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Osaka is a big industrial town on the biggest island Honshu. It is a port and coastal town. This part of Japan is warm and humid, a climate that is conducive for the weaving of thread as the humid climate does not allow the cotton thread to snap easily. Being a coastal town, trade is easy. Importing raw material and exporting finished products are easier too. It can send goods too all parts of the world. River Yodo supplies enough water for use in the mills. Most part of Japan is mountainous in nature. There is ample hydroelectric power available for running these mills. Some thermal power is also generated from coal from Hokkaido and Khyushu. Osaka is located on a flat stretch of land and it is easy to setup cotton mills and maintaining good network of railways and roadways. Skilled and unskilled labor are readily available. Asian and African markets provide a very good market for the Japanese cloth industry.
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