Market Trends: Selling Fashion and Beauty in Japan

Consumers in Japan are some of the most sophisticated and hard-to-please in the world, yet with open wallets for products, they trust.

Here are some facets of Japan’s rag trade, beauty trends, and beyond—including makeup, youth, and senior fashion—that marketers in Japan or those that plan a market entry into Japan should know, as well as how shopping for all this stuff is changing.

The major key is self-expression for those times when not in harness in the working world.

Exhibitor feedback from the autumn Fashion World Tokyo Show reveals that Japan’s consumers have some particular tastes. Accessories and bags with a low bling factor, for one. They also prefer clothes that don’t wrinkle or fade, which makes clothing produced using completely natural materials and dyes less attractive. In footwear, they favor more comfortable, less formal styles.

The skincare game and other altered states

Bihaku – white skin as the epitome of beauty

Bihaku is an integral element of a sophisticated skincare regimen, encompassing makeup removal, cleansing, lotion, serums and moisturizers, exfoliators, and more. That self-care actually extends to what’s eaten and drunk—collagen-rich and fermented foods, seaweed and oily fish, for example, and green tea—as well as onsen bathing.

The mochi skin phenomenon

There’s a definite desire among Japanese women to attain what’s known as “mochi skin”—essentially a complexion that mimics the soft, smooth texture of mochi rice cake desserts.

In vivid contrast to that flawless skin, Japan’s young fashionistas are applying colored eyeliner (yellow, green, pink, and more), or maybe under-eye blush or glossy, glittery eye shadow.

There’s a vibrant gloss for the lips, too, in fruity shades. Younger Japanese women also go in for colorful nail art, including what are known as “nuance nails,” with each nail covered in different colors, designs, and decorations.

Cutting edge contact lenses and hair care

Colored and patterned contact lenses—the latter known as “circle lenses”—hold a particular appeal in the land of manga, anime and cosplay.

Important to know for overseas marketers is the fact that while some circle lenses are nearsighted,
farsighted or astigmatic folks, most are pure fashion statements.

Japanese manufacturers have also devised some radically new tech for hair care. Louvredo’s Fukugen hair dryer uses a special far-infrared wavelength of 6 ~ 20 μm and negative ionization to shake the moisture out of the hair, eliminating the usual damage to hair proteins that hot air causes. Lumielina’s Bio programming range of care and styling products use a new type of ceramic that not only shields hair from heat but also actually improves its smoothness, moisture balance, and gloss.

Online fashion buying habits of the Japanese

Buying fashion and beauty products remotely has always been a bit tricky unless you know exactly what you’re getting, especially when it comes to fit/drape and shade. That doesn’t stop many, though. You see ladies avidly scrolling through clothes and accessories online. On a train or in a coffee shop, for example, they may be hunting for bargains on name-brand goods at a flash sale site.

Smartphone apps are changing the game as well. One called Bodygram uses AI deep-learning and machine-learning algorithms based on just a front and profile photo to the size you perfectly, like a master tailor. Augmented reality (AR) makeup mirrors from app developer Perfect Corp. are helping Estée
Lauder, L’Oréal, and Amway give shoppers the chance to virtually apply products via smartphone
as well. New Balance has set up machines in major Japanese department stores
and elsewhere to do 3D scans of your foot for an exact fit.

The customer is not king, but god in Japan. Anything you can offer them to enhance their shopping experience might get you into their good graces – and purchasing decision.

The Japanese senior fashion market: A graceful transition into maturity

Older women in Japan are increasingly opting for mature styles in both hair and what they wear, not seeking to duplicate the fashions their daughters and granddaughters pursue. That includes a more natural, personal look and going gracefully gray up top. All featured older women rocking distinctive styles and dos.

That’s one powerful indication that designing for and selling to the senior market is worthwhile.

Functional fashion is not a niche, but mainstream in Japan

For marketers, some other pivots include temperature—such as wide-legged pants to stay cool in Japan’s
steamy summertime, and Uniqlo’s “heat-tech” garments for keeping warm in the winter. Other upcoming segments include fashion and beauty addressing environmental, ethical, and sustainability issues, like e.g. anti-pollution skincare products.

Planning to sell Fashion and Beauty Product In Japan?

Having local help onboard is essential in order to be successful in Japan Market Entry. Don’t know where to start? We can help!

COVUE is a trustworthy Japanese company that has import licenses for many product categories. Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best!

Japan Luxury

Understanding New Trends and Opportunities in Japan’s Luxury Industry

Japan is the second-largest luxury market in the world – behind the United States and ahead of mainland China – with 3.6 trillion yen (about US$33 billion) spent each year in luxury goods.

  • Luxury labels, built on exclusivity, used to mean that having an online presence was not necessary; not the case anymore
  • digital channels must used by companies to get leverage in the market (search engines, social media, email, websites and mobile apps etc.)

Japan’s luxury industry:

  • GFC then disasters in Tōhoku and Fukushima, luxury spending in Japan shrank by over 1 trillion yen ($10.6 billion) by 2012
  • report by McKinsey & Company: Japanese luxury market… to maintain positive growth
  • 82% of luxury executives surveyed responded that their sales outlook for 2017 is significantly better than 2016.
  • by 2020, it is anticipated that the market will grow by a moderate rate of 3% to 4% per year
  • Japanese department stores are still the main venue of purchase for Japanese luxury consumers
  • 70% of people polled buy in Department store representing 50% overall revenue
  • Younger generation is buying brands like Céline, Balenciaga, and Gucci
  • Older generation are purchasing from brands like Hermès and Chanel, which are perceived as “very reliable” and “have a heritage.”

Digital marketing in the luxury industry:

  • a renewed interest in Japan in the past year or so due to recent market growth
  • Japan accounts for 11% of global luxury spending
  • Luxe Digital recently published a report suggesting that digital influences at least 80% of all luxury sales

Digital marketing techniques that are currently trending in the luxury industry:

  • Content is King
    • Storytelling, being able to tell the story behind the brand, explaining the values that define it: Luxury goods as much about image, style, and intangibles than about the actual quality of the product
    • Create contents that are aspirational and appeal to the customer’s desire to display their status
    • A luxury brand gives their customers an opportunity to showcase a lifestyle and a value system
  • Successful digital marketing campaigns
    • Burberry: social media campaigns and creative videos that combine history, fashion, and the appeal of a glamorous lifestyle. YouTube – 99 million viewers, 317,000 subscribers. Recent ad received 12 million views within a month (holiday campaign tribute for the movie Billy Elliot – Celebrating 15 years of Billy Elliot).
  • Social Media Marketing
    • Visual social networks like Pinterest provide a huge opportunity for luxury brands
    • Photographs are one of the best media for marketing luxury products
    • Chanel: one of the most ‘pinned’ brands on Pinterest – over 1,244 pins of Chanel products pinned per day
  • Boost SEO
    • A well-executed SEO strategy is one of the most lucrative digital marketing investments that a luxury company can do.
    • Google is one of the most significant channels for luxury
    • A large proportion of luxury brands have begun investing in SEO strategies
    • Tiffany: bought into SEO, have firm, successful strategies which have led to them dominating the search results

Importing Luxury Goods In Japan? We got you!

Having local help onboard is essential in order to be successful in Japan Market Entry. Don’t know where to start? We can help!

COVUE is a trustworthy Japanese company that has import licenses for many product categories. Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best!

SoftBank-backed food delivery firm enters Japan!

A U.S. food delivery firm, DoorDash Inc, which is backed by SoftBank Group Corp announced Wednesday the launch of services in Japan. They are joining an increasingly crowded market that has grown during the COVID-19 pandemic.

Services will be available to the city Sendai in Miyagi prefecture. The delivery firm told the reporters that they plan on expanding to Canada and Australia as well.

“Our strategy has always been to empower local economies, especially in the suburban markets that are historically underserved, yet the appetite for connectivity between merchants and customers is high,” Chief Executive Tony Xu said in a statement.

SoftBank backs some of the largest delivery services in Japan such as Uber Eats from Uber Technologies Inc and Demae-can Co Ltd.

Last month, DoorDash raised its forecast for annual gross order value, as stimulus checks helped keep food delivery demand resilient in the first quarter, even as vaccinations and as easing of curbs encouraged dining-out again.

DoorDash reported a near three-fold jump in quarterly revenue to $1.08 billion. They have branched out into delivery from grocery and convenience stores last year.

The company saw a surge in order volumes during the pandemic as consumers were hesitant about stepping out of the comfort of their homes due to COVID-19.

Want to Enter Japan Market?

Having local help on board is essential in order to be successful in Japan Market Entry. Don’t know where to start? We can help!

COVUE is a trustworthy Japanese company that has import licenses for many product categories. Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best!

Work from Home in Japan?

COVID-19 has led to a major shift in working patterns. Many people have no option but to work from home now. Read on to learn some tips on settling into our new home office.

Relearn how you work:

Some people are used to patterns at a work office. When faced with the freedom of setting your own schedule, we end up being unable to work efficiently. To get back in the groove, be aware of your own rhythms. Do you usually work mornings or nights? Do you need one long break or many short breaks? Do you work best focusing on one task or multitasking?

Next, pick a scheduling technique that works best for you. It can be systemic time management such as the pomodoro technique or free-form management. Remember to be consistent with the schedule so it becomes a habit. Take real breaks that might include taking a walk or eating and hydrating your body.

Define your home office:

Just like scheduling, everyone has their own optimum work environment. Some people focus best with zero distractions, so a work computer should be in a clean, bright environment with no sounds, social media or games on your computer.

Other people need a little variety in their environment, so some desk decorations, interesting pictures, or a good view from the window might be just what you need. Just be aware of your needs, and adjust as much as you can to fit them.

Your work environment should be designated for work only. Don’t work from bed, or from your usual relaxation space. Also, don’t relax or sleep in your workspace. As more people are working from home, people find that show blurring those lines leads not only to a reduction in work efficiency, they also make it more difficult to relax and rest in those spaces when not working.

This can be difficult for those with limited space, I know. Even something simple, like hanging a bedsheet around your computer during working time can help your brain create a work/no work area.

Advice for Dealing with Family:

Working around family can be a challenge. It screams distractions coming from every direction. Not only can families distract from work, but family members can also sometimes confuse physical presence for mental presence. They might think that presence in the house means being off work. Small children in particular can be unable to understand this, so you might need to find a way to work around your children’s schedule. Sadly, no one outside your family can offer advice on the best way to do that. You’ll need to communicate with your family, but one thing is fixed: some boundaries need to be set.

The combination of communication and patience can lead to finding a pattern that works for all family members.

Toyota and Honda suspend vehicle production in Malaysia due to lockdown

COVID-19 is now interfering with the production of vehicles. Toyota Motor Corp and Honda Motor Co have put a pause on producing vehicles at their plants in Malaysia the country began a two-week total lockdown to stem the spread of the coronavirus.

Due to the reduced workforce, both companies have decided it would not be enough to keep their factories running. Virus cases are rising in Malaysia as vaccination against COVID-19 lags. Japanese automakers and automotive parts makers also have plants in other countries in the region, such as Thailand and Indonesia, where cases are also increasing.

The companies could face production delays if infection rates worsen in those countries. In Malaysia, Toyota has two plants in Selangor State, while Honda has a motorcycle plant in Penang State and a car factory in Malacca State. The officials said that after-sales service for car owners will continue while new car sales are suspended.

Toyota produced about 50,000 passenger and commercial vehicles in Malaysia last. Honda says its motorcycle factory has the capacity to make 300,000 units annually with its car plant capable of producing 100,000 units.

What is Trade Compliance and Why Does it Matter?

In today’s global marketplace, companies do business both within and outside Japan. Your supply chain depends on following various trade agreements, international trade regulations, and tariff classification.

Yet, even with these specialties, many companies unintentionally receive import and export violations, and these violations lead to hefty penalties and fines for failure with trade compliance functions.

International business is more complex than ever before, and this is why you need a clear understanding of the rules of export control, customs authorities, and export laws. As a result, exporting and importing have become an essential part of day-to-day operations. Since your business relies on global trade, your company needs to ensure that your operations have solid global trade compliance.

To remain competitive, companies must have a comprehensive understanding of the laws and regulations which govern their imports and exports. Very simply, that’s what trade compliance is all about!

What is trade compliance?

Trade compliance means to comply with international export, trade, and financial laws.

Who is required to comply?

Businesses from across all industries are obligated to adhere to compliance requirements. It is not just a regulation for security-sensitive industries such as telecommunications, IT, research, aerospace, or financial institutions. The penalties for non-compliance can be severe.

Why does trade compliance matter?

Trade compliance is vital for importing and exporting and is a responsibility for all businesses. The larger the business, the greater the compliance expectations. In order to be compliant, you must understand what rules and regulations applicable to your business. To be compliant means to meet the demands of customers and suppliers while supporting sustainability, long-term growth, and competitive advantages. These are key elements to a successful global supply chain.

Benefits of being trade compliant:

  • Corporate reputations and employees are protected by facilitating legal and responsible trading.
  • Exposure to fines and penalties are minimized.
  • Promotes customer satisfactions by avoiding shipment delays.
  • Saves money by avoiding delays, investigation and penalties.


Consequences of non-compliance:

  • Shipment delays
  • Financial penalties
  • Criminal sanctions

Key elements of trade compliance:

  • Tariff classification – The correct classification of goods using commodity and tariff codes is fundamental for customs compliance as well as establishing correct duty rates, the origin of goods, Intrastat, export control, and many other customs procedures.
  • Preferential origin is associated with a specific trade agreement between two countries or blocks of countries. If the goods you’re exporting have a preferential origin, they are likely to attract reduced or nil rates of duty when they enter your customer’s country.
  • Non-preferential origin is where it dictates the origin of the product being shipped. The rules associated with the identification of origin are specific to the rules of the importing country.
  • IncotermsIncoterms have globally recognized trade terms used to clearly define the responsibilities of the buyer and seller along the shipment lifecycle, they are integral to a contract so that both parties are clear on delivery, costs, risk, and responsibility.
  • Licenses & Permits – It is your responsibility to check if you require a permit or license when importing or exporting certain products. There are controls, for example, on military/paramilitary goods, technology, medicines, chemicals, artworks, plants, and animals.

Your goods will be confiscated and will be delayed if you are importing and exporting without the right license.

  • Exports controls – Certain products are subject to export control legislation as they could have harmful uses. it is your responsibility to classify all products against the appropriate legislation. This will ensure the correct license requirements can be established.
  • Customs Management – Have a clear plan of action if your business is subject to a customs investigation.
  • Screening – Screening customers, vendors, and transaction data against sanctioned, politically exposed persons and other risky entities will help ensure you are not inadvertently doing business with an undesirable person.
  • Valuation – Every shipment must have an appropriate valuation associated with it, which should be defendable if challenged. The valuation must comply with one of the six valuation methodologies approved by the World Trade Organization (WTO) and be declared on the Single Administrative Document (SAD or form C88).

Market Entry in Japan

Having local help on board is essential in order to be successful in Japan Market Entry. Don’t know where to start? We can help!

COVUE is a trustworthy Japanese company that has import licenses for many product categories. Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best!

The Japanese Government about extending the state of emergency.

Japan will decide Friday on whether they will extend COVID-19 state of emergency. Tokyo, Osaka and seven other prefectures were set to be released from the state of emergency beginning of next week.

The infection numbers in Japan’s latest coronavirus wave have not lowered and are leaving the medical system under considerable strain. Many prefectures have requested for the government to extend the emergency. Health minister Norihisa Tamura said he will be making a decision based on expert’s evaluations. The current state of emergency is set to end Monday in 9 prefectures including Hyogo, Kyoto, Hokkaido, Fukuoka and Okayama.

The new end date for the state emergency might be June 20 now. Osaka Governor, Hirofumi Yoshimura said it is up to the central government to decide on the end date but that only extending the date for a short period of time would be insufficient.

The Osaka prefectural government is requesting the central government to extend state of emergency due to shortage of hospital beds. It will request together with neighboring Kyoto and Hyogo prefectures. Tokyo is also considering making the same request. Norihisa Tamura said new cases are declining in Japan overall, but worsening in specific areas.

Japan’s vaccine rollout has been slow compared to other developed nations. Only 2% of Japan’s population have received 2 doses of COVID-19 vaccine.

Source: Japan Today

Doing Business In Japan: Important Etiquette Rules You Need To Know

Every country has a unique culture and is used to do doing things a certain way. Doing business in Japan is a bit different compared to other countries. Japanese are more formal, calm, and reserved. Take a look at Japan’s values and what it means in the business industry.

  1. Silence is Golden

In a business setting, silence is more professional than an overabundance of talking. Silence demonstrates emotional self-control and wisdom. In western culture, we are more outgoing and loud when it comes to communicating. When developing a business relationship in Japan, have a formal and introverted approach in the beginning.

  • Group Solidarity is Paramount

Japan is a group-oriented culture contrast to the west where we believe individualism is valued over group solidarity. In japan, singling out an individual is embarrassing for them. The concept of a team is important for the Japanese. When giving out recognition, make sure to address the entire group.

  • Business Cards are Talismans

A business card is an extension of their identity in Japan. Accept the business card with both hands. If you are standing, read it briefly and place it in a card holder. If you are seated, place it on the table during the meeting. It is considered disrespectful if you place the card in your pocket or wallet. If you are presenting your business card, turn the Japanese side faced up and hand it to them with both hands. Don’t toss or slide the card across a table.

  • Age Equals Seniority

Japanese respect elders. Treat older executives with a more marked deference than the younger ones in the group setting you are interacting with. Greet the senior person before you greet the others as well as offering your business card to seniors first before the others.

  • Hard Sell Doesn’t Sell

Japanese do not like to be pressured or confronted. When pitching your business proposal, approach the presentation in a gentle and persuasive way. Don’t emphasize so much on decisions and deadlines. Focus on points you mutually agree on and build on that. Take you time during the pitch. Japanese see rushing the process as disrespectful. Use the time that you find wasted during the meeting, to build trust and cement the business relationship.

Market Entry in Japan

Having local help on board is essential in order to be successful in Japan Market Entry. Don’t know where to start? We can help!

COVUE is a trustworthy Japanese company that has import licenses for many product categories. Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best!

Radiation checks on food conducted across Japan

Since the nuclear accident at Tokyo Electric Power Company Holdings, Inc.’s Fukushima No. 1 nuclear plant in March 2011, food products have continuously been checked for radiation. Nearly 17 prefectures are testing food products that are not listed in the guidelines such as vegetables, fish, and other items. These tests comfort domestic and overseas consumers even though it is rare for these products to exceed the national standard for radiation. The Yomiuri Shimbun has discovered that 11 prefectures are conducting radiation tests on their own.

For food items such as rice and vegetables, the national standard of maximum acceptable radiation levels is 100 becquerels per kilogram. Japan is much stricter compared to European and the United States standards. The European Unions’ maximum is 1250 becquerels per kilogram and the United States’ is 1200 becquerels per kilogram.

The provisional standard for maximum acceptable radiation level was originally 500 becquerels per kilogram, but it was revised to 100 becquerels in April 2012. The standard for infant food and milk is 50 becquerels. However, the standard for drinking water is 10 becquerels per kilogram. The areas to be inspected for radiation in food are determined by the government’s Nuclear Emergency Response Headquarters.

As of March 17, 2021, wild mushrooms, wild mountain vegetables, and meat from birds are now required to be tested by prefectures in eastern Japan. These products can no longer to shipped if the radiation levels exceed the national standard.

According to the Health, Labor, and Welfare Ministry, 54,412 items were tested nationwide in 2020, and only 0.23% or 127 items exceeded the national standard. One of 127 items came from an unknown origin. The other 126 items underwent an inspection. The Fukushima Prefecture will continue testing. They are also testing tomatoes, cucumbers, and other vegetables that not required for inspection. As of 2015, no radiation has been found in these products. The prefecture will continue testing to rebuild trust again and dispel the long-lasting negative rumors after the nuclear accident.

15 countries restrict imports from Japan and even require inspection certificates.

Import Products to Japan?

Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best.

At COVUE IOR, we seek to make the import process simple, compliant, and accessible to all sellers of all sizes. COVUE is not an ACP. COVUE is the direct IOR: we own our license, and our compliance support is in-house. We trusted by 000’s of Sellers and Shipping providers.



Source: The Japan News ​​

Japan Market Entry: Why is it difficult

Considering Japan as the 3rd largest economy in the world, it should come as no surprise that more and more companies are expanding into Japan in order to tap into this lucrative consumer market.

Japan is a leading center for innovation, boasting a highly attractive business and living environment within one of the world’s largest economies. A survey by the Ministry of Economy, Trade and Industry (METI) found that Japan has a stellar reputation among Western and Asian companies, which are attracted by its R&D capabilities, personnel, and well-developed laws, such as intellectual property rights.

Many companies are also pulled to Japan’s shores because of its developed consumer base. The huge market is a trendsetter among regional economies and is utilized by many businesses as a test location.

Some 49% of businesses say Japan is an attractive as a test market, and 40.5% say it offers a good environment for business expansion.

 But, Japan continues to be one of the most difficult and challenging countries for market entry. The number of regulatory hurdles and cultural factors can make Japan a difficult country to penetrate. Having local help can be a big asset when expanding into the country.

Here are some of the challenges that you will have to face in order to succeed.

Starting a business
The process can be draining when starting a business in Japan. It is important to navigate the regulations and bureaucracy.

Language
The most obvious obstacle to doing business in Japan and/or with Japanese companies and consumers is language. If you plan to actually have discussions with potential business partners or customers, you’ll require a trained, experienced Japanese interpreter. This person needs to have an intimate knowledge of Japanese culture and traditions.

Culture
Relationships drive business in Japan, and it is important to show the right level of respect and to be polite and diplomatic at all times. Patience is essential when handling business relations, and observing local etiquette in terms of gift buying is important.

Gaining trust and respect
Japanese consumers and businesspeople expect integrity and high quality products and services. Gaining trust and respect can take some time, whether you’re forming a business relationship or selling a product to Japanese consumers

Market Entry in Japan

Having local help on board is essential in order to be successful in Japan Market Entry. Don’t know where to start? We can help!

COVUE is a trustworthy Japanese company that has import licenses for many product categories. Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best!