Japan is on the list of priority countries to target when a cosmetics company wants to go international. And to maximize its chances of success, Business France’s Team France Export has analyzed the market from every angle in order to compile the information needed to prepare for trade in Japan.
Beauty is a religion in Japan. The cosmetics market represented 20.3 billion euros in 2020. “It has contracted by nearly 10% due to Covid-19,” comments Business France. “The health crisis has hit almost all product categories, including makeup (-26% forecast in 2020), perfume (-19% forecast in 2020) and skin care products (-16% forecast in 2020). In contrast, the market for hygiene products, such as liquid hand soaps and disinfectants, enjoyed nice growth (+34% forecast in 2020).”
Trends
Although Covid led to the closure of some retail outlets as well as limiting tourist entry, the Japanese continued to take care of themselves during the crisis.
Some brands took advantage of the period to launch beauty advice services by phone with the possibility to order products. With the success of this service, some players are considering further developing this channel.
Market characteristics
66% of cosmetic products sold in Japan are manufactured domestically. However, the share of imports is growing (1.9 billion euros in 2020). Imports from Korea and China have been growing strongly for the past five years. Korean cosmetic brands dedicated to young women are particularly popular”. Competition is tough and the market is quite saturated.
Positioning of the French offer …
