Auralee’s Global Expansion and Supply Chain Challenges Reflect Broader Fashion Industry Trends
Auralee, the Japanese fashion label, has leveraged international showings to grow from 10 global retail accounts to a network spanning over 100 stockists, according to Kanae Arai, the brand’s communications head. The brand’s 80% reliance on wholesale sales through multi-brand retailers like Harrods, Net-a-Porter, and Ssense highlights a shift in the fashion industry toward centralized distribution models. However, its focus on “Made in Japan” craftsmanship has exposed vulnerabilities in an aging domestic manufacturing sector.
How Auralee Built a Global Footprint
Showing in Paris marked a turning point for Auralee. Before the 2010s, the brand had just 10 international accounts, including online partnerships like Mr Porter. After its Paris debut, the number of retail partners doubled over two seasons, Arai said. This growth accelerated during the pandemic, with 2023 seeing a post-COVID shopping surge that further boosted Auralee’s international presence. Today, the brand employs 50 people, with 30 in store roles and 20 in corporate positions.
Independent retailers like New York’s C’H’C’M and London’s Mouki Mou Mou initially helped establish Auralee abroad. Now, the brand’s wholesale roster includes major department stores and e-commerce platforms, accounting for 80% of sales. Direct-to-consumer channels make up the remaining 20%, with 15% from physical stores like its Tokyo flagship and 5% from its own website.
What’s Next for Auralee’s Physical Retail Strategy?
Expanding physical retail remains a priority. Founder Iwai has set a goal to open new flagships in Paris and Osaka within five years, though he noted that finding “the right property” has delayed plans. The brand’s focus on flagship stores aligns with broader trends in luxury fashion, where brick-and-mortar locations serve as experiential hubs to complement online sales.
“We’d like to open stores in Paris and more in Japan, but we haven’t found the right property yet,” Iwai said. This mirrors challenges faced by other Japanese labels, such as Comme des Garçons, which has also struggled with property costs in major global cities.
Why Japan’s Aging Manufacturing Sector Threatens Fashion Labels
Auralee’s reliance on domestic factories has become a double-edged sword. While the brand prides itself on “Made in Japan” quality, it faces a crisis as aging workers retire without successors. “Certain things that could be done five years ago are no longer possible,” Iwai said, citing factory closures linked to labor shortages. This issue is not unique to Auralee: a 2022 report by the Japan Textile Federation found that 30% of traditional textile workshops had closed since 2015 due to similar challenges.
The situation risks forcing brands to outsource production, potentially diluting their authenticity. Some labels, like Yohji Yamamoto, have shifted parts of their manufacturing to Southeast Asia, while others, like Issey Miyake, have invested in training programs to preserve traditional techniques.
Did You Know?
Japan’s fashion industry employs over 400,000 people, but the number of textile apprentices has fallen by 40% since 2010, according to the Japan Fashion Association. This decline threatens the survival of niche labels that depend on specialized craftsmanship.
Pro Tip: How to Support Sustainable Fashion in Japan
Consumers can help preserve Japan’s textile heritage by choosing brands that partner with certified local workshops. Organizations like the Japan Craft Association offer guides to ethical manufacturers, ensuring purchases support both quality and tradition.
FAQ: Key Questions About Auralee’s Future
What are Auralee’s main markets outside Japan?
The brand’s wholesale partners include Harrods, Liberty, Net-a-Porter, and Ssense, with a strong presence in Europe and North America. Its Tokyo flagship store remains a key domestic hub.
How is Auralee addressing supply chain risks?
Iwai has not disclosed specific strategies, but the brand’s emphasis on “benchmark stores” suggests a focus on maintaining quality while exploring alternative production methods.
What’s the impact of Japan’s aging population on fashion?
The shortage of skilled workers has forced some brands to relocate manufacturing, while others invest in automation to maintain output. Auralee’s challenge is emblematic of a broader industry crisis.
For more insights on fashion industry trends, explore our coverage of luxury retail strategies and global supply chain innovations.
Photo: Courtesy of Auralee
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