Core Viewpoint - The decline of a product or industry may not solely be due to a lack of consumer need, but rather a deeper issue related to the core capabilities of the company [2][3]. Group 1: Market Analysis - The kimono retail market in Japan has seen a drastic decline from 20 trillion yen in 1975 to approximately 2 trillion yen in 2023, a drop of 90% [10]. - The sales of Kyoto Monfu, a company specializing in kimono, plummeted by 90% as well, reflecting the broader market trend [12]. Group 2: Strategic Decision-Making - In response to the declining kimono market, Kyoto Monfu's fourth-generation heir, Akira Arakawa, recognized the need for a strategic pivot rather than merely calling for a return to traditional culture [15]. - The critical question posed was not about what else could be sold, but rather what core capabilities remained if the kimono industry disappeared [16]. Group 3: Core Competency Identification - Kyoto Monfu identified its unique "deep black" dyeing technique as its core competency, which could be leveraged in new markets [18][23]. - The dyeing process involves three steps: basic dyeing, using a unique agent that allows the fabric to "absorb" light, and a patient drying process that enhances the quality [19][20][21]. Group 4: Market Adaptation - The company recognized a shift in consumer behavior towards second-hand clothing, driven by environmental concerns and a desire for sustainable fashion [26]. - In 2013, Kyoto Monfu launched the "PANDA BLACK" project in collaboration with WWF Japan, focusing on revitalizing old garments through their dyeing expertise [28][29]. Group 5: Business Model Innovation - Kyoto Monfu opted to partner with established retailers like BEAMS and Isetan to reach consumers, rather than attempting a direct-to-consumer model, which was outside their expertise [31][33]. - This collaboration created a win-win situation where consumers could address their old clothing issues, retailers gained new revenue streams, and Kyoto Monfu maintained its core capabilities [35][37].

Core Viewpoint - The decline of a product or industry may not solely be due to a lack of consumer need, but rather a deeper issue related to the ability and adaptability of the company or industry [2][3]. Group 1: Market Analysis - The kimono retail market in Japan has seen a drastic decline from 20 trillion yen in 1975 to approximately 2 trillion yen in 2023, a drop of 90% [9]. - The sales of Kyoto Monfu, a kimono company, plummeted by 90% as well, reflecting the broader market trend [11]. Group 2: Strategic Adaptation - Kyoto Monfu's fourth-generation successor, Akira Arakawa, recognized the futility of trying to revive the kimono market and instead decided to pivot the company's focus [14]. - The first step in this strategic shift involved assessing the company's core competencies, leading to the realization that their unique "deep black" dyeing technique was their true asset [18][23]. Group 3: Market Opportunities - As consumer preferences shifted towards second-hand clothing and sustainability, Kyoto Monfu launched the "PANDA BLACK" project in collaboration with WWF Japan, which involved dyeing old clothes to give them a new life [30][31]. - This initiative resonated with consumers' growing interest in eco-friendly fashion, allowing the company to tap into a new market segment [31]. Group 4: Business Model Innovation - Instead of directly selling to consumers, Kyoto Monfu chose to partner with established retailers like BEAMS and Isetan to leverage their customer base, effectively creating a win-win situation for all parties involved [33][36]. - This approach allowed Kyoto Monfu to maintain its core competencies while expanding its market reach through established retail channels [36][39].