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Japan Cuts Apparel Imports from China by 7.6% in 2024 Amid Industry Shift

Japan’s apparel imports from China declined by 7.6% in 2024, marking their lowest level in four years, according to recently released trade data. The drop reflects growing diversification in Japan’s sourcing strategy, shifts in consumer behavior, and mounting concerns over supply chain resilience and geopolitical risk.In total, Japan imported clothing worth approximately $11.2 billion (¥1.7 trillion) from China in 2024, down from roughly $12.1 billion in the previous year. This marks the steepest annual decline since the COVID-19 pandemic disrupted global trade flows in 2020.

The last time Japan’s apparel imports from China dipped this low was also during that turbulent period, highlighting the current shift as a significant recalibration rather than a temporary fluctuation.China has long been Japan’s primary supplier of apparel, accounting for more than half of its clothing imports. However, that dominance is eroding. Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia have steadily increased their market share as Japanese retailers and fashion brands seek to reduce overdependence on a single country and respond to rising production costs in China.Analysts point to multiple factors contributing to the drop in imports from China. One is cost: as wages rise and environmental regulations tighten in China, manufacturers face higher expenses, making Chinese-made goods less competitive compared to lower-cost producers in neighboring countries. Labor-intensive industries like garment manufacturing are particularly sensitive to these changes.Geopolitical tensions between China and Western nations have also had a ripple effect. Japanese companies, like their Western counterparts, have become more cautious in relying too heavily on Chinese supply chains. The ongoing trade disruptions and regulatory uncertainties have prompted some Japanese firms to adopt a “China+1” strategy—maintaining operations in China while expanding into other countries to mitigate risk.Retailers are adapting to these changes as well.

Fast-fashion brands, which dominate the Japanese market, are under increasing pressure to be agile in their sourcing. As consumer demand fluctuates and trends change rapidly, fashion companies are looking to more flexible, decentralized production models. Countries like Vietnam and Bangladesh offer attractive alternatives due to favorable trade agreements and improving manufacturing infrastructure.Another key driver behind the import decline is Japan’s shifting demographics and economic landscape. An aging population and moderate wage growth have led to subdued consumer spending, particularly on non-essential items like fashion. Japanese consumers are also showing a growing preference for sustainable and locally sourced products, prompting brands to rethink their supply chains and product offerings.The Japanese government has encouraged these trends by advocating for greater economic security and diversification. Policies aimed at strengthening domestic industries and reducing reliance on any single foreign market have gained momentum in recent years, especially as global supply chains came under strain during the pandemic.Despite the drop, China remains Japan’s top apparel supplier for now, but the narrowing gap between China and other exporting nations signals a long-term structural shift. Vietnam, for example, saw its apparel exports to Japan increase by nearly 5% in 2024, while Bangladesh posted a 4.8% gain, driven by competitively priced garments and expanding capacity.

Looking ahead, trade experts believe the diversification of Japan apparel imports is likely to continue. As global fashion brands increasingly prioritize flexibility, cost-efficiency, and risk management, Japan’s sourcing strategy may serve as a model for other developed markets.In the near term, Japanese retailers are expected to continue balancing cost and sustainability while managing geopolitical exposure. The steady decline in apparel imports from China signals a broader transformation in the global fashion supply chain—one where China’s dominance may give way to a more regionalized and multi-source future.

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