TOKYO: The cosmetics market in Japan is presenting new trends and opportunities following the easing of regulation three years ago.
The cosmetic market has traditionally been a mature market with big manufacturers and four main channels: shops by manufacturers, supermarkets, door to door sales, and business consumption for beauty salons and hairdressers. However, the easing of regulations has changed product development time, marketing and retail.
Today, cosmetics are also sold in convenience stores, drugstore chains and via direct marketing. These new channels are where the sales have increased and where opportunities lie.
The characteristics of these channels are small to medium size enterprises (SMEs) that manufacture products efficiently and achieve sales increases by low PR costs. Sales are generated through word of mouth, family and friends, and via the internet.
Repeat business is generally generated by consumers; they will typically continue to use a product if the results can be felt. Products that have an effect in a month, which is often when a consumer runs out of their bottle or tube, is when they make the decision to buy again or not.
For many Japanese women, the desire is to stay young and prevent wrinkles and skin discoloration. In particular, Japanese women prefer cosmetics with whitening effects to keep skin fair.
Also, functional ingredients which have health benefits or increased effectiveness are more important in a cosmetic than brand name.
Some of the popular ingredients are fullerene, vitamin C derivatives, CoQ10, EGF (Epidermal Growth Factor), and colloidal platinum which are all known to have high antioxidant properties.
Natural ingredients are increasingly popular and the point of difference for products. Plant derived ingredients are more expensive but sell well. New ingredients for cosmetics are turmeric - a powerful antioxidant - and chlorella which can be used as a sun block.
The opportunities for New Zealand lie in its wealth of natural cosmetic ingredients. Looking for new properties for already known ingredients may also bring more opportunities.
Cosmetic properties to look for are antioxidants, decreasing free radicals, suppressing melanin production, and moisturising properties.
New Zealand businesses looking to for an “in” to the Japanese cosmetics market may work better with newcomers rather than the big players.
For more information contact Shaun Conroy, director for North East Asia, New Zealand Trade and Enterprise (NZTE), Tokyo.
Contact NZTE’s Tokyo office.