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Read my lips - Abenomics is losing its gloss

Published 07/03/2016, 22:41
Updated 07/03/2016, 22:51
© Reuters. Lipsticks are displayed at a shop of Shiseido Co in Tokyo
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By Kaori Kaneko

TOKYO (Reuters) - Lipstick shades are kissing off Japan's short-lived economic recovery, and fashion industry hues are turning as sombre as a central banker after another ineffectual splurge of money printing.

In the first year of "Abenomics", the economic stimulus programme of Prime Minister Sinzo Abe, when stocks were booming, exports rising and deflation in retreat, Shiseido Co (T:4911) introduced a sassy new lip gloss that reflected the new confidence.

It had been more than 20 years since a red as bright as Shiseido's Lacquer Rouge 413 had been popular, the company said, recalling the boom era before Japan tumbled into two decades of stagnation and deflation in the early 1990s.

Now growth has again turned negative, inflation is flatlining and consumer spending has notched up a fifth straight month of declines, the colour is draining from Shiseido's lips.

Sales are shifting to hues like Maquillage Dual Color Rouge 10, which is closer to natural Japanese lip colour, and 800 yen cheaper than its hot red cousin.

Japan's fading recovery is being matched in the fashion industry.

"There were hopes in society that something good would happen when Prime Minister Abe's government started," said Reiko Ohno, spokeswoman for the Japan Fashion Color Association.

"That timing matched the momentum when the fashion industry was trying to introduce colourful items." Last year, though, as optimism ebbed, fashion turned to more dowdy beiges, greys and navy blues, she said.

© Reuters. Lipsticks are displayed at a shop of Shiseido Co in Tokyo

With the Bank of Japan expected to cut growth and price forecasts for next year, sources say, the palette for 2017 could be very dour indeed.

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