The business strategies of small to medium enterprises (SMEs), especially in relation to the Japanese apparel wholesaler and apparel manufacture markets, have been undertaken by Urakami and his colleagues (Komiya et al., 2009; Urakami et al., 2009; Urakami & Wu 2010). The aim now is to investigate the changing business climate of apparel products in Asia, now that China seems to a major player of apparel products in the Asian region. The production of apparel products from China has resulted in a major shift of the business environment. Such products have now invaded import markets throughout the world economies. Such a drastic change in the business environment impacts the structure of distribution channels in competing economies, affecting both wholesalers and manufactures. This research focuses on the effects this has had on the Japanese distribution channels. The findings derived from our previous research are highlighted, together with several planned hypotheses that require testing, in order to build a clearer understanding of apparel manufacturing in the Asian region.