The reality behind low-cost apparel strategies is coming into focus. Pan Pacific International Holdings launched 999 Jeans under its Jonetsu Kakaku brand at ¥1,099, while Aeon is also introducing denim and other products priced in the ¥1,000 range.
Pan Pacific International Holdings Corporation (PPIH) launched 999 Jeans under its private-label Jonetsu Kakaku brand at ¥1,099 before tax and began selling them at stores nationwide. As of the end of September, cumulative sales for the series had reached approximately 200,000 units.
Lowering intermediate costs and other measures contributed to achieving the price. According to the company, the product has a lower profit margin than usual but is not being sold at a loss. The price also reflects the company’s appreciation for its customers.
Aeon launched the ¥1,100-before-tax Stretch Denim Pants, Sweatshirt and Sweatpants under its Topvalu private label on 8 September in limited quantities. The response exceeded expectations, and the planned two-month volume of denim pants sold out in approximately one month.
On 1 October, Aeon plans to launch ¥1,100 microfleece full-zip jackets and cardigans nationwide. The company is keeping procurement costs down by consolidating orders across the group and achieving lower prices through partial automation of the manufacturing process.