Uniqlo X Needles Credits: Uniqlo In recent years, Japan's apparel market has consistently fallen short of the nine trillion yen level seen before Covid-19. One reason for this phenomenon is the labour shortage in the textile industry. The average annual income in the textile sector is 5.81 million yen, which exceeds the wider industry average. However, textile wages remain more than 25 percent below both the all-industry and manufacturing averages. Another factor is the decline in Japanese purchasing power. Population decline and an ageing society have reduced the number of clothing items purchased. The spread of durable clothing from brands such as Uniqlo has also decreased replacement frequency. As symbolised by the decline of department stores and the disappearance of mid-priced brands, Japan's domestic fashion "middle market" has gradually shrunk, changing consumer choices. Changes in company rankings As the domestic market contracts, Uniqlo and Asics have shown growth in sales and market value. These two companies share common ground: selling high-performance, high-quality products whilst expanding overseas. According to Uniqlo's 2024 consolidated financial results, group revenue exceeded three trillion yen for the first time. Remarkably, 55 percent of profits came from overseas operations. Behind Uniqlo's successful global expansion lies a strategy of integrating into local cultures and lifestyles through flagship store openings. In China, for example, the brand opened a 2,200 square metre flagship store in central Wuhan and partnered with universities in the city, which boasts the world's largest student population, to host student fashion shows. Next spring, a new…
