Accelerating growth through both management and creative sides

JStories ー “Streetwear” has become the mainstream in fashion, thanks to its popularity with famous artists and other celebrities. According to Fortune Business Insights, the global streetwear market is expected to almost double from 34.7 billion dollars (around 5 trillion yen) in 2024 to 63.7 billion dollars by 2032. Particularly striking is the rapid growth in demand in Europe, the United States and Asia.

Japan played an integral role in the development of the global streetwear market. During the 1990s, a unique street culture emerged in the Harajuku area of Tokyo. This became known as “Ura-Harajuku,” literally “backstreet Harajuku,” and it had a huge global influence. Especially after a meeting between NIGO and Pharrell Williams in 2003, this trend began to influence global culture, and became popular around the world. HUMAN MADE has become a brand at the center of this flow, and has achieved remarkable growth since its establishment.

HUMAN MADE’s sales have increased almost sixfold over the last four years, from 1.8 billion yen to 11.2 billion yen, while operating profit is 3.1 billion yen and the company’s operating margin is 28 percent. What’s more, demand from overseas is particularly high, accounting for around 63% of sales. Instrumental in this success is the current CEO Rei Matsunuma, who has overseen the company’s management since 2022.

“I joined the management team in 2021,” Matsunuma told JStories. “Since then, the company’s founder, NIGO, has focused on the creative side – and with this productive separation between creative and management, the company has grown steadily.

“I believe it is our approach to fashion that lies behind our success. Rather than treating it as something transient, we focus on creating systems that ensure the brand’s unique qualities and value continue permanently.”

HUMAN MADE founder NIGO is the key figure in the streetwear craze that sprang up in Ura-Harajuku. He is a global iconic creator and influencer, and close friends with globally famous artists such as KAWS and Pharrell Williams, who currently serves as an adviser to the company. Not only do these trendsetting creators themselves wear and love HUMAN MADE, but other young artists who look up to them wear the brand, post about it on social media, and help create new generations of fans.

“I think about how we can passionately convey the worldview of these artists to people around the world,” said Matsunuma. “And at the same time, I have to think about balancing that with sales and managing our supply chain. 

“For example, we have started a sales cycle by which we announce new products on our online store each Thursday, and start selling them on Saturdays. This routine is important for creating excitement among our customers. The knowledge and experience I picked up working at Uniqlo has probably been useful when thinking up such strategies.”

There are examples of companies around the world that have achieved success by separating the creative and management sides of their business. One well-known example is LVMH (formerly Louis Vuitton). According to an analysis by the Daiwa Institute of Research, the key to that company’s success was shifting from being family-run to having professional managers. Prior to professional manager Henry Racamier joining the company in 1977, it only had two stores in France. But after separating creative and management, in little more than a decade, it achieved rapid growth and opened 130 stores across the world. Under the leadership of current CEO Bernard Arnault, LVMH has acquired numerous brands and become the world’s largest luxury goods company.

“Personally, I sensed a structural crisis in which even the best brands might not survive their creator’s passing” said Matsunuma. “I believe these brands should have their own lifespan instead. It would be too much of a waste for Japan’s intellectual assets, which should be passed down to future generations, to just disappear. I felt a need to create business mechanisms that would preserve for future generations these brands in danger of disappearing.”

“In the same way that manga, anime and video games will remain a source of pride as examples of Japanese culture far into the future, I want the worldview of HUMAN MADE to be considered a cultural asset and be a brand that keeps growing for generations to come. I believe that establishing a business to do that is my mission and reason for being here.”

HUMAN MADE’s company motto is “Cultivate Culture,” which Matsunuma explained by saying that “cultivating culture is the same as cultivating the heart.” 

“Culture such as films, music and fashion may not be absolutely essential to human survival,” he noted. “But by nurturing a rich heart, literacy is born, which leads to a rich and peaceful world. I would love for HUMAN MADE to be a starting point for global culture, bring richness to the hearts of many people, and help create a better world. The words of our motto express this sincere wish.

“With a view to long-term growth, we will develop new businesses that bring our brand’s worldview to all areas related to housing, food, and clothing, such as interior design and outdoor activities, and which realize our company’s mission. We are considering making use of our strength in intellectual property through collaboration and also investing in businesses that create synergistic value via our brand’s worldview. In this age of AI more than ever, surely the words ‘HUMAN MADE’ themselves have value?”

As HUMAN MADE accelerates its efforts to convey Japanese culture and lifestyle to the world, as well as to future generations, it will boost its already substantial presence in overseas markets.

One specific plan is to increase the number of HUMAN MADE stores around the world. Right now, the company sells its products mainly through its eight direct stores in Japan and ecommerce. HUMAN MADE has global distribution through partnerships in 82 stores across 32 countries and regions. Looking ahead, it aims to open flagship locations worldwide that, like its Harajuku store, will fully convey its brand worldview. To become a brand that contributes to cultural development, the company will need to establish management teams and business structures that are appropriate to each region and country.

Matsunuma said that HUMAN MADE sees its brand as “cultural intellectual property.”As a company that conveys Japanese culture and lifestyle to the world and to future generations, we can expect it to have a significant global impact.

Translated by Tony McNicol 

Edited by Mark Goldsmith

Top photo: Moritz Brinkhoff | JStories

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