The Change Mariner

Fancy Goods a Tougher Sell in Japan

Fancy Goods a Tougher Sell in Japan

To Natsuko Namba, $500 leather handbags are for suckers. Sure, they are well made, stylish and popular with the in-crowds in Tokyo's more trend-conscious neighborhoods. But at the end of the day, Ms. Namba, a 30-year-old office worker, says the bags have become a cliché for those who, at least for a day or two, want to feel wealthy.

"I don't feel I need to have a bag because everyone else has one," Ms. Namba said, dressed in a yellow T-shirt, plain skirt and low-heeled shoes. "To me, function is the most important factor when I choose a bag."

Like her, a growing number of Japanese consumers, young and old, suffer from brand fatigue. One can still find many people sporting Hermès scarves, Prada handbags and Rolex watches, but many others here are starting to turn away from the excess that these and other luxury goods have come to represent. In doing so, they contradict the common belief that Japan's appetite for such goods is bottomless.

In fact, since 1996, sales of luxury goods here have declined by more than one third, to 1.2 trillion yen ($10.8 billion), according to the Yano Research Institute, which studies the Japanese economy.