The owner of Japanese denim label Momotaro Jeans said inbound tourists now account for about half of its domestic retail business, a shift that underscores the growing importance of international visitors to specialty retailers. In a statement covered by Inside Retail Asia, the company noted that “inbound demand has become an increasingly important component of our domestic retail strategy.”

The rise reflects a broader trend across Japan’s retail sector, where a record number of foreign visitors has boosted sales of premium and heritage goods. For Momotaro Jeans, known for its selvedge denim crafted in Okayama, the influx of tourists has helped offset softer local spending and expanded the brand’s reach among overseas consumers who discover it while traveling.

Retail analysts say the shift could prompt more Japanese brands to tailor in-store experiences, multilingual signage, and tax-free shopping options to cater to inbound shoppers. The company’s experience highlights how tourism can serve as a powerful growth channel for niche manufacturers, even as e-commerce and global wholesale channels continue to develop.