Steady growth through new challenges
in a market environment exposed to headwinds.
After 2009, total volume of the cosmetic market in Japan has really not changed at around 1.4 trillion yen affected by Leman’s fall and deflation.
Procurement prices of container and raw materials were rised by a sharp depreciation of the yen, and it was negative factor for imported cosmetics.
But It has been recovering to 1.6 trillion yen during 2017, steadily due to heavy inbound demand from October 2014.
Moreover, stock prices plummeted globally due to the worldwide rampancy of COVID-19 in early 2020, and overseas travel became practically impossible.
Consumer sentiment has declined because of store closures and business hours reduction due to a state of emergency, and postponement the Tokyo Olympic.
Even in the hard situation, OHYAMA raised sales volume steady from the previous year.
So we challenged proactive introduction the products in new categories, such as sterilization and sanitation. It’s not in the usual our business area, but it was in severe short supply state at the time.
Of course profitability recorded good progress than it. It is a successful result by the collaborative marketing activities with retailers.
In the face of any headwind, we have steadily approaching the mission “Beauty and Health to the world” step by step.
Background of Cosmetic Market in Japan
- Consumption tax rate up 10% on October 1st. But some products such as foodstuffs or takeout menu in a restaurant will remain at 8% as a reduced tax rate, complicating the system.
- A large-scale campaign became the big news, and the cashless payments spread rapidly.
- A sharp depreciation of the yen. From April, consumption tax rate up to 8% and there was an extraordinary rush just before they put up the tax. But the real income decline.
- From October, consumables including the cosmetics were approved to add the item subject to tax-free for travelers from overseas. It brings a heavy inbound consumption.
- “PA++++” indicator is permitted in sunscreen cosmetics, previously “SPF50+ / PA+++” was the maximum.
- “CC cream” appears as a base makeup items after the BB cream.
- With the spread of smartphones, consumer communications and promotions makes better use of the social media such as Twitter and Facebook is established.
- “Bimajo” (Beauty Witch), meaning beautiful woman looks very young for true age becomes a buzzword.
- “Non-silicon shampoo” is established in the hair care category.
- Foreign manufacturers such as L’OREAL, CLINIQUE, and domestic manufacturers including KOSE and SHISEIDO get into the online shopping business in earnest.
- Position of aging care cosmetic changes to “Daily Care from the 30’s” from the “Special Care from the 50’s”, and become popular category of skin care.
- Efficacy in cosmetics and cosmeceutical by the Pharmaceutical Affairs Law, “Make unnoticeable tiny wrinkles due to drying” item is added.
- Various products with “DOKUMO” (Amateur Models) and “ageha girls” endorsement are launched.
- False eyelash that emphasizes “Enclosed Eye” and “Big Eye” becomes a big hit. Market volume roughly doubles in size.
- Instead of the “additive-free cosmetics”, “Organic cosmetics” makes big movement based on safe and environmental image.
- A word “Ara-four” (Around forty) express a woman make a career, and can afford economically, win a buzzword Award.
- Korean cosmeticss such as Pargantong, MISSHA, and BB cream penetrates the Japanese market.
- Global Recession is evident after Lehman crisis. Due to sign of deflationary spiral and strong yen, many companies start to face management difficulties.
- New entrants form pharmaceutical companies and other industries emerged making a big impact within and without the industry. Some of the players are: Rohto Pharmaceutical, Daiichi Sankyo Healthcare, Fuji Film, Otsuka Pharamceutical, Yamada Denki, Yamada Youhoujo, and Mercian.
- With big advertising strategy such as TV commercials, market for “mail order cosmetic” continues to grow.
- “Metabolic Syndrome” becomes a social issue and it becomes a key topic in product development.
- SHISEIDO TSUBAKI (Hair care products) becomes the leader in hair care category.
- Anti-aging related products become popular with new ingredients such as CoQ10 and Colloidal platinum.
- Cosmetics Refill well-established in the toiletries shampoo, conditioner and body soap is spread to skin care category.
- Cosmetic Ingredient “CoQ10″ is approved for usage and numerous manufacturers introduced various products.
- Men’s Cosmetics records steady growth in the market.
- Korean cosmetics becomes a trend from the broadcast fo “Winter’s Sonata”.
- “Choi-waru (outlaw-type guy)”, “Celeb”, “Metro-sexual” becomes trend words.
- One of the major manufacturers, Kanebo, goes under.