1、Asia Pacific Equity Research10 September 2025J P M O R G A NContentsTrends in the Japanese cosmetics market2Retail sector:Revisiting Ryohin Keikakus case study and evolving collaboration between retailers and manufacturers6Cosmetics Sector:Can companies build win-win relationships with drugstores?27

2、Japan Equity ResearchCosmetics and Personal Care/Paper and PackagingAkiko Kuwahara AC(81-3)6736-RetailDairo Murata AC(81-3)6736 Ami Terai(81-3)6736-Kazuha Matsuo(81-3)6736-JPMorgan Securities Japan Co.,Ltd.In this collaboration report between cosmetics and personal care analyst Akiko Kuwahara and re

3、tail analyst Dairo Murata,we look at industry trends for cosmetics makers and the retailing industry and explore investment implications for the main companies.The key point is the full start of partnership strategies between retailers and cosmetics makers.We believe genuine collaboration has begun,

4、transcending past adversarial relationships,given ongoing concentration of each industrys leaders and improved know-how in customer data collection and utilization.We expect further manufacturing-sales collaboration and strengthening of win-win relationships to lead to continued enterprise value gro

5、wth longer term.The second point is developments at MUJI,which has made the greatest share gains in recent years,and associated industry implications.We have re-examined our outlooks,focus points,and investment implications for related companies.This is a follow-up to our Japans Cosmetics Market rep

6、ort of September 25,2024,aiming to provide more detailed research and analysis.Cosmetics:Prerequisites for building win-win relationships:Japan cosmetics market competition is heating up as weaker inbound demand and a shrinking population slow demand growth while imports rise and cross-industry play