Sluggish Apparel Demand Due to Consumers’ Focus on Saving and Unfavorable Weather

「Personal consumption remained cautious, as the rising cost of living heightened consumers’ desire to conserve cash and further strengthened their preference for saving. In domestic apparel sales, consumers became increasingly selective about prices as their preference for saving persisted, while support also broadened for high-value-added products offering superior quality and functionality, further advancing the polarization of consumption.」

「In the domestic specialty-store business, sales trends diverged by region. While sales remained strong in urban areas with robust inbound demand, regional stores continued to face difficult conditions as heightened concerns about household finances due to rising prices affected consumers' willingness to purchase, resulting in fewer customers.」

「In particular, higher prices for essential goods have increased the burden on households, further strengthening consumers' focus on saving. In Japan's apparel retail market, in addition to the restraint on consumption caused by inflation, inbound demand is concentrated in limited areas of major city centers. As a result, stores in regional and suburban areas have been unable to fully benefit from expanding demand, and the business environment remains challenging.」

「In Japan's apparel retail market, inflation driven by persistently high energy and raw-material prices is expected to slow personal consumption as consumers become increasingly focused on saving, leaving the outlook uncertain.」

「As social and economic activity returned to normal, the economy entered a gradual recovery phase, supported by expanding inbound demand against the backdrop of a weaker yen and improving employment and income conditions. However, the outlook remains uncertain due to continued instability overseas, including the prolonged Russian invasion of Ukraine and worsening conditions in the Middle East, developments in policy interest rates following the Bank of Japan's review of its monetary policy, and volatile foreign exchange markets.」

「Domestic apparel sales remained firm, supported by expanding inbound demand as the number of visitors to Japan increased and improved income conditions resulting from wage increases. However, higher prices caused by soaring raw material costs and the impact of a persistently weak yen raise concerns about more cautious purchasing as consumers become increasingly thrift-conscious.」

「In the domestic apparel market, sales remained firm, supported by improved income conditions resulting from wage increases, increased foot traffic as people became more willing to go out, and expanding inbound demand driven by the weaker yen.」

「Domestic apparel sales remained firm, supported by improved income conditions resulting from wage increases, increased foot traffic as people became more willing to go out, and expanding inbound demand driven by the weaker yen.」

「The reclassification of the novel coronavirus as a Class 5 infectious disease lifted activity restrictions and entry controls, advancing the normalization of economic activity. However, the outlook remains uncertain because of the prolonged Russia-Ukraine situation and higher prices for goods and services resulting from sharp exchange-rate fluctuations.」

「Restrictions on activities and entry controls imposed to prevent the spread of the novel coronavirus have been eased, and the economy is moving toward normalization. However, the outlook remains uncertain because of the prolonged Russia-Ukraine situation and higher prices for goods and services resulting from sharp exchange-rate fluctuations. Domestic apparel sales remained firm, supported by increased willingness to go out during the spring holidays and Golden Week, as well as a recovery in inbound demand.」

「In the domestic apparel market, seasonal products performed well as demand for going out increased, and inbound demand also began to recover. However, infection levels and temperature changes had a significant impact on purchases for actual demand, making it necessary to respond quickly to changes in the market environment.」

「In domestic apparel sales, seasonal products performed well as demand for going out increased, and inbound demand also began to recover. However, infection levels and temperature changes had a significant impact on purchases for actual demand, making it necessary to respond quickly to changes in the market environment.」

「In domestic apparel sales, spring/summer products performed well as demand for going out increased. However, from late July onward, the market environment changed rapidly as the sharp increase in infections during the seventh wave of the coronavirus pandemic and restrictions on going out due to extreme heat affected sales.」

「Following the lifting of priority preventive measures related to the novel coronavirus in late March, personal consumption showed signs of recovery. However, the outlook remains uncertain because of the situation in Ukraine and higher prices resulting from fluctuations in exchange rates.」

「In addition to the lasting changes in consumer behavior and lifestyles, tenant replacements and consolidations at commercial facilities are progressing, while trends are emerging from information disseminated through social media. Companies are expected to propose convenient services integrating e-commerce and physical stores, together with compelling product presentations.」

「Following the lifting of the state of emergency related to the novel coronavirus in October, consumer spending began to recover, but the outlook remains uncertain. In domestic apparel sales, foot traffic in urban areas and commercial facilities was beginning to return after the lifting of the state of emergency. However, prolonged restrictions on going out have irreversibly changed consumer purchasing behavior, and companies are expected to promote products suited to new lifestyles through both digital and physical channels.」

「The reissuance of a state of emergency and the broader application of priority preventive measures to prevent the spread of the novel coronavirus led to extended closures and shortened business hours at commercial facilities, restaurants and other businesses. Consumers' propensity to purchase remains stagnant, and the outlook continues to be uncertain.」

「The reissuance of a state of emergency, closures and shortened business hours at commercial facilities, and restrictions on going out have weakened consumers' propensity to purchase, and the outlook remains uncertain.」

「In the domestic apparel market, restrictions on going out limited people's movements, causing irreversible changes in work styles and consumer behavior and diversifying the ways people work and shop.」

「In domestic apparel sales, restrictions on going out and the entrenchment of remote work have brought irreversible changes to purchasing behavior and work styles. To respond, companies are expected to integrate online and offline operations and propose products suited to new living environments.」

「In domestic apparel sales, restrictions on going out and recommendations to work remotely reduced human mobility and began to cause rapid changes in purchasing behavior. This further accelerated the expansion of e-commerce sales and sales promotion through social media. Companies are increasingly expected to integrate online and offline operations, including expanding the role previously played by physical stores through their own e-commerce sites and the use of social media.」

「From around February, economic activity began to stagnate because of the novel coronavirus outbreak. The declaration of a state of emergency in early April suppressed consumption and corporate activity nationwide, creating an extremely difficult operating environment.」

「In the domestic economy during the consolidated fiscal year, personal consumption showed signs of recovery as employment and income conditions continued to improve, but remained lacking in momentum after the consumption tax increase in October 2019. Downside risks, including US-China trade tensions and the spread of the novel coronavirus, are also putting downward pressure on the domestic economy, and the situation remains uncertain.」

「In domestic apparel sales, e-commerce continues to expand, while physical stores have become indispensable to fashion consumption as places where customers can experience products and the service provided by sales staff. Consumers are increasingly prioritizing high functionality and high value added when making purchases. Companies are expected to refine the foundations of their brands and launch products that uncover new market needs.」

「In domestic apparel sales, fashion consumption continues to shift to e-commerce, as shown by the substantial increase in gross merchandise volume handled by major domestic e-commerce malls, among other factors. At the same time, the in-store experience unique to physical stores, including product selection and the ability of sales staff to recommend products, remains indispensable to fashion consumption. In response, companies are expected to establish specialty stores that combine the use of social media with experiential consumption.」

「In domestic apparel sales, strengthening physical stores through an omnichannel approach, alongside responding to the continued expansion of e-commerce, has become an important challenge. To respond to these market trends, companies are expected to pursue greater customer convenience and rebuild their business models for the current environment, including offering in-store pickup, expanding payment options and establishing production systems that can respond flexibly to weather and trends.」

「Although wages have improved, growth in disposable income lacks momentum, and persistent thriftiness and selective consumption, in which consumers carefully choose and purchase products that offer value, continue. As purchasing behavior becomes more diverse and fragmented because of changing views on fashion and structural changes in distribution, companies are expected to make a clear appeal to each individual customer by firmly defining product direction and strengthening products developed in response to conditions during the period.」

「Although thriftiness remains firmly entrenched among consumers in domestic apparel sales, the tendency to select and purchase products that offer value has strengthened, and signs of an exit from deflation are emerging. To become a brand chosen by customers, companies are expected to launch high-value-added products differentiated through product planning, quality and materials, while using e-commerce, social media and other tools to make product recommendations tailored to each individual.」

「Although income conditions show signs of improvement in domestic apparel sales, consumers are increasingly selecting and purchasing value-added products because of persistent thriftiness and the rapid expansion of the secondhand market.」

「In domestic apparel sales, consumer behavior is becoming more diverse and fragmented with the rapid adoption of e-commerce, the spread of clothing-sharing services and the expansion of the recycling market, including C2C transactions. Greater ingenuity is required in planning and proposing products suited to consumer needs.」

「Although thriftiness toward goods remains firmly entrenched in domestic apparel sales, personal consumption is showing signs of recovery. As more consumers seek goods through experiences when the enjoyment they gain is worth the cost, a clear shift is emerging among middle-income consumers from thriftier spending to selective consumption.」

「Domestic apparel sales have struggled because of strong demand for lower-priced products in stores and pronounced changes in consumer behavior caused by unsettled weather. At the same time, as social media becomes a more prominent source of information, demand remains high for high-value-added products with a strong story or distinctive appeal, while experiential consumption, in which customers gain an experience through using a product, is gaining momentum. How flexibly companies can respond to increasingly diverse needs is becoming an important challenge.」

「The domestic economy has shown continued improvement in corporate earnings and employment conditions, and personal consumption is beginning to recover. However, the recovery remains lacking in momentum because growth in disposable income is weak and the propensity to spend remains low. In domestic apparel sales, purchases for actual demand, in which consumers buy only what they need when they need it, have become increasingly pronounced because of persistent thriftiness and shorter trend cycles」

「The domestic economy has been on a gradual recovery track, supported by improvements in corporate earnings and employment conditions, and personal consumption has shown signs of recovery. However, the outlook remains uncertain because of concerns about the impact of the new US administration on the Japanese economy and instability on the Korean Peninsula. In domestic apparel sales, as selective consumption, with consumers distinguishing between saving and splurging, becomes more prevalent, demand is rising for premium products that offer something different from what others have. It is therefore becoming increasingly important to offer high-value-added products that capitalize on the strengths of in-house product planning.」

「Domestic apparel sales were strongly affected throughout the year by external factors, as unsettled weather and more cost-conscious spending caused personal consumption to stagnate, particularly among middle-income consumers, the market's mainstream segment. On the other hand, demand was concentrated on high-value-added products, even at higher prices, and selective consumption, with consumers clearly distinguishing between saving and splurging, is becoming increasingly prevalent.」

「The economic outlook remains uncertain, given the slowdown in China and other emerging economies, the UK's withdrawal from the EU and unstable currency and share-price movements resulting from the US presidential election. Domestic apparel sales remained weak from the spring/summer to autumn selling seasons because of unsettled weather, including lingering hot weather and a succession of typhoons, as well as sluggish personal consumption amid stronger household budget-consciousness. However, from November, as temperatures fell, winter products, particularly cold-weather apparel such as coats, sold well, and purchasing for actual demand became increasingly pronounced.」

「In domestic apparel sales, weakness was particularly pronounced across fashion apparel, centered on women's clothing, and consumers were increasingly turning again to lower-priced products as thriftier spending became more widespread. Sock sales were also affected by inventory clearance at various companies, making this a season in which low-price selling was more pronounced than usual.」

「Although some improvement was seen in employment and income conditions, the economy remains stagnant. The outlook remains uncertain as the yen's appreciation and falling share prices have weakened consumer sentiment and business confidence.」