Fragrances in Japan

PRE-COVID-19 PERFORMANCE

Fragrances on the rise in 2019 as Japanese culture presents both challenges and opportunities

Fragrances continued to see healthy growth in current value terms in 2019 despite its traditional underdeveloped nature. Over the review period, both imported and domestic fragrances posted strong growth, which is likely mostly attributed to increasing domestic demand, considering the low inbound demand for fragrances.

Department stores look to attract new users while e-commerce sees innovative new concepts

Department stores remained the leading distribution channel for fragrances in 2019 in value terms. The channel benefits from its wide product offer with consumers able to access and try a broad selection of brands and scents.

International brands continue to invest in fragrances in Japan as they dominate the market

International brands continued to dominate fragrances in Japan in 2019. This is mainly due to their strong presence in premium fragrances, which accounts for a much higher share of sales than mass fragrances.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 7% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 5% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

COVID-19 has had a negative impact on sales of all categories of fragrances in 2020. With stores closed, tourism essentially put on hold and consumers advised to stay at home demand has slumped.

Recovery and opportunities

The effects of COVID-19 on sales of fragrances are expected to be relatively short lived with growth expected to return as restrictions are lifted and stores reopen. With the Tokyo 2020 Olympics being rearranged for 2021 this should also help to stimulate demand with Japan set to see a huge influx of inbound arrivals for the games.

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