Declining value of yen, growing offshore labor expenses and shipment delays due to the pandemic is forcing Japan’s apparel manufacturers to shift production back to their homeland. As per a Textile Focus report, nearshoring trend is gaining ground in apparel production. Compared to other countries, Japan’s manufacturing costs are greater. However, its quick delivery times will balance the additional costs by reducing waste and missed opportunities, say apparel makers.

Japan’s apparel makers began to outsource production from 1970 onwards. However, rise in salaries in China and Vietnam has faded the cost benefits of outsourcing. Apparel firms in the country can easily shift their manufacturing in the country due to smaller size of their machines.

Japanese retailer World Co, which mostly sells in department stores and shopping malls, plans to produce the majority of its high-end clothes in Japan within three to five years. Similarly, distributor of Jill Stuart women’s apparel and Ping golf gear in Japan, TSI Holdings also plans to increase production at its domestic operations in Yamagata and Miyazaki.