10.18.11
9. Kao Corporation
Japan
www.kao.com
Beauty Sales:
$6.4 billion
Corporate Sales:
$14.3 billion
Key Personnel:
Motoki Ozaki, representative director, president and chief executive officer; Shunichi Nakagawa, executive vice president; Hiroshi Kanda, representative director, senior executive vice president; Naohisa Kure, vice president, global research and development (Beauty Care).
Major Brands/Products:
Prestige cosmetics, and premium skin care and hair care products, from brands including Kao, Sofina, Kanebo, Molton Brown, John Frieda, Goldwell, Asience, Bioré, Jergens, KMS.
New Products:
John Frieda Foam Hair Color, Molton Brown Navigations Through Scent fine fragrance collection, Bioré Steam Activated Cleanser, Grace Sofina anti-aging cream, Goldwell Soft Color Foam.
Comments:
Beauty accounted for 45% of company sales in FY 2010, equaling slightly more than $6.4 billion. Overall corporate sales were strongest in Japan, followed by Asia & Oceana, North America and Europe.
In a year that showed moderate global improvement, local preferences in Japan turned to more economical choices in part due to deflation and employment uncertainty. Thus, the Kao Group focused on consumer-driven product development, efficient marketing and cost reduction activities, while simultaneously rebuilding its prestige cosmetics business and introducing high-value-added products.
Despite the efforts, beauty care sales declined 2.6% to $6.4 billion. Sales of prestige cosmetics fell 4% to just under $3 billion, due to the preference for lower priced products as well as the Great East Japan Earthquake of March 11. To encourage consumers to buy again, Kao introduced a multifunctional cream and a low-priced line of skin care products to its Fréshel brand. It also concentrated on boosting megabrands such as Coffret D’Or makeup and Sofina Beauté skin care products (including a new line of skin whitening products) and Sofina Primavista base makeup, which reached sales in excess of $120 million. While sales in general declined in China, sales of prestige cosmetics were strong in Asia, specifically in Taiwan and Thailand. The Bioré brand played a large role in contributing to premium skin care sales in Japan and the rest of Asia. In the U.S., Kao launched a new version of Curél sensitive skin care products and expanded distribution.
Hair care sales were flat in Japan, but sales rose in the rest of Asia due to the launch of Liese hair color foam in Asia. In North America, sales of Goldwell and KMS professional hair care brands rose, while in Europe, the launch of hair color foam contributed to John Frieda sales.
Kao also stepped up its anti-aging offerings, taking advantage of the global baby boomer market, introducing a Grace Sofina cream for women in their 60s and above, and the anti-aging Segreta hair care series.
In February, Kao filed infringement lawsuits against Henkel AG & Co. for sales of foam type hair color products.
In March, Kao was named one of the World’s Most Ethical Companies 2011, announced by Ethisphere Institute, a U.S. think tank. Kao is the only Japanese company that has been included in the lists for five consecutive years.
For fiscal 2011, Kao determined to continue concentrating efforts on a select number of brands and improving efficiency in marketing, personnel and other areas to reduce costs.
At the end of July, Kao’s announcement of better-than-expected first quarter sales, in general, indicated that its strategies might be working. But its beauty division continued to struggle, falling half a percent to about $1.6 billion. Kao said while new products did well in North America and Europe—in particular, John Frieda foam color—the cosmetics market in Japan continued to slide.
In August, Molton Brown launched its first artisanal fine fragrance collection, with five unisex fragrances inspired by countries along the ancient spice route.
Goldwell recently revamped its U.S. website, and products are currently undergoing packaging and formulation updates.
Japan
www.kao.com
Beauty Sales:
$6.4 billion
Corporate Sales:
$14.3 billion
Key Personnel:
Motoki Ozaki, representative director, president and chief executive officer; Shunichi Nakagawa, executive vice president; Hiroshi Kanda, representative director, senior executive vice president; Naohisa Kure, vice president, global research and development (Beauty Care).
Major Brands/Products:
John Frieda foam color gave a big boost to Kao sales. |
New Products:
John Frieda Foam Hair Color, Molton Brown Navigations Through Scent fine fragrance collection, Bioré Steam Activated Cleanser, Grace Sofina anti-aging cream, Goldwell Soft Color Foam.
Comments:
Beauty accounted for 45% of company sales in FY 2010, equaling slightly more than $6.4 billion. Overall corporate sales were strongest in Japan, followed by Asia & Oceana, North America and Europe.
In a year that showed moderate global improvement, local preferences in Japan turned to more economical choices in part due to deflation and employment uncertainty. Thus, the Kao Group focused on consumer-driven product development, efficient marketing and cost reduction activities, while simultaneously rebuilding its prestige cosmetics business and introducing high-value-added products.
Despite the efforts, beauty care sales declined 2.6% to $6.4 billion. Sales of prestige cosmetics fell 4% to just under $3 billion, due to the preference for lower priced products as well as the Great East Japan Earthquake of March 11. To encourage consumers to buy again, Kao introduced a multifunctional cream and a low-priced line of skin care products to its Fréshel brand. It also concentrated on boosting megabrands such as Coffret D’Or makeup and Sofina Beauté skin care products (including a new line of skin whitening products) and Sofina Primavista base makeup, which reached sales in excess of $120 million. While sales in general declined in China, sales of prestige cosmetics were strong in Asia, specifically in Taiwan and Thailand. The Bioré brand played a large role in contributing to premium skin care sales in Japan and the rest of Asia. In the U.S., Kao launched a new version of Curél sensitive skin care products and expanded distribution.
Hair care sales were flat in Japan, but sales rose in the rest of Asia due to the launch of Liese hair color foam in Asia. In North America, sales of Goldwell and KMS professional hair care brands rose, while in Europe, the launch of hair color foam contributed to John Frieda sales.
Kao also stepped up its anti-aging offerings, taking advantage of the global baby boomer market, introducing a Grace Sofina cream for women in their 60s and above, and the anti-aging Segreta hair care series.
In February, Kao filed infringement lawsuits against Henkel AG & Co. for sales of foam type hair color products.
In March, Kao was named one of the World’s Most Ethical Companies 2011, announced by Ethisphere Institute, a U.S. think tank. Kao is the only Japanese company that has been included in the lists for five consecutive years.
For fiscal 2011, Kao determined to continue concentrating efforts on a select number of brands and improving efficiency in marketing, personnel and other areas to reduce costs.
At the end of July, Kao’s announcement of better-than-expected first quarter sales, in general, indicated that its strategies might be working. But its beauty division continued to struggle, falling half a percent to about $1.6 billion. Kao said while new products did well in North America and Europe—in particular, John Frieda foam color—the cosmetics market in Japan continued to slide.
In August, Molton Brown launched its first artisanal fine fragrance collection, with five unisex fragrances inspired by countries along the ancient spice route.
Goldwell recently revamped its U.S. website, and products are currently undergoing packaging and formulation updates.