The third biggest apparel retail market in the world, Japan has witnessed a huge decline in its apparel retail sales in department stores during 2020. The sales have fallen 40 per cent in the first half of 2020 as compared to the same period of 2019.
According to the recent data released by Japan Department Stores Association (JDSA), the decline has been noted both in the first quarter (January-March) of 2020 as well as in the COVID-19 hit quarter April-June. A monthly surge can be seen from mid-May onwards, as the coronavirus state of emergency was lifted in stages in the entire country from 14 May 2020 before being fully ended on 25 May 2020.
As a result, the growth in June ’20 over May ’20 was overwhelming, which signals a significant number of shoppers (if not big) have come out to purchase apparels post-pandemic. The yearly decline shows lingering fears of infections in the country amongst majority of fashion shoppers.
Since schools also opened from the beginning of June ’20, the sales of kidswear can be seen rebounding, but is still far from reaching the levels of previous year. Cumulatively, in the January-June ’20 period, the overall sales (including all three categories) feel drastically down from the same period of 2019.
Key findings in overall apparel sales figures –
Period: January-June ’20 is split into 2 quarters (Q1’ 20 and Q2 ’20) here…
- The apparel sales in Japanese department stores fell 18.70 per cent in June ’20over June ’19 and clocked 110,175 million yen (US $ 1.03 billion) revenues.
- The monthly surge (217 per cent) was massive in June ’20over May ’20 which is a clear indication that rebounding of apparel market post-outbreak has been started.
- In COVID-19 affected quarter (April-June ’20), Japanese apparel sales revenues were 135,516.61 million yen (US $ 1.27 billion) which is 66.81 per cent less from the same period a year earlier.
- The first quarter January-March ’20hit 350,467.15 million yen (US $ 3.28 billion), 22.30 per cent less than the same period of 2019. This says the decline was already happening in Japanese market and COVID-19 made it even worse.
- The fall in Q2 ’20 (April-June) over Q1 ’20 (January-March) was as big as 61.33 per cent.
Key findings in product-wise sales figures –
- Womenswearhas started seeing good growth on monthly basis in Q2 ’20; however, the revenues earned by it are still much lesser than Q1 ’20 and Q2 ’19.
- In June ’20, womenswear hit 69,878 million yen (US $ 654.61 million) (63.42 per cent of total apparel sales), a 19.90 per cent fall from June ’19 but 264 per cent more than preceding month (May ’20) when it clocked just 19,188 million yen (US $ 179.75 million).
- The revenues earned by womenswear in Q2 ’20 valued at 87,238.45 million yen (US $ 817.24 million), noting a decline of 66.42 per cent from Q2 ’19 and 60.14 per cent from the preceding quarter of 2020 (Q1 ’20) when it accommodated 218,874.17 million yen (US $ 2.05 billion).
- Menswearremained the second largest category with 24,956 million yen (US $ 233.78 million) revenues from Japanese department store in June ’20. This is 19.50 per cent lesser than June ’19, while it grew by 236 per cent on monthly basis over May ’20.
- Menswear clocked 31,001.24 million yen (US $ 290.40) revenues in COVID-19 hit quarter April-June ’20, while January-March ’20 could collect 75,711.38 million yen (US $ 709.25 million) from its sales.
- Clearly, the decline in Q2 ’20 over Q1 ’20 is 59 per cent, while the fall recorded in Q2 ’20 was 65.57 per cent when compared to Q2 ’19.
- The yearly decline noted inKidswear wasn’t as huge as it was in womenswear and menswear. In June ’20, the sales in kidswear segment fell just 7.40 per cent over June ’19.
- A monthly surge of 49.66 per cent was recorded in kidswear sales in June ’20 over May ’20.
- However, when comparing Q2’ 20 with Q1 ’20 and with Q2 ’19, the sales in kidswear were not satisfactory and followed the lines of menswear and womenswear.
- In Q2 ’20, kidswear fell by 74 per cent on Y-o-Y basis to clock 8,383.37 million yen (US $ 78.58 million).
- Q1 ’20 sales of kidswear valued at 33,067.88 million yen (US $ 309.77 million), which is a steep decline of 19.90 per cent from the same period of 2019. The fall in Q2 ’20 over Q1 ’20 was 74.65 per cent.
- On the other hand, the sales of all other types of garments increased by 151 per cent on M-o-M basis to hit 7,579 million yen (US $ 71 million) in June ’20, while the yearly decline over June ’19 noted was 14.9 per cent.
(Conversion Rate: 1 Japanese Yen = 0.0094 US Dollar)
|Values-wise Sales Comparison (Quarterly-basis)|
(Q2 ’20 over Q1 ’20)
(Q2 ’20 over Q2 ’19)
|Values-wise Sales Comparison (Monthly-basis)|
|June ’19||May ’20||June ’20||% Change
(June ’20 over June ’19)
(June ’20 over May ’20)
- The values are in million yen
- Data is taken from Japan Department Store Association and is further analysed by Apparel Resources. Total 73 associations’ members have around 203 stores in Japan.