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Putting a Brave Face on Hard Times

By Hiroko Tashiro & Ian Rowley

Putting a Brave Face on Hard Times

These are trying times for retailers in Japan. Even when the economy was recovering during the past few years, retail sales were slipping. Now that the country is facing what could be a long recession, the outlook is even bleaker. Cosmetics companies, though, are doing their best to buck the trend. This year, Fuji Keizai, a Tokyo research group, reckons sales will edge up 3% to $24 billion and further growth is expected in the future. Indeed, some companies, often from completely unrelated sectors, are launching cosmetics products to boost sales.

Here's a look at some possible explanations for the surprising stability of Japan's cosmetics business: