Suit Industry Shifts from Quantity to Quality, Driven by Custom Orders; Major 7 Companies' Sales Down Only 5%; Demand for "Power Suits" Among Youth Provides Support

Teikoku Databank conducted an investigation and analysis of the suit business of major menswear companies regarding the demand for "suits" heightened by spring graduations, entrance ceremonies, and new employment, focusing on their performance in fiscal year 2025 (ending March 2026).

SUMMARY

Sales in the suit business for the seven major menswear companies in fiscal year 2025 decreased for the second consecutive year to 338.6 billion yen. Store count stood at 2,284 at the end of FY2025, with operating profit at 13 billion yen. On the other hand, custom-made suits are becoming a new growth engine, driven by the rising demand for "power suits" for important business meetings, proposals, and weddings, as well as the spread of affordable "pattern order" options.

[Note 1] Total sales in the "Suits & Formal Wear" segment for the seven major menswear companies (Aoyama Trading Co., Ltd., AOKI Holdings Inc., Konaka Co., Ltd., Haruyama Holdings Inc., Ginza Yamagataya Co., Ltd., Taka-Q Co., Ltd., Global Style Co., Ltd.) [Note 2] Figures for FY2025 (April 2025 - March 2026) include estimates by Teikoku Databank.

Suit Sales for Seven Major Menswear Companies Decrease for Second Consecutive Year

The financial results for the seven major menswear companies, which sell suits and other items, have mostly been released. In fiscal year 2025 (April 2025 - March 2026), the total sales in the "suit business" segment for the seven major companies amounted to 338.6 billion yen, a decrease of 5.2% from the previous fiscal year, marking the second consecutive year of decline. Diversified working styles, such as the normalization of remote work, have led to sluggish sales of conventional ready-made business suits and dress shirts, keeping the overall market stagnant. However, custom-made suits for "power suits" worn in formal settings like important presentations and weddings have remained strong, indicating a year where the shift from "quantity to quality" has further progressed.

Notably, AOKI Holdings, whose non-menswear businesses are performing well, surpassed Aoyama Trading in consolidated sales for the first time, becoming the industry leader. However, Aoyama Trading remains the top company in terms of suit (menswear) business alone.

The number of stores for the seven menswear companies reached 2,284 at the end of FY2025. This represents a decrease of approximately 700 stores, or 20%, from the peak at the end of FY2017 (2,997 stores), falling below 2,300 stores for the first time in 10 years, reflecting the impact of large-scale store rationalization undertaken by each company since the COVID-19 pandemic. However, recent trends show a focus on strengthening smaller stores specializing in custom-made suits with reduced inventory and smaller sales floors, as well as relocating from roadside locations to facilities with higher customer traffic, such as suburban shopping centers.

In terms of profitability, the total operating profit for FY2025 was 13 billion yen, a 26% decrease from the previous fiscal year (17.6 billion yen). Cases where companies were forced to reduce profits were noticeable, attributed to rising procurement costs for imported fabrics due to the weaker yen, as well as soaring operating costs including labor and utilities.

"Custom-Made Suits" Emerge as a Key Growth Segment

In the suit and menswear industry, the conventional ready-made suit market is shrinking due to the spread of remote work and the increasing prevalence of office casual wear. Amidst this trend, Global Style (Chuo, Osaka), a company specializing in custom orders, launched a short drama themed "Gachi Suit" in 2025, which became a explosive hit primarily on social media, contributing to uncovering latent needs for "wearing high-quality suits for special occasions." While demand for "power suits" for important business meetings, proposals, and weddings was rising, options like "pattern order," which are more affordable than full bespoke tailoring, have lowered the barrier to entry for custom-made suits, which were previously perceived as expensive, leading to increased recognition across a wide range of generations. On the other hand, industry leader Aoyama Trading (Fukuyama, Hiroshima) is also fully embracing the development of high-end custom-made suits, featuring premium fabrics and options, by launching custom order specialty stores like "Universal Language Measures" in addition to its existing brand "Quality Order SHITATE." The focus on "custom orders" is intensifying as a crucial growth segment for increasing both customer spending and added value, in both affordable and high-end lines.

Furthermore, AOKI Holdings (Tsuzuki, Yokohama), the second-largest company in the industry, saw growth in its casual apparel business. Haruyama Holdings (Kita, Okayama) expanded its business beyond traditional suits by launching original fatigue-recovery wear "YOKUNERU" and opening wellness wear specialty stores "DRUG WEAR," focusing on functional office casual wear and expanding product lines for women, thereby growing its "fashion" business segment.

Clear Trend Towards "Quality Over Quantity"

In the suit and menswear industry for fiscal year 2026, companies will continue to focus on capturing demand centered around custom-made suits, which have higher unit prices than ready-made items. However, the overall volume of suit demand is expected to continue shrinking due to factors such as the shift towards office casual wear since the 2000s, the emergence of low-priced ready-made suits, and rising prices of overseas fabrics due to the weaker yen. Consequently, price revisions and cost reductions are pressing issues for the entire industry. Under these conditions, companies are expected to continue focusing on custom-made suits, expanding into "casual and ladies' wear segments," and pursuing "low-cost operations" through store downsizing and increased efficiency, indicating a stronger emphasis on management quality over sales volume.