Submitted By

Name : Neha Sundaran

Roll No : 050422
Country : JAPAN
Product: Indo- Italian Fusion brand of Apparel
 URJA - The Italian Indian Fusion brand of clothing

•Urja in Sanskrit - ‘Born out of Creative Energy’

• Idea based on how to take Indian Craftsmanship that exists in
the depths of India to the world.
•Yet for all its creativity, sophistication and design and quality of
finish were always elusive and Indian designs were far too complex
for the rest of the world.
•Urja thus came to be a an international brand that could
transcend cultures and appeal to a wide audience.
•Italy is one the hubs fior the fashion Industry. – As a produuct of
true globalisation , Urja saw the coming together of Italian
designers and artisans in India thus achieving design
sophistication.
•For eg . With Lucknow chikan- The Italian Designer team in Milan
and the Chikan team in Lucknow worked together to exchange
design ideas that resulted in a simplified form of the Chikan
without losing its beauty and intricacy an charm of the original art
form.
•
After a 250-year dictatorship, which brought stability to
Japan, the country signed an agreement with the U.S. in
1854 and started industrialization. Between the late 19th
and early 20th centuries, Japan took over Korea and
southern Sakhalin Island; by 1937, Japan occupied China,
and launched an attack against the U.S. in 1941. Now,
with a recovered economy, and a friendship with the
U.S., the Japanese emperor promotes national unity
while the politicians and bureaucrats have all the power.
Although the economy encountered some troubled
times in the 1990s, it is still strong.
Capital City: Tokyo (+9 GMT) 
Chief of State: Emperor AKIHITO 
Head of Govt.: Prime Minister Shinzo ABE 
Currency: Yen 
Main Cities: Yokohama, Osaka, Nagoya 
JAPAN
Major Languages: Japanese 
Calling Code: 81 
Voltage: 110V 
Stock Exchanges: Tokyo Stock Exchange 
Primary Religions: Shinto and Buddhist 
 Political Structure of Japan

•Japan is a constitutional monarchy democracy

•Traditionally the Japanese political system has been dominated by one party
-the conservative Liberal Democratic Party (LDP). Since its founding in 1955, it
has been in power at all times, except for a short-lived coalition government
formed from opposition parties for 11 months in 1993 and for the present
administration which was elected in August 2009. Before the last election, it had
300 seats - typical of the dominant position which it has usually held - but now it
only has 119.
•The other main party is the social liberal Democratic Party of Japan (DPJ).. In the
general election of August 2009, it stormed to victory, taking 308 of the 480
seats. It was already the largest party in the House of Councillors, so now it
controls both Houses.
 ECONOMIC SITUATION

GDP: purchasing power parity: $4.29 trillion (2007 est.- CIA World Factbook))
GDP - real growth rate: 2.8% (2007)
GDP - per capita: purchasing power parity: $33,600 (2007 )
Inflation rate (consumer prices): -0.3% (2005 est.)
Labor force: 66.4 million (2005 est.)
Exports: $550.5 billion f.o.b. (2005 est.)
Exports - partners: US 22.9%, China 13.4%, South Korea 7.8%, Taiwan 7.3%,
Hong Kong 6.1% (2005)
Imports: $451.1 billion f.o.b. (2005 est.)
Imports - partners: China 21%, US 12.7%, Saudi Arabia 5.5%, UAE 4.9%, South
Korea 4.7%, Australia 4.7%, Indonesia 4% (2005)
Population: 127,463,611 (July 2006 est.)
Population growth rate: 0.02% (2006 est.)

the services sector, accounting for 73.1% of the economy. The industrial sector,
once the engine of Japan's growth, contributed 25.3% of the GDP. The
agricultural sector accounts for only 1.6% of the economy.
 SOCIO CULTURAL Analysis
Japan's century-old conundrum—how to reconcile its deliberate Western leanings
with its Asian roots—has not been solved by its advanced technology, economic
success and mass overseas travel. Many Japanese feel they belong nowhere. So
being a citizen of the globalized village is rather appealing to them

Japanese society and culture have evolved from the days of the feudal lords.
However, some traces of feudal society can still be seen in Japanese business
practices. Japan has the lowest birth rate in the world. But this may lead to problems
in the future as there could be labour shortages. The Japanese society shows all the
traits of a highly industrialized country.

It has low marriage rates, delayed marriage and child-bearing, low fertility rates,
small household size, high divorce rates, and extended life expectancy.

The changing age profile also impacts the trends in the fashion industry because of
the complex relationship between age and fashion style. There is anecdotal evidence
to say that Japanese women are far more likely to dress in a style that would be
considered more appropriate for someone younger than them. Women in their 20s
dress like serious adults while Japanese women in the same age bracket dress like
teenagers
 Apparel Industry in Japan - for women

Garment Industry in Japan

The Japanese apparel industry is estimated to be around 16 billion yen, out of
which the women's garment segment constitutes nearly 60 % of the total
market. The country has one of the biggest garment industries in the world.

The Japanese are very style conscious and like to experiment new
globalized fashion.

The leading supplying countries of women's outer garments to

Japan are China(69.4%), Italy(8.2%), Vietnam(3.6%) and
Indonesia(2.5%).

Industry experts comment that the U.S.-made women's outer

garments of world-famous brand names such as Calvin Klein,
Jantzen, DKNY, J.Press are well received by Japanese consumers,
while famous brand names of France and Italy (Alene, Christian
Dior, Emanual Ungaro, Nina Ricci, Fila, Mila Schon, Valentino)
are very strong in Japan.

Imports from Italy have long been stable due to the deeply-implanted good
brand image of Italian fashion among Japanese consumers.
Urja, though is a fusion brand that operates both out of India and Italy, but for
Japan , the distribution of the clothes will come from Italy for the first one year,
so that the Japanese can wrap their heads round the fact of an Indian company
can sell quality based products. But later , we shall start exporting from the Indian
bases as India is significantly closer to Japan than Italy .

Products offered by URJA - Western and Japanese apparel which will be a blend of
contemporary Western designs and simultaneously also be tailored to the
Japanese style of dressoing - For eg Kimonos / Yukakatas which have traditional
Indian embroidery on them , woven with tassar silk , Rajasthani block print
techniques etc. It will be a [perfect synchronization of a truly global apparel -
Designed by Italian designers, worked upon by Indian artisans and glocalized on
Japanese articles of clothing .This will add local flavaour to an international
brand.
LEGAL
Trade Regulations of Japan

Trade Policy Japan's Trade Policy Bureau is actively executing integrated domestic and external economic
policies aiming at maintaining the established world free trade system and to create a business environment
in which Japan's economic growth is sustainable and creating high value added.

Import Licensing
Most goods do not require an import licence and can be imported freely. Japanese import licences are
required for certain goods, including hazardous materials, animals, plants, perishables, and in some cases
articles of high value.
Under the Uruguay Round Japan agreed to convert import quota and bans to tariffs. Inflexible import quotas
on certain products (wheat, barley, starches, peanuts, dairy products, footwear and leather goods) were
replaced by tariff-rate quotas.

Import Ban and Restrictions

Japan prohibits the import of certain items including narcotics, firearms, explosives, counterfeit currency,
pornography, and products that violate intellectual property laws. In addition, Japan imposes restrictions on
the sale or use of certain products including those related to health such as medical products,
pharmaceuticals, agricultural products, and chemicals.

Some imported goods may have a negative effect on Japan industry, economy, and hygiene, or on public
safety and morals. Such goods fall under "import restrictions" as provided by various domestic laws and
regulations. Import permit or prior approval for these goods is required for inspection or other requisites.

Restricted items include but not limited to certain agricultural and meat products, endangered species and
products such as ivory, animal parts and fur whose international trade is banned by international treaty, and
more than two months' supply of medicines and cosmetics for personal use.
For these restricted products, Japanese Customs reviews and evaluates the product for import suitability before
shipment to Japan. The use of certain chemicals and other additives in foods and cosmetics is severely regulated
and follow a "positive list" approach.
Under the ATA Carnet System, commercial and exhibition samples, professional equipment, musical instruments,
and television cameras can be admitted without paying duties in the country.
Customs Tariff and Taxes
Japan tariff is on average one of the lowest in the world, approximately 2%. Most machinery imports are duty
free. Japan is a signatory to the WTO Information Technology Agreement which has agreed to eliminate tariffs on
information technology products.

Tariff duties are assessed as with most countries in the world on the CIF value at ad valorem or specific rates, and
in a few cases a combination of both. Japan is an adherent to the WTO's Customs Valuation Agreement which
provides that the customs value of imported goods shall be the transaction value, that is, the price actually paid
for the goods.

Import duties on many agricultural items continue to decline, and tariffs in many major sectors e.g. autos and
parts, software, computers, and industrial machinery are zero rated, while certain leather goods and footwear,
processed foods and some manufactured goods the tariff remains high. Japan's preferential system of tariffs
grants lower or duty-free rates to products imported from developing countries.

In addition to customs duties, a 5% consumption tax is levied on a wide range of goods and services. Additional
taxes are levied on imported liquors and tobacco products.

Though tariffs are generally low, Japan has barriers that impede imports of alien products in the country, viz.
technical standards unique to Japan, requirement of prior experience, regulations favouring local produced
products, formal and informal cartels, and cultural and personal relationships, etc.
Customs Requirements and Documents
A number of documents are required for customs clearance. These include an import licence for
import quota items usually valid for four months from date of issue; and Import Declaration
Form, normal shipping documents such as a commercial invoice, packing list and an original
and signed bill of lading or an air waybill if shipped by air, a certificate of origin if the goods are
entitled to favourable duty treatment, and any other documents necessary as proof of
compliance with relevant Japanese laws and regulations, if applicable.
The commercial invoice should include names of shipper and consignee and detail of each
commodity in the shipment. The packing list should include the contents of each container, its
gross and net weights in metric measurements.

Labelling and Marking Requirements

The Japanese Measurement Law requires that all imported products and shipping documents
show metric weights and measures. Japanese law requires labels for textiles, electrical
appliances and apparatus, plastic products and miscellaneous household and consumer goods.
For most other products country of origin labelling is not required, except some beverages and
foods which do require labelling and marking of true information. False or misleading labels
displaying names of countries or flags other than the country of origin, and/or names of
manufacturers or designers outside the country of origin are not permissible.
Standards
Imported products are subject to product testing and cannot be sold in Japan
without certification of compliance with prescribed standards

Trade Agreements
Japan has entered into or been negotiating economic partnership agreements
(EPAs) with a number of countries including Singapore, Malaysia, Philippines,
Thailand, Brunei, Indonesia, Vietnam and India, Mexico, Chile, Australia and
Switzerland, the Gulf Cooperation Council (GCC-Bahrain, Oman, Qatar, Saudi
Arabia, United Arab Emirates and Kuwait). Japan is a member of APEC, which has
established a goal of APEC-wide free trade and investment for developed
economy members.
 STRENGHTS WEAKNESS

•Indo – Italian fusion Brand of apparel New Entrant in a crowded market of apparel
•Puts together a collection of a truly international product The Name could be a barrier.
•Looks to glocalize the product ac to Japanese tastes The Pricing is high end
•Brand equity Of Urja that is prevalent in India and Italy People might be a little skeptical of the fact that it is a
•Simple , Exquisite designs product from India
•Classy and chic
•There is no international brand that offers the versatility
that Urja does.

OPPORTUNITIES THREATS

There is no product in the Japanese market which New entrants that offer similar products
positions itself as a truly global yet local brand economic burnout
Most apparel brands, especially high end ones primarily Low demand for apparel
target only women. We aim to target men and Women ,
which helps us tap into a larger market.
People are becoming amore and more fashion conscious
and want to experiment
 PORTER’S 5 FORCES MODEL

Barriers to Entry
•large capital requirements
•need to gain economies of scale quickly.
•Strong customer loyalty
•Acceptability of the Japanese of and Indo Italian Fusion Brand
• strong brand preferences to local Japanese brands
•lack of adequate distribution channels
•Difficulty to export from India to Japan because India has never been a
country that Japan has imported products from fearing quality issues.
•Access to Distribution Channels

Bargaining power of Suppliers

•The garment industry is dominated by a few international firms

•URJA’s products have few substitutes
•Urja’s ’ product is an important input to buyers’ product
•Urja’s products are differentiated- It is the symbol of Global fashion-
an Indian- Italian Fusion
 Threat OF Substitutes

Products with similar function limit the prices firms can charge- this
refers to other International brands like Urja who can come into the
market and offer similar products

However, there aren’t many players in the market that combine the
cultures of two country and sell it to the third country and adopt
that country’s local flavour and style

Rivalry among existing competitors- ie. Other

designer international brands
Jockeying for strategic position
Using price competition

Staging advertising battles

Increasing consumer warranties or service

Making new product introductions