- The total value of shipments of cosmetics in 1996 was JPY1.46 trillion, of which approximately JPY30 billion were exports, JPY81.8 billion were imports, and the remaining JPY1.3482 trillion were produced domestically. The total value of shipments in 1971 was JPY232.6 billion, of which imports totaled JPY3.4 billion or around 1.5% of total shipments in terms of value. In 1996, however, the proportion of imported cosmetics had risen to about 5.6%. The total value of shipments in 1996 was approximately 6.3 times the figure for 1971.
- The total value of shipments of cosmetics has changed as shown below:
|
TOTAL SHIPMENTS
(JPY bn) |
INDEX
(1965=base 100) |
| 1965 |
104.0 |
100 |
| 1970 |
212.3 |
204 |
| 1975 |
513.1 |
493 |
| 1980 |
757.6 |
728 |
| 1985 |
1,095.0 |
1,052 |
| 1990 |
1,264.8 |
1,216 |
| 1995 |
1,428.3 |
1,373 |
- Exports in 1995 were worth JPY29.6923 billion, up JPY3.02301 billion (11.3%) on the previous year. The destinations of exports were as follows:
| (JPY Billion) |
| 1) Taiwan |
9.9881 |
(33.6%) |
| 2) Hong Kong |
4.26366 |
(14.4%) |
| 3) USA |
3.17786 |
(10.7%) |
4) South Korea
|
2.18757 |
(7.4%) |
| 5) Singapore |
1.81897 |
(6.1%) |
| 6) France |
1.13 |
(3.8%) |
| 7) Germany |
1.0530 |
(3.5%) |
| 8) Malaysia |
1.00342 |
(3.4%) |
| 9) Thailand |
0.70419 |
(2.4%) |
| 10) UK |
0.58096 |
(2.0%) |
| 11) Others |
3.78427 |
(12.7%) |
- Imports in 1995 in terms of value totaled JPY66.03922 billion, up JPY6.70431 billion (11.3%) on the previous year. Countries of imports were as follows:
| (JPY Billion) |
| 1) France |
29.26563 |
(44.3%) |
| 2) USA |
18.20996 |
(27.6%) |
| 3) UK |
6.41621 |
(9.7%) |
| 4) Belgium |
2.73378 |
(4.1%) |
| 5) Germany |
2.67804 |
(4.1%) |
| 6) China |
1.28104 |
(1.9%) |
| 7) Taiwan |
1.05222 |
(1.6%) |
| 8) Italy |
0.98194 |
(1.5%) |
9) Switzerland
|
0.82859 |
(1.3%) |
| 10) Canada |
0.31134 |
(0.5%) |
| 11) Others |
2.28047 |
(3.4%) |
The commonest products were hair care products, followed by skin care and make-up products, soaps, other cosmetics for specific purposes, and perfumes.
- The value of cosmetics brought back by travelers from overseas is unknown as there are no statistics, but it is estimated to be up to around twice the value of commercial imports. As up to 24 items of any one kind can be imported duty-free per person, the amount involved can be considerably high. There are some cases that dealers buying cosmetics brought back from overseas for sale on the market. If cosmetics such as these are included, the ratio of imports may exceed 20%.
- The approval of the Minister of Health and Welfare is required in order to import and market cosmetics. Applications for approval are made through the relevant prefectural authorities, but obtaining approval is rather difficult.
- Many Japanese makers are expanding overseas and expansion into China has been particularly common lately. In most cases, however, products are made for sale in China and it is unusual for cosmetics to be brought back to Japan.
- The following are the main distribution channels for cosmetics.
a) System product route-Marketing direct to retailers by makers' own sales subsidiaries (50%)
b) General product route-Marketing to retailers via general wholesalers (25%)
c) Door-to-door sales route-(25%)
Due to the abolition of the resale system and liberalization, the above channels are breaking down. Prices have also collapsed as importers have cut prices due to parallel imports and other factors. The difference between overseas and domestic prices has therefore been remedied.
- To the outside observer, the Japanese cosmetics market may appear to be an easy target. So, many other industries concerned have entered the market all have a solid footing, and it is difficult for new comers into the market. In the past, however, companies such as Mikimoto Pearl, Yakult, Sony and Kao have succeeded in entering the market.
- Pharmaceutical Affairs Law is the strictest in the world. For example, it is so strict that the approval of the Minister of Health and Welfare is required for each and every new ingredient which is not included into 3,000 kinds approved by the Ministry of Health and Welfare. There are at least calls in Japan for regulations to be relaxed with the systems based on own liability of America and Europe. The law needs to be revised and controls relaxed without undermining safety standards.
- There have been practically no problems because of the P.L. Law. Companies have, for example, assumed responsibility themselves for producing cosmetics especially for people with allergies and have protected themselves by taking out P.L. Law insurance.
- Various cosmetics for men have appeared on the Japanese market, and recently packs for men have also become available. Men's cosmetics comprise 7-8% of the total value of shipments of cosmetics for men.
Figures from Japan Trade Monthly
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