Avon Japan started business in Tokyo, Japan in 1968, and has 50 years of experiences in the cosmetics business. In FY2017, it recorded sales of approx. 100bn won. In Japan’s market, where Japanese national brands have strength over foreign brands, Avon is ranked No. 21 (by retail sales amount), which is higher than Lancôme (No. 27), and Estée Lauder (No. 41) (Euromonitor 2016).
LG H&H has been building its business platform in Japan through the acquisition of Ginza Stefany in 2012 and Everlife in 2013. Entry into the Japanese market by foreign companies is difficult as consumers have a high preference for Japanese brands, and channels and OEM/ODM companies place importance on existing relationships.
LG H&H first entered the Japanese market via the telemarketing channel, which allows direct communication with consumers. The launch of cushion foundation allowed further channel expansion as the product was successfully launched into home-shopping, and became No. 1 in QVC, one of two of Japan’s major home-shopping channels.