Steady Growth in Japan’s Cosmetics Market and Expectations for Growth in China and Other Asian Markets

「During the current interim consolidated accounting period, Japan's economy continued on a gradual recovery trend, as improvements in employment and income conditions continued and the number of visitors to Japan remained high. Meanwhile, as prolonged price increases affected household finances, consumers continued to favor saving. Although some signs of a recovery in personal consumption emerged, cautious consumer behavior continued. In addition, amid instability in international conditions and policy trends in various countries, the outlook remained uncertain.」

「A gradual recovery continued, supported by an increase in visitors to Japan and improvements in employment and income conditions. Meanwhile, in addition to persistently high prices, unstable international conditions and the effects of US policy trends further strengthened consumers' preference for saving, and the outlook remained difficult to foresee.」

「During the current interim consolidated accounting period, Japan's economy continued to recover gradually, supported by improvements in employment and income conditions and continued growth in inbound demand. Meanwhile, exchange-rate fluctuations resulting from shifts in monetary policy in Europe and the United States, together with soaring prices, further strengthened consumers' preference for saving, and the outlook remained difficult to foresee.」

「During the second quarter of the current consolidated cumulative period, economic and social activity in Japan normalized and inbound demand recovered. However, uncertainty persisted due in part to soaring global raw material and energy prices, exchange-rate trends, and the effects of price increases outpacing wage growth.」

「During the first quarter of the current consolidated cumulative period, the environment surrounding Japan's economy continued to show a gradual recovery, as social and economic activity normalized and inbound demand expanded. However, uncertainty about the outlook persisted amid soaring global raw material and energy prices and weaker consumer appetite due to rising prices.」

「During the nine months ended the third quarter, economic activity normalized as COVID-19 was reclassified as a Class 5 infectious disease and inbound demand recovered, and the economy was on a gradual recovery trend. However, the outlook remained uncertain due to higher prices resulting from rising global resource prices and foreign-exchange fluctuations.」

「During the six months ended the second quarter, Japan’s economy gradually normalized as restrictions on activity related to COVID-19 were eased and demand for going out and inbound demand increased. However, price increases for food, daily necessities and utilities resulting from soaring global crude oil prices and raw material costs due to the situation in Ukraine, as well as the rapid depreciation of the yen, continued, and the outlook remained uncertain.」

「During the three months ended the first quarter, Japan’s economy showed signs of a gradual recovery in economic activity as restrictions on activity were eased with the progress of COVID-19 vaccinations. However, conditions remained unpredictable due to soaring global crude oil prices and raw material costs caused by changes in the international situation, as well as price increases for food, daily necessities and utilities resulting from the rapid depreciation of the yen.」

「During the nine months ended the third quarter, economic activity in Japan showed signs of normalization as a result of various measures against COVID-19, while overseas markets experienced resurgent infections and related restrictions on activity. In addition, the outlook remained uncertain due to changes in the international situation and soaring raw material prices.」

「During the six months ended the second quarter, Japan’s economy experienced a global resurgence of COVID-19 infections caused by the Omicron variant. In addition, the outlook remained uncertain due to changes in the international situation and soaring crude oil and raw material prices.」

「During the three months ended the first quarter, there were signs of a recovery in economic activity as vaccinations against COVID-19 progressed and infections declined. However, concerns about a resurgence due to variant strains remained, and the outlook continued to be uncertain.」

「Although a gradual recovery is expected as vaccinations progress, the end of the spread of infections is not yet in sight, and the economic outlook in Japan and overseas is expected to remain uncertain.」

「During the nine months ended the third quarter, Japan’s economy remained in severe conditions due to the impact of COVID-19, which continued to have a significant impact on economic activity and personal consumption. Although a gradual recovery in economic activity is expected as vaccinations progress and infection-prevention measures are implemented, concerns about a resurgence of infections due to variant strains remain, and the outlook is expected to remain uncertain.」

「During the six months ended the second quarter, Japan’s economy remained in severe conditions as the second state of emergency declared following the resurgence of COVID-19 had a significant impact on economic activity and personal consumption. Although economic activity in Japan and overseas is expected to recover gradually as measures to prevent the spread of infection are implemented, concerns about a resurgence of infections remain, and the outlook is expected to remain uncertain.」

「During the three months ended the first quarter, Japan’s economy remained in severe conditions, including stagnant economic activity and deteriorating personal consumption due to the spread of COVID-19. Although economic activity in Japan and overseas is expected to recover gradually as measures to prevent the spread of infection are implemented, concerns about a resurgence of infections remain, and the outlook is expected to remain uncertain.」

「However, since 2020, in addition to requests to refrain from going out and requests for businesses to suspend operations as COVID-19 spread, the declaration of a state of emergency in April has had a negative impact on the economy as a whole. Against this backdrop, the skincare market also continues to face an uncertain outlook.」

「Against this market backdrop, during the six months ended the second quarter, although there was some impact from the reaction to sales being brought forward into the previous fiscal year ahead of the consumption tax rate increase and from COVID-19, the company’s main product, the Perfect One All-in-One Beauty Serum Gel series, remained firm, mainly through mail-order sales, and net sales exceeded the year-earlier period.」

「The domestic cosmetics market has remained firm since 2015. The domestic skincare market, in which the company’s main products are sold, continues to expand as a result of steady domestic demand and the capture of inbound demand from visitors to Japan.」

「The cosmetics market, our main product market, is expected to remain firm in Japan. Overseas, solid growth is expected to continue, particularly in China and other Asian markets.」