Five Forces Children Wear in Japan

Five Forces Children Wear in Japan:
Industry Analysis:
Threat of new Entrants :
There is a fair potentiontial in children wear in Japan.
Globalization can be both inspiring and challenging to a home industry
(Porter,
1990). Industries can increase their market by exporting goods as well as
boost efficiency by
subcontracting parts of their operations to other countries (Porter, 1990).
For example, scholars believe that Japan, which are highly established
economies, continue to have modest textile and apparel industries
(Bertaccnhii & Borrione, 2009; Rantisi, 2002). As a result, a research
stream about other input factors that might affect productivity in textile
and apparel industries in developed nations became prominent
(Bertaccnhii & Borrione, 2009; Rantisi, 2002; Scott, 2006). Bertacchini and
Borrione (2009) suggested knowledge, as an input factor, should be used
to understand textile and apparel industry competitiveness in developed
countries. The researchers argue knowledge increases efficiency of the
overall production process of a companythrough design and product
development processes, supply chain management, marketing, and
craftsmanship, which results in higher productivity and greater
competitiveness of the sectors as a whole (Rantisi, 2002; Scott, 2006). To
summarize, extant research identifies two groups of factors that might
affect textile and apparel industry competitiveness, particularly, in the
context of developed countries. These factors include trade and
productivity. the Japanese government and
companies focused on strategies related to increasing productivity
through knowledge growth (Kanamori, 1988; Yoshimatsu, 2000). Through
targeted industrial policies, the Japanese government promoted quick
response systems and a new marketing strategy to focus on niche
markets to increase its productivity (Kanamori, 1988; Yoshimatsu, 2000).
Japan promoted productivity growth through knowledge to support

competitiveness of its textile and apparel industries.
Japan is an island nation. Japan's international occupation on a customs
clearance basis has increased both in exports and imports (year 2013). This
is due to an increase in yen conversion as-sociated with yen depreciation.
Exports was in year 2013 69.8 tril-lion yen. It means 9.5 percent increase
compared to the previous year. It is also the first increase in three years.
(Statistics Bureau 2015, chapter 11). Japans import of clothing in year 2013
was worth of 3,248 million yen. 74,6% of the imported clothing comes from
China. Second largest countries that Japan imports clothing are Vietnam and
Italy (Statistics Bureau 2015, chapter 11). Japan is still quite closed down
country to do export with. Japanese authority is still favoring local production
and for example textiles, grocery and paper products. (Wiln 2010, 7-8)
So because of local production in textile, japan has its own fashions sense.
Fashion has its own characteristics in Japan. The fashion cycle in Japan seems
to be fast. It reacts and changes in the market very rapidly and effectively.
Normally target audience are youth, but Babys wear fashion was dominated
by organic plain white materials without dyeing. Nowadays coloured and
patterned babys wear has been found in the markets as well. Style is not a
big issue in babys clothes. The Japanese children wear market has varied
over the period between years 2010 and 2014. This trend can however be
seen to change and potential growth is expected to happen in forecasting
period. There are few leading stores in Japan for working in three areas mens
women and children wear, other than this others are preferring to target on
youth and teenager fashion.
Although Japanese industry varied over in 2010- 2014 in children wear, but
still they have much potential in children wear, as time change and children
fashion can be much more space for improvement. According to Porter, the origin
of profitability is identical regardless of industry.Porter wrote. "If the forces are gentle, as they
are in industries such as software, soft drinks, and toiletries, apparel, many companies are
profitable." Porter stared appreciative both the competitive forces and the overall industry
structure as crucial for effective strategic decision-making. In Porter's model, the five forces
that shape industry competition are
Competitive rivalry: Rivalry is quantitatively measured by the Concentration

Ratio (CR), which is the percentage of market share owned by the four largest firms in an
industry. As in Japan there are few leading industry in children wear.
Bargaining power of suppliers: This force can easily understand that

how much power a business's supplier has and how much control it has over the potential to
raise its prices, which, in turn, would lower a business's profitability. So if the suppliers have
a power in this market make them flourish.
Bargaining power of customers: This force looks at the power of the

consumer to affect pricing and quality. Consumers have power when there aren't many of
them, but lots of sellers, as well as when it is easy to switch from one business's products or
services to another. Buying power is low when consumers purchase products in small
amounts and the seller's product is very different from any of its competitors. But in japan
fashion rapidly change so easily understand that consumer are more focus on fashion, and
children wear have not much leading brand so consumer bargaining power is not much high
in children wear.
Threat of new entrants.
This force examines how easy or difficult it is
for competitors to join the marketplace in the industry being examined. The easier it
is for a competitor to join the marketplace, the greater the risk of a business's market
share being depleted. Barriers to entry include absolute cost advantages, access to
inputs, economies of scale and well-recognized brands. Japanes are much more
quality conscious same as other industries, so its not easy to enter rapidly in japan
industry with all aspects like cost advantage, and quality work.
Threat of substitute products or services.
This force
observe how easy it is for consumers to switch from one product to other in terms of
cost quality. It stares at how many competitors there are, how their prices and quality
compare to the business and how much of a profit those competitors are earning,
which would define if they have the ability to lower their costs even more. The threat
of substitutes are informed by switching costs, both immediate and long-term, as well
as a buyer's inclination to change. As we can see there are few leading brands in
children wears, so switching cost will be low as compare to youth fashion industry.
Porter, M. E. (1990). Competitive Advantage of Nations. New York: Free Press.

Bertacchini, E. & Borrione, P. (2009). The city mouse and the country
mouse: The geography of creativity and cultural production in Italy. EBLA
Working Papers, 2009.
Rantisi, N. M. (2002). The competitive foundations of localized learning
and innovation: The
case of womens garment production in New York City. Economic
Geography, 78(4),
441462.
Scott, A. J. (2006). The changing global geography of lowtechnology,
laborintensive industry: Clothing, footwear, and furniture. World
Development, 34(9), 15171536.
Yoshimatsu, H. (2000). Internationalization, corporate preferences and
commercial policy in
Japan. New York: St, Martin's Press
Kanamori, H. (1988). Nyumon nihon keizai [Introduction to Japanese Economy]. Tokyo:
Chuo Keizaisha.
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What factors affect the competitiveness of Japan's textile and apparel industries?

How did the Japanese government promote productivity growth in these industries?

Five Forces Children Wear in Japan:

Japan promoted productivity growth through knowledge to support

Competitive rivalry: Rivalry is quantitatively measured by the Concentration

Bargaining power of suppliers: This force can easily understand that

Bargaining power of customers: This force looks at the power of the

Threat of new entrants.

This force examines how easy or difficult it is

Threat of substitute products or services.

Porter, M. E. (1990). Competitive Advantage of Nations. New York: Free Press.

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