Market Overview

To observe the transition of domestic textile industry, the number of employees, shipment value, and the number of companies of 2017 are compared with those of 1994, based on the “Census of Manufacture” by the Ministry of Economy, Trade, and Industry. During these 23 years, production capacity has fallen to almost one-third of the size in 1994: the number of employees has dropped to 27.5%, the shipment volume has scaled down to 38%, and the number of businesses has decreased to 22.7%, respectively. It owes to the offshoring by domestic makers after the collapse of the bubble economy, especially to China.

While the economic condition of textile industry is deteriorating, some “reshoring” cases are witnessed in the last couple of years. However, this is not done in anticipation for multiplying domestic production volume. It is a survival strategy by producing value-added products. Higher unit price leads to increase of shipment value, which leads to securing of labor force for business succession. The recent initiatives of “mass-customization” in the textile industry is contributing to the expansion of domestic production sites.

Noteworthy Topics

Trends of Smart Textile

Smart textile, which may also be referred to as intelligent textile, e-textile, smart-clothing, is most frequently called wearable device these days. Using conductive fiber, the wearable devices track biometric data such as heart rate, respiratory rate, electrocardiogram, and electromyogram, and capture body motion by utilizing stretchability of the fiber.

Technology used in the modern wearable device has become feasible in the mid-2000s. It has been utilized in all kinds of fields like personal computers, feature phones, smartphones, and tablet computers. Moreover, the number of new wearable devices multiplied rapidly especially as Android smartphones from around 2012 to 2013.

Wearable devices come in various types, such as smart clothing, wristband/bust band, and tape/patch. Since smart clothing and wristband/bust band are textile-based and the tapes/patches are based on resin/rubber/TPE, they are collectively called “stretchable devices”.

In view of the stretchable devices by demand field (sports, construction, transportation, healthcare, entertainment, nursing care, and healthcare), nursing care, healthcare, and construction are the most promising fields expected to drive the demand.

Future Outlook

Apparel industry produces products overseas and piles up massive dead inventory. Because of the demand-supply gap, retailers are slashing prices at all times, diminishing reliability of the pricing. Some apparel companies set their price on presumption that it will be discounted.

A root case of the inventory issue in apparel industry is “speculative production”. Production based on speculation had been inevitable for apparel products, because the product demand is associated with so many unstable factors, such as product variety, size, color, pattern, trends, selling seasons and climate. While affirming reduction of production cost by offshoring as a capitalistic behavior, the apparel industry had been stuck in a vicious cycle where the massive dead stock accumulate year after year. In short, excessive production is the cause of current economic stagnation for the apparel industry. This implies that if speculation can be minimized, defective inventory can be reduced. Closing the gap between demand and supply should restore trust and confidence of product prices.

A most effective way to minimize speculation is to realize made-to-order production. One of such methods is called “mass-customization”.

Furthermore, “fashion-tech”, a type of technology using AI and other novel technologies to improve precision of demand forecast for fashion industry, also helps suppliers to enhance their demand projection, or boost demand at end-users. The textile industry/apparel market is compelled to transform from speculative production to stockless business model.

Research Outline