SWOT ANALYSIS OF JAPAN

SUBJECT:-OGFAA

DATE:-25/10/2012
SUBMITTED BY: AJOY DEY (01) KULBHUSHAN (11) KUSHAL (12) SANDEEP (22)

ECONOMY OF JAPAN
The economy of Japan is the third largest national economy in the world after the United States and the People's Republic of China. Japan is the world's 3rd largest automobile manufacturing country.

 Exports Commodities: machinery and equipment, motor vehicles, semiconductors, chemicals Imports Commodities: machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials (2001)

Exports(2011 est.) $788 billion

Export Goods Motor Vehicles 13.6% Semiconductors 6.2% Iron And Steel Products 5.5% Auto Parts 4.6% Plastic Materials 3.5% Power Generating Machinery 3.5% Main Export Partners China 19.7% Us 15.5% South Korea 8% Hong Kong 5.2% Thailand 4.6%

Imports(2011 est.) $808.4 billion

Import Goods Petroleum 15.5% Liquid Natural Gas 5.7% Clothing 3.9% Semiconductors 3.5% Coal 3.5% Audio And Visual Apparatus 2.7% Main Import Partners China 21.5% Us 8.9% Australia 6.6% Saudi Arabia 5.9% UAE 5% South Korea 4.7%

TOP 10 MARKETS FOR TEXTILE AND APPAREL

COUNTRY 1)CANADA 2)MEXICO 3)HONDURAS 4)CHINA 5)DOMINICAN REPUBLIC 6)JAPAN 7)EL SALVADOR 8)UNITED KINGDOM 10)BELGIUM TOP 3 PRODUCT EXPORTS HS 61 HS 59 HS 52 HS 55 HS 52 HS 61 HS 60 HS 60 HS 56 HS 62 HS 57 HS 55 HS 56 HS 62 HS 62 HS 52 HS 61 HS 55 HS 57 HS 61 HS 54 HS 54 HS 55 HS 56 HS 61 HS 54 HS 54

APPAREL IMPORTS AND EXPORTS BY COUNTRY

JAPAN TEXTILE EXPORT

TOP THREE SELLING EXPORT PRODUCT HS 61- KNIT HS 62-NON KNIT HS 56- FELT/SPECIALITY YARN

TEXTILE AND TRADE WITH JAPAN(RANK-6)

Strength

Strength

RANK OF JAPANESE DESIGNERS IN DESIGNER RANKING 2005

RANK ON OCTOBER 2005 RANK ON OCTOBER 1988 3) YOHJI YAMAMOTO 10) ISSEY MIYAKE 11) COMME DES GARCONS

4) YOHJI YAMAMOTO
11) COMME DES GARCONS 18) JUNYA WATANABE

27) ISSEY MIYAKE

16) ATSURO TAYAMA 39) UNDERCOVER 52) TSUMARI CHISATO

21) JUNYA WATANABE

COMPARISON OF GLOBAL SALES p.a.

CORPORATION HENNES & MAURITZ GAP INDITEX FOREVER 21 FAST RETAILING

PRINCIPAL OFFICE
DEVELOPED BRAND SALES (MILLION YEN) GROSS MARGIN RATIO OPERATING INCOME (MILLION YEN) NUMBER OF STORE (IN JAPAN)

SWEDEN
H&M 1,125,200 61.5% 255,400

U.S
GAP,OLD NAVY

SPAIN
ZARA

U.S
FOREVER 21,etc 163,200 -

JAPAN
UNIQLO 685,000 49.9% 108,600

1,415,600 1,415,700 37.5% 150,200 56.8% 218,800

2000 (7)

3149(121) 4264(43)

460(1)

2173(1326)

WEAKNESS
Shipment of Japanese textile industry have decreased to about one-third of those at peak. After the Lehman shock, in particular, the production level decreased sharply. Prices are becoming lower. In the global cost reduction competition, production of general-purpose materials by china is increasing. The aging of worker is progressing and enterprises depend on foreign trainees. Human resources are seriously declining.

WEAKNESS
Most apparel products are imported. Few products are exported.
The long and complicated supply chain prevents smooth collaborations.

OPPORTUNITIES
To end its dependency on domestic demand and to exploit growing overseas markets focusing on those in Asia after careful preparation.

To apply textile materials and technologies to a broad range of industrial fields out of the apparel industry, so as to enlarge the textile market.

OPPORTUNITIES
To have the fashion industry take large steps toward a major position in the cultural industry, which is expected to be a future growing industry.
To promote collaborations among entrepreneurs for mutually making use of their advantages in severe international competition, where enterprises from emerging economies are rising.

CHANGES FOR DEVELOPMENT

FUTURE DIRECTIONS
Integral approach of various product from designer brands to real clothes and of all industries related to life and culture to meet demand of overseas customers Enhancement of business ability in addition to sensitivity. Safety, peace of mind and sensitivity should be formed into additional values in order to end cost reduction competition.

ACTIONS BY YHE GOVERNMENT

Publicity to overseas market together with other industries related to life and culture and branding. Supporting creation of overseas permanent business bases. Support the value addition through frame work to ensure traceability.

Threats
High Cost of Manpower is main threat to textile industry in Japan. Competition from other developing countries, especially China. Geographical Disadvantages. To make balance between price and quality.

REFERENCES
JOURNAL DU TEXTILE (FRANCE) DATED SEP 26,2005 WWW.WIKIPEDIA.ORG

THANK YOU