
Japan External Trade Organization, JETRO