Four Major Fashion Companies Unite to Tackle Logistics Challenges through Collaborative Research Initiative

Formation of the Apparel Logistics Research Group

In October 2023, four prominent companies in the fashion sector—Adastria, Baroque Japan Limited, TSI Holdings, and United Arrows—came together to form the Apparel Logistics Research Group. This initiative aims to streamline logistics infrastructure and tackle the pressing challenges faced by the industry.

Background and Objectives of the Research Group

The logistics industry is grappling with various issues, including a shortage of labor, rising delivery costs, and the need for environmentally friendly practices. The impending regulation limiting truck drivers' overtime hours, known as the '2024 Problem,' alongside the socio-economic challenges associated with Japan's aging population, raises concerns regarding labor shortages and the surging costs of social security, referred to as the '2025 Problem.'

These issues are anticipated to significantly impact the fashion industry, potentially leading to increased operational costs and extended delivery times. While other sectors have started to explore collaborative logistics solutions, the fashion industry has yet to showcase substantial success stories.

The unique characteristics of the apparel industry—including diverse distribution channels from production to sales—combined with a predominance of small to mid-sized businesses, heighten the dependency on logistics firms. This makes it challenging for individual companies to implement effective improvements or manage risks autonomously.

In light of these shared challenges, the Apparel Logistics Research Group was launched by the four companies in a bid to clarify common logistics problems in the industry and encourage cross-company collaboration for effective solutions.

Key Objectives

1. Share Challenges: Facilitate discussions among member companies to define common logistics challenges in the fashion sector.
2. Collaborate on Infrastructure: Work towards shared logistics infrastructure through discussions, experiments, evaluations, and systematic frameworks.
3. Expand Participation: Increase collaboration with more companies to distribute the benefits across the entire industry.

Previous Activities and Future Prospects

Thus far, the research group has conducted various Proof of Concepts (PoCs) focusing on joint deliveries for physical stores and e-commerce platforms, as well as collaborative transport logistics from overseas suppliers.

Example of a PoC: Joint Delivery for E-commerce (Ongoing Since June 2025)

The PoCs have highlighted that by ensuring sufficient volumes at shipping points and delivery destinations, significant improvements in transportation efficiency can be achieved, addressing common issues such as timing coordination and load optimization in shared delivery scenarios. Gathering companies with similar needs regarding logistics centers, merchandise types, and delivery forms opens up new routes and service frameworks, enhancing potential collaboration.

Beyond logistics, the research indicates that there could be strategic advantages by integrating with suppliers earlier in the supply chain, particularly for overseas products. This broader perspective reveals numerous possibilities and options for efficiency.

Recognizing that increasing participation from other companies can yield better outcomes, the research group aims to continue its collaborative efforts in addressing the industry's challenges.

Overview of the Apparel Logistics Research Group

- Established: October 2023
- Participating Companies (as of August 2025):

- Adastria: A multi-company group managing over 45 apparel, lifestyle, and restaurant brands.
- Baroque Japan Limited: Known for brands like MOUSSY and SLY, it operates over 350 stores worldwide.
- TSI Holdings: Managing over 50 diverse brands, it aims to blend unique fashion offerings with entertainment value.
- United Arrows: Since 1989, providing a curated selection of designer clothing and goods through a unique retail experience.

The Apparel Logistics Research Group is poised to streamline logistics processes and foster sustainability while enhancing collaboration across the fashion industry.