


The global economic recession has influenced various industrial sectors across the globe. The cosmetics market in Japan is no exception. In particular the sales in department stores have become remarkably weak. However, the Japanese cosmetics market remains in second place, behind only the USA, as it has been for decades. The Japanese cosmetics market was worth more than JPY 1,380 billion (US$15.4 billion / Euro 11.4 billion) in 2009, according to the Ministry of Economy, Trade and Industry. Furthermore, the Japanese market has several unique aspects that should not be overlooked. Overseas cosmetics manufacturers have great potential for business in such a lucrative market.

Since deregulation was implemented in 2001, an ever-increasing volume of cosmetics has been imported into Japan. In fact, cosmetics imports continued increasing until 2007. At the same time, distribution channels have become increasingly diverse. Brand-name cosmetics traditionally have been sold in department stores or specialty shops. But stylish imported cosmetics have hit the shelves in import shops like gPLAZAh or variety shops like gTOKYU HANDSh and gLOFT.h Medical clinics are enthusiastic about recommending doctorsf cosmetics, and drug stores have a wide selection of low/mid-priced cosmetics. And today, online shopping is very popular with all generations of Japanese. This trend is one of the factors which has led to weaker sales at department stores. Consumers now have more buying options compared to the past, and department stores are not the only place to get cosmetics anymore. Consumers can easily find the products they want through many different outlets.

In Japan, there is a huge 400 billion yen gaesthetic salonh market. The number of salons has reached more than 18,000, and one of the big chain salons runs 150 salons nationwide. In aesthetic salons, cosmetics are not only available for in-store use, from the treatment menu, but are also available for sale to customers for home use. Needless to say, aesthetic salons are one of the most important channels for distributing cosmetics in Japan.
Generally the Japanese are not frequent users of perfumes. In addition, most Japanese women prefer white skin to suntanned skin. Therefore, consumers would rather seek whitening cosmetics, high-function foundations, and sunscreens. We could say that this is one of the good examples of Japanese preference. The point is, it is crucial for overseas exhibitors to assess the market needs first.
In addition, the natural & organic cosmetics market is rapidly growing in Japan as well as in Europe. As of today, however, no accreditation criteria of organic cosmetics has yet been officially established in Japan. Therefore, we can say the products certified as organic in an exporting country will be favorably welcomed in Japan.