Trust Recovery Growth Vitalization - Marubeni

Strategy by Business Segment
Textile Division
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Bolstering initiatives targeting everyday activities
The past fiscal year saw the division reverse course to post higher trading
transactions and consolidated net income, and come one step closer to a full
recovery. Likewise, the fiscal year ending March 31, 2006 will be an important year
for making a definitive leap forward in revitalizing the division. One advantage that
Marubeni’s Textile Division has over other trading companies is an integrated
value chain covering upstream through to downstream areas; this strength will
continue to distinguish the division in the years ahead. By merging the expertise
of outside specialists with Marubeni’s unique strengths, we hope to take the
division beyond the traditional boundaries of the garment field to establish a
presence in footwear, luggage and handbags, furnishings, sundries and other
non-garment domains essential to daily life. In doing so, we will unfurl
innovative ideas in a bid to establish new earnings streams.
Hiroshi Koyabu
Corporate Vice President, COO
Division Strategies and Strengths
Consumer tastes are getting increasingly diversified as a result
of large shifts in the current market situation. To grow the
business portfolio under these circumstances, the textile division
aims to create new value by consolidating footholds in
every consumer field and continually monitoring trends in
consumer markets, from the materials to the products stage.
Marubeni aims to strengthen its presence in these areas by
improving its capabilities in information and distribution, product
planning, and product development to expand and enhance
its integrated wholesale function.
Downstream strategies: To generate stronger growth in the
apparel field in Japan, the division proceeded with brand
marketing operations that saw it conclude licensing agreements
for French sports brand Oxbow, U.S. apparel and
sundries brand OshKosh, and U.S. outdoor, casual bag brand
Overland Equipment. Other downstream brand marketing
strategies included the opening of directly managed stores for
the established U.K. bag brand GLOBE-TROTTER in London
and Tokyo (Aoyama and Marunouchi). At the same time, the
division sought to expand and enhance its development
capabilities in downstream channels closer to the consumer
market by leveraging its retail know-how and constructing
mechanisms for directly assessing market needs.
Stepped-up business investment: The division aggressively
carried out business investment aimed at expanding its
operating domain and at shoring up its earnings base. To facilitate
this process, textile project and planning teams were set up
in Tokyo and Osaka. Aimed at more than just expanding trade
benefits and securing business profits, this proactive investment
program is designed to enhance the division’s role as a comprehensive
wholesaler and to expand its operating domain.
Accelerated expansion into overseas markets: To construct
a more integrated business system in China, from raw
materials to finished products, the division merged Passport
Fashion Company Limited’s office in China with Marubeni
Textile (Shanghai) Co., Ltd. (MTS), thereby inaugurating a new
MTS. The division is also preparing to establish a sales company
for Japanese brand garment goods. Additionally, eying the
abolition of import quotas in the U.S. and Europe, the division
aims to expand the garment goods business, particularly exports
from third countries to Europe and the United States.
In other developments, the division has positioned the
ASEAN region as the next important market after China and is
working to enhance related production and sales functions.