Focus: Asia Franchise Markets April 2016 | Page 12

Cosmetics & Toiletries.

Franchise Sectors

As with the food market, cosmetics are a fast changing, trend moving
industry where favourable media coverage of a new brand can quickly
open a billion yen market.
Japan's cosmetics and toiletries market was estimated to be around
$18 billion in 2013 with imports having grown at an average of 9.5%
since 2001. The domestic brand, Shiseido, maintains the top position in
beauty and personal care.
Skin care and hair products were the largest import categories in dollar
terms followed by make-up. The leading channels are drugstores,
online purchases and supermarkets.
With the elderly population in Japan products targeting these
consumers will be a growth market but specific segments within this
market will have different potentials if not fully researched. As an
example, the fastest growth category in 2014 was anti-ageing though
this growth was predominately amongst younger and middle-aged
women.
For the seniors there is more appeal in products that have added
vitamins, collagen or natural properties therefore marketing strategies
have to be carefully and appropriately targeted.
Following the global trend, Japan has shown growth potential in the
organic sector. This ties in particularly well with Japanese culture and
thinking.
Summary
Japan is the second biggest cosmetic market in the world and the
market is in a stable condition. Skin care products lead the industry.
There are good opportunities for brands across the board and
particularly for bespoke niche products that focus on natural elements.
It is highly recommended franchise owners do their desktop research
and then confirm findings with a Japan consultant.