Has inbound demand changed Japan's cosmetics market? Research into popular cosmetics that are "binge-buying"

Aug 24, 2015

Thanks in part to the weak yen, the number of foreign tourists visiting Japan reached a record 9.14 million in the first half of 2015 (January to June). Chinese tourists are particularly prevalent among these tourists, and witnessing scenes of "explosive buying" has become commonplace. We therefore researched the cosmetics market, which, along with electronics, is a target of these buying sprees. We looked at trends at Isesetan Shinjuku in Tokyo, Umeda Hankyu in Osaka, and Narita Airport's duty-free shops.

Although the amount spent by inbound tourists on cosmetics sales varies from month to month, it accounts for 10-20% at Isetan and 10-15% at Hankyu. Narita Airport's Fa-So-La, which attracts many foreign tourists due to its location near the airport, achieved sales of 47 billion yen in fiscal 2014, up approximately 20% from the previous year, and reports that this fiscal year is also progressing smoothly. ■Top 5 Popular Brands at Isetan Shinjuku
●Albion ●SK-II ●Clé de Peau Beauté ●Shiseido ●Les Merveilleuses Ladurée (in alphabetical order)

"Perhaps because the price difference between Albion and SK-II in China is significant, and perhaps due to the weak yen, people are feeling like they're getting a good deal on Albion's lotion, skin conditioner (commonly known as "Sukikon"), Exage emulsion, and SK-II products, so we're seeing a lot of bulk purchases. For base makeup such as foundation, Clé de Peau Beauté is popular, and perhaps because people are aware that IPSA is also part of the Shiseido group, its popularity has risen sharply. For makeup items, Les Merveilleuses Ladurée is popular not only with Chinese customers, but also with Thai customers." (Sakai Yuka, Cosmetics Buyer, Isetan Mitsukoshi)

■Top 5 Popular Brands at Umeda Hankyu
"Japanese brands and limited edition items are popular for both makeup and skincare. Japan-only brands such as SUQQU, Les Mervieuses Ladurée, and KIKKA are strong in makeup, while Albion, Shiseido, and FANCL are strong in skincare. Japanese-made products such as THREE are popular for foundation. Our store often offers consultation-style service, and customers tend to choose their skincare products after receiving a diagnosis using a skin measuring device and touch-ups for their makeup." (Miyoshi Fukiko, Public Relations Department, Hankyu Umeda Main Store)
■Top 5 Popular Brands at Narita Airport Duty Free Shop Fa-So-La
●SK-II ●Estée Lauder ●Shiseido ●Chanel ●Lancôme (in alphabetical order)
/>"Japanese brands are popular with customers in Asia, especially China. This is because even products sold in China are cheaper and there is no need to worry about counterfeits. Similarly, many people seem to buy international brand products in Japan where there is no need to worry about counterfeits" (Hara Kosuke, Narita Airport Duty Free Shop Fa-So-La)


Taking this into consideration, we can see a trend where long-selling products such as Albion's Skin Conditioner and SK-II are more popular with inbound customers than Japanese customers, who tend to focus on new products. Also, as they are both Asians, they have similar skin types, and so trust the proven "Made in Japan" quality.
平輝乃
  • Fa-So-La DUTY FREE Cosmetics & Perfumery exterior
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