Human made seeks growth beyond China as tensions with Japan rise

Bloomberg - Human Made Inc., the Japanese fashion label that counts China as central to its plans, is broadening its growth strategy to reduce reliance on any single market against the backdrop of rising tensions between Tokyo and Beijing.

Armed with fresh capital from its market debut Thursday, the company plans flagship stores in Tokyo and Osaka over the next two years to meet growing demand, while adding partner outlets in Seoul and Bangkok. Expansion in China and the US — both critical for scaling revenue — remains underway.

“We aren’t building a plan that highly relies on sales in China,” Chief Executive Officer Rei Matsunuma said in an interview, noting that expansion will be across the US, and East and Southeast Asia. Parallely, “we are working on how to hedge the risks associated with the market.”

The strategy comes as Japan navigates a volatile diplomatic environment. Recent remarks by Prime Minister Sanae Takaichi on Taiwan have triggered travel cancellations and begun to weigh on sectors from airlines to retailers.

Human Made shares have climbed 24% over two sessions since listing. Under Matsunuma — who joined from Fast Retailing Co. and became CEO last year — annual sales have nearly tripled to ¥11.3 billion ($72.3 million) for the year ended January. Operating profit has nearly quintupled to ¥3.2 billion during the period, with the company forecasting the metric to rise another 20% this fiscal year.

The brand, founded by designer Nigo, operates several stores in Japan and outlets in Seoul, Hong Kong and Shanghai. Known for collaborations with artists like KAWS, Verdy and BTS’s J-Hope, Human Made sells clothing ranging from ¥8,000 T-shirts to ¥150,000 jackets.

Its expansion coincides with a global surge in interest in Japanese pop culture, fueled by anime and video games, while a weaker yen draws record tourist spending. Overseas sales, including inbound purchases in Japan, account for roughly two-thirds of revenue, led by South Korea, Taiwan and mainland China.

Despite political risk, Matsunuma said Chinese consumer preferences in apparel remain closely aligned with the brand. Also China’s luxury consumption slump notwithstanding, demand for Human Made’s apparel in China remains resilient, he said.

In its share-sale prospectus, Human Made described China as its “main battlefield,” prioritizing staffing and investment there and calling it “the biggest untapped market.”

Nigo, whose real name is Tomoaki Nagao, founded Human Made after creating streetwear label A Bathing Ape three decades ago. He stepped down as CEO last year to focus on design as creative director, while continuing his role as artistic director at LVMH Moet Louis Vuitton SE-owned Kenzo.