NO Japan crossing into China... "Not buying Japanese cosmetics" angered by contaminated water

Chinese consumers boycott Japanese cosmetics... Related stocks falter
Japan says "Impact limited... Not a major trend"

As the Japanese government pushes forward with the ocean discharge of Fukushima contaminated water, Chinese consumers have launched a 'Japan cosmetics boycott,' causing the stock market to wobble briefly.

According to The Japan Times and others on the 25th, last week, a 'Japan cosmetics boycott' began among netizens primarily on social networking services (SNS) in China. They are conducting hashtag campaigns related to Fukushima contaminated water, expressing opposition to the discharge.

On the 22nd, a banner was hung on a fishing boat at Wando Port in Wando-gun, Jeollanam-do, during a rally opposing the discharge of contaminated water from the Fukushima nuclear power plant. [Image source=Yonhap News]

On Weibo, China's largest SNS, hashtags related to Fukushima contaminated water have recorded 300 million views. Netizens are especially sharing lists of Japanese cosmetics brands and raising concerns about the safety of cosmetics due to the contaminated water discharge. In a survey on the shopping platform Xiaohongshu, 79% of 4,472 respondents said they "would not use Japanese cosmetics."

As a result, Japanese cosmetics companies reportedly experienced the impact of the boycott in the stock market for a time. Shiseido's stock price fell 6.7% last week, marking its largest weekly drop in 10 months. Other cosmetics manufacturers such as Pola Orbis and Kose also slid more than 3%.

Wakako Sato, an analyst at Mitsubishi UFJ Morgan Stanley Securities, said, "The fundamental reason Japanese brands are showing poor performance is the deterioration of domestic consumption," but also pointed out, "This boycott could be an opportunity for Chinese consumers to move away from Japanese premium cosmetics brands."

The discharge of Fukushima contaminated water has caused concerns and dissatisfaction among neighboring countries, including South Korea. In particular, China strongly condemned Japan's plan to discharge contaminated water at last month's World Health Assembly (WHA) and demanded that Japan not release contaminated water until an agreement is reached with neighboring governments.

Some Chinese netizens are arguing on SNS that not only Japanese cosmetics brands but also baby products, food, and Chinese brands using Japanese raw materials should be boycotted.

On the other hand, P&G, which owns the Japanese cosmetics brand 'SK-II,' issued a statement saying, "No products manufactured in Japan carry any risk of radioactive contamination," and explained that "the concerns spreading online are incorrect."

However, in Japan, efforts are underway to contain the situation, with forecasts that this boycott will not escalate into a large-scale 'No Japan' movement.

Mitsuko Miyasako, an analyst at Jefferies, said, "Unless the government bans imports, the impact of the boycott on Japanese cosmetics will be limited," adding, "I do not expect the boycott to form a major trend or negatively affect the performance of Japanese companies."

Jinny Chen, senior analyst at Morningstar Research, also analyzed, "Some netizens opposing Japan will try to use this opportunity to boycott all Japanese brands," but "Chinese consumers will not necessarily join unconditionally."

This content was produced with the assistance of AI translation services.