The Japanese beauty retailers market saw value sales decline by 2% in 2012. Polarisation of consumer preferences in terms of pricing became more and more evident in beauty and personal care products, marginalising the presence of mid-ranged products.
With the slow economic recovery, consumers who used to purchase ¥2,000-3,000 lotions are increasingly shifting to economy products below ¥1,000, driving average unit price down. As a result, beauty specialist retailers with mid-price ranges suffered the most in terms of sales decline in 2012.
Beauty specialist retailers suffered as consumers downgraded from mid-range to economy products. Face-to-face consultation at a cosmetic counter is not as well accepted among young female consumers as it is among more middle-aged consumers. With high levels of internet literacy, young consumers are more comfortable collecting information such as product ratings online and then selecting products on their own.
Given such a change in consumer preferences in shopping styles, beauty specialist retailers are introducing digital media to communicate their brand concepts or products in stores. For example, Fancl Corp began using iPads at its stores which featured an app that allowed customers to determine their most suitable skin care lines.
Among beauty specialist retailers, Fancl Corp maintained its leading position in the market, but L'Occitane Japon KK was the fastest growing company with a compound annual growth rate (CAGR) of 24% over the last four years. Despite its premium position and pricing, L'Occitane Japon KK continued to attract young female consumers with its offer of organic cosmetics.
The population of individuals aged over 65 years old is anticipated to post a CAGR of 3% through to 2018. As people age, the demand for health-related products such as vitamins and supplements tends to increase, contributing to overall growth of health specialist retailers.
In order to foster demand from elderly consumers, health and beautyretailers are anticipated to provide additional services to makeshopping for the elderly more comfortable.
For more information on the Japanese beauty retailers market, see the latest research: Japanese Beauty Retailers Market
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