Export and import shift
Japanese Cosmetic Industry Association, an information provider and consumer safety advocate, reported how the country’s exports had reached 28.8% year-on-year (YoY) to 267.6 bn yen (€2.1 bn).
The country’s export growth was supported by lowered imports, as figures dropped by 3.7% in 2016 to 229.2 bn yen (€1.8 bn) in 2016.
Double-digit growth since 2014, has led to the country’s exports exceeding their imports for the first time in 2016, business publication Nikkei Asian Review reveals.
Retained tourism business
The Japanese economy has attributed this export growth to the burgeoning customer retention rates of visitors travelling to and from Japan and then repurchasing these items on their home soil.
Exports to other Asian countries accounted for 88% of Japan’s total exports. Hong Kong was the largest in terms of value, making up 32% of this total. Mainland China contributed to 20% of this figure, then followed by Taiwan, South Korea and Singapore, providing 13%, 11% and 7% of exports, respectively.
According to the Japan Tourism Agency, 70% of Chinese consumers purchase cosmetics, highlighting the strength of the Japanese cosmetics market.
Continuing overseas success
With the e-commerce boom dominating cosmetics purchasing in China, platforms such as Alibaba Group have supported the profile building activities of Japanese cosmetics labels.
However, despite Japanese heavyweight companies such as Shiseido decentralising its activities away from a sole focus on its domestic market to capture global appeal, consumers are showing a considerable interest in Japan-based products.
To attract overseas buyers, Shiseido has revealed it will be opening a domestic facility near Osaka, to help its plans to increase Japan’s skin care product output capacity to 50%.
Knowing the Japanese audience
While the Japanese cosmetics industry as a whole has been showing signs of maturity, Euromonitor International predicts that with a redirected focus on value-added innovations that appeal to consumers’ specific needs, cosmetic producers will improve overall sales.
Targeted developments and campaigns directed to the older demographic amid the country’s ageing population, and enhancement claims that offer anti-ageing benefits, pigmentation reduction and skin firming will maximise brand success.