The scent of trees reminiscent of a forest wafted over a corner of the cosmetics department in the Shin-Marunouchi Building opposite Tokyo Station in Chiyoda Ward, Tokyo.
The aroma was coming from a nearby store managed by Shiseido Co. for its new brand Baum, launched in June 2020. The shelves were lined with products that use pieces of oak in their caps and cases.
The new brand is part of an effort to develop environmentally friendly products. The theme is "symbiosis with trees."
Avoiding chemicals as much as possible, most products are made from at least 90% natural alternatives, such as cherry leaf extract. Plant-derived plastic was used for some products' containers.
All of this is reflected in the cost. Skin care products such as lotion and emulsion cost nearly 10,000 yen apiece.
The target market was women in their 30s. However, the company found that about half of the brand's customers are young people in their 20s.
"The younger the person, the more they sympathize with the concept. Awareness of caring for the environment has permeated faster than I expected," said the global brand manager at Shiseido who took part in creating the Baum brand.
Fancl Corp. has set a goal of using paper for all its cosmetics packaging by March 2024. About 15% of its products use plastic in their containers. Switching to paper will cut plastic use by about 100 tons per year.
The industry believes it needs to pay attention to the United Nations' sustainable development goals (SDGs) on areas such as environmental protection and gender equality.
"In the future, brands not addressing environmental problems will be out of the question," a representative of a major cosmetics company said.
-- Human rights
A sense of crisis is driving cosmetics makers as a harsh eye is being turned on the raw materials used to make the products.
David Muenz, Kao Corp.'s executive officer who runs the ESG (environment, social and corporate governance) division, said that the sustainability of the raw materials the company depends on will determine its future.
Muenz previously led research and development and sales strategy at Kao's U.S. subsidiary. He was appointed to be in charge of the firm's new ESG division when it was established in 2018.
One important raw material for Kao is palm oil, which it uses in cosmetics and detergents.
About 80% of palm oil comes from farms in Indonesia and Malaysia. Deforestation has long been an issue with palm oil farms, but recently poor working conditions have also received criticism.
Kao has begun providing assistance to improve the working conditions on such small farms in Indonesia.
By 2030, together with local palm oil processors and other stakeholders, the company plans to invest about 500 million yen in about 5,000 farms, money that will be used to provide gloves, helmets and other equipment.
Questions have also been raised about the use of child labor, a human rights issue that could harm a company's image, depending on how it addresses it.
Worldwide, major clothing companies are being scrutinized over cotton products said to be manufactured using forced labor in the Xinjiang Uygur Autonomous Region of China.
Thus, any slip-up in addressing the palm oil issue could invite backlash against cosmetic companies as a whole.
Muenz said Kao would provide support based on a clear understanding of supply chain issues to ensure human rights violations would not occur.
Investment is important in preparing for risks that have never been encountered.
-- Beyond gender
The roles that cosmetics are being expected to fill are also changing. Kose Corp. in May announced a new line of stick-shaped cosmetic products for its Fasio brand.
A single stick can be used on the cheeks, lips and eyes, and they come in a variety of colors that are unusual to cosmetics, such as yellow and green. The line is becoming popular among young men.
"We were aiming for a genderless, easy-to-use product," a Kao public relations representative said, describing why gray packaging that men would not feel uncomfortable carrying was adopted.
Some couples even share cosmetics. Products that transcend gender boundaries have a growing presence.
In addition to the coronavirus crisis, the cosmetics industry is being buffered by other new trends. Each company will need to harness its wisdom and ingenuity for the return to a growth path.
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