Insight
Advertising regulations for cosmetics are essential for protecting consumers.
On the other hand, with the spread of social media and cross-border e-commerce—and as information about overseas brands reaches us daily—we’re now hearing concerns that “Japanese brands may be the only ones struggling under such strict rules.”
How can J-Beauty increase its global presence moving forward?
And to achieve that, how should advertising regulations and the way beauty information is presented evolve?
In this series, we’ll be speaking with individuals from various backgrounds in the beauty industry about the future of J-Beauty and advertising regulations.
Our guest this time is Atsushi Takeoka, a skincare ingredient expert.
Having examined cosmetics from the perspectives of ingredients, formulations, and dermatology, how does Mr. Takeoka view current advertising regulations? Amid a changing competitive landscape driven by social media and cross-border e-commerce, we asked him about the perspectives J-Beauty needs to compete on the global stage.
Skincare Ingredient Hunter
He analyzes and shares insights on skincare products from the perspectives of ingredients, formulations, and dermatology. Drawing on his expertise in cosmetics R&D, ingredient design, advertising claims, and domestic and international beauty trends, he explores the potential of J-Beauty from multiple angles.
I believe the current regulations on cosmetics advertising serve a certain purpose as a mechanism to protect consumers.
It is, of course, necessary to avoid factual inaccuracies and exaggerated claims, and since these are cosmetics, we should be cautious about using language that suggests they have effects similar to those of pharmaceuticals.
On the other hand, under the current regulatory framework, it seems that it has become difficult to even suggest the efficacy of any product.
Ideally, products should be categorized in greater detail based on the specific research conducted during development and the available evidence.
However, under the current system, it is difficult to adequately reflect the results of research and development and the accumulated evidence in advertising messages.
Of course, to some extent, this is unavoidable given the current standards of the Pharmaceutical and Medical Devices Act and the Act Against Unjustifiable Premiums and Misleading Representations.
Nevertheless, I believe the situation where products backed by serious, ongoing research find it particularly difficult to communicate their value to consumers is an issue that warrants further consideration in the future.
Mr. Takeoka’s Perspective
“I feel that it has become unacceptable to imply the efficacy of any product, and that classifications are not being made based on research and development or evidence.”
One particular challenge I’ve noticed in the field is the disparity in regulatory compliance.
In the past, even overseas luxury brands maintained branches in Japan and conducted sales and advertising while adhering to Japanese laws.
As a result, I believe both overseas and domestic brands were able to compete on price, quality, and brand strength within the same regulatory environment.
However, since the COVID-19 pandemic, the influx of overseas products—including personal imports and cross-border e-commerce—has increased significantly.
Furthermore, I believe that the spread of smartphones and social media, combined with the growing interest in Korean culture that began in the mid-2010s, has led to a rapid influx of Korean skincare products since 2022.
Behind this trend lies the rise of influencer marketing.
Influencers, companies supporting social media, Korean brands, and OEM manufacturers are collaborating to spread products at a pace unlike anything seen in the traditional cosmetics industry. Furthermore, emerging companies from outside the cosmetics industry have also entered the market.
As a result, I feel that the prevailing trend in the domestic market—of “striking a balance while adhering to regulations”—has begun to break down.
Products developed under overseas regulations are being promoted in ways that Japanese regulations cannot fully restrict.
On the other hand, Japanese products are heavily influenced by domestic regulations.
I feel that this “reverse disparity” is a major problem.
However, this is not simply a matter of saying, “The Korean approach is terrible.”
I believe that the Japanese side also needs to change its mindset regarding development and PR strategies.
Mr. Takeoka’s Perspective
“It’s not just that South Korea’s approach is terrible; I think Japan also needs to change its mindset regarding development and PR.”
I do not believe there is a need to make major changes to the basic guidelines regarding advertising regulations.
What we must uphold are rules that prevent “exaggerated claims” or “misrepresentations of facts” for consumers.
We should, of course, exercise caution regarding unsubstantiated claims of effectiveness and expressions that suggest medicinal benefits.
However, the implementation methods need to be further refined.
For example: Is it based on basic research or clinical evaluation?
Is it a cosmetic or a quasi-drug?
What kind of evidence does it rely on?
Taking these differences into account, we need a system that prevents misunderstandings among consumers while allowing companies to accurately communicate their products’ value.
Furthermore, it will no longer be sufficient to focus solely on the domestic market.
I believe it is important to design a regulatory framework that takes overseas markets into account from the perspectives of both exports and imports.
I believe there are two major factors behind J-Beauty’s international competitiveness.
One is formulation expertise, and the other is foundational technology.
When it comes to formulation, our strengths lie not only in the breadth and sophistication of textures but also in quality aspects, including stability.
Of course, preferences for texture vary by region, and overseas brands are improving year by year. Japan cannot maintain a permanent advantage based on that alone.
On the other hand, I believe Japan is at a very high global standard in the deepening of fundamental technologies in dermatology and formulation.
In a sense, this is an area that has grown precisely because of strict advertising regulations.
I believe that because we cannot simply claim efficacy in advertisements, emphasis has been placed on accumulating basic research and technological expertise.
However, there are also challenges.
Because we have long been in an environment where we cannot make any claims in advertisements, clinical evaluation techniques have not advanced sufficiently in some areas.
Basic research is strong.
But how do we demonstrate that through clinical evaluation?
And how do we communicate it to consumers?
Basic research and clinical practice; cosmetics and quasi-drugs.
I believe that how we manage these two major pillars will be crucial for the future enforcement of the Pharmaceutical and Medical Devices Act and the Act Against Unjustifiable Premiums and Misleading Representations.
To expand J-Beauty overseas as a national strategic industry, changes driven solely by the self-interest of individual companies are insufficient.
I believe it is necessary to establish a fair national framework and promote information sharing.
Inevitably, the development of industry frameworks tends to favor the vested interests of long-established major companies.
However, relying on that alone will cause us to fall behind the pace of global competition.
In South Korea, there are numerous government support frameworks for basic research, and data on skin differences across races and countries has been widely shared.
Furthermore, regarding advertising regulations, while claims equivalent to those for pharmaceuticals are prohibited, the scope of promotional claims has been expanded by establishing rules for clinical trial evidence regarding beauty effects.
As a result, clinical trials have become a key component of development for each brand, and I believe this has become one of the strengths of K-beauty.
On the other hand, now that clinical trials have run their course, it has become harder to distinguish differences among K-beauty brands.
This is because when all brands conduct similar clinical trials, it becomes difficult to convey the differences in quality.
In this context, Japan’s international competitive advantage lies in its extremely strict regulations and its accumulated body of basic research.
Basic research, clinical evaluation, cosmetics, quasi-drugs, pharmaceuticals, and aesthetic treatments.
Furthermore, the Pharmaceutical and Medical Devices Act and the Act Against Unjustifiable Premiums and Misleading Representations.
I believe we should organize these elements without compartmentalizing them and promote them overseas as a highly reliable “J-Quality.”
When considering the design of systems for the social media era, the first thing to keep in mind is that many of today’s mainstream social media and e-commerce platforms are operated by foreign companies.
Control over the flow of information and algorithms lies with these foreign platforms.
Furthermore, individuals adapt to these changes more quickly than companies do.
On the other hand, companies are inevitably constrained in their communications due to compliance requirements. There are also limits to how much we can restrict all individual posts.
As a result, corporate communication tends to be limited to press releases and company-owned websites.
However, this alone is insufficient to effectively navigate information distribution in the age of social media.
What is needed is a convenient and reliable platform where users can learn everything about J-Beauty.
This platform would aggregate product information, research findings, ingredient details, and brand information.
Furthermore, it would feature a system allowing registered beauty professionals to provide expert commentary.
The vision is to design a space where the act of sharing information itself carries a certain level of authority.
If similar information is disseminated in a scattered manner, it becomes fragmented.
That does not constitute a national strategy.
Highly flexible content and feedback shared via social media, combined with official information from the government and companies.
Plus, a system where registered beauty professionals can provide commentary.
I believe it is crucial to combine these elements to increase the exchange of information and create an environment where both the government and companies can implement the PDCA cycle.
Above all, it is essential to establish standards as a nation and as an industry.
Mr. Takeoka’s Perspective
“In any case, it’s important to establish standards—both at the national level and within the industry.”
What emerged from Mr. Takeoka’s comments was a perspective that goes beyond simply discussing whether to “relax or tighten” advertising regulations.
Rules to protect consumers are necessary.
At the same time, there is a need for a system that allows products developed through research and development and backed by evidence to accurately convey their value.
How can we link J-Beauty’s strengths—formulation technology and basic research—to clinical evaluation and communication, and present them to the world as “J-Quality”?
Transforming strict regulations into a standard of trust may be the key to J-Beauty’s future competitiveness.