China’s ‘daigou’ restrictions affect J-beauty sales

China’s ‘daigou’ restrictions affect J-beauty sales

A law ushered in by the Chinese government to regulate tourists selling on their haul once home has affected sales of beauty and personal care products in Japan, according to a report published by Nikkei.

The crackdown on surrogate shoppers – or daigou as they are known in China – who bought up stock overseas and then sold them on via social selling or e-commerce sites back home, has led to a drop in sales for many Japanese retailers and beauty manufacturers, including Kao who saw diaper sales from its popular Merries brand plummet 20 percent and Shiseido, who has seen sales to surrogate shoppers crash 15 percent. True Data reports that per-store spending by tourists dropped 19 percent in the first quarter of the year, despite rising visitor numbers.

The law now requires e-commerce sites to register with the relevant authorities, check their sites for counterfeit goods and pay taxes on any profit.