2021 Volume 20 Issue 1 Pages 41-48
The present study examines the necessary factors for a Japanese firm to enter the Chinese market. From 1995-2005, the Chinese apparel market greatly attracted Japanese fashion apparel firms. We examine the reason for the failure of Japanese firms’ penetration of the Chinese market. When China advanced the reform and liberation policy, liberalization of physical expressions such as clothing were encouraged. Japanese firms once experienced liberation from a controlled economy; therefore, it should have been able to understand the market trends. We review previous cases of Japanese firms starting around 1990. Principal component analysis was conducted by extracting data from the 1997 financial statements of Japanese apparel firms. There were few successful cases of Japanese companies entering the market. This is because there were few firms that satisfied the “administrative sensibility” (kansei) was required to enter the market.