| Overview
of Japan Textile Industry
In 2000, Japan's textile
industry consisted of 34,817 places of business (inclusive of all
places of business) that employed 229, 742 workers and delivered
shipments worth 3.16 trillion yen.
The total Japanese
textile products market has been declining because of the very slow
Japanese economy over the last few years. The Government of Japan
(GOJ) has been taking various economic stimulus measures such as
an expanded tax incentive program for homebuyers. These measures
will help the Japanese housing market which should have a positive
influence on the Japanese textile products market, although the
recovery may be slow.
The Japanese textile
products market has a close correlation with Japan's new housing
starts, because consumers often purchase curtains, carpets and other
textile products when they buy or build a new home. Annual housing
starts in Japan declined 15.6% in 1997 and 14.5% in 1998. Monthly
housing starts also declined continuously from January 1998 to February
1999. However, in March 1999, they increased for the first time
in 27 months and continued to increase in April 1999. This indicates
that the decline in Japan?s housing starts has stopped and housing
starts will begin to increase again. We estimate that housing starts
will increase about 4% to about 1.25 million units in 1999 from
1.20 million units in 1998. The increase in housing starts will
stimulate the Japanese interior textile market and it should grow
in 1999 although the growth rate may be low in terms of the Japanese
yen.
Because of the current
difficult market conditions in Japan, the total imports of textile
products as well as the imports from the U.S. declined by 11% and
34% respectively in terms of Japanese yen. Since the total market
is estimated to grow, total imports and the imports from the U.S.
are also estimated to grow in 1999.
Major exporting
nations competing with the United States are European countries
in the high-end market and Asian countries such as China in the
low-end market. There are no significant regulatory barriers which
hamper U.S. exports to Japan except for the flame retardancy regulations.
American manufacturers may find it necessary to modify their products
for the Japanese market since U.S. textile products sometimes are
of different styles and sizes.
(Source:
US Commercial Service)
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