11.07.12
8. Kao Corp.
Tokyo, Japan
www.kao.co.jp
Corporate Sales: $14.8 billion
Beauty Sales: $6.5 billion
Key Personnel: Motoki Ozaki, chairman of the board of directors, Michitaka Sawada, president and chief executive officer; Hiroshi Kanda, senior managing executive officer; Tatsuo Takahashi, senior managing executive officer; Toshiharu Numata, senior managing executive officer; Naohisa Kure, vice president R&D, beauty care global; Minoru Utsumi, VP, production and engineering, beauty care supply chain management, global; John Nosek, president of Kao USA Inc.
Major Products: Prestige and mass beauty, including cosmetics, skincare and hair care products Sofina, Kanebo, Molton Brown, Ban, Curél, Bioré, Jergens, Asience, John Frieda, Goldwell, Liese.
John Frieda Hair Care’s Full Repair collection was an instant hit for Kao. |
Comments: At Kao, focus remained on continuous innovation—and sustainable practices—to raise the company’s competitive advantage in competing in the global marketplace. Corporate net sales rose 2.5% to $14.8 billion for Kao’s fiscal year ended March 31, 2012. Beauty care comprised the largest sector of Kao’s business—44.2%—and sales rose 0.8% to more than $6.5 billion.
Japan is the company’s largest market, but overseas markets may offer the greatest opportunity for expansion. Sales of prestige cosmetics grew in Japan and premium hair care sales performed well outside Japan, according to Kao. Sales of prestige cosmetics increased 2.2% due to new product introductions. However, Kao noted that the overall downward trend in prestige cosmetics continued in Japan, due to the lasting effects of the earthquake as well as a shift in consumer preference for lower-priced products. With that in mind, Kao introduced new products under its self-selection brands such as Kate and Evita. In counseling cosmetics, the company improved its Blanchir Superior whitening skincare line as well as its Sofina Beauté skincare brand. The company also revamped its sales methods in an effort to get a lift within a declining market.
Sales of premium skin care products rose in Japan on the strength of new Bioré facial cleansers and Bioré U body cleansers. Outside Japan, Bioré sales were strong in Hong Kong, Taiwan and Indonesia. In North America, Jergens sales rose in the hand and body category.
John Nosek was named president of the newly restructured Kao USA Inc. |
In January, John Nosek was named president of the newly restructured Kao USA Inc., which merged Kao’s prestige, mass and salon businesses.
In February, Kao USA Inc. announced plans to relocate the company’s corporate headquarters and more than 200 employees from its current facility in Cincinnati to the downtown area and make significant investments in its R&D and manufacturing facilities there, as well as adding about 50 new jobs.
In March, Kao was named one of the World’s Most Ethical Companies of 2012, announced by Ethisphere Institute, a U.S. think tank. Since the first listing in 2007, Kao is the only Japanese company that has been included on the list for six consecutive years.