How’s business in Japan?
We had a banner year last fiscal year (ending June 30, 2008). Last July-September was pretty consistent, but the 2nd quarter was a bit slower. Cosmetics tend to be more recession-resistant because consumers are more emotionally committed to the category. However, it’s getting more difficult because consumer mindset has become negative since February. What trends have you seen amid the economic downturn? Because many customers register with us, we are able to match about 85% of them with a transaction. Whereas 20-30% of business each month used to be new customers, it is getting more difficult to maintain that new customer share. On the other hand, loyal customers are staying with us. What is your best-selling brand? Clinique, a skin care brand which has been in the market for 30 years, is our No. 1 seller in Japan. That is the brand that really created the cosmetic business in department stores. Who are your core customers? We have two make-up artist brands, one called MAC, which is pr
