Kao looks to rebuild its reputation after product recall

Consumers are turning their backs on Japan’s Kanebo Cosmetics (Kao) products following the recall of its skin whitening cosmetics last month. According to Japanese media reports, department stores and drugstores have noticed a decline in Kanebo sales. One department store said Kanebo sales fell as much as 20% in July compared with the same period in 2012, while sales increased for rival brands Shiseido and Kose. A leading drugstore operator also said Kanebo sales tumbled over 20%.

The recall will cut Kanebo’s sales in the fiscal second half of the year by about 10%, according to some analysts. Others predict that the impact could be greater if consumers cut back their use of all Kanebo products in general.