An Era of Growth and Stability on Cards in Japanese Retail Sector

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According to Japan Consuming reports, the apparel market of Japan is all set to witness an era of growth and steadiness after two years of decline.

Although the apparel sales recorded an incremental growth of 0.4 percent in the fiscal year 2012, a strong growth rate of 5.2 percent was averaged by the top 100 retailers in the market. With such impressive growth rate, market leaders have acquired above 60 percent share of the apparel market. Most of the growth was delivered by the specialty chains but the e-commerce businesses also delivered handsome sales growth in the market.

The fiscal year 2012 was a good year for apparel retail stores in Japan. In spite of recording less than 2.3 percent sales growth of the year before, the market was on path of recovery only for the second time since 2003. The highlights of overall Japanese apparel retailing are as follows:

• Year on year average sales growth among the top 100 was 5.2 percent, increase of a significant 2.0 points on FY 2011.

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• The real growth came basically from two channels. While e-commerce rose nearly 7.2 percent, specialty retailing recorded 10 percent growth. The general merchandise stores or supermarkets and department stores went down 1 percent on average, indicating greater stability in these channels.

• Specialty chains dominated the top 10 retailer list of the highest growth. Direct marketers Jupiter Shop Channel and Start Today were also in the list.

• The top 100 retailers in combine shared more than 63 percent of the apparel market and 48 percent of apparel, accessories and footwear market.

Specialty Chains Dominate but E-Commerce Growing Fast Too

In the last 15 years, the specialty chains have been successfully increasing their market share as an apparel vendor. All the new entrants have infused the sector with new growth, innovation and ideas. There are several new entrants, such as Mash Style Lab, Trinity Arts and F.O. International, in the top 100 rankings.

All the new developments in Japanese retail market say volumes about the presence and influence of Japanese fashion trends on the global platform.

Post by Beautiful Places to visit in Japan.