This story is part of Next in Asia, a series exploring the impact of technological and economic transformations across Asia-Pacific and the influence on local style, community and culture. Read part one on the enduring appeal of Japan s luxury market, and part two on South Korea’s next big fashion import, here.
Times are changing in Tokyo. A walk down the streets of Ginza, the city’s most upscale shopping district, reveals a succession of tall and elegant stores from luxury players including Hermès and Chanel alongside giant flagships from mass fashion retailers such as H&M and Uniqlo. This juxtaposition of high and low brands in a once strictly ritzy neighbourhood sums up a shift in spending habits among Japan’s consumers, particularly the young.
Affordable brands have emerged as an integral part of the country’s fashion landscape. Japan’s value sector grew by 7.4 per cent from 2018 to 2022, compared with the luxury segment’s growth rate of 4 per cent over the same period, according to GlobalData.
The luxury market is expected to step up its growth trajectory in the years ahead, with spending forecast to rise by 16.5 per cent between 2022 to 2027. It’s bouncing back from a sluggish period during the pandemic and is boosted by more high-end brands focusing on the potential of Japan for growth. The value market is expected to maintain momentum too, with growth of 11.4 per cent over the same period.
An upsurge of fast fashion chains, coupled with pandemic-induced closures of “unique” shops, has had a tremendous impact on local style, observes Shoichi Aoki, a fashion photographer who famously declared the death of Tokyo’s fashion scene in 2017. That same year he announced the closure of Fruits, a celebrated magazine that chronicled the street style of Harajuku, founded by Aoki in 1997 — long before street style became a global fashion week phenomenon.
“Fast fashion relies on the exploitation of creators,” reflects Aoki. “That ultimately led to the destruction of smaller creators in Harajuku, resulting in a mutual downfall.” Fast fashion, he believes, caters for “people who prefer safe and moderately fashionable choices rather than those seeking intense fashion stimulation… Fast fashion has its advantages, such as raising the fashion bar for everyday people, but it also creates an environment that is less challenging.”
In May, Aoki released vintage issues of Fruits online in English — but that’s not to be considered a revival, he says. He believes the so-called ‘DC Boom’ (DC stands for “designer” and “character”) is over. The DC Boom is the term commonly used to describe fashion trends originating from Japan, sparked by the emergence on the international fashion stage in the 1980s of Comme des Garçons and Yohji Yamamoto. The peak of Harajuku fashion, between 1996 and 2002 — which prompted the launch of Fruits — has already passed. “It’s unlikely [it] will come back again in the future,” he says. “Currently there is no prominent aesthetic. [Japan’s fashion scene] is in a state of emptiness.”
New influences
Many Japanese fashion observers trace the dropoff in the DC Boom to the collapse of Lehman Brothers and the ensuing global financial crisis of 2008 and (in Japan) of 2009. More financial turmoil followed in 2011 as well as that year’s earthquake, tsunami and nuclear accident at Fukushima that delivered a cumulative heavy hit to consumer confidence and caused the world’s third-largest economy to fall into a prolonged period of tepid growth and deflation.
In 2019, a sales tax hike, introduced by the government to cover the cost of social security spending, further fuelled a decline in disposable incomes in Japan. The economic uncertainty caused by the pandemic and the weakening of the yen have also led to consumers continuing to save money, which has boosted the popularity of lower-priced casual brands, believes Euromonitor International s senior analyst Aya Suzuki.
“Japan was extremely immune to fast fashion until the late 2000s. People expected to spend a lot on clothing,” says W David Marx, Tokyo-based author of Status and Culture and Ametora. Clothing that is “functional, doesn t fall apart or is reflective of craftsmanship” is crucial for older consumers, who were famous for caring post-war when clothing was expensive and they wanted a guarantee that it would last, he explains.
Japan has remained a strong market for many luxury brands that saw slowing sales in key APAC regions like China during Covid. Executives discuss Japan’s enduring importance, and how they’re targeting local luxury consumers.
However, young Japanese consumers “seem to have dispensed with the frugality and conservativeness of older generations, who buy fewer clothing items and keep them for longer”, says Neil Saunders, managing director of GlobalData s retail division. “Japanese consumers are much more conscious of quality than those in other countries. This can be a barrier for fast fashion, but it’s a barrier that has been coming down in recent years as younger generations focus a bit more on trends.”
The rise of social media may also be behind a surge in demand for fashion-led mass market clothing. While Japan has many contemporary, middle-market brands, typically offering more timeless styles, these brands tend to have a poor online presence and are found in commercial complexes, such as Tokyo Midtown. They also don’t resonate with young, digitally savvy shoppers keen to emulate the styles seen on their favourite influencers.
“A majority of fashion consumers here don’t follow major world trends. They probably don’t even know about Jacquemus. But, they do check their favourite YouTuber or Instagrammer and follow their styles,” says Maiko Shibata, creative director of Restir, a Tokyo-based retailer selling luxury brands such as Balenciaga, Fear of God and Marine Serre. Younger Japanese women are seeking to emulate the fashion, makeup and hairstyles of K-pop stars, she adds.
The fast fashion comeback
Tokyo neighbourhoods such as Shibuya and Harajuku became known in the 1990s for fashionable hangouts like Takeshita Street and Cat Street as well as for birthing subcultures like Lolita and gyaru. They’ve lost much of their famous verve. Local stores now peddle cheap wares for a global crowd. Fast fashion retailers, several of which left Japan pre-pandemic as they struggled to resonate with domestic consumers, are back in force.
H&M, which first entered Japan back in 2008, is among the global retailers stepping up the pace of development in the country. The Swedish retailer has 123 stores in the country, seven of which opened in the first quarter of this year. Hundreds of people lined up ahead of each store launch, says Aneta Pokucinska, regional manager for H&M, North East Asia (Japan and South Korea). A 1,300-square-metre Ginza flagship opened in May, facing the fashionable Namiki-dori street, where Chanel, Louis Vuitton and Rolex have stores. It’s the first H&M in Japan to sell H&M Home.
Chinese online fast fashion giant Shein, a Gen Z favourite, is also eyeing the potential of Japan. The company opened its first full-scale bricks-and-mortar space in the world in April in Tokyo, following multiple pop-ups in 2022. The space in Harajuku is used as a showroom (customers scan QR codes to make purchases, which are delivered) and event space for influencers and press. 50-80 new SKUs are added to the store each week.
Shein’s senior marketing manager Tsukasa Ishii confirms strong demand. Shein is among the top five downloaded shopping apps via iOS and Google in Japan. A new dedicated hashtag #shein購入品, used by Japanese consumers to show off shopping hauls, has been used over 14,300 times on Instagram, she notes. The retailer plans to test the water further with the opening of five to six more pop-ups across Japan this year, she says.
Meanwhile, American fast fashion chain Forever21, owned by Authentic Brands Group (ABG), returned to Japan this February with an e-commerce site and a pop-up store in Shibuya. The retailer first entered Japan in 2009 and grew to 20 stores, but pulled out of the country in 2019 shortly after filing for Chapter 11 bankruptcy protection. In 2022, Japanese trading firm Itochu bought the rights for the brand in the Japanese market and is now aiming to open 15-18 stores over the next five years. A global annual sales target of $70 million has been set for the year to March 2028. Other ABG brands American Eagle Outfitters and Eddie Bauer are also set to return to Japan this year.
A more holistic approach
Before the financial crises, spending in Japan was closely tied to social stratification, indicating class or lifestyle. However, young Japanese perceive their spending as rather more linked to expressing their individuality.
Today, it’s common to see Japanese women carrying expensive bags from Prada or Celine while wearing jeans from a lower priced chain, says Restir’s Shibata. “They spend their money on handbags and less for clothing items, but they still want trendy pieces and that’s why they choose fast fashion.” Shibata says the shift has spawned a new buzzword, エルパト (herpat) — a combination of エル (her — short for Hermès) and パト (pat — an abbreviation of “patrol”), used to describe someone looking for an expensive handbag through clever means, such as via a resale shop.
Despite the surge in spending on accessible and low-priced fashion items, an awareness of brand value and good quality remains top of mind for consumers. That’s encouraged mass retailers to seek to premiumise their image. Only in Japan does Uniqlo operate an upmarket fashion line, named PLST. Likewise, Muji has a more premium range, titled Muji Labo. Shein has a higher-priced, less trend-based brand Motf, which is sold online and through its physical Tokyo space. Japanese customers “look for durability”, says Pokucinska of H&M. “Quality and functionality are important.”
The jury is still out on whether fast fashion retailers can thrive long-term in Japan, experts say. “Fast fashion retailers usually open stores in a popular neighbourhood like Harajuku, but then withdraw after about ten years,” says Aoki. He ascribes that to a lack of substance in the product offer. “While young people may appear to initially embrace these brands, they inevitably grow tired of them.”
“Every time one of these big fast fashion brands comes to Japan, there is a lot of media buzz and there’s a sales spike,” agrees Marx. “Whether this translates into long-term success is the question.” However, he notes that Japan’s booming tourism sector may offer an additional opportunity for fast fashion chains — they have global awareness and appeal to foreign visitors. “It makes sense to have Tokyo retail locations as part of a broader Asia business strategy,” suggests Marx.
H&M’s Pokucinska believes that imaginative retail may be the key to success. “Historically it was very transactional. You don’t expect more from a shop. But today’s customers expect more than that. They want to feel good,” she says. “The customer is going less into places just to shop. They want to enjoy their time. It’s not just about price but about offering a broad assortment and experience.”
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