A long-established manufacturer of auxiliary materials
for clothing seeks new opportunities by collaborating
with other industries toward a decarbonized society

The DNA of innovative spirit started with woven clothes labels

KOBAORI Co., Ltd., headquartered in Kyoto, manufactures and markets all kinds of apparel-related auxiliary materials, such as the brand name and laundry care labels that are found on clothing, as well as packaging for garments.

This long-established materials manufacturer was established in 1947 as a wholesaler of woven labels (the small label displaying the brand name, usually affixed to the inside of the garment neck) for men’s clothing. It now manufactures and sells bioplastics in Vietnam.

The reason for this new direction lies in the company’s business philosophy that keeps it in step with the times—a trait that has been carried forward since its founding.

Looking back at KOBAORI’s history, almost all clothing was tailor-made in its early years. But by the time the second president took over in the 1970s, mass production led to ready-to-wear garments appearing in department stores.

KOBAORI had been selling labels mainly to tailors, but with that business declining, it turned its attention to shoes. Many shoes at that time were imported, making brand labels necessary. It quickly became a booming business for the company, boosting sales because each pair of footwear requires two labels, one for each shoe.

Subsequently, the Japanese fashion industry shifted much of its production overseas. Major companies in the apparel market handle a wide variety of garments and need to produce more than 100 million labels. As this is ancillary work for apparel manufacturers, there is a limit as to how much they can handle. Foreseeing this situation, KOBAORI took on the production of not only labels, but other auxiliary materials such as garment packaging, and grew its business.

“We have proactively engaged in new ways of business that are rarely seen in this industry. This might be due to the DNA passed down through the generations in this company,” says KOBAYASHI Shingo, the third president of the company, reflecting on its history.

Confronting changes in the public’s environmental awareness just as it began overseas production of plastic packaging

In response to requests from apparel manufacturers who had shifted their production overseas, auxiliary materials companies set up production facilities nearby. In 1995, KOBAORI established a manufacturing center in Shanghai, China, and in 2001, also began manufacturing packaging for garments in Qingdao, China.

“I make decisions after looking at the site with my own eyes, while always being mindful about minimizing risk by being prepared to pull out at any time if something happens. I make it a point to remember this stance when expanding overseas.”

In 2018, the company began film packaging production in Hanoi, Vietnam. One reason was that it was looking to diversify risk away from concentrating operations in China. But it was just around that time that growing awareness of environmental issues started a major movement in the world to reduce the use of plastics.

“Although I felt that the fashion industry as a whole, which uses large amounts of plastic packaging, had to respond to this trend, since we had already established a plant, I was searching for some way to continue this business.”

Manufacturing biomass plastic using unusable rice in Vietnam

KOBAYASHI was facing this dilemma when he met KAMIYA Kazuhito, Representative Director & CEO of Biomass Resin Holdings Co., Ltd.

KOBAYASHI was deeply moved by KAMIYA’s passion to spread the use of "Rice Resin," a biomass plastic developed using old rice and other rice waste unsuitable for human consumption, and also help solve agricultural problems such as how to effectively use the increasing amount of idle farmland in Japan. It could also address the challenge confronting KOBAORI in becoming environmentally friendly.

Says KOBAYASHI, “I want to make Rice Resin a global brand. To that end, I want us to work together to supply the product in Vietnam.”

In 2021, KOBAORI and Biomass Resin established a joint venture in Vietnam to manufacture and sell biomass plastic, and began the manufacture of Rice Resin using the facilities of KOBAORI’s existing plant. A loan from JBIC is also being used to spread the use of Rice Resin in Vietnam using locally grown unusable rice.

Going forward, the company also plans to manufacture in Vietnam a bio-degradable plastic “Neoryza” derived from unusable rice. Taking the opportunity of its expansion into the bioplastics business, KOBAORI is making further advancements in manufacturing that incorporate a sustainable perspective. These include the creation of wallets and school satchels using “rice leather,” a material made using Rice Resin.

KOBAYASHI hopes to spread the use of Rice Resin as a new material that can be applied in the fashion industry and serve as a bridge in its efforts to reduce plastic use. “I would like to continue to fully use ideas for the creation of materials and products using Rice Resin." He already has his sights set on the next challenge.