Japan's retail behemoth AEON Group has launched denim jeans priced at 1,000 yen before tax through its subsidiary, aiming to counter a spending slump. With rising prices driving households to save more, this move could ignite fresh competition in the budget jeans segment, as the price tag sits at roughly one-third of what typical jeans cost.

The fierce rivalry in affordable denim was previously seen in 2009, when consumer spending weakened following the collapse of Lehman Brothers and the ensuing global financial crisis. An AEON spokesperson noted, "Compared to food items, clothing is a category where shoppers are more likely to postpone purchases," expressing hope that the 1,000-yen jeans will draw in customers.

Before AEON STORES introduced its offering, Don Quijote had already rolled out 999-yen jeans in February. Parent firm Pan Pacific International Holdings reported strong sales for those jeans, prompting an expansion of the product lineup starting in April, with cumulative sales reaching 180,000 units across Don Quijote and its partner retail channels.

AEON's earlier low-cost apparel line mainly concentrated on innerwear, but from September 8, the range has broadened to include denim. By limiting fabric varieties and color options, the brand has managed to keep production expenses in check. The 1,000-yen jeans, part of the private-label Topvalu brand, are manufactured in a Cambodian factory.

Women's styles come in straight-leg and wide-leg cuts, each offering six sizes, while men's jeans feature a regular fit across 18 sizes, alongside children's versions. Back in 2009, GU, a subsidiary of Uniqlo parent Fast Retailing, kicked off the budget denim price war with 990-yen jeans, prompting AEON, Daiei, and Seiyu to follow suit with 800-yen products, and Don Quijote to push even lower at 690 yen.

According to data from Japan's Ministry of Internal Affairs and Communications, real household spending in July declined 3.6% year-on-year, marking the eighth consecutive month of contraction. While spending on clothing and footwear dipped a modest 0.3%, its share of overall household outlays continues to shrink.