No signs of a slowdown in Asia as Chinese tourists boost sales in Japan & Korea...

Figures released in June by website, Huanqiu revealed female tourists from China to be fueling sales for South Korean cosmetics brands.

As many as 574,000 Chinese visitors were reported to be making the trip​ over to close neighbour Korea, which makes up 45% of all foreign tourists.

The research also featured statistics from the South Korean financial investment and tourism information system, that revealed Chinese enthusiasm for Korean cosmetics was not limited to incoming tourists, with exports to China also accounting for 54.7% of total Korean beauty exports.

Chinese visitors spend on average $350.01 on cosmetics​

In Japan, thanks to a cheaper yen and the influx of tourists from neighbouring South Korea and China (where disposable incomes are on the rise) tourists spent $14 billion in 2013.

38.5% were reported to buy cosmetics and pharmaceuticals​, making them the third most commonly bought item after food and confectionery.

The average amount spent on cosmetics by tourists is ¥20,270 (USD $205.52) however, visitors from China were found to be the highest spenders, with 68.4% purchasing and an average spending of ¥34,521 (USD $350.01).

Trade​

In July, a visit from the Chinese President Xi Jinping to South Korea pushed progress towards a free trade pact between the two countries that is likely to benefit the cosmetics and personal care sectors.

One area expected to be pushed particularly hard ​by the South Korean representatives is the country’s cosmetics sector​ as under current trading regulations with China, South Korean beauty products are hit with a tariff as high as 130%, putting them very much in the luxury and prestige end of the retail spectrum.

If lobbying is successful, as part of the free trade pact, Japanese players such as Amore Pacific, The Face Shop and LG Household & Health Care, will be looking to ensure that their products can be marketed in China without a far lower tariff, possibly even zero.

Taxes and tariffs...​

The Japanese government also announced that certain cosmetics purchases will soon be tax-free for foreigners visiting the country, in a move that aims to increase tourist spending in the country as of October 1^st​ this year.

Foreign tourists can have consumption tax refunded on purchases up to ¥5,000 ($48) at designated tax-free shops on the provision they provide their passports.

The move is the government's effort to counterbalance​ the subsequent dip in sales by capitalizing on the huge growth in tourist numbers, which has come about thanks to the lower exchange rate of the Japanese Yen against foreign currencies.