©KAPITAL In 1985, Toshikiyo Hirata founded a clothing factory specialising in American denim reproductions under the name ‘Capital’, inspired by the Kojima region of Okayama, which is known as ‘the capital of Japanese denim’. In 2002, when his son Kiro Hirata joined, the brand became ‘Kapital’, an abbreviation of ‘Kiro + Capital’. Unlike other American workwear brands, Kapital pursued perfect reproduction whilst actively embracing traditional Japanese handicraft techniques such as ‘boro’1 and ‘sashiko stitching’2, positioning itself as an alternative to mass-produced denim. Furthermore, Kapital began to draw the attention of the streetwear community with collections that fused American counter-culture codes with Japanese traditions, such as the ‘Ring Coat’, a mix of U.S. Army field jackets and Japanese kimono patterns, or navy boots dyed with persimmon tannin. This was further highlighted in the 2010s, when streetwear began to enter the luxury market, particularly with the introduction of Kapital’s signature patches and dyeing techniques, which were combined with tailored suits in Kim Jones’s Louis Vuitton 2013 Spring/Summer collection. Kapital's approach, which focuses on the materials and techniques, distinguished it from Virgil Abloh’s approach, which was at the centre of streetwear at the time establishing Kapital as a brand enjoying cult popularity. ©KAPITAL Kapital, one of the iconic independent denim brands, shocked the industry this January by ‘quietly’ selling a large stake to L Catterton3, a private equity firm under LVMH, less than a year after the founder’s passing in April 20244. To critics and the so-called ‘fandom’, equity investment by large companies is seen as a form of colonisation that suppresses the autonomy and experimental spirit of independent brands. In Kapital’s case especially, there were greater concerns that the brand’s unique history and identity — which directly conflict with the financial efficiency sought by private equity — would be compromised, as they had insisted on craftsmanship-rooted production methods such as ‘sashiko stitching’ and ‘aizome’5 that are difficult to accept from a management perspective. Fans who did not want to see Kapital's obsession with process replaced by efficiency were left to question whether Kiro Hirata, who lost his stake in the brand, could be held accountable for his statements. Kiro has said, “Jeans originated in the USA, and my father perfectly mastered the reproduction. So I thought it was my turn to create something new and not just repeat what has already been done. I wanted to create something for the next 100 years into the future."6 ©Kiyotaka Hamamura LVMH has consistently employed a risk diversification strategy, acquiring stakes in various brands to cover different consumer groups and market segments. Recently, brands with loyal customer bases and authentic narratives, such as Aimé Leon Dore in 2022 and Our Legacy in 2024, have become acquisition targets, and L Catterton has also incorporated fashion brands like APC into its portfolio. It is therefore not surprising that LVMH was interested in Kapital (although it is shocking that Kapital sold its stake). However, this Kapital case is different in that it is the first time a private equity firm has taken a large stake7, Kapital is an Asia-based independent brand, and, unlike other designer brands, it has grown by focusing on craftsmanship and limited production methods. Given these circumstances, it is difficult to believe that LVMH's goal is only to generate short-term profits or secure financial soundness. Rather than worrying that they will damage the brand’s historical value and tradition, we need to focus on the hidden strategic value they have identified in Kapital. LVMH Annual Report 2024 Beyond its existing strategy of portfolio diversification, the Kapital case can be interpreted as an attempt by LVMH to strengthen its position in Asia and establish a new strategic foothold. This does not refer to Asia as a sales market or production base, but rather to a repositioning of Asia as a new centre of design hegemony. As LVMH prepares for the geopolitical reshaping of the Western-centric fashion discourse in which it originates and dominates, the reality is that the “Made in China” is eroding the aura of Western luxury brands. In this context, Kapital, which has successfully combined traditional Japanese craftsmanship with American workwear, is free from the quality issues that have led luxury brands to self-contradiction, unlike other streetwear brands such as Off-White. In other words, LVMH may have prepared for the possibility that Kapital’s handcrafted imperfections and inefficiencies, as well as its Asian base, could become new standards for defining luxury. If I had to use one word to describe Kapital’s clothing, I’d be torn between “wrong” and “tragic.” (...) Their motto seems to be “Why not?”8 ©Getty Images / Stefano Rellandini In the end, LVMH's acquisition of Kapital shares can be diagnosed as a turning point in the redefinition of Asia's position in the fashion industry, beyond simply an orientalist attempt to commercialise Japanese craftsmanship. This connects to the context of LVMH's decision last year to abandon its bid for a stake in Off-White. On the surface, this news could be seen as LVMH's scepticism of the streetwear market and focus on the ultra-luxury market. Still, in reality, LVMH is adjusting its portfolio in a way that fundamentally reconfigures the nature of exclusivity, absolute quality, and unique stories and experiences that define “luxury” — making the acquisition of Kapital a key inflection point in the reshaping of design hegemony. Here, what we need to be wary of is the question of how Asianness will be defined and standardised by global luxury groups such as LVMH. Beyond the indiscriminate appropriation of cultures or superficial aesthetic borrowing under the guise of inspiration from past collections, we must remain vigilant against the emergence of a new form of Orientalism, in which craftsmanship, handicraft, and other traditional forms are elevated to the standard of “acceptable Asianness”, ultimately confining Asian fashion to narrow definitions and limiting its creative potential. 1 A Japanese textile craft technique believed to have originated in rural northern Japan from the 19th to early 20th century. It is a patchwork technique that increases durability by stitching together discarded fabric to extend the life of clothing or bedding.2 A hand-sewing technique passed down since the Edo period; based on this stitching technique that strengthens fabric, Kapital developed the Century Denim line, meaning "denim that can be worn for 100 years".3 Established in 2016 through the merger of Catterton Partners, LVMH private equity fund, and the Arnault family holding company.4 https://www.highsnobiety.com/p/kapital-lvmh-lcatterton-investment/5 A japanese traditional indigo dyeing technique.6 https://www.gq.com/story/kapital-denim-is-a-japanese-paradise7 Both Our Legacy and Aimé Leon Dore were reported as minority stake acquisitions.8 https://www.newyorker.com/magazine/2016/03/28/david-sedaris-shops-for-clothes-in-tokyo9 https://www.voguebusiness.com/story/companies/off-white-sold-by-lvmh-to-bluestar-alliance BY MUYO PARKMAY 19, 2025 >READ THE KOREAN VERSION OF THIS ARTICLE> READ OTHER ARTICLES