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Over the review period there were several new products launched with extremely high prices, with this continuing in 2018/2019. For example, Kao Corp launched Est The Cream TR, which is a line of premium anti-agers which cost JPY30,000 (excluding tax) for 30g.
Department stores remained a key distribution channel for premium beauty and personal care products in 2019. Despite the growth of e-commerce in Japan, sales of beauty products in department stores were maintained at the end of the review period, whilst some other products, such as apparel, struggled.
Shiseido continued to lead premium beauty and personal care in 2019 with popular brands such as Elixir and Clé de Peau Beauté. In October 2019, the brand started a membership programme where consumers can receive beauty consultations through a special smartphone app.
Sales of premium beauty and personal care are expected to decline by 6% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This would represent a significant downturn in fortunes for the category, which registered 2% growth in 2019 constant value terms in 2019.
Sales of colour cosmetics are expected to be particularly hard hit during 2020 with sales relying heavily on department stores. Unlike mass products, premium lines are not as widely available through the channels that have remained open during COVID-19.
Despite the challenges presented by COVID-19, once Japan reopens its borders and stores begin to reopen sales are expected to rebound, especially with the Tokyo Olympics now expected to be held in 2021. Although manufacturers have seen sales plummet as a result of COVID-19 this has not stopped them from launching new premium lines in 2020, with Shiseido announcing the launch of its new prestige BAUM brand.
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Discover the latest market trends and uncover sources of future market growth for the Premium Beauty and Personal Care industry in Japan with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Beauty and Personal Care market research database.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.