Fragrances in Japan

PROSPECTS

Signs of growth in fragrances

Fragrances is likely to continue to increase over the forecast period in Japan, showing signs of growth 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.

Competition from other categories

In recent years, manufacturers introduced products with fragrance claims, which in turn led to increasing competition, as these products can be considered as alternatives to fragrances. These alternative products can be seen not only in beauty and personal care, but also in other industries, as products with fragrance claims, such as scented fabric softener, have been actively launched and well-received by Japanese consumers, as they often have milder scents, which many Japanese consumers prefer to fragrances.

Sumehara is a threat to growth

The greatest risk to the further development of fragrances in Japan over the forecast period is the possible negative impact from rising awareness of “smell harassment”, or sumehara, which denotes the act of causing discomfort to others via unpleasant smells. It is also worth noting that whilst the sumehara concept accelerates sales of products with fragrance claims, it could decelerate sales of fragrances, as excessive use of perfumes is also considered to be sumehara.

COMPETITIVE LANDSCAPE

International brands continue to lead fragrances

International brands are the most prominent in fragrances in Japan, accounting for more than half of sales. This is mainly due to their strong presence in premium fragrances, which accounts for a much higher share of sales than mass fragrances, as beauty manufacturers in Japan have traditionally invested not in fragrances, but in skin care products and colour cosmetics, which they believe have more potential in Japan.

Chanel holds second place

Chanel is prominent in fragrances in Japan, holding a consistent presence due to its active promotional activities, especially television commercials. Although online advertising is gaining traction, traditional advertisements such as television commercials are also effective in Japan, as many Japanese people still watch them daily.

Fits Corp remains strong in mass fragrances

Fits Corp continued to have a strong presence in mass fragrances in Japan in 2018, offering a wide range of brands at affordable prices, and actively launching new products and packaging in order to revitalise this underdeveloped category. One of the notable characteristics of Fits Corp is its packaging collaboration with famous characters or brands.

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