History

The Tokugawa shogunate ended on October 14, 1867, and the following year, Emperor Meiji ascended to the throne. With the Meiji Restoration, Japan established a centralized system of government through the return of feudal domains to the emperor and the abolition of the feudal system. This eliminated regional insularity and granted the freedom to conduct business.

The Meiji government, with the slogans of “Fukoku Kyohei” (Enriching the Country and Strengthening the Military) and “Shokusan Kogyo” (Increasing Production and Promoting Industry), embarked on modernization through industrial development. This was achieved by encouraging the adoption of advanced Western technologies, establishing government-run model factories, and employing foreign experts with specialized skills. At the time, raw silk was Japan’s primary export. Meanwhile, large-scale imported machinery was introduced in the cotton spinning industry, starting with the founding of the Osaka Spinning Company in 1882. Thereafter, modern cotton spinning factories were established in rapid succession, and production increased dramatically, with domestic production exceeding imports in 1890.

Around this time, the textile industry accounted for over 50% of Japan’s exports and more than 40% of its manufacturing production, making it the driving force behind the development of the country’s capitalist economy. Meanwhile, wholesalers and trading companies put into place information, logistics, and sales networks, driving growth in the textile manufacturing industry. At the time, there were three types of textile wholesalers: kimono merchants, cotton fabric merchants, and Western fabric merchants. Kimono wholesalers were further classified into four categories based on the types of textiles they handled: Kanto-style kimono fabrics, Bino regional textiles, Kyoto-style kimono fabrics, Kansai-style kimono fabrics. The centers of the textile distribution industry were Osaka, Tokyo, and Nagoya.

Powerful textile wholesalers in Nagoya, backed by their merchant capital, invested in real estate while expanding into the financial and manufacturing industries, wielding significant clout in the Nagoya business community. Around the same time, several trading companies were established, including Mitsubishi Shokai, which opened Japan’s first international shipping routes.

The Russo-Japanese War and World War I enhanced Japan’s industrial capability, accelerating production expansion and technological innovation in the textile industry. During World War I, in particular, the stagnation of production in European countries led to surging demand for Japanese goods, resulting in a dramatic rise in export trade. In the silk reeling industry, Japan boasted the world’s largest production volume from the late Meiji period through the Taisho period. New silk fabrics, blending Western trends with traditional Japanese craftsmanship, were developed and highly acclaimed in overseas markets such as France and the United States. Japan’s cotton and wool textile industries also grew, driven by the modernization of lifestyles and military demand. Within this context, wholesalers evolved their roles in line with the development of modern distribution systems.

People’s fashion, too, underwent significant changes from the 1910s onward, amid the rise of democratic and liberal ideals brought about by the Taisho democracy movement. Around that time, haute couture was experiencing its golden age overseas, and thanks to advancements in transportation and media, Western fashion trends were introduced to Japan. “Mobo” (Modern Boy) and “Moga” (Modern Girl) fashions became popular among the bourgeoisie, and Western clothing spread from the upper class to the general public. Furthermore, the rise of working women helped establish and flourish Western clothing culture, resulting in a vibrant boom across the textile industry.

However, in 1920, Japan’s stock market crashed in a sharp reaction to the postwar economic boom. The raw silk and cotton yarn markets also collapsed, ushering in an unprecedented depression. Moreover, in 1929, the Great Depression, triggered by the stock market crash in New York, brought a severe and deep recession to Japan. Yet, in 1931, the re-imposition of the gold export ban served as a turning point, causing the Japanese economy to rebound and ushering in an era of rapidly expanding international trade.

Following the outbreak of the Second Sino-Japanese War in July 1937, Japan rapidly transitioned to a wartime economy. To adapt to the changing circumstances, Japan mandated the use of synthetic fibers in wool and cotton clothing for the public and banned the production of pure cotton for general consumption. Furthermore, due to import restrictions on raw cotton, a policy was promoted to substitute imports with rayon produced from domestic pulp. Textile wholesalers and trading companies, whose domestic free trade was restricted by these material controls, diversified into a wide range of businesses, such as expanding their product portfolios, extending their sales networks, and procuring raw materials from Southeast Asia.

In the final stages of the Pacific War, numerous factories across the domestic textile industry were destroyed by air raids. By the end of the war, Japanese companies had lost all their overseas assets and bases. Immediately after the war, severe shortages of goods led to the implementation of government rationing and clothing coupon systems. Supply could not keep pace with demand, however, allowing black markets to thrive. Textile trading companies and wholesalers faced strict limits on the goods they could distribute, restricting them to specific items. In contrast, the textile industry was positioned as a cornerstone of Japan’s economic reconstruction. Under the leadership of the General Headquarters (GHQ) of the Allied Powers and the government, a restoration plan was developed, allowing production to resume alongside the securing of raw materials.

Entering the 1950s, Japan’s economy recovered rapidly, driven by special procurement demands from the Korean War. As a result, most controls on textile products were lifted, restoring a free market economy for the first time in a decade. Exports—centered on textiles, machinery, and metals—surged dramatically, triggering what became known as the “Ito-hen” (textiles) and “Kane-hen” (metals) booms. In 1952, Japan implemented proactive fiscal and monetary policies, and national income recovered to pre-war levels. By 1955, an era of explosive economic prosperity known as the “Jimmu Boom” had begun, returning both production and living standards to pre-war heights. As expressed in the 1956 Economic White Paper, “the postwar period is over,” Japan entered an era of high economic growth known as the “Golden 1960s.”

In the 1950s, fashion in Japan actively embraced Western trends, primarily American culture, as the fashion of movie stars became popular among young people. In the 1960s, the first baby boomers spread counterculture, leading to the emergence of various youth fashion styles such as hippies, surfers, mods, and Ivy League fashion. During this period, the textile industry accelerated its transition toward synthetic fibers, driving their widespread adoption in everyday apparel. Meanwhile, department stores played a pivotal role in creating the Japanese apparel market and establishing the industry by implementing semi-custom ordering services, licensing overseas brands, and standardizing sizing for ready-to-wear clothing.

Japan had achieved rapid economic growth since the 1960s. Yet, in 1971, the Nixon shock caused international currency instability, which was followed by the first oil crisis in 1973. Government measures to curb runaway inflation triggered a major recession, bringing an end to the high-growth era. Amid these turbulent circumstances, the textile industry also plunged into a dire crisis. As raw material prices soared, demand declined and competition intensified, forcing textile manufacturers to confront a harsh operating environment.

In this price competition, in the latter half of the 1970s, there was a growing movement to reduce costs and streamline production systems, while manufacturers pivoted toward developing premium brands and high-value-added products to achieve differentiation. On the other hand, apparel manufacturers grew by taking advantage of the collapse in raw materials prices. Major chain stores also rode this wave of rapid expansion, marking a major shift from an era dominated by large manufacturers and trading companies to one where apparel companies and chain stores took the lead in product planning. Fashion became increasingly diversified and fragmented, culminating in the boom of “Designer & Character” (DC) and character brands in 1979.

The second oil crisis triggered another economic downturn starting in 1980, causing Japan’s longest postwar economic slump lasting three years. Although the Japanese economy subsequently began to recover, consumer spending remained sluggish. The appreciation of the yen following the Plaza Accord of 1985 severely impacted Japan’s textile industry, which had a high export ratio, leading to a major shift toward domestic demand and imports. Many Japanese companies moved their production bases overseas to strengthen their competitiveness, accelerating the hollowing out of domestic manufacturing. The decade from 1990 saw significant political and economic changes both in Japan and abroad, and the rise and fall of the “asset-bubble economy,” in particular, shook the Japanese economy to its core.

Meanwhile, from the late 1970s to the mid-1980s, many European and American brands entered the Japanese market. General trading companies and textile trading firms strengthened their brand businesses by acquiring import and sales rights and licensing rights, and the appreciation of the yen led to an unprecedented luxury brand boom in the late 1980s. In the 1990s, the introduction of the Specialty Store Retailer of Private Label Apparel (SPA) business model transformed apparel production and distribution. People’s attire became more individualized, diverse, and fashion-conscious, and after the collapse of Japan’s asset bubble, consumer psychology shifted from “material goods toward spiritual fulfillment”, giving rise to “minimalism” and a “casual, down-to-earth” aesthetic.

The new century began amid the “Heisei recession” that followed the collapse of Japan’s asset bubble. In the textile industry, the industrial structure changed dramatically, and the domestic apparel market consistently contracted. With the appreciation of the yen, imports increased in product procurement, causing the share of domestic production to drop significantly. In addition, the growth of the SPA business model accelerated the outsourcing of manufacturing, and many textile trading companies shifted to original equipment manufacturer (OEM) models. Meanwhile, consumer needs diversified along with the maturation of culture. With widespread adoption of the internet and smartphones, e-commerce expanded rapidly, changing consumer purchasing behavior and driving the integration of in-store and online shopping.

However, the 2008 Lehman crisis triggered a global recession. While the apparel industry plummeted, fast fashion rose to prominence, marking a major turning point. Then, in 2013, the Rana Plaza tragedy occurred in Bangladesh, when a building housing garment factories collapsed, claiming numerous lives. This highlighted the poor working conditions driven by low-cost production, bringing ethical fashion and corporate social responsibility in sourcing into the spotlight.

The COVID-19 pandemic, which began in early 2020, brought about significant changes in the fashion industry. Consumer values and behaviors have shifted dramatically, giving rise to new trends throughout the industry. Increased awareness of sustainability has accelerated the development of products made with environmentally low-impact materials. The sharing economy has also grown, shifting from an era of ownership to a circular model. Digitalization—including the personalization of customer service through artificial intelligence (AI)—and the proliferation of social media have led to the emergence of many small brands, diversifying the fashion landscape.

Amid concerns over environmental impacts such as CO2 emissions and water use, as well as labor issues, European nations are leading the way in accelerating efforts to reduce clothing waste, build resource recycling systems, and strengthen laws and regulations to protect human rights. Meanwhile, Japan’s traditional textile production areas are facing a challenging environment due to a shortage of young workers and an aging workforce; consequently, passing down technologies and revitalizing these regions have become critical challenges.