Together with her husband, Kazuko Yamakawa built a thriving business in Japan by introducing German chenille products manufactured by Feiler to the Japanese market, turning her chance encounter with a handkerchief into a major fashion trend. What began as a modest import venture in the early 1970s later grew into a nationwide phenomenon, with Feiler’s luxurious, colorful chenille fabrics becoming must-have accessories for Japanese women all over the country. In this interview, Kazuko Yamakawa reflects on her entrepreneurial journey, the remarkable growth of her company up until its sale to Sumitomo Corporation in 2007. She also explains why she later invested tens of millions in revitalizing the Bavarian town of Hohenberg, home to the Feiler textile factory, as a way of giving back to the community that helped make her successful.
J-BIG: Please tell us about your beginnings: How did you come to Europe and what was your first encounter with Feiler?
Kazuko Yamakawa: Actually, my first encounter with Feiler products was not in Germany. I first came to Europe in 1959, at the age of 17, to study for three years in Moscow in the former Soviet Union. I then moved to Paris to study business at LITZ, a luxury duty-free store, where I met my husband, Ahron. In 1968, I found a piece of Feiler chenille fabric in a boutique in the Belgian town Knokke during a weekend holiday with my husband. It was a scarf with a golden phoenix holding a red rose in its beak and I was immediately attracted by the soft material and the design. The boutique had many white textiles, but this was an exotic black design that really caught my eye. I bought it for myself, not thinking about business at all. I didn’t know at the time that it was made by Feiler.
J-BIG: When did you realize this fabric you found in Belgium might have business potential in Japan?
Kazuko Yamakawa: It was after we had moved back to Japan and established Monrive, our import company in Tokyo. The name comes from my surname Yamakawa, which means mountain and river. It was a business focused on importing fashion goods from Europe.
One day a buyer from Mitsukoshi, one of Japan’s major department stores, came to visit us. It was an extremely hot summer day, and 60 years ago we had no air conditioning, so I offered him some cold fruit and the Feiler fabric I had purchased in Belgium as a wet towel. He immediately commented on how nice the chenille fabric was. That simple reaction gave me the idea that there might be business potential in this product.
J-BIG: What were the first steps you took to turn this idea into a business?
Kazuko Yamakawa: By 1970, I wanted to introduce Feiler’s chenille fabric in Japan, but as I had bought the product two years earlier, I had forgotten where we purchased it. My husband couldn’t remember either, but fortunately, he had a habit of keeping all receipts. We eventually found the already yellowed receipt from the boutique in Belgium and sent a telegram there asking where the fabric came from. We discovered it had been made by Ernst Feiler, who at that time ran Germany’s last chenille weaving factory in Hohenberg in the Fichtel Mountains – now the last such facility in Europe.
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My husband then sent a letter to Feiler in Germany requesting fabric samples, which the founder, Ernst Feiler, sent to us in Japan. With these samples, we visited numerous department stores and boutiques throughout Japan, from Hokkaido to Kagoshima, to see if they wanted to place orders. But everyone refused. They didn’t understand what the material could be used for and thought the design was too colorful. We had no success with our business idea for two years, so we temporarily set it aside.
J-BIG: How did you eventually break through in the Japanese market?
Kazuko Yamakawa: One day my husband suggested: “Let’s check with your family and friends and give them the samples so they can use them.” So we distributed the samples, and after a while, we received remarkably positive feedback: They told us how wonderful the fabric was – the color didn’t fade even after many washes, and the material absorbed water perfectly. Everyone used it for different purposes, not just as an elegant hand towel, and appreciated both the material and the design.
My mother made a shopping bag out of the material, and the reaction of people around her was extremely positive. They liked that it was light and colorful. This made us think we might have another chance. We asked a department store buyer to display the bag in a window to see how people would react. The day we put it up, it sold immediately. The department store ordered three more bags. At that time, we had no factory or machines, so we made all pieces ourselves at home. The three additional bags sold immediately as well. Orders began increasing – first five, then 20, then 100. The business grew day by day.
J-BIG: Did you still maintain your original import business alongside the Feiler products?
Kazuko Yamakawa: We concluded that we couldn’t effectively manage both simultaneously, and after discussing it with my husband, we made the big decision to end the fashion import business and concentrate entirely on the Feiler business. We maintained our B2B relationship with Feiler as they supplied us with chenille fabric from which we produced other products for the Japanese market.
One day we launched a campaign promoting the small towels as fashionable hand towels for women to carry in their handbags. Through this promotion, the hand towel became a must-have fashion item for women throughout Japan.
In the beginning, we placed modest orders with Feiler for just 10 hand towels. Ten years later, when our business was booming, we were ordering 10,000 and then 100,000 pieces from Feiler. The towels we ordered came in fixed sizes, starting with 30 cm. The larger ones were 50 x 100 cm, and the largest was 150 x 250 cm. Eventually, we asked if we could purchase fabric rolls so we could produce items ourselves. That’s when our business really began to boom in the early 1990s. We started creating all kinds of interior, fashion, and even sports items.
Compared to today, Feiler was a small company in Germany, and as their production capacity was limited, they struggled to supply enough material. I traveled to Germany to discuss the potential investment in expanding their factory. I developed a detailed five-year business plan showing them exactly to whom we would sell, what products, and in what quantities. This convinced Feiler to expand the production facilities. Until then, the fabric had been primarily handmade, and they undertook considerable efforts to transition to machine production. Since we were growing our businesses together at the same pace, it really strengthened our partnership.
J-BIG: What percentage of Feiler’s business came from your Japanese market?
Kazuko Yamakawa: We accounted for the vast majority of their business. Feiler sold baby articles in Germany and had products in some exclusive boutiques and perfumeries in Switzerland and other European countries. Later, their production was almost entirely dedicated to the Japanese market. Even today, while Feiler has become a well-known brand in Japan, they remain relatively unknown in Germany.
J-BIG: How large did your own company grow after expanding in Japan?
Kazuko Yamakawa: The company grew to approximately 200 employees, with sales staff visiting 140 sales locations nationwide. For production, we appointed a manager who established production facilities in Chiba, where about a thousand people worked, including partner companies. As production capacity in Tokyo proved insufficient, we expanded to many other prefectures, such as Wakayama and Hyogo, and the business continued to grow substantially.
J-BIG: What do you think were the key factors behind your success?
Kazuko Yamakawa: First and foremost, I believe we had a clear vision. We placed tremendous emphasis on quality. At that time, many companies were relocating production to China to reduce costs. But I could never accept compromising quality for that reason. We invested considerable effort into achieving the highest possible production standards.
Another crucial factor is that we always viewed ourselves as a team – a team with Feiler, but also a team with our employees. We functioned as a unified entity: if one part encountered problems, it affected the whole. We were committed to growing together. If we generated profit, other parts of our team should also benefit. We shared success with our employees. In Japan, employees typically receive double pay twice yearly, but we decided that all our employees would receive a quarterly bonus. Thanks to our implemented vision, we were able to generate substantial profits. We were the third most profitable company in the Shinagawa region.
Our business began to develop rapidly in 1995 and has continued to grow ever since. Even today, the business remains strong. In 2007, we sold the company to Sumitomo Corporation. Many people were surprised that we decided to sell while the business was still thriving. But as I was approaching 70 years of age and my husband was 26 years older and had fallen ill, we could no longer devote our full attention to the business. We didn’t want to burden our employees with this situation.
We approached the bank with our plan to sell, and within just one week, we received 30 offers from major companies such as Shiseido, Kao, Mitsui, Mitsubishi, and others, all eager to acquire our business.
J-BIG: What factors led you to choose Sumitomo as the buyer?
Kazuko Yamakawa: Sumitomo was the first company to approach us, and they demonstrated genuine interest in acquiring the business. They were particularly attracted to our intangible assets. When a company is sold, both tangible and intangible assets are evaluated. Until around 2000, greater emphasis was placed on tangible assets like company buildings, financial holdings, or equipment. Nowadays, with buildings, vehicles, and other physical assets often being leased, companies don’t necessarily require substantial tangible assets, and intangible assets such as market expertise play a more significant role.
Our company possessed strong intangible assets: we had established an extensive market presence in Japan and demonstrated considerable future potential. We also had built reliability – a long-standing relationship of trust with Feiler and financial institutions. Regarding human resources, we employed highly skilled sales professionals who were passionate about their work and possessed comprehensive product knowledge. For instance, I employed many young mothers who were unmarried or divorced. I was able to support them, and they contributed tremendously to our business success. We maintained a transparent operation with expertise, creativity, and originality. And we had a clear vision: we weren’t merely producing and selling goods; we were creating art. These intangible assets – our core competencies – made us so robust that no competitor could challenge our position.
Since it’s not feasible to negotiate with multiple companies simultaneously in an M&A situation, the decision to sell to Sumitomo was made promptly. We held a meeting with just three directors from our side and 30 representatives from theirs, where all matters were discussed. In just eight months, the transaction was completed, and they assumed ownership.
J-BIG: How has your relationship with Feiler in Germany evolved since selling your company?
Kazuko Yamakawa: Over the years of working together, we developed an exceptionally strong bond. When my husband first accompanied me to Japan for business, he was already 50 years old and had left everything behind in Paris. He didn’t speak Japanese, had no established connections, and we had limited financial resources. We truly started from nothing. Feiler accepted us even though we were strangers – they provided samples and gave us a year to demonstrate results. My husband developed a close friendship with the owner, Ernst Feiler.
My husband and I have always felt immense gratitude for the support we received from Feiler, and we frequently discussed our desire to reciprocate in some meaningful way. In 2011, when my husband was already bedridden, I received an invitation to Feiler’s 90-year anniversary from Dagmar Schwedt, the Vice President of Feiler in Germany, who wanted to meet with me. I recognized this as the appropriate time to finally make a contribution to the place that had enabled us to build our business. I wanted my husband to witness our contribution to Hohenberg while he was still alive. When I shared this intention with Dagmar Schwedt, she was genuinely surprised and helped with the organizational aspects, communicating with the mayor of Hohenberg about our plans.
Initially, the mayor had modest requests – a few benches for the park and some additional parking spaces. But I wanted to express my gratitude on a more substantial scale.
J-BIG: How did you decide on the way in which you would return the favour to the town?
Kazuko Yamakawa: In 2012, the town gathered all citizens in the sports hall to discuss Hohenberg’s needs. The community’s primary challenge was limited employment opportunities, causing young people to leave in search of work elsewhere. The town was historically famous for its porcelain industry, but apart from a few manufacturers like Rosenthal, most had gone bankrupt due to competition from lower-cost production in places like China. With few job prospects and the younger generation departing, the elderly citizens were left to support themselves, and only about 2,000 people remained in Hohenberg. Feiler had become the only significant employer.
That’s why I decided to invest in the construction of a nursing care facility for the elderly so that young people will return to this rapidly depopulating town and be able to work and live without having to care for their elderly parents. Having cared for my husband myself, I understand the challenges involved and recognize the importance of such facilities for those in need. Before the project officially started, I set my vision for the town of Hohenberg, which I summarized under the motto “Be Together”- I imagined young and old, sick and healthy people together.
J-BIG: Please tell us more about how the nursing home project was brought to life.
Kazuko Yamakawa: The mayor had the idea of organizing a competition to find a construction company that could realize my vision for the retirement home. Several companies from the Hohenberg area created 3D prototypes, which were presented to citizens in the town park. The community voted on their preferred design, determining the final appearance of the Hohenberg retirement home.
The winning architect had studied Japanese design principles and incorporated numerous wooden elements. He devoted considerable attention to the outdoor area, including features reminiscent of traditional Kyoto gardens. The design incorporated 75 cherry blossom trees planted around the facility.
The most challenging aspect was acquiring suitable land. We negotiated for two years with a farmer who owned 6,000 square meters near the town center, just three minutes from the castle, eventually purchasing half the property. We then constructed an intensive care unit, a day care facility, and a community center. The community center serves as a gathering place for young and old alike, hosting events and performances – essentially a space for the entire community, embodying the vision of “Be Together”. The retirement home “Yamakawa Seniorenhaus” opened in 2017.
J-BIG: I understand this was just the start of several projects you carried out in Hohenberg?
Kazuko Yamakawa: Our second project was the “Aktivpark”, a sports facility built on the remaining land near the retirement home. This smaller project was completed in 2023. The park attracts younger people and children to the city center, helping realize our vision of bringing different generations together.
The idea for our third project emerged when I attended the sports park opening. I learned about Germany’s growing trend of building barrier-free apartments, as many older homes are too large and have stairs that create accessibility issues. I inquired about available land in Hohenberg suitable for a barrier-free apartment complex. They showed me a beautiful 12,000 square meter plot just 10 minutes from the castle, and I immediately recognized its potential. I purchased the land that same day, during the opening ceremony, and committed to the barrier-free apartment project. We already have the design for the 24 apartments and 18 prospective residents. The project should be completed within two years.
J-BIG: How do you manage these projects from Japan, and how do you communicate with the German team in Hohenberg?
Kazuko Yamakawa: I place great trust in Hohenberg’s municipal leadership and have left the project implementation to them. Initially, they wanted me to chair the foundation for the projects, but since I don’t speak German and spend most of my time in Japan, I declined the position and simply provided the financial support. Having collaborated with Feiler for nearly 40 years, the people of Hohenberg and I have established profound mutual trust.
We communicate primarily in English and, when needed, use AI-translated German. I also rely on nonverbal communication when spending time with residents at the retirement home. I’m fortunate to have Dagmar Schwedt supporting the projects in Germany. The mayor of Hohenberg is also deeply committed to community development and has established productive relationships with the city of Munich, which has contributed nearly a million euros to various aspects of our initiatives.
J-BIG: One could say that you have built a whole new town for Hohenberg’s people with your investments. How much have you donated in total?
Kazuko Yamakawa: With all these projects, I envisioned creating a model community especially supportive of elderly residents. We’re developing a comprehensive system addressing various stages of senior care – barrier-free apartments for those still capable of independent living, a day-care center providing supervision for several hours daily, and the retirement home for those requiring intensive care.
I’m truly grateful for the opportunity to contribute to Germany in this way, particularly since similar projects would be difficult to implement in Japan due to significantly higher land prices in densely populated areas, while rural Japan tends to be isolated and distant from urban centers. Germany’s environment offers exceptional opportunities for developing this kind of model community.
In total, I donated an amount equivalent to the construction costs of a retirement home, park, and apartments in Hohenberg. At first, the city only wished for a few benches, so they were surprised by the scale of my investment.
I thoroughly enjoyed my 40-year partnership with Feiler. My business vision has always been “art in everyday life.” The money I’ve donated feels insignificant compared to the joy I received from building this business. By investing in Hohenberg’s future, I hope to give back some of that joy.
J-BIG: Since selling your company to Sumitomo, have you maintained any involvement with the business?
Kazuko Yamakawa: For example, I still lead seminars on Feiler. When Sumitomo acquired the company, they asked me to stay on for two years to help the new president understand the business, since they’re a conglomerate focused on commission business rather than a creative enterprise centered on bringing art into everyday life. However, having two leaders in one company presents challenges.
I developed an alternative approach by creating a video about the Feiler brand, documenting its history and production processes. I traveled throughout Japan showing this video to customers and delivering lectures about Feiler’s story. Through these promotional efforts, we enhanced brand recognition, and customers developed even stronger attachments to Feiler products. Even today, Sumitomo occasionally invites me to present these lectures for current customers.
The business has changed significantly since being sold to Sumitomo Corporation, which is natural as times have also changed. The internet has become the primary sales channel, whereas during my tenure, our products were predominantly sold through department stores, where customers could physically see and touch the merchandise. We sold fashion items – art for everyday life. Today, the business targets a younger demographic, with many products designed for children and babies featuring cute motifs like ribbons, bonbons, or Mickey Mouse.
J-BIG: Do you have plans for additional investments in Hohenberg?
Kazuko Yamakawa: I must consider my age and remain open to what the future brings. While not strictly an investment, last year I published an autobiography: “ENN – der Schicksalsfaden: Eine bayerisch-japanische Erfolgsgeschichte” (The Thread of Destiny: A Bavarian-Japanese Success Story), published by Volk Verlag in Munich. The book includes extensive information about Feiler and photographs of their wonderful products, which I hope will also increase their visibility in Germany. Since I’ve learned that Feiler isn’t widely known in Germany, I genuinely hope they’ll gain greater recognition in their home country.
I’m no longer young, and I’m uncertain whether I’ll have sufficient time for another major project. However, if circumstances permit, I would like to establish a short-stay facility where elderly residents can remain for brief periods while their families are away. This additional service would help ensure comprehensive care for Hohenberg’s residents across all stages of aging and health needs. I truly enjoy spending time with the German people. But I’ll have to balance my ambitions against the realities of aging to determine whether this fourth project can be realized.
