'Made in Japan' labelling encourages strategic export plans

By Natasha Spencer

- Last updated on GMT

'Made in Japan' labelling export plans

Related tags Euromonitor international Japan

Japanese heavyweight names, Shiseido, Kose, Kanebo, are using ‘Made in Japan’ labels on their products to engage Asian shoppers, notably Chinese consumers.

Japanese story

In 2017, cosmetics exports in Japan are expected to reach “another all-time high”​, Nikkei Asian Review reports. This is largely spearheaded by well-known prestigious multinational brands, including Shiseido, Kose, Kanebo, which are synonymous with Japanese ingredients and cultures.

These companies are adopting and utilising ‘Made in Japan’ labels as a marketing technique to develop relationships with China and other Asian markets.

For the first time this year, cosmetics exports emanating from Japan is anticipated to surpass 300 bn yen (€2.3 bn), with approximately 90% of Japan’s cosmetics exports heading to beauty shoppers in Asia.

Market research company, Euromonitor International, reveals that the weakened yen presents strong opportunities for Japanese brands as tourists visiting the country purchase Japanese cosmetics and personal care items. As a result, these brands are also choosing high-end product ranges in Japan itself rather than in other countries to take advantage of low-cost buys.

Building Chinese loyalty

Big brands are now trying to maximise brand loyalty when they return home to other Asian markets including China.

Japan’s beauty and personal care sector is expected to witness growth over the forecast period due to improved economic performance and the adoption of marketing techniques such as ‘Made in Japan’ labels to communicate value-adding product developments and formulations.

Releasing its Waso skin care line earlier in the summer, Shiseido aims to attract Millennials. Japanese products are often associated with high-quality and novel applications that showcase specific offerings through their Elixir and skin care ranges, which originate in Japan.  

Strategic plans

Both Shiseido and consumers good maker Kao’s subsidiary, Kanebo Cosmetics, are focusing their ongoing efforts on heavy research and development endeavours to bring evolved, advanced and on-trend product launches to market.

Kao, itself, planned to draw away from its primary activities in the domestic market, to instead, build its presence in strategic locations outside of Japan, including China. However, as Euromonitor International reported into October 2016, sales had reduced in China and so it remained reliant on customer loyalty from Japanese buyers. The newly-adopted ‘Made in Japan’ labels and opportunities from incoming tourists may now create renewed faith in the company’s expansion plans.

Personal care company, Kose, has also picked China as a key growth market and has utilised e-commerce giant Alibaba to promote its luxury Sekkisei skin care range and Visee make up collection.

Economic support

Prestige beauty buys are proving a formidable market in China as shoppers, particularly those living in urban areas, opt for beauty and cosmetic items that reflect “rising living standards”​ and the “trading-up trend”,​ Euromonitor International reports.

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