CASE STUDY
Irish Fashion hits Japan
BackgroundIn the fall of 2005, the Japan Market Expansion Competition (JMEC) was contracted by theJapanese office of Enterprise Ireland, the government agency responsible for the development
and promotion of indigenous Irish industry, to formulate a business plan for the developmentof the Japanese market for indigenous Irish fashion products. Ireland is an exports-driven
economy, with exports accounting for 85% of GDP. The sophisticated Japanese consumers,
touting large amounts of disposable income and purchasing 40% of global luxury goods,
seemed to present significant opportunities for the indigenous Irish fashion sector.
Challenge
Although successful in markets with similar styles and sizing, such as the UK, wider EU andthe US, there was a growing need for the Irish fashion sector to identify new, mature and stable
markets and to alleviate the dependency on a weakening dollar. The difficulty faced by theIrish fashion sector was a lack of awareness, knowledge and understanding of how theJapanese market might meet these needs. The challenge to the JMEC team was to identify thesub-sectors offering opportunity in Japan, put together a strong, convincing business case for
Irish products in these sectors, and develop a plan to exploit these opportunities.
Discovery
The JMEC team quickly discovered that the Irish fashion sector could not compete with lowcost imports from China, and should therefore focus on exporting high-quality modernproducts. Through online surveys, the team identified which market segments held the highest
potential for these products. Single working women in their 20s to 40s, commonly known inJapan as Office Ladies or OLs, demanded unique, trendy and high-quality fashion goods suchas the ones Ireland was currently exporting elsewhere. Furthermore active seniors, men andwomen aged 55+, would support a market for functional, fashionable and high-quality goods
such as traditional Aran sweaters. Finally, the market for accessories in Japan was growing,
and both men and women aged 20 to 40 showed strong potential for silver accessories.
Solution
For the Irish fashion sector to be able to reach these market segments, the JMEC teamdetermined that there were two main requirements. The first was the need for a strong partnerwith a thorough understanding of the Japanese fashion industry and its distribution channels.
Secondly, it was deemed critical for the Irish fashion sector to have a centralized system forshowcasing and promoting its products. To achieve this, the team proposed a new service tobe offered by Enterprise Ireland Japan, which would include a main showroom, a website andvarious promotional activities.
Results
With the JMEC business plan in hand, Enterprise Ireland was able to quickly convincecolleagues and companies in the fashion sector back home of the real opportunities in theJapanese market. Implementation of the plan commenced soon after, and it has alreadydelivered success. A Japanese agent was identified as a strong partner and has guided the Irish
companies through the Japanese market. Additionally, the showroom recommended in theplan was established, and new Irish products have been able to leverage from products alreadysuccessful in the marketplace. To date 14 Irish companies have used this showroom as avehicle for promoting and selling their products in Japan. The draw of extra products has
actually increased sales for the more established companies as well. The other elements of theJMEC plan, to include creation of a central website and promotional activities, are still in theearly stages of implementation, but are central to Enterprise Ireland’s plans to fully exploit thissector.
For more information about JMEC, please visit www.jmec.gr.jp or email info@jmec.gr.jp.