2006 Fiscal Year Final Research Report Summary
Shikoku Firms Abroad : Trends and Problems
| Project/Area Number |
16530256
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Business administration
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| Research Institution | Kagawa University |
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Principal Investigator |
LIM Lrong Yew Kagawa University, International Student Center, Professor, 留学生センター, 教授 (00262840)
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| Co-Investigator(Kenkyū-buntansha) |
ITAKURA Hiroaki Kagawa University, Graduate School of Management, Professor, 大学院地域マネジメント研究科, 教授 (80335835)
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| Project Period (FY) |
2004 – 2006
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| Keywords | Shikoku / Towel industry / Branding |
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| Research Abstract |
In 2006, we made three trips to visit the Imabari Towel Industry Manufacturers Union office, the Shichifuku Towels Corporation, and the Yasuhiro Towels Corporation. Based on these trips, we found that the number of towel manufacturers have been declining continuously since they peaked in the 1990s. Production of towels is shrinking accordingly while the number of workers in the industry takes a plunge. Presently, a majority of towels sold in Japan are imports from China. These take up more than 80% of the market. Faced with the onslaught of cheap imports, the Imabari Towel manufacturers realize that they need to strategize to survive. They choose from between two fundamentally divergent strategies: the domestic production strategy or the overseas production strategy. Shichifuku Towels Corporation follows the domestic production strategy. This firm conducts all the production processes within the Imabari region. To counter the flow of cheap foreign towels, the firm embarked on developing value added products that sell at a premium prices to the domestic market. Shichifuku also engaged in selling directly to its customers through the Internet. Previously, Shichifuku like other towel manufacturers relied on wholesalers to sell their products. Shichifuku also developed its own in-house brand towels. Yasuhiro Towels Corporation is all out on using the overseas production strategy. Except for designs, which are done domestically, all other production stages are executed in China. Yasuhiro also have in-house brands, and they also sell directly to customers. Additionally, Yasuhiro is spreading its wings by establishing the Towel Museum and Art Gallery. The artwork for the gallery and museum uses towels as raw materials. Exhibitions of famous artists are periodically changed throughout the seasons, thus attracting a steady horde of domestic tourists. This strategy has since expanded further to restaurants, gift shops, and hotels, all with a focus on towels.
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Research Products
(2 results)
