Against the backdrop of SHEIN's Hong Kong listing and tighter regulations in the United States and Europe, this article examines Fast Retailing and Shimamura as examples of Japanese companies that have successfully passed on higher costs. Companies that emphasize value through functionality and private brands, rather than competing solely on low prices, are attracting attention.
SHEIN has shaken the global apparel market with its low prices and listed on the Hong Kong market on 1 September 2026. Its valuation at listing was approximately $26 billion, a substantial decline from its approximately $98.2 billion valuation in 2022. The United States and Europe are reviewing duty exemptions for low-value imports, changing the market conditions in the regions that account for approximately 60% of the company's sales. France will introduce a system imposing an environmental charge from 2026, while moves to strengthen producer responsibility continue across Europe. There is a view that, as raw-material, logistics, labor and energy costs rise for Japanese companies, those that absorb costs to maintain low prices will see their profit margins eroded.
According to a survey published by the Ministry of Economy, Trade and Industry in June 2026, the price pass-through rate among 69,625 small and medium-sized enterprises was 54.2%, with rates of 55.7% for raw materials, 50.0% for labor costs and 48.9% for energy. The article states that it will focus not only on companies that have raised prices, but also on those that have restrained discounts, increased average spending per customer, and demonstrated improvements in sales, gross profit and operating profit margins after revising their prices.