- Hat/cap manufacturing began in Osaka in the spring of 1866 when Dutch hats were copied for trial production. Hats and caps including children's hats, students' caps and felt hats have been produced during MEIJI period (1868-1912).
- Hat/cap making is a labor-intensive industry involving a number of stages of production, in addition to which consumer sensitivity to changing fashions means designs change rapidly. Consequently, mass production has been impossible. Large companies have thus not been players in the market and products are manufactured exclusively by small and medium- sized firms.
- As demand is big in major cities with large populations, and manufacturing depends heavily on side job and large numbers of subcontracted processors, Osaka and Tokyo became the two main areas of production.
- The proportion of the population now wearing hats/caps is no more than a few percent and has declined in the past three years. Annual national consumption in terms of volume is estimated to be around 50 million. If the 20 million supplied by companies and "novelty" used for advertising purposes are included, there is a total annual demand for approximately 70 million.
- Around 20 million are currently produced domestically while the remaining 50 million are imported, and although there may appear to be a balance between supply and demand at present, around 80 million were actually imported in 1996. Some 30 million imported goods were not therefore sold and apparently remain in storage. There are almost no exports.
- With the popularity of American casualwear and the fierce heat three years ago, great numbers of young people went around proudly wearing caps embroidered front and back to front. The bubble economy had burst at that time, and although all other industries were suffering a recession, the hat/cap industry was doing well. Not only hat/cap dealers but also firms dealing in gloves, tents, umbrellas and general merchandise saw what they considered to be profitable opportunities and started importing. At one point over 100 million were being imported and it seemed as though hats/caps had become an established consumer item.
- However, young people soon tire of things, and they grew bored with hats/caps and stopped wearing them. It became fashionable to die one's hair brown and wear beads in it, and the focus of youth fashion shifted from hats/caps to heads and hairstyles. In less than a year, even famous brands such as Nike and Fila became out of fashion. Consequently, although it had seemed that hats had become an established consumer item, the industry has been depressed since 1994 and some firms have gone bankrupt or closed down.
- The first Japanese maker to expand overseas was Chuo Boshi Co., Ltd, which moved into South Korea some 25 years ago. Sine then, firms have continued to expand overseas into South Korea and Taiwan by setting up joint ventures. With the increase in wage levels and labor costs in these countries, however, countries such as Indonesia, Thailand, Vietnam and China are increasingly being chosen as locations for joint ventures. Imports of products from the United States also remain high. As quality is high, imports from Thailand and Vietnam look likely to increase, and growth in imports from China is also expected.
- Imports in 1996 totaled JY26.59352 billion in value, and the main exporters were as follows.
| 1 |
United States
|
JY 6.06890 billion
|
| 2 |
Taiwan |
JY 4.45605 billion |
| 3 |
China |
JY 3.53177 billion |
| 4 |
South Korea |
JY 3.07637 billion |
| 5 |
Thailand |
JY 1.72556 billion |
| 6 |
Italy |
JY 0.93207 billion |
| 7 |
Indonesia |
JY 0.63311 billion |
| 8 |
Vietnam |
JY 0.61016 billion |
Source: Ministry of Finance (ed.), "Japanese Monthly Trade Figures" (Japan Tariff Association)
- There are hundreds of kinds of brand goods on the market, and there also some fake imports.
- At present, (a) the numbers of young people wearing knitted wool hats even in midsummer are increasing, and (b) cheap knitted and machine-stitched hats that can be folded up and washed without losing their shape have become very popular amongst people who have become bored with caps. These hats, also called "thermo hats", are mostly imports and feature prominently in supermarkets and other major retail chain stores. The ease with which they can be folded up and put away in a bag makes them handy.
- As there have recently been cases of people collapsing due to the temperature difference when leaving a heated room to go outside, where it is colder, many elderly people have taken to wearing winter hats for health reasons. The traditional seasonal balance of summer(60%) and winter(40%) is therefore disappearing. In summer holiday resorts, some 60- 70% continue to wear hats/caps.
- The proportion of hats/caps by type were as follows:
- Ladies' 60%
- Men's 30%
- Children's 10%
80% are hats and 20% caps. Until two years ago the figures were the reverse.
- The number of supermarkets and other major retail chain stores importing directly is increasing, but having learned from past mistakes, some have reverted to buying through hat/cap wholesalers. Further increases in direct purchases are however forecast.
- Japan's Product Liability Law is being rigorously applied by major retail chain stores and others, and there have been cases of:
- Every product being sent back due to the presence of minute quantities iron filings in the peaks.
- Fines of JY500,000 being imposed due to the discovery of 1mm broken needle.
- Goods being returned as detectors have registered something, although the presence of needles has not been confirmed.
Actual damage has arisen therefore not because any harm has been caused, but due instead to the application of the Product Liability Law despite the fact that nothing has actually occurred.
- Privately, the hat/cap industry would probably prefer to increase domestic production and reduce imports. However, due to increased labor costs in Japan, a shortage of people to inherit the trade and craftsmen closing down, obstacles to domestic production continue to grow.
- The best way to survive is probably to create products that will appeal more to Japanese consumers produced with Japanese preferences in mind, and to train and encourage better craftsmen overseas.
- Factors affecting the marketability are (1) weather, (2) quality (user comfort) (3) design, and (4) price.
- Import duty on hats/caps from developed countries (such as in North America and Europe) is 7%. No import duty is levied on imports from regions where preferential duties apply.
|