As tourist sales wane, Japan cosmetics go straight to China

Beijing's new e-commerce law cracks down on resellers of foreign goods

20190213N Shiseido (REUTERS)

Shiseido is teaming with Alibaba to boost online sales in China as visitors to Japan purchase fewer products and exports become more lucrative. © Reuters

MOTOKAZU MATSUI, YUKI HANAI and YUMA IKESHITA, Nikkei staff writers

TOKYO -- No longer enjoying a boom in bulk buying by Chinese tourists visiting Japan, cosmetics makers Shiseido and Kao have decided to instead sell their wares directly to consumers there.

"Payments with China UnionPay cards are down 30% since December at the Shinjuku branch," said one drugstore executive, referring to the popular payment method used by Chinese tourists. Sales of some products are down by as much as half.

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