The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Imports of Japanese cosmetic products to China in 2020 grew 30 percent from the previous year to $4.3 billion, surpassing the $3.3 billion in cosmetics imports China saw from South Korea, as well as the value of imported cosmetics from the US and France, according to the Japan External Trade Organisation (JETRO).
Japan’s cosmetic companies have stepped up use of different platforms, particularly online, to attract consumers, since travel restrictions during the pandemic seriously hit revenues from Chinese tourist spend.
“Amid the tough competition, we’ll need to keep a close eye on how long Japanese cosmetics companies can maintain their top share [among overseas suppliers,]” Etsu Ho, researcher in JETRO’s China and North Asia Division, told The Japan Times.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.