Premium Beauty and Personal Care in Japan

PROSPECTS

Products with high unit prices attract attention

In the review period, products with extremely high unit prices were launched in the Japanese market, which supported the growth of the premium segment. In 2018, Kao Corp further accelerated premiumisation by launching an anti-ageing cream called Est The Cream TR, which cost JPY30,000 (exc.

Fragrances shows strong growth

Within premium beauty and personal care, premium fragrances showed the strongest current value growth in 2018. This was mainly due to the low level of maturity in fragrances in the Japanese market.

Beauty sections expand in department stores

Department stores continued to be the key distribution channel for premium beauty and personal care products in 2018, with most products sold through this channel. In 2018, despite the growth of internet retailing in the country, sales of beauty products in department stores were maintained, whilst other products, such as apparel, struggled.

COMPETITIVE LANDSCAPE

Shiseido leads premium beauty and personal care

Shiseido continued to lead premium beauty and personal care in 2018, seeing strong growth for brands such as Elixir and Clé de Peau Beauté. In 2018, Clé de Peau Beauté introduced unique store-based retail concepts which further nourished its brand image.

The importance of the in-store experience

Whilst purchasing beauty and personal care products online is convenient, the in-store experience is important for consumers to experience a brand and for companies to cultivate their brand image. It is especially crucial for premium beauty and personal care players, as it is an important factor to gain consumer loyalty and have them invest in a brand.

The competition with masstige products continues to blur borders

Although premium beauty and personal care brands continue to perform well, mass products which are premium-positioned continue to emerge in the market, which could potentially become a threat to the premium segment. Most cases observed are where existing mass brands have introduced an additional premium line, which is higher-priced and uses premium or natural ingredients.

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