A Case Study on Management Innovation in the Traditional Craft Industry: Focusing on Nakagawa Masashichi Shoten

Abstract

Changes in the global economy and evolving consumer values have decreased the market for traditional crafts and weakened the associated industrial ecosystem. Japan's traditional craft sector has also faced a sustainability crisis amid these trends. However, Nakagawa Masashichi Shoten has achieved consistent growth by pursuing a strategy that enhances both industrial and cultural value, rather than focusing solely on preservation, while remaining rooted in traditional textiles. This study employs a business case study approach to examine how Nakagawa Masashichi Shoten broadened the application of craft products through its Re:Design strategy, which redefined the core values of traditional materials and techniques to better align with contemporary lifestyles. Additionally, the company was a pioneer in introducing the SPA system to the traditional crafts field, innovating the distribution structure and successfully implementing various management innovations. By focusing on Nakagawa Masashichi Shoten, a traditional Japanese craft company, this study analyzes the management innovation strategies that enabled the traditional craft industry to navigate structural crises and evolve into a modern industry. Furthermore, it offers foundational insights for revitalizing Korean traditional craft brands and industries through the analysis of Japanese business cases, providing a framework for establishing diverse strategies to enhance the global competitiveness of the Korean traditional craft sector.