In the 1970s, as the textile industry was moving to emerging countries, Gaehara, a Japanese company known for producing kimonos, made a surprising pivot towards denim fabric. Today, Gaehara is the top player in the denim fabric market, surprising even Levi’s, the world’s largest denim company.
So, how did Gaehara do it? According to CEO Mamoru Gaehara, they chose to focus on producing high-quality fabrics instead of mass-producing low-cost products. They believed that satisfying customer demands was the key to creating the next generation of business models.
While producing denim fabric is not particularly difficult, Gaehara gained global recognition because of its consistency in producing the same quality fabric for decades. Levi’s chose Gaehara because of this consistency, despite anyone being able to make denim fabric. In a meeting with Levi’s CEO in San Francisco in 1993, Mamoru Gaehara stated that their sales point was “reliability.”
Gaehara has also adapted quickly to changing trends. Denim fabric can be heavy and hot to wear, so consumers seek comfortable and easy-to-maintain products. In response, Gaehara has introduced functional fabrics that are lightweight, stretchy, and quick-drying, as well as water-resistant.
Gaehara has also independently developed various patterns and colors of denim, including brown, khaki, and other designs. This allowed them to supply fabric to European brands such as Diesel, as the trend for jeans began in Europe in the 1980s. Gaehara had been producing kimono fabrics for nearly 100 years, and this expertise helped them quickly adapt to the denim fabric market.
However, as Japan’s population declines and the market becomes smaller, can Gaehara continue to produce denim fabrics in Japan? Mamoru Gaehara believes that by giving up mass production and creating new products, they can continue to pioneer new markets and produce denim in Japan for as long as possible.
In a market where mass production and low cost often dictate success, Gaehara’s commitment to quality and customer satisfaction is a refreshing approach. It’s a reminder that sometimes, the key to success is not cutting corners, but staying true to your values and your customers.