The Increasing Significance of International Expansion for Japanese Lifestyle Brands

Japan’s rapidly aging population is causing significant challenges for the economy, with projections indicating that the population will drop below 100 million by 2050. This demographic shift is leading to issues such as a labor shortage, a shrinking domestic market, and problems with skill inheritance. In response to these challenges, Japanese firms are looking to expand overseas, particularly in China, where Japanese products are highly valued for their quality.

One such firm that is actively responding to this demographic shift is a company that specializes in retail and the introduction of Japanese products to China. With a background in both Japan and China, the founder of the company has a unique perspective on how to navigate the changing economic landscape. By acting as a connecting bridge between the two countries, the company aims to capitalize on the benefits of trade and manufacturing relationships between Japan and China.

In light of the COVID-19 pandemic, the company has also observed shifts in consumer behavior, with a significant increase in e-commerce in Japan. However, the preference for physical stores remains strong in Japan, particularly for activities such as family outings to malls. In contrast, China has a more established e-commerce market, with a preference for online shopping over physical stores.

Looking ahead, the company is cautious about the performance of the Chinese market in the next six to twelve months, citing challenges such as high unemployment rates and a sluggish real estate market. As a result, the company is exploring opportunities in other markets, such as Hong Kong, Japan, and Singapore, to offset the decline in the Chinese market.

In terms of business growth potential, the company sees opportunities in its artificial wood products and duty-free shop operations. Additionally, the company recently entered the beauty and cosmetics market with the launch of the CHOUOHC brand. This strategic expansion aims to leverage the company’s expertise in introducing Japanese products to new markets.

When it comes to developing products for varying skin types, the company emphasizes the importance of trials and certifications to ensure product efficacy. With a focus on simplicity and ease of use, the company aims to differentiate itself in the competitive beauty device market, particularly in Western markets where legacy brands dominate.

Looking towards the future, the company’s goals include achieving financial success with the CHOUOHC brand and potentially pursuing an initial public offering (IPO). By continuing to innovate and adapt to changing market trends, the company aims to secure its position in the global marketplace and drive long-term business success.