Japan Retail Sector: Japan remains affordable. Examining cost performance from a Chinese perspective

研报英文原文证据摘录

Japan Retail Sector: Japan remains affordable. Examining cost performance from a Chinese perspective

Global Research

15 June 2026ab

Japan Retail Sector Equities

JapanJapan remains affordable. Examining cost

performance from a Chinese perspective Retail

Takahiro Kazahaya

Analyst

takahiro.kazahaya@ubs.com

Summary +81-3-5208 6226

We believe the relative affordability of Japanese luxury brand prices on an international Kazuki Oike

basis to be a factor behind the strong demand for Japanese luxury brands (for details, Associate Analyst

please see"Luxury Sector: European tax-free sales and brandprice index—Japan at 82 kazuki.oike@ubs.com

compared to China setat 100"). This report analyzes how international tourists to Japan +81-3-5208 6964

benefit from the differences in domestic and overseas prices for luxury goods, focusing

in particular on inbound visitors from China. The analysis suggests that, particularly for

higher-ticket luxury brands, the price paid in China could potentially cover not only the

purchase of the same product in Japan but also the full cost of travel. We believe that as

long as the relative affordability of Japanese luxury brand prices remains in place,

demand will likely remain stable.

The domestic and overseas price gap for luxury brands

According to UBS Evidence Lab's luxury brand price index, as of the end of April 2026,

with France set as the baseline at 100, the index scores were 119 for mainland China,

105 for Hong Kong, 99 for South Korea, and 98 for Japan, below France for the fifth

successive month. Compared to 110 in the same month of the previous year, Japan’s

relative affordability has increased. Japan has the strongest price competitiveness vs.

France since early 2019. Since the price index does not factor in tax refunds, inbound