Privately-owned Miki House, like other Japanese companies, is contending with a shrinking workforce, with an estimated shortage of 3.41 million workers by 2030, according to labour policy research group Recruit Works Institute. When Kimura founded Miki House in 1971, Japan had about 2.6 million births a year and was undergoing a rapid economic expansion that prompted parents to splurge on fashionable goods for their youngsters. PRODUCTION SHIFTSJapan's Fast Retailing (9983.T), the nation's biggest clothing seller and owner of bargain brand Uniqlo, manufactures almost all of its products overseas. At Miki House, about 70% of products are still made domestically, but some items, such as children's shoes, cannot be made locally at scale and are manufactured in Vietnam. Demand is shifting too, with about 60% of sales coming from overseas, where Miki House operates 95 stores in 16 countries and regions.

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