Cosmetic’s consumption trend in Japan

Economy News Friday November 6, 2009 15:47 —Export Department

Nevertheless the stagnating economy, the consumption for beauty is stable.

Why are cosmetics good sale even if during stagnated economy?

Is consumption toward to beauty, especially to cosmetics stable even if under the depression or business slump?

During prewar, war and postwar, the cosmetics consumption rarely had effect. According to Mr.Kaito, president, the long-established shop, ETOILE KAITO & CO.,INC., women always wish to be beautiful and never forget “To be beautiful” from the bottom of their heart through hard times and good times. Even if during the World War II, goods to be beautiful were good sale. He also added that due to the lack of raw materials, the sale of cosmetics decreased during wars however in 1927, the year of the depression, its sale rose.

Company              ETOILE KAITO & CO., INC.
Address              1-7-16 BAKURO-CHO, NIHONBASHI, CHUO-KU, TOKYO 103-8370 JAPAN

TEL: 03-3661-1111?FAX: 03-3639-8287

URL                  http://www.etoile.co.jp/
Founded              November 1902
Capital              JPY 600 million
Sales                JPY 32 billion (March 2009)
Type of Business     Planning / developing fashion related products covering the areas of apparel, gourmet and home.

Wholesaling products to 25,000 registered specialty stores located all across Japan

Products             Women's, Men's & Kid's Apparel / Fashion Accessories / Cosmetics & Beauty / Jewelry & Watches /

Kimonos / Bags / Bed & Beddings / Home Decorations /Art / Tableware / House ware /

Bridal Items & Gifts / Gourmet Gifts / Electronics / Shop Supplies, and more

In fact, under the current stagnate economy, the sales of cosmetics don’t drop. According to the statistics of chemical engineering by the Ministry of Economy, Trade and Industry?METI, the skincare products including cosmetics shipment in 2008 remained almost the same level as the previous year and the make-up goods including lipsticks increased by 1.8%.

This April’s monthly shipment of make-up goods increased by about 5% compared with the same month in previous year. The family budget research by METI also indicated that the expense for hair care goods including shampoos increased by 0.75%. However due to total poor sales of department stores in December of 2008, the cosmetics sales at department stores dragged down year to year basis. Since the cosmetics are one of the leading products in department stores, this negative growth shocked people in the department industry.

So where people purchase cosmetics then? On the close examination, these consumption’s behavior appears. ?

1. Purchasing through the net-shopping by word of mouth information

2. Utilizing information from magazines or word of mouth

3. At drug stores such as Seijyo Co.,Ltd.(TOKYO), the price range JPY 3,000-5,000 are good sale.

4. At one of sophisticated hundred-yen shop, Seria Co.,Ltd., cosmetics are good sale.

5. Cosmetics are good sales at select gift shops or garment shops.

Company                  SEIJYO CO.,LTD.
Address                  2-12-2 MIYOSHI-CHO, FUCHU-SHI, TOKYO 183-0045 JAPAN

TEL: 042-368-8701?FAX: 042-368-8700

URL                      http://www.seijo.co.jp/
Capital                  JPY 3.96. billion
Sales                    JPY 65.6 billion (March 2009)
Number of branch         275 shops
Type of Business         Drug Store Operation, Internet Drug Store, Nursing Home Operation,

Daily Nursing Service, Medical Fitness Operation

Products                 Cosmetics, Drug, All kind of Health Care Products

Company                  SERIA CO.,LTD.
Address                  2-38 SOBUTSU, OGAKISHI, GIFU 503-0934 JAPAN

TEL: 0584-89-8858?FAX: 042-368-8700

Founded                  October 20, 1987
URL                      http://www.seria-group.com/english/index.html
Capital                  JPY 1.27 billion (March 31, 2009)
Number of Employees      full-time : 298 part-time : 4,864 (record on March 31, 2009)
Number of Shop           company store : 809 franchise store : 130 (record on march 31, 2009)
Type of Business         Franchise hundred-yen store
Products                 Miscellaneous products, fancy goods, food, interior, kitchenware, stationery etc.

1. The cosmetic trend

Among of women in their 30’s -40’s who are begging to notice physical weakening, tend to show strong interest towards their healthcare from inside as well as from outside. They spend any amount of money for anti-aging after well-investigation of the substances and functions. They spend more for anti-aging, compared with when they were between 20’s and early 30. They consider the cosmetics as self-investment or arms. Over half of women answered that their make-up time is more than 11 minutes and 15% of women don’t put any make-up but since 2000, the make-up time has been getting.

Currently the mascara has been in a good sale. Since 1990’s the make-up emphasizing the around eyes has been popular among especially young adult segments. Especially the make-up technique to make eyes larger became extremely popular among young women. Many women’s magazine featured “Eye-make” meanwhile and still some magazines featured in 2008-2009. It contributed its sales. In accordance with the trend, other related items such as eye-shadows, eye-liners, eyebrows and eyelashes care products are good sale. Since the demand shift to low-price products, the market developing is slowing down. At the pioneer of hundred-yen shop, Daiso Co.,Ltd., the hundred-yen mascara are sold well. Also nail art and other nail care service are very popular among young women. In Japan the nail care market rapidly developed during 1998-2000. The nail care goods, such as manicure, top coat, nail file, and other equipments. Nowadays the consumer hold several mascara and nail items per a head and use them according to the occasion. It contributes to the sales.

Company             istyle, Inc.
Address             1-26-1 Minamiaooyama, Minato-ku, Tokyo 107-0062 Japan

TEL:03-5785-8900 FAX:03-5785-8901

Establish           101
URL                 http://www.cosme.net/
Capital             748.95 Million JPY
Sales               JPY 65.6 billion (March 2009)
Establish           July 27,1999
Type of Business    Planning & Operation of cosmetics word of mouth site @cosme, related advertise service, marketing & research service.
Products            Cosmetics, Drug, All kind of Health Care Products


2. Where do consumers purchase cosmetics

A cosmetic word of mouth site, @cosme operated by istyle,Inc. is well known as reference information among women in their 20’s-40’s when they select cosmetics. One of the major chained convenient stores, Family Mart, enforces the cosmetic sales. With the linkage of istyle Inc., all 7300 stores except for Okinawa start to sell popular cosmetic items of the site, @cosme. With collecting popular cosmetic items supported by consumers, they aim to take in women customers in their 20’s-40’s who rarely visit convenience stores. At this moment, the cosmetic sales is only 1% of total sale of Family Mart. Family Mart is aiming to increase the sales in the cosmetics items. The cosmetics sales will start on October 20 and for this new trial they prepare “Deo Nature Toe cream”(30g/JPY1,050) of Cbic Co.,Ltd., “Cowbrand blue box” (85g/JPY84) of Gyunyu sekken Co.,Ltd. and totally 72 items. This is the very first time for major convenience stores to ally with @Cosme.

Also the major convenience store,”Lawson” expressed that they sell more variety of cosmetic products with allied with Matsumoto Kiyoshi Holdings, one of the major chained drug stores and enforce to take in women customers which is only 30% of total customer now.

Company                  FamilyMart Co., Ltd.
Address                  1-1,Higashi-Ikebukuro 3-chome, Toshima-ku,Tokyo 170-6017,Japan

TEL:(81)3-3989-6600

Founded                  September 1,1981
URL                      http://www.family.co.jp/english/
Capital                  16,658 millions of yen (As of February 28, 2009) Fiscal year-end Ended February
Number of Employees      3,060 (As of February 28, 2009)
Number of Shop           14,651 Including area franchising stores (As of February 28, 2009)
Type of Business         Operating a chain of convenience stores,using the name "FamilyMart" and a franchise system
Net sales of total stores      1,245,787 millions of yen (Fiscal year ended 28th February, 2009)
Domestic area franchisers      Okinawa FamilyMart Co., Ltd. Minami Kyushu FamilyMart Co., Ltd.

Hokkaido FamilyMart Co., Ltd. Overseas area franchisers Taiwan FamilyMart Co., Ltd.(Taiwan)

BOKWANG FAMILYMART CO., LTD.(South Korea)

Siam FamilyMart Co., Ltd.(Thailand)

Shanghai FamilyMart Co., Ltd.(China)

FAMIMA CORPORATION(United States)

Guangzhou FamilyMart Co., Ltd.(China)

Suzhou FamilyMart Co., Ltd.(China)

Company                        LAWSON, INC.
Address                        East Tower, Gate City Osaki, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-8643 Japan
Founded                        April 15,1975
URL                            http://www.lawson.co.jp/company/e/index.html?ca=top_glo_004
Capital                        58,566.44million Yen
Number of Employees            5,186
Number of Shop                 9,527 (in Japan)
Type of Business               Franchise chain development of Lawson convenience stores
Nationwide Sales               1,558.7 billion yen
Operating region               All 47 Japanese prefectures and Shanghai,China (joint venture)

(As of end-February 2009) [Consolidated]

Company                     Matsumoto Kiyoshi Co.,Ltd.
Address                     9-1 Shinmatsudo Higashi, Matsudo Chiba 270-8501

TEL:047-344-5111

Founded                    1954
URL                        http://www.matsukiyo.co.jp
Capital                    21 billion JPY
Number of Employees        7,581
Number of Shop             655
Type of Business           Franchise chained drug stores
Products                   drug medicine, cosmetics, sundry goods, food, DIY products,?etc

Currently some cosmetics and skin care items are regarded as a part of lifestyle. Items such as, organic cosmetics, aroma oils, essential oils, and bath cosmetic, are selected in accordance with consumer’s lifestyle. Some consumers wear organic garments and use organic cosmetics or organic towel or linens. In order to cope with the demands for total lifestyle concept, the select garment shops or the gift shops also deal with cosmetics and body care items.

Idea International Co.,Ltd. started to sell cosmetics and body care products like gifts and is establishing special stores all over the Japan like, “Agronature”(http://www.agronatura-store.jp/).?The “Agronature” is a series of Italian authentic organic cosmetics co-developed with Japan. All products don't contain paraffinum liquidum, synthetic colorant either synthetic perfume.

Lately women are enthusiastic about not only eternal beauty but also renewal of their youth with making their live fulfill and improving their souls. Since cosmetics’ sales space expanded to garment shops or gift shops, the cosmetics became easily available at interior shops. One of leading men& women garment retailer, United Arrows Co.,Ltd. also deal with household goods and gifts and cosmetics and body care items are good sale.?For young women, cosmetics are prior to food items, under stagnated economy, the need for cosmetics continue to increase.

Company               Idea International Co.,Ltd.
Address               9-1 Shinmatsudo Higashi, Matsudo Chiba 270-8501

TEL:047-344-5111

Founded               Nov.30,1995
URL                   http://www.idea-in.com/
Capital               250,412,500(Jul.2008)
Number of Employees   127
Type of Business      1. Manufacturing of life style products

2. Retailing

3. Trading

4. IT Business

5. Space Producing & Planning

Company               UNITED ARROWS LTD.
Address               B1F-4F, Nihonseimei Akasaka Bldg., 8-1-19 Akasaka, Minato-ku, Tokyo 107-0052, Japan
Phone:03-5785-6325
Founded               October 2, 1989
URL                   http://www.united-arrows.co.jp/
Capital               Y3,030million
Number of Employees     2,630 (as of March 31, 2009)
Type of Business      Plan and sell men's and women's apparel, accessories and other products

United Arrows: household goods & gift items

http://store.united-arrows.co.jp/_search/search_result.html?p_sid=171&p_tycid=123

Source : http://www.depthai.go.th


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