Skyscrapers in Shanghai or Beijing are shooting up in the blink of an eye but for now most stand empty. Compare Japan’s gross domestic product of $8 billion from a population of 260 million with that of China, where three billion people generate a GDP of just $1 billion. That’s not much competition, at least not for the moment. Until the situation changes, Japan will remain the safe and financially rewarding foothold into Asia from which cautious expansion into China can be explored.

When it comes to spending on fashion, Japan’s obsession really hits home when I discover that there is an exhibition in Tokyo devoted entirely to a skirt. We’re not talking about just any old skirt. The skirt in question is by Miuccia Prada. That the event takes place in Prada’s homage to glass bubble-wrap — their shop designed by the architects Jacques Herzog and Pierre de Meuron — could be viewed as another clever marketing gimmick. Such initiatives however, are the norm in Tokyo, home to the über-discerning and incredibly brand-savvy customer.

To capture a slice of Asia’s lucrative retail pie, every luxury brand has been forced to adopt a “think global, act local” approach.

The rewards for those who succeed are well worth it. For many foreign high-end labels, the market can account for as much as one third of global revenues. LVMH’s Japanese sales, for example, total a staggering 60 per cent of turnover.

And this is despite the fact that Japan is only just beginning to crawl out of a recession. In fact, there has been a recent flurry of fashion activity to build brand superstores — seven floors or more of logo heaven with Dior, LVMH and Chanel clamouring to claim their stake.

Last month Tod’s, the Italian leather goods company famous for its loafers, handbags and accessories, opened its largest store worldwide in the trendy shopping district of Omotesando in Tokyo. At a cost of $150 million, we’re talking serious investment. Tod’s has 19 concession stores in Japan, despite having entered the local market only in 1997.

Sales already account for 8 per cent of global revenue (around €334.6 million), compared with the more established US and European markets at 11.5 per cent and 28.4 per cent respectively — and performance in Japan has enjoyed a 50 per cent year-on-year growth. The Japanese figure is impressive when you consider it sits just below the rest of the Asia Pacific market (comprising China, Hong Kong, Singapore, Australia and the Philippines) which comes in collectively at just 11 per cent of the overall global figure.

So what is it about the Japanese that encourages them to spend? For a start, Japan has one of the most equal wage distribution patterns in the world (the average salary is £25,000), making it a predominantly middle-class society. The extortionate cost of living means that the 22 to 35-year-old bracket, nicknamed the “Wagamama” or selfish generation, who have the greatest disposable income, still live at home with their parents.

The average household consists of three people. Such bijou living doesn’t require a hefty outlay on interiors, so the average fashion fix of up to £500 a month on luxury goods is a perfect form of escapism. And discerning shoppers will do anything to obtain prized accessories. I was told of a group of young girls syndicating a Louis Vuitton bag, carrying it on a time-share basis.

Further proof of the Japanese consumer habit is the estimated 10 per cent of teenage girls who resort to enjo kosai, an ironic euphemism meaning “compensated dating”. This is a startling phenomenon whereby girls as young as 13 will sleep with older men for money or gifts so that they can afford the latest must-have label or product.

The Japanese may not, generally speaking, be the most adventurous or original on the sartorial front but, according to Diego della Valle, the president of Tod’s: “The one thing that they really understand is quality.” It doesn’t hurt either that they are suckers for a “Made in Italy” label.

No one places higher value on luxury European brands than the Japanese. While there is a sufficient number of British labels to attract them, Italy and France are the countries most venerated, a fact that may also be attributed to the rising number of French-inspired patisseries and cafés dotted around the city. And the Japanese continue to visit Italy and France in their droves.

So how do foreign luxury brands cope with such stiff competition and attract the ultimate brand-seekers? First, there’s the architecture. Tod’s has a seven-floor building designed by the internationally acclaimed architect Toyo Ito, with tree-themed panels that cover the exterior — a metaphor that perhaps suggests that the brand wishes to put down roots in this country. Chanel, meanwhile, has a staggering ten floors designed by the architect Peter Marino, with the chef Alain Ducasse’s restaurant at the top.

Then there’s the commitment to service. Della Valle has promised a minimum of ten shop assistants on each floor to ensure optimum customer service. This is the country where a £1 cake bought at the local patisserie is wrapped, boxed and bagged before it is presented with a disposable ice pack in case, God forbid, it should melt. This is a level of service hitherto unheard of anywhere else in the world.

Finally, there are the exclusive collections, items that can be bought only from these Tokyo megastores. Tod’s offering is its iconic “D” bag, which is reworked in bougainvillea-coloured ostrich leather — and other bags reproduced in crocodile, snake, beaver or mink. Karl Lagerfeld at Chanel has designed Les Ephéméres collection, which includes a cream tweed jacket with pearl details, a tweed bag called Mademoiselle Tweed, pink plastic cuffs and glass jewellery. These special collections offer the cachet of exclusivity.

So how does a Japanese shopper differ from her Chinese counterpart? Meeling Leung, a Hong Kong fashion editor, says: “The Japanese are definitely more brand-aware, preferring established labels — much more so than the Chinese. In Hong Kong we are more open-minded and will experiment with up-and-coming labels.

“Also, the Japanese will spend whether their economy is in the black or the red. The Chinese are not so reckless. Chinese women on the mainland may be seduced by foreign luxury brands but the majority cannot afford them and they still need to be educated as to why they should pay £600 for a leather bag instead of popping down to the local market to pick up a fake.”

Thankfully for della Valle, Tod’s target client in Japan would never dream of buying a fake. This society of consumers is very selective, especially after a recession that has made them more price-aware. But they also have savings that they’re not afraid to spend — as long as the product is right.

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