Cosmetics: May sales in Hainan Province: Tax-free sales up slightly, imports from Japan up 48%

Research evidence excerpt

Cosmetics: May sales in Hainan Province: Tax-free sales up slightly, imports from Japan up 48%

Global Markets Research

Cosmetics: May sales in Hainan Province 22 June 2026

EQUITY: JAPAN TOILETRIES & COSMETICS

Tax-free sales up slightly, imports from Japan up Research Analysts

48% Japan toiletries & cosmetics Yuji Ohana - NSC

yuji.ohana@nomura.com

We forecast a decline in tax-free sales (sell-in basis) in China in Apr–Jun +81-3-6703-1143

May tax-free sales: Slight slowdown in sell-out

The Hainan Provincial Bureau of Statistics released May tax-free sales and trade statistics

for the province on 18 and 20 June, respectively. Tax-free sales (sell-out basis, all

products) were up only slightly y-y at CNY1.96bn in May (up 10% in April; Figure 1).

Traveler numbers at Hainan Province's three main airports were down 5% (up 5%)

because of differences in the timing of the Dragon Boat Festival (31 May–2 June in 2025;

19–21 June in 2026), but sales look to have been somewhat lackluster when considering

that the boost from the relaxation of tax-free regulations has yet to run its course. Average

spending per visitor was up 2% (up slightly), while average spending per purchase was up

6% (up 7%), not that different from April (Figures 2 & 3).

Cosmetics imports: Imports from Japan up for seventh straight month in May

Cosmetics imports (sell-in basis) fell 4% to CNY980mn in May (down 3% in April),

marking a second straight month of decline. However, imports from Japan rose 48% to

CNY210mn (up 28%), marking a seventh straight month of growth (Figures 4 & 5), and

shipments to Hainan Province from Shiseido [4911] and Kose Holdings [4922] also look to

have been strong. Looking at cosmetics imports in May from the main countries in which