10.28.10
9. Kao
Japan
www.kao.co.jp
Beauty Sales: $5.9 billion
Corporate Sales: $8.8 billion
Key Personnel: Motoki Ozaki, representative director, president and chief executive officer; Hiroshi Kanda, representative director, senior executive vice president, global consumer products business, chairman, Kanebo Cosmetics Inc.
Major Products: Beauty care brands include Sofina, Kanebo and Molton Brown cosmetics, Bioré and Jergens skin care and Asience, John Frieda and Goldwell hair care.
New Products: Sofina Jenne, Asience Customized Treatment, Medicated Pyuora Nano-bright toothpaste.
Comments: As evidenced with Shiseido, Japanese brands suffered from a weakened economy, and Kao, too, paid the price for a soft cosmetics market. Corporate sales fell 7.2%. Beauty care sales fell 6.9% to $5.9 billion. Prestige cosmetics sales were weak due to the impact of changes in the market structure in Japan, causing the Kao Group, like Shiseido, to embark on aggressive initiatives to strengthen and increase its cosmetics megabrands. However, sales in Japan decreased due to a consumer preference for lower priced products and inventory reductions by retailers. In China, sales increased with aggressive initiatives that included the introduction of new brands. In Russia, the Kao Group strengthened its business operations with the establishment of a Kanebo Cosmetics Inc. subsidiary.
Sales of skin care products grew in Japan due to strong sales of the Curél and Bioré U brands. In Asia, Bioré performed well and sales grew on a local-currency basis. In North America and Europe, despite a recovery trend, sales decreased due to the weak markets and the effect of currency translation.
In premium hair care products, the market in Japan contracted on a value basis, with structural changes such as an increase in the proportion of shampoo and conditioner refill products. However, the Kao Group maintained sales at the previous year’s level and increased its market share due primarily to the improved Segreta premium hair care brand and growth in sales of foam-type hair color. Sales in Asia increased with expanded rollouts of the Asience and Essential Damage Care premium hair care brands. Sales in North America and Europe decreased due to the weak markets and the effect of currency translation.
For the current year, Kao expects beauty sales to grow less than 1%.
In June, Kao launched Sofina Jenne, a new skin care line for young women in their 20s.
With Japan’s cosmetics market remaining weak, Kanebo, which has belonged to the Kao Group since 2006, strove to gain market share outside of Japan, which currently accounts for 90% of its turnover. With the goal of becoming a real global player, Kanebo’s strategy targets China, Asia and Europe-USA.
Kanebo launched Kate, Japan’s leading makeup brand in the self-service beauty segment, into Shanghai and Beijing, where it entered drugstores, starting with Watsons, Asia’s leading health and beauty retailer. The number of sales outlets is expected to grow to 50 stores by the end of 2010, and double that by the end of 2011.
For the first quarter of 2010, beauty sales at Kao continued to fall. The company blamed poor performance of its prestige beauty brands, particularly in the domestic market of Japan, where consumers remain cautious with their spending and where many have switched to less expensive brands. However, in announcing the results, a statement referred to “an emerging sense that Japan’s cosmetics market was bottoming out,” suggesting that the future may be brighter.
Sales figures for China were more optimistic. Kao said that its beauty division had performed stronger in China, and in Asia as a whole, the Men’s Biore skin care brand contributed to sales growth.
Kanebo is about to further strengthen its portfolio domestically and throughout Asia with the launch of its new Impress Granmula (Grand Formula) range, a high-end skin care collection ranging from$240-$1,450. The active ingredients have reportedly been in development for more than 10 years.
Looking ahead, Kao anticipates growth in the next fiscal year.
Japan
www.kao.co.jp
Beauty Sales: $5.9 billion
Corporate Sales: $8.8 billion
Key Personnel: Motoki Ozaki, representative director, president and chief executive officer; Hiroshi Kanda, representative director, senior executive vice president, global consumer products business, chairman, Kanebo Cosmetics Inc.
Major Products: Beauty care brands include Sofina, Kanebo and Molton Brown cosmetics, Bioré and Jergens skin care and Asience, John Frieda and Goldwell hair care.
New Products: Sofina Jenne, Asience Customized Treatment, Medicated Pyuora Nano-bright toothpaste.
Comments: As evidenced with Shiseido, Japanese brands suffered from a weakened economy, and Kao, too, paid the price for a soft cosmetics market. Corporate sales fell 7.2%. Beauty care sales fell 6.9% to $5.9 billion. Prestige cosmetics sales were weak due to the impact of changes in the market structure in Japan, causing the Kao Group, like Shiseido, to embark on aggressive initiatives to strengthen and increase its cosmetics megabrands. However, sales in Japan decreased due to a consumer preference for lower priced products and inventory reductions by retailers. In China, sales increased with aggressive initiatives that included the introduction of new brands. In Russia, the Kao Group strengthened its business operations with the establishment of a Kanebo Cosmetics Inc. subsidiary.
Sales of skin care products grew in Japan due to strong sales of the Curél and Bioré U brands. In Asia, Bioré performed well and sales grew on a local-currency basis. In North America and Europe, despite a recovery trend, sales decreased due to the weak markets and the effect of currency translation.
In premium hair care products, the market in Japan contracted on a value basis, with structural changes such as an increase in the proportion of shampoo and conditioner refill products. However, the Kao Group maintained sales at the previous year’s level and increased its market share due primarily to the improved Segreta premium hair care brand and growth in sales of foam-type hair color. Sales in Asia increased with expanded rollouts of the Asience and Essential Damage Care premium hair care brands. Sales in North America and Europe decreased due to the weak markets and the effect of currency translation.
For the current year, Kao expects beauty sales to grow less than 1%.
In June, Kao launched Sofina Jenne, a new skin care line for young women in their 20s.
With Japan’s cosmetics market remaining weak, Kanebo, which has belonged to the Kao Group since 2006, strove to gain market share outside of Japan, which currently accounts for 90% of its turnover. With the goal of becoming a real global player, Kanebo’s strategy targets China, Asia and Europe-USA.
Kanebo launched Kate, Japan’s leading makeup brand in the self-service beauty segment, into Shanghai and Beijing, where it entered drugstores, starting with Watsons, Asia’s leading health and beauty retailer. The number of sales outlets is expected to grow to 50 stores by the end of 2010, and double that by the end of 2011.
For the first quarter of 2010, beauty sales at Kao continued to fall. The company blamed poor performance of its prestige beauty brands, particularly in the domestic market of Japan, where consumers remain cautious with their spending and where many have switched to less expensive brands. However, in announcing the results, a statement referred to “an emerging sense that Japan’s cosmetics market was bottoming out,” suggesting that the future may be brighter.
Sales figures for China were more optimistic. Kao said that its beauty division had performed stronger in China, and in Asia as a whole, the Men’s Biore skin care brand contributed to sales growth.
Kanebo is about to further strengthen its portfolio domestically and throughout Asia with the launch of its new Impress Granmula (Grand Formula) range, a high-end skin care collection ranging from$240-$1,450. The active ingredients have reportedly been in development for more than 10 years.
Looking ahead, Kao anticipates growth in the next fiscal year.