Sluggish Demand for Apparel and Sewing Thread

「In addition to a slowdown in inbound tourism demand, consumers' stronger preference for frugality resulting from rising prices caused sentiment toward apparel consumption in Japan to trend downward.」

「In Japan's apparel and fashion and handicraft-related industries in which our Group is involved, consumption of apparel and handicraft materials became uneven due to slowing inbound demand for apparel, stronger consumer frugality and climatic factors such as record heat. In China and Thailand as well, there was no recovery in economic conditions, and apparel consumption remained sluggish.」

「Orders for the group's sewing thread continued to show no signs of recovery for either apparel manufacturing or handicraft use,」

「In Japan's apparel and fashion and handicraft-related industries in which our Group is involved, apparel and handicraft-related consumption became uneven under the combined impact of slowing inbound spending, stronger consumer frugality and climatic factors such as record heat. In China as well, apparel consumption remained sluggish as the economy slowed. As a result, during the interim period, our Group's orders for sewing thread for both apparel and handicrafts showed no sign of recovery. Under these conditions, following a broad agreement in tariff negotiations between the United States and Japan, orders in our sewing thread for handicrafts business for the U.S. market showed a modest recovery. However, production of fall and winter apparel remained cautious, and demand in Japan for apparel raw materials and sewing supplies continued to show no sign of recovery.」

「In the apparel and fashion industry, there were some benefits from inbound demand, but apparel consumption remained uneven due to stronger consumer frugality caused by rising prices and the effects of record heat. With distribution inventory adjustments also under way, apparel production remained generally constrained, and orders for sewing thread for apparel continued to be sluggish overall. Orders for household sewing thread also remained sluggish, while sewing thread for automotive interiors continued to perform steadily.」

「In the apparel and fashion industry, replenishment production for distribution inventories that had declined during the COVID-19 pandemic had run its course. In addition, rising prices and the trend toward a warm early winter lowered consumer sentiment, and since last autumn there has been a growing movement to restrict production except in some areas. In the handicraft-related industry, consumption continued to languish as consumer frugality intensified, and market conditions for sewing thread in both fields became even more difficult.」

「In the apparel and fashion industry, production of apparel turned toward a slowdown after replenishment of distribution inventories had ended and consumption began to weaken due to rising prices and other factors. Consumption in the handicraft-related industry also remained depressed because of stronger frugality, and market conditions for sewing thread in both fields became increasingly difficult.」

「In response to these conditions, the apparel and fashion industry closely related to our Group showed signs of slowing in its recovery trend, while the handicraft-related industry remained sluggish, creating concern about the outlook.」

「In the apparel and fashion industry in which our Group is involved, apparel production generally continued to increase as a result of the reaction to production cuts during the COVID-19 pandemic and the recovery in consumption, and our Group's orders for sewing thread for apparel also continued to recover. However, various aftereffects of the suspension of business caused by last year's lockdown in Shanghai, China, weighed on the business, delaying the recovery in orders at our Chinese sales subsidiary. In addition, consumption in the handicraft-related industry remained sluggish due to the shift from stay-at-home consumption to out-of-home consumption and growing awareness of the need to protect household finances.」

「In the apparel and fashion industry related to our Group, production of apparel for the Japanese market continued to recover as apparel consumption recovered, albeit unevenly. The handicraft-related industry, however, remained sluggish, affected by the shift from so-called stay-at-home consumption to out-of-home consumption and rising prices across a range of goods.」

「Production of apparel for the Japanese market in Japan and overseas was recovering, albeit unevenly, and orders for sewing thread for apparel also showed a rising trend. However, orders for household sewing thread and sewing thread for automotive interiors remained sluggish because the recovery in customer traffic at specialist handicraft stores in Japan was slow and vehicle production recovered slowly due partly to semiconductor shortages.」

「As restrictions on activities were eased, apparel consumption in Japan showed signs of recovery, albeit unevenly. Orders for sewing thread for apparel also showed signs of recovery in line with the recovery in production. However, orders for household sewing thread and sewing thread for automotive interiors remained sluggish,」

「Our Group, whose main business is the manufacture and sale of sewing and embroidery thread, is also closely involved with the apparel and fashion and handicraft-related industries. These industries continued to face extremely difficult conditions in the short term due to weak consumer sentiment and changing consumption preferences amid the COVID-19 pandemic, with no sign of recovery.」

「In the industries related to our Group, domestic apparel consumption showed signs of recovery, although unevenly. Production nevertheless remained cautious, and orders for sewing thread remained sluggish both in Japan and overseas in the handicraft-related field, partly due to the reversal of the increase in orders in the same period of the previous year.」

「In the apparel and fashion industry closely related to our business, domestic apparel consumption remained sluggish because of voluntary restraints on going out and weak consumer sentiment. Amid uncertainty over the outlook, production of apparel for the Japanese market in Japan and overseas recovered unevenly, and orders for sewing thread for apparel remained difficult overall. In addition, household sewing thread, which had seen an unprecedented surge in orders from stay-at-home demand in the same period of the previous year, suffered a substantial decline in orders during the current period due to the reversal of that increase,」

「With large commercial facilities again being asked to close or shorten their hours, fewer opportunities to go out made a recovery in domestic apparel consumption unforeseeable. Production also remained constrained for an extended period except in some areas, and orders for our Group's main product, sewing thread for apparel, remained difficult during the quarter.」

「In the apparel and fashion industry, domestic apparel consumption, which had declined due to fewer opportunities to go out, reduced purchasing appetite and the disappearance of inbound demand amid the COVID-19 pandemic, saw only a limited recovery. Production also remained constrained except in some areas, leaving orders for our main product, industrial sewing thread, at depressed levels.」

「Production of apparel for the Japanese market remained constrained, and orders for our Group's main product, industrial sewing thread, continued to languish both in Japan and overseas. Meanwhile, demand for home sewing, often described as stay-at-home demand, remained elevated, and orders for household sewing thread in Japan remained firm.」

「Consumer sentiment declined and purchasing preferences continued to change. The trend toward restricting production of apparel for the Japanese market intensified further in Japan and overseas, and orders for industrial sewing thread, our main product, became even more difficult, while」

「At our Group as well, the trend toward reduced production of apparel for the Japanese market that had continued since last winter intensified further. In China, business activity was severely constrained by the extension of the Lunar New Year holiday and travel restrictions, causing industrial sewing thread orders and production conditions to deteriorate both in Japan and overseas. Meanwhile, in Japan's handicraft-related industry, orders for household sewing thread surged as shortages of disposable masks and voluntary restraints on going out prompted increased demand for handmade masks and similar products. The impact of the spread of COVID-19 was substantial, resulting in unprecedented market conditions.」

「In the apparel and fashion and handicraft-related industries related to our Group, natural disasters in the previous year were compounded by the consumption tax rate revision and the trend toward warmer winters, particularly from last autumn onward, which weakened consumer sentiment. Consumption of apparel and handicraft-related products became sluggish, and market conditions for sewing thread used in apparel materials became even more difficult.」

「In the apparel and fashion and handicraft-related industries related to our Group, consumer sentiment was sluggish and consumer frugality tended to strengthen further, owing to natural disasters, the consumption tax rate revision and the trend toward warmer winters. Domestic consumption was generally sluggish.」

「In the apparel and fashion and handicraft-related industries related to our Group, generally cautious purchasing and consumer frugality continued, and orders for sewing thread used in apparel materials remained sluggish.」

「Domestic consumption remained uneven. In the apparel and fashion and handicraft-related industries particularly relevant to our Group, consumers remained strongly frugal and cautious in their purchasing, and demand for sewing thread used in apparel materials continued to be generally sluggish.」

「Consumption remained uneven, with regional declines in consumption caused by earthquakes, record heat, torrential rain and typhoons. Consumer frugality continued in the apparel and fashion and handicraft-related industries particularly relevant to our Group, consumption remained cautious, and orders for sewing thread used in apparel materials were generally sluggish.」

「Consumption remained uneven and consumer frugality continued. In addition, regional declines in consumer sentiment caused by earthquakes, record heat, torrential rain and typhoons affected the apparel and fashion and handicraft-related industries in particular. Consumption was generally cautious, and orders for sewing thread used in apparel materials remained sluggish.」

「In the apparel and fashion and handicraft-related industries related to our Company, entrenched consumer frugality, along with natural disasters such as an earthquake, record heat, torrential rain and typhoons this summer, contributed to lower consumer sentiment in some regions. Domestic consumption was generally sluggish, and difficult conditions continued, particularly in Japan, for demand for sewing thread used in apparel materials.」

「In the apparel and fashion and handicraft-related industries related to our Company, domestic consumption remained sluggish amid increasingly diverse lifestyles and purchasing behavior and entrenched consumer frugality. Demand for sewing thread, an apparel material, also remained generally slow to recover.」

「Although some winter apparel saw increased seasonal demand due to weather conditions, apparel consumption was generally constrained by consumer frugality. Production of apparel for the Japanese market also remained cautious, while the domestic handicraft-related industry remained sluggish, leaving sewing thread demand for apparel materials with little sign of recovery.」

「In the fashion and apparel and handicraft hobby industries related to our Company, consumers continued to be frugal and cautious in their purchases. Production of apparel for the Japanese market also remained cautious, and the environment surrounding the sewing thread business remained slow to recover in both apparel and handicraft applications.」

「In the fashion and apparel and handicraft hobby industries related to our Group, consumers continued to be frugal and cautious in their purchases, and the environment surrounding the sewing thread business, which supplies apparel materials, remained slow to recover.」

「The fashion and apparel and handicraft hobby industries related to our Group continued to see strong consumer frugality and cautious purchasing, and the overall environment surrounding the sewing thread business, which supplies apparel materials, remained slow to recover.」

「The apparel and fashion and handicraft-related industries were affected by strong consumer frugality, generally weak consumer sentiment and slowing inbound spending by visitors to Japan, and difficult conditions continued.」

「The apparel and fashion and handicraft hobby industries were also affected by stronger consumer frugality and waning inbound demand, and the sewing thread business faced continued overall market difficulties.」

「The fashion and apparel industry has also been affected by sluggish apparel consumption and waning inbound spending. Production of apparel for the Japanese market has generally remained cautious both in Japan and overseas, and demand for sewing thread has remained weak.」