Hamamatsu's textile industry originated in the 18th century, and flourished in part because of its ideal climate for cotton production. The industry gained momentum in the mid-19th century when local farmers were encouraged to produce cotton fabrics. A significant leap forward came in 1898 with Sakichi Toyoda's invention of the narrow-width power loom. This innovation, along with earlier introductions of spinning machines and Western-style production processes, propelled Hamamatsu into the industrial age of textile production.

Hamamatsu's textile industry boomed in the early 20th century, contributing to Japan’s rise as one of the world's largest cotton fabric exporters. The region became known for its specialized processes, particularly in fabrics like velveteen and corduroy. This specialization, often within small family-run businesses, has become a hallmark of Hamamatsu's textile legacy, blending traditional craftsmanship with industrial innovation.