Japanese Beauty Brands Leverage Intelligent Packaging to Combat Counterfeiting
By 2028, it is expected that 21% of Japan’s cosmetics and toiletries (C&T) market will be driven by online shopping, underscoring the necessity for improved consumer protection measures in the online purchasing of these items. C&T manufacturers stand to benefit significantly by investing in innovative packaging technologies, such as blockchain and data tracking to check counterfeiting. This trend coincides with the anticipated value growth of e-commerce sales in Japan’s C&T industry, which is set to expand at a compound annual growth rate (CAGR) of 5-7% during 2023–28, says GlobalData, a data and analytics company.
Mani Bhushan Shukla, Consumer Analyst at GlobalData, comments: “C&T brands face significant risks from counterfeit products, making it essential to tackle these issues to protect consumer safety and preserve brand reputation. As more customers shop online, where they can’t interact with sales personnel or physically test products, investing in innovative packaging solutions becomes crucial. Intelligent packaging can offer consumers the reassurance they need by providing authentication and transparency, helping brands safeguard their products and build trust with their customers.”
Mariko Kadosaka, Key Account Director, Japan, GlobalData, notes: “Modern consumers are increasingly interested in the details of the products they purchase, such as the origin of ingredients, sustainability credentials, and packaging recyclability. Intelligent packaging can meet these demands by incorporating features like scannable QR codes, which provide buyers with specific information. This transparency helps build consumer trust and reassures them about the products, strengthening their connection with the brands they engage with.”
Shukla adds: “Consumers, particularly in younger demographics, are highly attuned to pricing, brand image, and current trends, driving their demand for the latest products at competitive prices. This group is also comfortable with online interactions, where beauty influencers frequently promote products on social media, leading to a significant rise in online purchasing behavior. Their active presence on social media and awareness of trends may render them more vulnerable to counterfeit goods.
“A survey corroborates this trend, where 46% of gen Z and 58% of millennials among Japanese respondents stated that they have been buying non-grocery products online, including C&T, more often in the last three months. Correspondingly, 35% of gen Z respondents and 37% of millennials stated that they have been engaging in more frequent purchases of non-grocery products through social media platforms, including C&T.”
Kadosaka continues: “The counterfeit market, valued at trillions of dollars, presents a major global challenge across industries, including C&T. To combat this issue, many companies are turning to technology for solutions that serve various purposes. This shift is driven by the need to showcase the sustainability and ethical practices of their supply chains, in addition to addressing counterfeiting concerns. Aligning with this trend, Meiyume introduced NFC-enabled smart packaging to address counterfeiting, enhance consumer personalization, and strengthen brand value.
“The importance of intelligent packaging is increasing alongside the digitalization of supply chain operations. New packaging features, incorporating advanced “smart” technologies, offer manufacturers the opportunity to revolutionize their operations. These innovations can optimize inventory management, reduce transportation costs, and minimize waste, leading to more efficient and sustainable supply chains.”
Shukla concludes: “The future of intelligent packaging solutions offers key benefits, including improved consumer engagement, reduced counterfeiting, and enhanced brand loyalty. Interactive packaging can attract first-time buyers and encourage repeat purchases by offering unique experiences. With numerous ecommerce touchpoints, consumers are often drawn to appealing offers from trusted brands. By implementing intelligent packaging, either through an application or directly on the product, both consumers and brands benefit: consumers receive secure, trustworthy products, while brands protect their trademarks and preserve their reputations.”
The preceding press release was provided by a company unaffiliated with Packaging Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Packaging Impressions.
