Chinese consumers are boycotting Japanese beauty products due to concerns about radioactive contamination following the release of water from the Fukushima nuclear plant into the Pacific Ocean. Online sales of Japanese cosmetics in China have plummeted, and companies like Shiseido and Kosé have seen significant declines. This boycott has led to a diplomatic dispute between Tokyo and Beijing, reminiscent of a 2012 boycott of Japanese products. The article discusses the impact on companies, the controversy over the safety of the released water, and the potential long-term consequences.
Chinese Consumers Concerned Over Fukushima Water Release Impact on Japanese Beauty Products
In a growing consumer backlash, Chinese shoppers are turning away from Japanese beauty brands amid apprehensions of radioactive contamination linked to Japan's recent decision to release water from the Fukushima nuclear plant into the Pacific Ocean. This move has sparked one of the most substantial consumer boycotts since the 2012 territorial dispute between Japan and China.
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Online sales of Japanese-made cosmetics in China have witnessed a significant decline as consumers express concerns over the safety and potential contamination of these products. Shoppers, mainly on social media platforms like Weibo and Red, have compiled lists of beauty items they suspect might contain radioactive materials. This is despite the International Atomic Energy Agency's safety review, which concluded that the water release posed only a "negligible radiological risk."
The brewing controversy has escalated into a diplomatic clash between Tokyo and Beijing, with Chinese consumers steadfastly avoiding Japanese beauty products. Among the most affected is the renowned Japanese company, Shiseido, whose online sales in China dropped by a staggering 32% in September, month-on-month, compared to a more moderate 7% decline over the previous six months.
China represents a substantial market for Shiseido, contributing to 26% of its revenue for the first half of the year. This boycott has had significant implications, causing Shiseido's share price to plummet by 20% since early June.
Shiseido has responded by stating it has not confirmed a boycott but remains vigilant, vowing to take "appropriate actions" if necessary. Analysts believe that although some consumers may be permanently lost due to contamination fears, the negative impact on the boycott should subside. The company has emphasized that none of its production sites are near Fukushima, and cosmetics are not produced using seawater.
Melinda Hu, an analyst at Bernstein, reassures that "eventually consumers will realize there is limited exposure and move on."
Kosé, another major beauty brand, has also been significantly impacted by the boycott, with online sales in China falling by 59% in September. Western companies that manufacture certain products in Japan, like Procter & Gamble's prestige beauty brand SK-II, have also been heavily targeted.
China has suspended all seafood imports from Japan since the release of water in late August, sparking concerns about the water's safety. Japan maintains that the treated water poses a minimal risk, with radiation levels well below the World Health Organization's drinking water standards.
This situation underscores the ongoing debate about the safety of the Fukushima water release and its far-reaching consequences for Japanese beauty product brands in the Chinese market.
