How Fashion Brands Make Profit

＃728 EU Regulatory Changes: Impact on the Market, Chinese E-commerce, and Apparel Strategies

by EIC Mr.S · 2025-02-10

Mr.Thanks

Hello everyone! Today, we’re going to talk about how the European Union’s stricter e-commerce regulations are affecting the apparel industry. Recently, the EU has been tightening customs controls on products from online retailers like Shein and Temu to combat the influx of low-cost, and often unsafe, products from China.

This move could reduce the competitiveness of Chinese e-commerce platforms in the European market, potentially benefiting European brands and retailers that have struggled to compete on price. So, what does this mean for Japanese apparel brands? Could this be an opportunity? Let’s dive into the background of these EU regulations, their impact, and the strategies Japanese brands should consider.

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EIC Mr.S

I was born in Kobe and entered the apparel industry in 1986. At that time, Japan’s fashion industry was experiencing rapid growth. It was a booming market where products would sell almost as soon as they were made.

However, in 1991, the economic bubble burst. The industry, which had been thriving, suddenly entered a very difficult period.

“Why aren’t products selling?”
“How can a brand survive?”

While searching for answers to these questions, I continued working in sales, merchandise planning, and business development.

Later, I took on the challenge of overseas business. I was entrusted with management responsibilities in Taiwan and Hong Kong, where I expanded operations in the Asian market.

But overseas, Japan’s successful business models did not work. The climate, body types, and culture were all different.

Products, organizations, and sales methods all had to be rebuilt from scratch.

I experienced many failures. However, those experiences taught me the true essence of the fashion business.

That is:

“It is not sales that determine success, but the system behind the brand.”

Today, I support companies as a management consultant while also teaching students as a lecturer at a vocational school.

Why do I teach?

Because I want to pass on what I have learned through experience to the next generation.

I want to help improve the apparel industry, even if only a little.

With that belief, I continue to dedicate myself to the fashion business today.

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EIC Mr.S

I was born in Kobe and entered the apparel industry in 1986. At that time, Japan’s fashion industry was experiencing rapid growth. It was a booming market where products would sell almost as soon as they were made. However, in 1991, the economic bubble burst. The industry, which had been thriving, suddenly entered a very difficult period. “Why aren’t products selling?” “How can a brand survive?” While searching for answers to these questions, I continued working in sales, merchandise planning, and business development. Later, I took on the challenge of overseas business. I was entrusted with management responsibilities in Taiwan and Hong Kong, where I expanded operations in the Asian market. But overseas, Japan’s successful business models did not work. The climate, body types, and culture were all different. Products, organizations, and sales methods all had to be rebuilt from scratch. I experienced many failures. However, those experiences taught me the true essence of the fashion business. That is: “It is not sales that determine success, but the system behind the brand.” Today, I support companies as a management consultant while also teaching students as a lecturer at a vocational school. Why do I teach? Because I want to pass on what I have learned through experience to the next generation. I want to help improve the apparel industry, even if only a little. With that belief, I continue to dedicate myself to the fashion business today.

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Mr. Thank’s 桑克斯老师

“Thank’s Sensei’s Fashion Business Class”

Thanks Sensei was born in Kobe, Japan. He entered the apparel industry in 1986 and gained hands-on experience in brand management and business development while working in sales, business planning, and merchandise planning (MD). He experienced the market downturn following the collapse of Japan’s economic bubble and the structural changes in the industry, overcoming one of the most turbulent periods in the Japanese fashion business on the front lines.

Later, he took on the challenge of international business, leading retail expansion in Taiwan and Hong Kong. By developing products and building organizations suited to local markets and cultures, he successfully achieved business growth in the Asian market.

He is now independent and works as a management consultant, supporting companies in developing growth strategies. At the same time, he is also dedicated to nurturing the next generation as a lecturer at a vocational school.