100 Stories1980 The “Stable Deficit” - Lamous™ synthetic leather, and its growth as a product

The year 1974 was the first postwar year of negative growth, affected by the oil shock. Inflation had been rising rapidly since the fall of 1973, and soaring prices were taking a heavy toll on the public.

The textile industry at the time was abuzz with talk of synthetic leathers such as Ecsaine™ from Toray and Clarino™ from Kuraray. Synthetic leather, also called “artificial leather” or “pleather” reproduces the look and feel natural leather right down to the structure of the fabric. Compared to other products at the time, Ecsaine™ was a particularly durable, light resistant, and flame retardant product that was manufactured using cutting-edge technology and required less care than genuine leather.

Meanwhile, Asahi Kasei proposed the development of synthetic leather at its Fibers & Textile Laboratory in Nobeoka, and proceeded along its own unique path using its own products.

Lamous™, which was launched in 1980, was used women's and men's coats, and the company was also looking to develop markets for clothing accessories and non-clothing applications. In 1982, Asahi Kasei also developed fashion tape and sports shoe applications to expand its market.

However, competition with other companies was tougher than expected, and the company was ridiculed for its “stable deficit.” Lamous™ had a rocky and tumultuous start.

Despite these circumstances, Asahi Kasei pushed ahead with structural improvements, differentiated itself by cultivating the market for high-end materials, and expanded its business, so by the time the bubble economy hit, sales volume was steadily increasing.

It was not until the mid-1990s, when the company's aggressive market development efforts began to yield success, that Lamous™ began to grow in earnest and become a profitable business. The turning point came when the company targeted car seats and furniture applications in Europe and the United States.

Car seats were first adopted by Honda, and then Nippon Air System, Toyota, and Nissan. Sales for car seat synthetic leather grew rapidly as the number of car models using the company's products expanded.

Asahi Kasei also recognized the suitability of its products for European furniture, and entered into business negotiations with European furniture manufacturers. The company appointed converters in Germany, Italy, and Denmark, and aggressively promoted sales in the European market. The company also expanded its share in the U.S. market.

As the supply of natural leather is limited, the market for synthetic leather steadily expanded on a global scale, and Asahi Kasei achieved remarkable growth to account for 12% of the global market.

The synthetic leather business, while at one time derided as a business with a “stable deficit,” has carved out a new path for itself. Today, Asahi Kasei’s synthetic leather is a steadily profitable business. The work of the employees who kept moving forward in the face of adversity led to an increase in market share.