Japan’s Fashion and Entertainment industry hits $1.3 trillion
Tokyo — The number of men’s fashion and entertainment industry firms grew to $1,323 billion in 2020, a record high, with Japanese men’s clothing companies posting record revenues of $721 billion.
The industry is also expanding, with apparel firms expanding by 11 percent, while clothing companies grew by 16 percent.
The figures are a record and a big boost to Japan’s economy, which has been buffeted by a slump in the yen since last year’s Tokyo Olympics and has had to rely heavily on imports from Asia and the Middle East to meet domestic demand.
But the trend is not without risk.
While companies have been able to boost revenues by expanding in the face of competition from overseas, a surge in imports in recent years has raised concerns that Japan may be in a position to suffer from the slowdown.
The companies’ expansion in 2020 came at a time when the world’s third-largest economy, with a population of 3.2 billion people, faces a shrinking workforce and is grappling with an aging population.
Japan’s economy contracted 3.5 percent in the first quarter, while imports dropped to $941 billion from $1 trillion a year earlier, the latest data showed.
It is still expected to contract again in 2021 and 2022, but forecasts are not yet firm.
In recent years, companies have shifted their focus to more lucrative domestic markets, but they are also looking to expand abroad to expand profits and expand sales.
The trend has been aided by a series of high-profile acquisitions, including Nike Inc., Samsung Electronics Co. Ltd.
and Sony Corp.
Japan has been grappling with a rising number of suicides, with one in 10 men over the age of 20 taking their own lives.
More than 100,000 people have died by suicide since the early 2000s, according to the World Health Organization.
Japan and the United States have long been among the most competitive places in the world for men, who are a growing share of the workforce.
The United States has long had a higher percentage of men than women, but the gender gap is narrowing.
The data shows that Japan’s men’s apparel companies grew faster than the rest of the world, accounting for roughly $1 billion of the $1 million revenue in 2020.