Mills International sold luxury perfume online for 28 years — the weak yen killed it

Mills International was founded in 1997 in Yokosuka, Kanagawa, as an online perfume retailer. Operating through major Japanese e-commerce platforms, the company built its business on a low-price strategy and a wide product range of imported luxury-brand fragrances, attracting repeat buyers in a market where few specialized online perfume stores existed. As sales grew, it invested in an automatic packaging system to improve operational efficiency.

The coronavirus pandemic dealt the first blow, reducing perfume sales as consumers stayed home and discretionary spending contracted. Sales began recovering after Japan shifted to 'with corona' policies in April 2023, but a new threat emerged: the yen's sharp depreciation. As an importer of overseas fragrances, Mills International saw procurement costs surge just as online price competition for perfumes intensified.

The combination of rising import costs and falling margins proved fatal. Cash-flow difficulties mounted, and on December 23, 2025, the Yokohama District Court's Yokosuka Branch issued a bankruptcy commencement order. Liabilities were estimated at approximately ¥1 billion. The case illustrated how a currency shock can destroy a business model built on importing and reselling at thin margins.