The Backlash by the public of South Korea against products made by Japan has affected some sales of tour packages and also beer. Analysts are saying that this boycott might spread to retailers and luxury cars as no sign of the ending of the trade spat in the two countries can be seen.
The sales of beer made by Japan at a convenience store chain CU of South Korea have dropped forty percent in the month of July as compared to the last month. Considering the reports to be true, Asahi Group Holdings Limited that has the most famous foreign beer in Korea might lose almost thirty billion (twenty-five million dollars) to fifty billion won in their revenue in 2019 in Korea.
Although Fast Retailing Corporation does not have much exposure towards Korea via its Uniqlo stores, this clothing chain too, was able to observe a decline in its annual sales growth. Some of the traders are betting that a few low-end domestic garment manufacturers like ShinsungTongsang Corporation shall benefit.
The luxury cars of Japan might also take a hit. According to data collected from the Korea Automobile Importers & Distributors Association, Toyota Motor Corporation along with Honda Motor Corporation own a combined market share of almost nineteen percent of the South Korean foreign car market.
On the other side, the anti-Japan reaction is already causing damage to a few of the Korean travel companies. A travel agency, Hana Tour Service Inc. has observed sales of their tour programs in Japan fall thirty percent in July’s second week as compared to the previous year. The shares of Hana Tour reduced by thirteen percent in July, whereas the low-cost carrier Jejuair Corporation plunged nineteen percent.
Tomoichiro Kubota said that if the relations of the two countries continued to deteriorate then although the impact of consumer goods on Japanese exporters seems to be limited, it will have a much greater overall effect.