Abstract
Japan is a major global textile and clothing (T&C) producer, with one of the
world’s wealthiest consumer
clothing markets and a long tradition of
manufacturing expertise, particularly in textiles and synthetic
fibres.
BMI ranks it as number six in the world in terms of T&C manufacturing value
added. In nominal
terms we estimate that to have been worth US$17.2bn in
2008. The local T&C sector has been
undergoing a long-term
‘deindustrialisation’ process as manufacturing moves offshore to
take advantage
of more competitive wages in China and other Asian
countries. We see this accelerating in the current
global recession. The
large fashion, design, marketing and retail distribution segment of the
business that
remains Japan-based will also have to cope with the expected
slump in consumer demand.
Overall Japan T&C value added will fall by 11.5%
in 2009 and by 4.7% in 2010, reflecting very difficult
international
economic conditions. We see annual contraction continuing in 2011, but at a
much slower
rate. The industry’s trade performance will also reflect
the especially difficult international economic
situation. Combined T&C
exports will drop 35.1% to US$5.53bn, while imports will drop 28.5% to
US$26.37bn. Japan will have a T&C trade deficit of US$20.82bn this year.
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