Matuoka Corporation
Basic Information
- Stock Code
- 3611
- Industry
- Textile Products
- Category Detail
- Apparel & Fashion Accessories
- Prefecture
- Hiroshima Prefecture
- Establishment Year
- June 1972
- Listing Year
- December 2017
- Official Website
- https://www.matuoka.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Shinto Holdings, Hanies Holdings, ZOA, Yamau HD, Yagi, Yamato International, Fast Retailing
Overview
Matuoka Corporation is Japan's largest domestic sewing manufacturer founded in 1956, with production bases in China and Southeast Asia, and specializes in high-quality apparel OEM supply.
Current Situation
Matuoka Corporation relies heavily on OEM manufacturing of casual clothing at its bases in China and Southeast Asia for the majority of its sales in fiscal 2023, establishing its position as the industry leader through production for major apparel companies such as Fast Retailing. Since its founding in 1972, the company has expanded its business centered on sewing and listed on the Tokyo Stock Exchange Standard Market. All production factories are located overseas, with multi-country expansion in Bangladesh, Vietnam, Myanmar, and others to diversify risks. In recent years, it has promoted product diversification such as material development and medical protective clothing, and responded to infection control product manufacturing. While addressing intensifying competition and foreign exchange fluctuation risks, it is advancing sustainable production systems and factory efficiency improvements. Moving forward, amid strengthening environmental regulations domestically and internationally and supply chain diversification, it plans to strengthen quality and delivery compliance, focusing on technological innovation and product development in response to market changes.
Trivia
Interesting Facts
- Japan's largest sewing OEM manufacturer.
- Rare Japanese company with experience listing on the Shanghai Stock Exchange B-shares.
- Pioneer in transferring all production factories overseas, with no domestic production.
- Early response to infection prevention protective clothing manufacturing, opening new markets.
- Famous as a major manufacturing partner for Fast Retailing.
- President from the founding family, oriented toward long-term management.
- Example of transitioning from Tokyo Stock Exchange Prime to Standard Market.
- Achieved high stability through risk diversification via multi-country operations.
- Continuous investment in improving production line speeds.
- Extremely high quality management level in medical product manufacturing.
- Headquarters in Fukuyama City, deeply rooted in the local community.
- Expanding production base through joint ventures and subsidiary acquisitions.
- Unique as a manufacturer with no production bases remaining in Japan.
- Contributes to local employment creation at factories in each country.
- Actively promoting product development using environmentally friendly materials.
Hidden Connections
- Rare as a Japanese-affiliated company with Shanghai B-share listing experience.
- Close relationships built with major apparel capitals such as Fast Retailing.
- Strengthened material procurement through collaboration with Chohri and Toray in Indonesian joint venture.
- Government collaboration track record receiving support from the Ministry of Economy, Trade and Industry for medical protective clothing manufacturing.
- Deeply involved in the development of Fukuyama City's textile industry, contributing to local economy.
- Full overseas expansion of production bases pioneered departure from domestic model for Japanese manufacturers.
- Focus on expanding in China and Southeast Asia markets through subsidiary acquisitions.
- Drew industry attention through market change negotiations with Tokyo Stock Exchange.
Future Outlook
Growth Drivers
- Global expansion of apparel OEM demand
- Growth of production bases in emerging Southeast Asian countries
- Flexible response to diversifying customer needs
- Acceleration of new materials and functional material development
- Medium- to long-term increase in demand for infection control products
- Market expansion of sustainable products
- Introduction of production efficiency improvements and automation technology
- Supply chain improvements through digital technology
- Deepening relationships with existing customers and developing new customers
- Strengthening global bases through overseas joint ventures and acquisitions
- Promotion of development of products compliant with environmental regulations
- Measures to enhance brand power domestically and internationally
Strategic Goals
- Complete risk diversification through multi-country overseas production functions
- Achieve carbon neutrality across the entire production process
- Establish stable revenue structure through diversification of major customer ratios
- Product deployment with sustainable material usage rate over 70%
- Expand medical and functional products ratio to 20% of sales
- 30% improvement in production efficiency through digital sewing system introduction
- Expand Asian market share for infection control products
- Global deployment of community contribution activities
- Strengthen diversity and inclusivity of domestic and international employees
- Implementation of next-generation leader development programs
Business Segments
Apparel OEM Manufacturing
- Overview
- Provides high-quality OEM sewing centered in China and Southeast Asia.
- Competitiveness
- Differentiation through high-speed production lines and stable quality management.
- Customers
-
- Fast Retailing
- Toray
- Columbia Sportswear
- Major domestic apparel companies
- Mid-sized apparel brands
- Overseas brands
- Products
-
- Casual apparel products
- Sportswear
- Outdoor wear
- Functional material clothing
- Knit products
- Textile material planning
Infection Control Product Manufacturing
- Overview
- Implemented high-quality manufacturing of masks and protective clothing in response to COVID-19.
- Competitiveness
- Weaving technology and factory systems compliant with medical standards.
- Customers
-
- Medical institutions
- Medical device manufacturers
- Government agencies
- Logistics companies
- Major retailers
- Products
-
- Medical protective clothing
- Surgical masks
- Antibacterial products
- Sanitary covers
Logistics and Planning Services
- Overview
- Provides total support logistics from manufacturing to sales.
- Competitiveness
- Integrated services from planning to delivery.
- Customers
-
- Apparel brands
- Distributors
- E-commerce operators
- Products
-
- Manufacturing logistics planning
- Inventory management
- Quality inspection
- Shipping arrangements
Competitive Advantage
Strengths
- Scale as Japan's largest sewing manufacturer
- Extensive overseas production network
- Reliability from long years of OEM track record
- Speedy production system
- 対応 to diverse product categories
- High-quality product management system
- Strong relationships with major customers
- Abundant overseas factory experience
- Material development capabilities
- Risk diversification through multi-country operations
- 対応 to infection control product manufacturing
- Integration from planning to logistics
- Initiatives toward sustainability
- Competitive pricing
- Flexible production responsiveness
Competitive Advantages
- Optimized production possible with own factories spanning China and Southeast Asia
- Short delivery time system through introduction of high-speed production lines in the industry
- Stable orders from major customers including Fast Retailing
- Product development capabilities対応 to diversifying customer needs
- Rapid entry into new product markets such as medical protective clothing
- Production capacity expansion through overseas equipment investment leveraging capital strength
- Integrated service provision from planning to logistics
- Environmental consideration through adoption of sustainable textile materials
- Industry-leading quality management system
- Focus on long-term supply chain management
- Excellent risk management through manufacturing bases in multiple countries
- Introduction of advanced sewing technology and efficient production methods
- Strong customer base and deep business partnerships
- Enhanced brand recognition in global markets
- Strong information gathering on industry production trends
Threats
- Impact of foreign exchange fluctuations on earnings
- Risks from changes in labor environment in production base countries
- Political and economic instability in China and Southeast Asia
- Intensifying price competition from competitors
- Cost increases due to strengthened environmental regulations
- Supply chain disruption risks
- Possibility of customers shifting back to in-house production
- Decline in competitiveness due to delays in technological innovation
- Demand fluctuations from resurgence of infections
- Sharp rise in raw material prices
- Increase in new entrants
- Decline in production capacity due to labor shortages
Innovations
2020: Start of Medical Protective Clothing Manufacturing
- Overview
- Began manufacturing protective clothing at China subsidiary factories in response to COVID-19.
- Impact
- Contributed to new entry into medical market and revenue diversification.
2021: Vietnam Factory Expansion for Production Capacity Increase
- Overview
- Expanded Vietnam subsidiary factory with support from the Ministry of Economy, Trade and Industry.
- Impact
- Dramatically improved production capacity for infection prevention products.
2022: Introduction of High-Speed Production Lines
- Overview
- Introduced latest sewing technology to improve production speed.
- Impact
- Achieved short delivery times and production efficiency improvements.
2023: Start of Sustainable Material Development
- Overview
- Began development of materials using recycled fibers to reduce environmental impact.
- Impact
- Strengthened environmentally friendly product lines and improved customer evaluation.
2023: Establishment of Indonesian Production Joint Venture
- Overview
- Established joint venture company with Fast Retailing and others to enter the market.
- Impact
- Promoted diversification of Southeast Asian production bases.
Sustainability
- Labor environment improvement activities at overseas production bases
- Promotion of renewable energy introduction in factories
- Reduction of production waste and strengthened recycling
- Establishment of environmentally considerate material procurement standards
- Sustainability evaluation of the entire supply chain
- Technology development for sustainable resource utilization
- Energy-saving measures to reduce environmental impact
- Introduction of employee environmental education and awareness programs
- Environmental conservation activities in collaboration with local communities
- ISO14001 certification acquisition and continuous improvement