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Five Forces Children Wear in Japan:

Industry Analysis:

 Threat of new Entrants :

There is a fair potentiontial in children wear in Japan.

Globalization can be both inspiring and challenging to a home industry

(Porter,

1990). Industries can increase their market by eporting goods as !ell as

boost e"ciency by

subcontracting parts o# their operations to other countries (Porter, 1990).

$or eample, scholars belie%e that &apan, !hich are highly established

economies, continue to ha%e modest tetile and apparel industries

('ertaccnhii 'orrione, 009* +antisi, 00). s a result, a research

stream about other input #actors that might a-ect producti%ity in tetile

and apparel industries in de%eloped nations became prominent

('ertaccnhii 'orrione, 009* +antisi, 00* cott, 00/). 'ertacchini and

'orrione (009) suggested kno!ledge, as an input #actor, should be usedto understand tetile and apparel industry competiti%eness in de%eloped

countries. he researchers argue kno!ledge increases e"ciency o# the

o%erall production process o# a companythrough design and product

de%elopment processes, supply chain management, marketing, and

cra#tsmanship, !hich results in higher producti%ity and greater

competiti%eness o# the sectors as a !hole (+antisi, 00* cott, 00/). o

summarize, etant research identi2es t!o groups o# #actors that mighta-ect tetile and apparel industry competiti%eness, particularly, in the

contet o# de%eloped countries. hese #actors include trade and

producti%ity. the &apanese go%ernment and

companies #ocused on strategies related to increasing producti%ity

through kno!ledge gro!th (3anamori, 1944* 5oshimatsu, 000). hrough

targeted industrial policies, the &apanese go%ernment promoted 6uick

response systems and a ne! marketing strategy to #ocus on nichemarkets to increase its producti%ity (3anamori, 1944* 5oshimatsu, 000).

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 &apan promoted producti%ity gro!th through kno!ledge to support

competiti%eness o# its tetile and apparel industries.

 &apan is an island nation. &apan7s international occupation on a customs

clearance basis has increased both in eports and imports (year 018). his

is due to an increase in yen con%ersion associated !ith yen depreciation.

:ports !as in year 018 /9.4 trillion yen. It means 9.; percent increase

compared to the pre%ious year. It is also the 2rst increase in three years.

(tatistics 'ureau 01;, chapter 11). &apans import o# clothing in year 018

!as !orth o# 8,

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Competitive rivalry: ivalry is !uantitatively measured by the oncentration

atio #$, which is the percentage of market share owned by the four largest firms in an

industry. As in %apan there are few leading industry in children wear.

Barainin power of suppliers: &his force can easily understand that

how much power a business's supplier has and how much control it has over the potential to

raise its prices, which, in turn, would lower a business's profitability. o if the suppliers have

a power in this market make them flourish.

Barainin power of customers( &his force looks at the power of the

consumer to affect pricing and !uality. onsumers have power when there aren't many of

them, but lots of sellers, as well as when it is easy to switch from one business's products or

services to another. )uying power is low when consumers purchase products in small

amounts and the seller's product is very different from any of its competitors. )ut in *apan

fashion rapidly change so easily understand that consumer are more focus on fashion, and

children wear have not much leading brand so consumer bargaining power is not much high

in children wear.

Threat of new entrants. &his force e+amines how easy or difficult it is

for competitors to *oin the marketplace in the industry being e+amined. &he easier it

is for a competitor to *oin the marketplace, the greater the risk of a business's market

share being depleted. )arriers to entry include absolute cost advantages, access to

inputs, economies of scale and well-recognied brands. %apanes are much more

!uality conscious same as other industries, so its not easy to enter rapidly in *apan

industry with all aspects like cost advantage, and !uality work.

 Threat of su!stitute products or services. &his force

observe how easy it is for consumers to switch from one product to other in terms ofcost !uality. It stares at how many competitors there are, how their prices and !uality

compare to the business and how much of a profit those competitors are earning,

which would define if they have the ability to lower their costs even more. &he threat

of substitutes are informed by switching costs, both immediate and long-term, as well

as a buyer's inclination to change. As we can see there are few leading brands in

children wears, so switching cost will be low as compare to youth fashion industry.

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Porter, M. E. (1990). Competitive Advantage of Nations. New York: Free Press.

'ertacchini, :. 'orrione, P. (009). he city mouse and the country

mouseF he geography o# creati%ity and cultural production in Italy. :'

Aorking Papers, 009.

+antisi, D. H. (00). he competiti%e #oundations o# localized learning

and inno%ationF he

case o# !omenEs garment production in De! 5ork ?ity. :conomic

Geography, =4(