Fuji Keizai released its annual report on the cosmetics market, estimating a 3.3 percent increase in value this year to JPY 2.84 trillion (US$250 billion). While the news is positive, this is only a partial rebound from the estimated 14.5 percent contraction in 2020.
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Shopping malls and department stores have been able to operate for most of 2021 without interruption and high-end cosmetics sales have grown the most so far this year, up 5.3 percent compared to 2.6 percent for the middle market and 1.7 percent for the mass market.
Nevertheless, with the tourist market still non-existent, full recovery is far off given how important inbound travellers were to sales of cosmetics at department stores and city-based drugstores – one reason why Matsumotokiyoshi is still facing an uphill struggle against more regionally and range diverse competitors like Welcia.
By product category, consumers are spending more on premium skincare and haircare this year. In the mass market, catalogue or online cosmetics have done well because of home-based working model.
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Fuji reported that working from home has given consumers more time to look at solutions to long-term skin problems, boosting the sales of medical and quasi-medical treatments for things like blocked pores and wrinkles.
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