It was first brought by Buddhist priests from China where it is called "nuanlien" and introduced to temples to be used as blind or curtain. Shops which formerly had straw mats or curtain at the coor gradually adopted the newly introduced cloth curtain. Noren were installed in place of doors to allow for easy entrance and exit to customers.
At each shop marked its name and trade mark on its noren, it became its symbol, and also came to stand for their reputation or standing.
In the later era, a short noren became so fashionable that a longer noren was used at drygoods store, dyers' shops, public baths, barbers' shop, licensed houses, etc. You will notice at public bath houses, there is always a noren hanging, indicating that it is open, with letterings for make and female entrances.
A clerk or apprentice who has served his term and became an expert in the trade, was privileged to "share the noren" be establishing a branch of the firm where he had worked. This was called noren-wake or to divide the noren. This privilege was not given unless the apprentice was found able to keep up the tradition and reputation of the master shop. Among merchant circles, this was regarded a great honor.
Noren has also come to stand not only for the shop and its wares, but also for its credit or goodwill. When a shop is sold, the buyer has to pay for its noren, besides paying for the building, equipments and stocks of goods. Noren in this case is the same as goodwill.
There is another type of noren called "nawa-noren" or straw rope-curtain, which is nowadays seen in the city, indicates a low class drinking place or cheap eating-house, so that "to go under the rope-curtain" means to get a cheap drink or meal, and has even become almost a general term for such establishments.