- We pick up knitwear, which Hong Kong companies with factories in China frequently come to Osaka to sell.
- Until the appreciation of the yen and steep rise in labor costs in Japan some thirty years ago, Japan was a major exporter of knitwear products. There were particularly large sales to the United States of plain, single-colored acrylic knitted sweaters, which were sold in large quantities by grams per piece.
- However, this changed with the high yen and sharp increase in labor costs, and 90% of annual consumption of knitwear is now imported. Knitwear with much embroidery or many beads and sequins are far too expensive to produce in Japan, where the cost of labor is high, and labor-intensive products such as these are presently produced in Asian countries with large reserves of cheap labor, especially China, for export to Japan.
- Conversely, unembroidered knitwear in plain, simple designs with no beads or sequins which can be easily made using knitting machines are cheaper to produce in Japan. This is due to the superiority of the machinery (knitting machines). Japanese knitting machines have a good reputation all over the world, and are still exported in considerable quantities. There are some sweater knitting machines, such as the Shima Seiki "SWG," that operate entirely automatically and eliminate the need for stitching.
- Japanese knitwear makers were quick to turn their attention to overseas, and they have provided technical guidance, set up joint ventures and independently expanded overseas in order to produce knitwear for export back to Japan. Most knitwear makers are small and medium enterprises rather than large companies. Not only makers but also some wholesalers also have their own plants overseas, and many also produce by setting up joint ventures.
- In Japan the focus of business is on the production of simple, largely machine-made sweaters and extremely small quantities of original knitwear, design work and the production of samples for overseas production.
- There is still a strong feeling in Japan that knitted sweaters are for keeping out the cold, and compared with Europe and the USA, knitwear is not considered to be particularly fashionable apparel. Autumn and winter clothing therefore dominates and sales of knitwear for the spring and summer are low. A slightly stiff feel, even if a little uncomfortable, is preferred, and materials such as wool, acrylics and Angora are popular. Loose knitted garments are liked. Cotton and silk are associated with coldness and so are not used for sweaters. Light sweaters are frequently worn in European and American offices, which are well heated, but in Japan, where uniforms are common, sweaters are always thought of as outdoor rather than indoor wear.
- The finish also differs in Japan and Western countries. Knitwear in Japan is knitted a little tighter. Sweaters which fit exactly when worn are popular, and hems and collars which fit snugly are preferred. However, sweaters which are too tight when worn are disliked, and it cannot be sold unless they feel just right. The pattern and design must also match exactly. Unlike in the West, where some variation in the knitting, loose hems and collars, and patterns which do not match are acceptable, the Japanese consumer is very demanding and expects extremely high standards of quality.
- Japan 's exports of knitwear remain low, as the following figures indicate.
| Year |
Volume (pcs)
|
Value (JY Billion)
|
| 1991 |
820,000 |
1,508 |
| 1992 |
876,000 |
1,945 |
| 1993 |
709,000 |
1,655 |
| 1994 |
413,000 |
1,337 |
| 1995 |
303,000 |
1,194 |
1996(Jan-Oct)
|
364,000 |
1,209 |
(Source: Ministry of Finance Trade Statistics)
The main destinations for exports in 1991 were, in order of importance, Hong Kong, Others, the USA and Taiwan, but in 1996 (Jan-Oct) the order was Others, Hong Kong, Taiwan and the USA.
- Imports, on the other hand, have grown.
| Year |
Volume (pcs)
|
Value (JY Billion)
|
| 1992 |
131,035,000 |
181.386 |
| 1993 |
151,618,000 |
177.499 |
| 1994 |
195,859,000 |
220.849 |
| 1995 |
222,495,000 |
235.038 |
| 1996 |
246,703,000 |
277.915 |
(All years Jan-Oct only) (Source: Ministry of Finance Trade Statistics)
The main source of imports in 1991 was China, followed by South Korea and the USA. In 1996 (Jan-Oct), Japan's imports by country/region of origin were as follows:
| Origin |
Volume (pcs) |
Share |
| China |
175,900,000 |
71.3% |
South Korea
|
35,357,000 |
14.3% |
| Europe |
9,657,000 |
3.9% |
| U.S.A. |
5,002,000 |
2.0% |
| Taiwan |
3,040,000 |
1.2% |
| Hong Kong |
2,567,000 |
1.1% |
| Others |
15,180,000 |
6.2% |
| Total |
246,703,000 |
100% |
Only 1.1% of imports were from Hong Kong, but it appears that this is because orders taken by firms in Hong Kong are shipped directly from China. Japanese import tariffs are currently 16.8% on embroidered/laced and figured knitwear, and 14.0% on other knitwear.
- Attractive design and the fall in the lira have contributed to large imports of cut and sewn sweaters from Italy. China is now by far the most important source of fully fashioned sweaters heavily decorated with beads, sequins or embroidery.
- Basic, simple designs are now fashionable, and with a fall of around 20% in the value of the yen, the price of imports is becoming less competitive. As mentioned above, garments in simple designs can be manufactured more cheaply in Japan.
- Firms trading in knitwear are working to develop new materials suitable for the Japanese market, such as Tencel and Modall. Some are also jointly developing materials with companies overseas.
- As indicated above, the Japanese knitted sweater market is saturated with imports, and their market share appears unlikely to grow any further.
- Due to volatile knitwear fashion trends, discount stores hedge their risks by buying through trading companies.
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