Japanese beauty brands disappeared in the double eleven list.
(Text/Xie Hongjuan Editor/Ma Yuanyuan) After the Double Eleven this year, Japanese beauty brands did not appear in the TOP10 list.
According to the research report of Guojin Securities, the top ten brands of Taobao beauty shops during the Double Eleven period in 2023 were Polaiya, L ‘Oreal, Lancome, Estee Lauder, Winona, Mystery of Sea Blue, Olay, Xiuliko, helena rubinstein and Guerlain, and none of them were Japanese makeup brands.
According to the incomplete statistics of Observer. com, this is the first time that the Japanese makeup brand SK-Il has fallen out of the top ten since 2016, and it is also the first time that Shiseido, a Japanese makeup brand, has been out of the top ten since 2017. Both of them have occupied the top ten of the list for a long time, with the former seven years and the latter six years.
The same is true of the TOP10 list of beauty and skin care in Tik Tok.
According to the list of the top ten brands of GMV in the category of double eleven beauty and skin care in Tik Tok in 2023, Polaiya, Kanshu, L ‘Oreal, Estee Lauder, Lancome, Mystery of Sea Blue, helena rubinstein, Houhou, Fumei and Olay are in the top ten respectively, but there are still no Japanese makeup brands.
Japanese makeup sales declined.
"There may be many reasons for the decline in the performance of double eleven day makeup." Bai Wenxi, chief economist of IPG China, said that it is very important that the impact of Japan’s nuclear sewage discharge on Japanese cosmetics continues, which leads to the continuous fermentation of consumers’ resistance to Japanese cosmetics.
In February, 2023, some media reported that Japan’s Fukushima Fishery Cooperative Association issued a notice on the 7th local time, and suspended the listing of local bass from now on due to the detection of radioactive cesium exceeding the standard in the bass caught in the waters near Fukushima.
As soon as the news came out, Nissan seafood was the first to receive sales impact, and soon this concern expanded to some Japanese products, including Nissan skin care products.
In terms of data, the import value of beauty products imported from Japan also showed a downward trend from March to July in 2023, from $479,800 to $287,100, with a year-on-year growth rate decline (yoy-35.5% in July) and a negative month-on-month growth rate.
It is worth mentioning that this consumer boycott reached its peak on August 24. At that time, Tokyo Electric Power Company began to discharge the nuclear polluted water from the Fukushima Daiichi nuclear power plant into the sea. It is reported that the Fukushima Daiichi nuclear power plant has about 1.34 million tons of nuclear polluted water, which is kept in about 1,000 storage tanks in the plant area.
Shiseido bears the brunt of imported beauty products from Japan.
The data shows that in 2022, China’s cosmetics imports totaled 150.6 billion yuan, with France, Japan, South Korea, the United States and the United Kingdom as the top five sources. Among them, the import amount from Japan reached 34 billion yuan in 22 years, accounting for about 22.6% (General Administration of Customs). Huatai Research is based on Euromonitor data. According to the terminal retail sales, the market share of Japanese brands in China is about 6.1% in 2022, among which Shiseido has the largest share (according to the company’s financial report, the market revenue of the whole group in China in 2022 is 258.2 billion yen, and according to Euromonitor, the terminal retail sales of Shiseido brand in China market in 2022 is 5.2 billion yuan).
Affected by the discharge of nuclear wastewater, Shiseido’s net sales in the third quarter of 2023 fell sharply, becoming the lowest value in the past 11 quarters.
The data shows that in the third quarter of 2023, Shiseido achieved net sales of 228.2 billion yen (about 11.643 billion yuan), down 15% year-on-year; The core operating profit was 8.8 billion yen (about 448 million yuan), down about 53% year-on-year.
In addition, although the Japanese brand SK-II was acquired by Procter & Gamble, it was born in Japan, and the factory and production line of its star product "Fairy Water" were all located in Japan, and its performance was also affected.
Procter & Gamble pointed out in the first quarter report of fiscal year 2024 that the SK-II brand dragged down the overall performance. "The organic sales of skin care and personal care products achieved low single-digit growth, which was partly offset by the unfavorable factors of the decline of SK-II sales."
Promote the rise of domestic products
Due to doubts about the safety of Nissan skin care products, consumers began to collect other overseas or domestic substitute products.
According to Huatai Ruisi research report, Japanese skin care brands are developed based on Asian skin characteristics. Compared with European and American brands, they pay more attention to skin care concepts such as mild conditioning, natural no additives and no irritation, and their overall efficacy is weak. In other words, Japanese makeup is generally known for its gentleness.
This happens to be the focus of domestic skin care brands in recent years.
Take Betaine as an example, as the first listed company of sensitive muscle care in China, its main brand "Winona" has a high market popularity, among which, Shu Min Moisturizing Special Cream, a star product specially developed for sensitive muscles, is regarded as a substitute for Kerun Cream by many consumers.
Thanks to this, Winona achieved the best ranking in history. As of 24:00 on November 11th, Winona continued to exert her efforts in the Double Eleven Promotion and won the Tmall Beauty and Skin Care TOP5, which is the only China brand that has been shortlisted in the top ten beauty categories in double 11 for seven consecutive years since 2017-2023.
It is also worth mentioning that in recent years, with the rise of China’s constituent party, consumers have more targeted skin care needs, such as anti-aging, freckle, acne, whitening, etc., and European and American "strong medicine" products have become popular.
With the concept of "early C and late A", Polaiya beat L ‘Oré al, Lancome, Estee Lauder and other big names, ranking first in the beauty category of Tmall, Tik Tok, JD.COM and other channels, and first in the beauty category of domestic products in Vipshop and Pinduoduo.
Specifically, according to the Battle Report and the official ranking of Tmall, the GMV of the official flag of Polaiya was about 1.8 billion yuan from 20: 00 on October 24th to 24: 00 on November 3rd, up by about 40% year-on-year. From 20: 00 on October 31st to 24: 00 on November 3rd, GMV ranked No.1 in Tmall Beauty, up three places from last year. According to Tik Tok Battle Report, from 0: 00 on October 20th to 24: 00 on November 3rd, the GMV of Polaiya was about 470 million yuan, up about 200% year-on-year.
Bai Wenxi, chief economist of IPG China, said that with the increasing demand and cognition of consumers for cosmetics, consumers have higher and higher requirements for the quality and effect of cosmetics. Japanese beauty brands may lack innovation and advantages in this respect, resulting in a decline in performance.
Bai Wenxi further pointed out that fierce competition in the domestic cosmetics market is also one of the reasons for the decline in the performance of Japanese cosmetics. Domestic beauty brands have a better understanding of the needs and cultural background of China consumers, and domestic cosmetic brands have certain advantages in quality, price and channels, which makes consumers more inclined to buy domestic beauty brands.
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