The share of Made-in-Japan clothing sold within the domestic market has fallen to a record low of approximately 1.1% [1].

This decline signals a critical shift in the Japanese textile industry, where high production costs and a consumer preference for affordable imported garments are pushing traditional manufacturers toward extinction or drastic restructuring.

Data released last month indicates the domestic share has dipped to between 1% and 1.1% [1], [2]. Analysts expect this figure to decline further as the market continues to favor overseas production.

To survive the slump, some factories are pivoting their business models. At the Maya Sewing Factory in Tokyo, which was founded 67 years ago [1], the approach to production has changed fundamentally. The facility currently employs seven people [1] and produces roughly 20 garments per day [1].

Sugaya Tomo, president of Maya Sewing Factory, said the company previously focused on mass-producing a limited range of items, such as jackets. He said the business has now shifted toward small-batch, multi-style production.

"In the past, we did mass production and narrowed down the items, making only jackets if it was jackets," Sugaya said. "Now the numbers have become very small, and we have changed to small-quantity, high-variety production."

This diversification extends to the company's client base. Maya previously relied on a single trading partner [1]. To maintain viability in a shrinking domestic market, the factory has expanded its reach and now works with 13 different trading partners [1].

While the domestic market struggles, some reports suggest that high-quality Japanese technical skills are attracting attention from overseas markets [1]. This creates a potential lifeline for factories that can pivot from local mass-market retail to international niche luxury, or specialized apparel.

“The share of Made-in-Japan clothing sold within the domestic market has fallen to a record low of approximately 1.1%.”

The collapse of the domestic apparel share to nearly 1% reflects a broader economic trend in Japan where local manufacturing cannot compete with the price points of global fast fashion. The survival of the remaining 'Made-in-Japan' infrastructure now depends on a transition from volume-based business models to high-value, specialized production and the pursuit of international demand for Japanese craftsmanship.