Overview of the Retail Apparel Market

Scale of Japan’s retail apparel market and trends in the UNITED ARROWS Group’s sales

The scale of Japan’s retail apparel market is roughly ¥9-10 trillion per year. While the market enjoyed four consecutive years of growth from 2011 to 2014, trends declined ever so slightly in 2015. In addition to the slump in winter items due mainly to the mild winter, this downturn in clothing expenditure for the first time in three years as indicated in a survey by Japan’s Ministry of Internal Affairs and Communications was also evident in data regarding restrained consumer spending.

Trends in the scale of Japan’s retail apparel market and UNITED ARROWS Group sales

Trends in the scale of Japan’s retail apparel market and UNITED ARROWS Group sales

Trends in sales by sales channel in Japan’s retail apparel market

The scale of the specialty store as well as the online store and other*1 segment markets continues to expand. While we are seeing specialty store success and failure depending on the company, in overall terms this segment remains robust thanks largely to the outstanding ability to balance product and price. Trends in online and other stores are also strong. This mainly reflects the initiatives of each company’s online activities as well as changes in the way consumers purchase goods.

*1 The others channel includes mail order / online (Internet, catalog, television, others) as well as discount stores.

Trends in sales by sales channel

Trends in rates of sales growth by sales channel

Trends in e-commerce sales in Japan (merchandise, clothing, fashion goods)

According to a survey by Japan’s Ministry of Economy, Trade and Industry, the scale of the e-commerce market as a portion of total merchandise sales in Japan came to ¥8 trillion in 2016 and accounted for 5.4% of total sales. This was 10.6% higher than the previous year. Of this total, clothing and miscellaneous items amounted to ¥1.5 trillion, up 10.5% year on year, and comprised 10.9% of total e-commerce sales. Based on these figures, merchandise overall as well as clothing and miscellaneous items both continue to expand. Looking at a breakdown of e-commerce activities within the merchandise category as a whole, clothing and miscellaneous items make up the largest share at 19%, which reflects the high interest by consumers.

* Details of Japan’s apparel market as well as clothing and miscellaneous items are based on data provided by Yano Research Institute Ltd. and Japan’s Ministry of Economy, Trade and Industry, respectively. Hence, the discrepancy in market scale.

Trends in the Composition of E-Commerce Sales for Merchandise, Clothing, and Miscellaneous Items in Japan as well as for the Company overall

Trends in total sales of five major select shop companies and UNITED ARROWS LTD.’s market share

Composition Rate by Category within Japan's Merchandise E-Commerce Market