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Yamano Gakki was known for once being part of Epiphone Japan. It was established in 1890 by Victor Carroll Squier in Battle Creek, Michigan. By 1975, Squier became defunct as a manufacturer and a brand name for strings, as Fender opted to market its strings under the Fender brand name. Squier Company was a strings manufacturing company for violins, banjos, and guitars.Until the introduction of the Fender Squier series, Fender had never produced lower priced guitars based on its main Stratocaster and Telecaster models and had always used different model designs for its lower priced guitars.

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Fender was also losing sales in Japan to Japanese guitar brands such as Tōkai, Greco and Fernandes and the establishment of Fender Japan would benefit Fender sales in Japan, as well as overseas.Fender began negotiations with several Japanese musical instrument distributors and reached an agreement with Yamano Gakki and Kanda Shokai to establish Fender Japan.

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