BANGKOK, Feb 20, 2024 (News On Japan) - In Japan's cosmetics industry, amid intensifying competition in China, which is the largest export market, there is a growing trend to enhance production and sales in Southeast Asia, where the population is increasing.
Among these companies, Rohto Pharmaceutical Co., Ltd. has been expanding sales by developing skincare products tailored to the high temperatures in eight Southeast Asian countries.
With the acquisition of a Vietnamese company two years ago as a new production base, the annual production volume for Southeast Asia has increased by about 30%. The company plans to strengthen sales even in regions where the culture of makeup is not yet well-established.
Additionally, an emerging manufacturer in Gunma Prefecture, with investment from a major trading company, plans to open its first overseas store in Southeast Asia as early as this summer. The strategy is to start by selling high-priced products in relatively high-income areas of Southeast Asia, such as Thailand and Singapore, hoping to leverage the trust in the quality of Japanese brands. Masakazu Motoda, president of OSAJI, said, "Southeast Asia is a market where cosmetics will be increasingly needed as the economy grows, and the quality of Japanese products will be welcomed."
According to the Japan Cosmetic Industry Association, Japan's cosmetics exports have been the highest to China for six consecutive years up to two years ago. However, competition with local companies that offer high-design products is becoming fiercer each year in China. Therefore, how Japanese companies can enhance their competitiveness in Southeast Asia for further growth is drawing attention.
Source: NHK
