JAPAN: As online shopping continues to surge, counterfeit cosmetics have become a significant issue, particularly in e-commerce marketplaces where consumers cannot physically verify their products. In response, cosmetics brands in Japan are increasingly turning to innovative packaging technologies, including QR codes, NFC tags, and blockchain, to combat the growing tide of fake beauty products.
In an article published by Retail Asia, Ahmad Khan, a Senior Analyst at GlobalData, says that counterfeiters often employ misleading tactics, such as using subpar ingredients, replicating packaging, and creating fake websites, to deceive buyers. Social media platforms like YouTube, Instagram, and TikTok further amplify these risks, with 37% of Japanese consumers being influenced by ads they see online. These factors have prompted a shift toward advanced packaging solutions that offer consumers greater security and transparency when shopping for cosmetics online.
The growth of intelligent packaging
Adopting intelligent packaging technologies offers more than protection against counterfeit goods. In addition to the apparent benefits of QR codes and NFC tags, augmented reality (AR) features and interactive product tutorials are becoming essential tools for brands looking to build stronger connections with consumers. These features verify the authenticity of products and enhance customer engagement, fostering greater brand loyalty.
Mr Khan notes that the Japanese beauty industry is projected to grow 5% to 7% annually through 2028, with online shopping expected to make up 21% of the market. As consumer demands shift toward more digital experiences, the need for these innovative technologies is becoming even more pressing.
Despite the rising importance of these technologies, there are still hurdles to overcome. The high costs associated with advanced solutions like NFC tags and blockchain pose significant barriers for smaller brands. While simpler technologies like QR codes are affordable, the infrastructure required for more sophisticated options can be a heavy investment. Limited consumer awareness, privacy concerns, and environmental impacts compound this challenge.
However, Mr Khan suggests that smaller brands could mitigate these challenges by exploring lower-cost alternatives, such as website verification or partnering with tech providers to share expenses.
The limits and future of intelligent packaging
Despite the potential benefits, not all consumers fully embrace the shift to intelligent packaging, particularly when it comes to everyday toiletries. Aya Suzuki, Senior Analyst at Euromonitor International, points out that online shopping for beauty products has yet to significantly disrupt the market, especially in Japan, where many consumers prefer to test products in person at physical stores. Online shopping is more common for high-value items like premium skincare, but cost barriers for more affordable toiletries remain a concern.
While intelligent packaging is a growing trend, Suzuki notes that significant technological advancements will likely be confined to niche segments such as premium beauty and luxury products in the short term. She suggests that the widespread use of these technologies may take a few more years to materialize, especially for mass-market goods.
With the continuous development of artificial intelligence, blockchain, and eco-friendly materials, the evolution of intelligent packaging is set to reshape the cosmetics industry. Brands positioned to meet these demands will likely be the frontrunners in the ongoing battle against counterfeit products.