The US and Japanese apparel demand conditions: implications for industry competitiveness

Abstract

Purpose The purpose of this paper is to investigate aggregated apparel demand in the USA and Japan and to assess the positions of apparel products manufactured in the USA and Japan in comparison to imported apparel. Design/methodology/approach Based on Porter's industry competitiveness theory as a theoretical framework, the two‐step demand analysis, time‐series market analysis and elasticities of demand using “Almost ideal demand system” was conducted in order to reveal the overall market conditions of the USA and Japan and the market positions of domestically manufactured and imported apparel products in both countries. Findings Regardless of the country of origin, US consumers were price conscious in purchasing apparel products because they decreased purchase for not only domestically produced products but also imported products when prices increased. However, Japanese consumers' price concept toward apparel products was dual. They increased their purchase of domestically made products if the price was higher, and decreased their purchase of imported products. Originality/value This paper provides a framework for the apparel industry competitiveness assessment with regard to the demand‐side analysis of Porter's competitiveness theory. Moreover, there is no research in the current literature that assessed the US apparel demand with regard to industry competitiveness and a cross national view, especially compared with the Japanese apparel industry.

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