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Japanese Zozo on the verge of getting closer as COVID-19 hits fashion sales-Nikkei

 


TOKYO, Japanese online fashion retailer Zozo Inc and clothing group Onward Holdings Co plan to dress in custom clothing to help each other survive a drop in sales caused by the COVID-19 pandemic, said Nikkei Sunday.

Zozo, Japan’s largest online fashion mall, will offer Edward’s body size data to one million customers, the daily reported without citing sources.

Sunday, Zozo and Onward were not immediately available for comment.

Clothing manufacturers such as Onward are struggling to cope with poor sales due to store closings linked to the pandemic and low consumer spending. Rival Renown Inc. filed for bankruptcy in May.

Onward, which sells clothing under brands such as Kumikyoku, is highly dependent on sales in Japanese department stores, which mostly reopened in late May but are still struggling with declining customer base amid lingering fears of infections .

Last year, Zozo was bought by Yahoo Japan Corp, now named Z Holdings Corp, after Zozo made a costly foray into a bespoke fashion service that brought in little new business and was saddled with huge costs .

Zozo was also struck by the departure of many brands that created their own e-commerce sites instead of depending on the company’s infrastructure, one of the retailers having left the site in 2018.

The Nikkei said that Edward plans to start selling 28 types of business clothing, such as jackets and dresses, starting in August using Zozo data, with the aim of bringing annual sales to 10 billion yen ($ 94 million) in five years.

Zozo was founded by billionaire Yusaku Maezawa whose plans for a lunar flight as the first private passenger on Elon Musk’s SpaceX mission had helped spread the name of Zozo around the world.

(Report by Ritsuko Ando and Yuka Obayashi; Editing by William Mallard)

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