Foreign tourists, particularly visitors who hail from China, have sent sales of high-end cosmetics soaring in Japan, according to a report published in the Japan Times, with Shiseido, Kao and Kanebo all benefitting from an influx of shoppers seeking out luxury goods.
According to Kao President, Michitaka Sawada, foreign consumers are interested chiefly in value-added products – with Kao’s hot eye masks a notable hit. Tourist spending sprees added some ¥15 billion to Kao’s annual sales.
Shiseido is also expecting a ¥15 billion boost to its coffers directly from the tourist purse over the year, with up 20.2 percent in the first quarter of fiscal 2015. Meanwhile, Kose Corp is said to be predicting an increase some three times greater than its initial forecast of ¥14 billion.
However, with China’s economy in trouble and the devaluation of the Yuan, economists are questioning how long the buying frenzy can last.