LifestyleEnvironmental impact meets beauty. Japan's beauty brands struggle in China

Environmental impact meets beauty. Japan's beauty brands struggle in China

NEW YORK, NEW YORK - SEPTEMBER 13: SHISEIDO announces Anne Hathaway as new VITAL PERFECTION Global Ambassador on September 13, 2023 in New York City. (Photo by Kevin Mazur/Getty Images for Shiseido)
NEW YORK, NEW YORK - SEPTEMBER 13: SHISEIDO announces Anne Hathaway as new VITAL PERFECTION Global Ambassador on September 13, 2023 in New York City. (Photo by Kevin Mazur/Getty Images for Shiseido)
Images source: © GETTY | Kevin Mazur

9:19 AM EST, January 24, 2024

In a surprising turn of events, Japan's decision to release treated radioactive water from the Fukushima nuclear power plant has sent shockwaves through the global beauty industry, particularly affecting Japanese beauty brands in the Chinese market.

Market Trends and Consumer Response:

Since the announcement of Japan's water release decision in August, there has been a notable decline in the Chinese market for Japanese cosmetics. Brands like Shiseido, Kosé, and Pola Orbis have reported significant negative growth. The situation was exacerbated by a noticeable shift in Chinese consumer sentiment, with many shunning Japanese cosmetic products over safety concerns. This shift in consumer behaviour led to decreased sales for these companies, with online and offline sales taking a hit. The fallout was not just limited to sales but also affected marketing activities and customer engagement strategies.

Business Adaptation and Future Outlook:

Faced with these challenges, companies like Shiseido and Pola Orbis have had to adapt their strategies. Shiseido, for instance, curbed its marketing activities and even suspended some promotional efforts. Despite these efforts, the brand experienced a significant drop in e-commerce sales. Pola Orbis also reported declining sales in China, indicating broader market implications. Industry leaders are cautiously optimistic, expecting the current reluctance towards Japanese products to normalize by early 2024. However, some, like Kosé's CFO, believe the recovery may take longer, potentially up to six months.

This situation highlights the interconnected nature of global markets and the far-reaching impact of environmental and political decisions on consumer behaviour and industry trends​​.

Sourses: CosmeticsDesign-Asia.com