Declining SK-II Skincare Sales Attributed to Anti-Japan Sentiment in China

Procter & Gamble (P&G) has reported a decline in sales for its high-end skincare brand, SK-II, with a 34% drop between October and December. The company attributed this decrease to China's slow recovery and anti-Japanese sentiment. P&G executives blamed the release of treated radioactive water from Japan's Fukushima nuclear power plant, which led to China banning seafood imports from Japan despite assurances from the UN regarding its safety. Although scientists believe the environmental impact is minimal, misinformation fueled fear among Chinese consumers, prompting a boycott of Japanese brands, including SK-II. Japanese schools were subjected to attacks and businesses in Fukushima received numerous hostile phone calls. However, P&G's executives noted that SK-II's sales are slowly improving in recent months. This is not the first time a boycott has affected SK-II or Japanese brands in China, as the same occurred in 2012 during anti-Japanese protests over a territorial dispute. P&G's CEO mentioned that previous tensions have also impacted SK-II's sales, but the brand has always managed to recover. Although P&G's overall earnings were mixed, with a reduction in annual profit forecast due to a charge related to its Gillette business, demand for the company's daily-use products in grooming and home care segments remained strong.