(CBN - Global) April 13 -- Paltac Corp. [JP:8283], Japan's largest wholesaler of cosmetics and daily necessities, will work with China's biggest pharmaceutical distribution company, Sinopharm Group Co. [HKG:1099], to enter the nation's e-commerce market.
Paltac is mainly engaged in the sales of more than 30,000 types of cosmetics and health food products, and the brands it distributes include many well-known Japanese cosmetics such as Kanebo, Kose and Shiseido.
The Osaka-based company will supply Japanese products to Sinopharm's online outlet on Tmall Global, the imported goods retail platform run by Alibaba Group Holding Ltd. [NYSE:BABA]. Called Sinopharm Overseas Flagship Shop, from mid-April the Internet store will stock around 60 different Paltic products from 10 companies, including makeup removers, hair care products and health food products.
Many Japanese cosmetics and health care product manufacturers are hesitant to enter the Chinese market because of the long time it takes to secure a distribution license and the proliferation of counterfeit goods in China. Japanese manufacturers also rarely conduct business on non-Japanese e-commerce platforms.
However the tremendous spending power demonstrated by Chinese visitors to Japan has shown Japanese companies the potential of the Chinese market.
Last year spending by visitors to Japan exceeded JPY3 trillion (USD27.55 billion) for the first time and Chinese tourists accounted for almost half of that amount, according to statistics from the Japan National Tourism Organization.
Cosmetics and health care products are among the most popular products snapped up by Chinese visitors. Average expenditure by Chinese tourists to Japan is JPY283,800 (USD2,600), JPY100,000 more than tourists from other countries.