Unlocking the Circular Economy Potential in the Textiles and Fashion Industries of Japan: Opportunities for European Businesses

This study explores the dynamic field of circular economy (CE) in the circular textiles and fashion (CTF) industry of Japan, highlighting the country’s distinct position and its potential to catalyze challenges in business cooperation with the European Union (EU). The methodology consisted of (1) desk research with a systematic literature review, and (2) conducting 20 interviews with stakeholders from SMEs to large multinationals, government officials, clusters, and public and private sector stakeholders in Japan and the EU. First, this work introduces the CE paradigm and the CTF sector. Secondly, it analyzes the CTF industry in Japan examining the historical background, contemporary market dynamics, private sector activities promoting circularity among local enterprises, and consumer trends; it is remarked the challenges include the lethargic CTF commerce amidst demographic and economic trends, the collapse of traditional textile enterprises, and the domination of multinationals. Thirdly, as this study's key contribution, it designs a collaborative framework between EU and Japanese CTF businesses to foster circularity in both regions to catalyze challenges in opportunities. This article may provide helpful insights for policymakers and businesses, ranging from local startups to global enterprises, aiming to capitalize on Japan's CTF industry.