GLOBAL CONTEXT OF MANAGEMENT

Japanese Sportswear Industry



Table of Contents

Introduction3

Discussion & Analysis3

Japanese Sportswear and Sports Footwear Industry (Major Economic Trends)3

Impact of Globalization on Japanese Sportswear Industry7

Technological Advancements8

Environmental Challenges9

Political, government and legitimate Influence10

Cultural and societal Influence10

Japanese Sportswear Industry

Introduction

Sport is an integral part of the Japanese lifestyle, stimulating participation in community sports events across every age group in the country. Sales of equipment for team sports such as baseball, soccer, basketball and volleyball showed increasing trends towards the end of the review period, mostly fuelled by demand for baseball and soccer goods.

Major players in the sportswear and sports foot wear industry included SRI Sports, Goldwin, ASICS, Mizuno, Yonex, Shimano, Maruman, Himalaya, and Daiwa Seiko. SRI Sports and Yonex primarily engaged in manufacturing golf and tennis equipment, while Shimano is the leader in fishing sports equipments. Local companies have been actively exploiting the achievements of famous Japanese athletes, as well as organizing local, sporting events for marketing purposes. For example, in order to promote its golf-related products, Mizuno sponsored the “Gateway to the Open Mizuno Open Yomiuri Classic” golf tournament.

Discussion & Analysis

Japanese Sportswear and Sports Footwear Industry (Major Economic Trends)

The total value of sports goods sold in Japan was just over ¥1 trillion in 2010, a decrease of 9% compared to 2000, but a slight increase if compared with 2009; after hitting a low in 2009 the market showed 3% value growth in 2010 (Floyd, 2010, 23-47).

Successful companies in this industry develop brand strength and consumer demand for branded sportswerar products i.e. ASICS and Mizuno. Japenese Sportswear firms that emphasis on quality are able to build-up a base of loyal customers, while increasing production and demand levels. Due to their Footwear export marketing capability, they are able to earn additional revenue over domestic sales. Sportswear manufacturing firms produce a wide range of footwear products to satisfy consumer demand and increase client numbers. These firms are also capable of producing sportswear items at the lowest marginal cost to remain price-competitive and to maximize profits levels.

In terms of production lines, the manufacture of fishing sportswear and footwear was the most distinct revenue earner for the industry under review, although its importance within business turnover structure declined from 26% of all sales in 2000 to less than 19% in 2010. Some 77% of industry turnover fell under the category of “other” sportswear, including a wide variety of goods ranging from clothing to footwear (Nihon, 2010, 12-34).

Overall, Japanese households were responsible for 68% of total market sales in 2010, purchasing sports goods worth ¥711 billion. Another 17% of all equipment bought as investment items by industrial clients, in certain personal goods rental companies, which added ¥106 billion to market value. Other corporate buyers remained largely fragmented, rarely capturing more than 3% of all sales. The most notable clients were educational institutions, sporting and recreational businesses, and operators of amusement parks and other entertainment services (Chan and Philip, 2008, 7-18).

The domestic industry included just over 1,300 companies as of the end of 2010, with the overall number down by ...