Top in Asia

Major Products Beauty Care – Sofina, Kanebo, Molton Brown, Bioré, Jergens, Asience, John Frieda, Goldwell; Fabric and Home Care – Attack, Haiter, Magiclean; Human Health Care—Pyoura and Clear Clean oral care, Bub bath additives. 

New Products Jergens Natural Glow, Ultra Attack Neo, Bath Magiclean Aroma Deodorizer Plus and Toilet Magiclean Aroma Deodorizer Plus, John Frieda styling products.

Corporate sales rose 7.7%. Sales of beauty products increased 6% to $5.4 billion. The company credited the gains, in part, to the success of Sofina Primavista makeup and Grace Sofine skin care, as well as Kate makeup and Allie UV care. Results were also helped along by the success of Bioré cleansers throughout Asia and higher demand for Goldwell professional hair care products in the Americas and Europe. A year ago, the company issued a recall of skin brighteners that contain Rhododenol after consumers complained of white blotches appearing on their skin.

Fabric and home care sales increased 6.5% to more than $2.9 billion, as Japanese consumers warmed to the idea of saving time and resources by using Neo laundry products. Kao also rolled out a new refill for Attack that saves even more resources. Home care sales improved, thanks to the rollout of Bath Magiclean Aroma Deodorizer Plus and Toilet Magiclean Aroma Deodorizer Plus, as well as the introduction of a 3D adsorbent dryer sheet under the Quickle Wiper brand. 

For the first quarter of 2014, sales surged 18% to $3.3 billion. Beauty care sales increased 11.9% and fabric and home care sales jumped more than 23%. The company noted that the Japanese household and personal care products market grew 17% on a value basis, following a bottoming out of consumer prices. Similarly, the cosmetics market in Japan rose 22%. Sales of Kanebo Cosmetics rose 18%, even as the company continued to recall products that contain Rhododenol.

Major Products Skin care, color cosmetics, sun care, fragrances and toiletries. Brand names include Shiseido, Clé de Peau Beauté, Za, Tsubaki, Senka, Jean Paul Gaultier, Elixir Superieur, Maquillage, Nars, and Bare Escentuals. 

New Products White Lucent total brightening serum, Bio-performance Firm & Restore, Future Solution LX superior radiance serum; Ultimate Sun Protection Spray 50+ and Sun Protection Stick SPF 37; Sweat & Oil Blotting Film and Paper; Zen and Zen for Men fragrances; Radiant Orchid color cosmetics collection, NARS Smokey Eye Kit and Fall 2014 color collection. To be launched: Zadig & Voltaire fragrances.

Sales rose more than 12% for the year ended March 31, 2014. Domestic sales increased 1.1%, while international sales surged 26.4%. The increase was attributed to a marginal gain in higher net sales and favorable exchange rates. Domestic sales represented 51% of total sales. Shiseido continues to focus on core brands and two mid-priced lines, Elixir skin care and makeup and Maquillage makeup led gains. To attract older consumers, Shiseido created a dedicated website for seniors that offers “next generation” beauty solutions. At the same time, the company set up a toll-free information line for seniors and began publishing Kirameki Ms. Tsushin, a dedicated tabloid.

Within its health care business, Shiseido focused on The Collagen, its line of beauty foods, and rolled out Tsuyatsuya Purun Jelly within the Kirei No Susume line of beauty drinks.

International sales jumped, thanks to big gains in the US via the Shiseido and Nars brands. Sales also got a lift once Shiseido began handling the Ferragamo and Burberry fragrance brands. Results in China where hurt by the Senkaku Islands dispute and sales there declined slightly. Outside China, sales rose in other Japanese markets.

In February, Shiseido agreed to sell its Carita and Decléor brands to L’Oréal. Together, the brands had sales of nearly $140 million. Carita is available in 56 countries and Decléor is available in 80 countries.

On April 1, Masahiko Uotani became president and chief executive officer, replacing Shinzo Maeda, who retired.

Also in April, Shiseido opened a research facility dedicated to hair regeneration at the Kobe Biomedical Innovation Cluster in Kobe, Japan. The move came after Shiseido acquired the rights from RepliCel Life Sciences to use RepliCel Hair-01 (RCH-01) technology throughout Asia. RCH-01 is described as an autologous cell transplantation technology, in which specific cells isolated from the hair follicles taken from the scalp of a patient are cultured and injected into the bald scalp area, potentially stimulating residing hair follicles and promoting new growth in the balding area.

Also in April, Shiseido expanded its operations in Indonesia with 65% ownership of PT Shiseido Cosmetics Indonesia. Sinar Mas Group owns the rest of the JV. The company notes that Indonesia has the world’s fourth largest population (about 250 million) of which 60% is below 35 years of age.

In June, Shiseido signed a licensing agreement to develop fragrances under the Zadig & Voltaire French ready-to-wear fashion label.

Looking ahead to the new fiscal year, the company expects domestic sales to decline nearly 2%, while international sales are expected to increase 6.6%. Shiseido derives more than half of its sales from outside Japan.

Major Products Cosmetics – Amorepacific, Hera, Sulwhasoo, Lirikos, Hyosia, Verite, Laneige, Iope, Mamonde, TeenClear, Primera, Hanyul, InnisFree, Lolita Lempicka, Odyssey, Etude, Espoir; Personal Care – Mise-en-Scene, Ryo, Illi, Happy Bath, Dantrol, Median, Songyeum; Health Care (including tea, beauty foods/supplements and drugs) – O’Sulloc, VB, Natural Beauty Food, Ketotop.

New Products Hera Cell Essence

Sales rose despite a sluggish domestic market that remained weak following recession and reduced consumer spending. That trend led to lower demand for luxury products in department stores, yet higher sales of mid- and low-priced products in mass retailers. Also providing a lift to Amore Pacific’s sales was greater demand from online and home shopping channels. 

Sales of cosmetics accounted for nearly 85% of sales last year, with personal care and green tea products representing the rest. By region, Korea accounted for 82.6% of sales, followed by China (10.8%), Asia (3.4%), Europe (2.4%) and North America (0.8%). 

Sales of the Amore Pacific brand rose 6%, even as sales in high-end department stores declined. To overcome that obstacle, the company focused on moderately priced brands and online sales. To boost door-to-door sales, Amore Pacific introduced new products under its Iope and Laniege brands and introduced the moderately priced Modi Nail line. Online sales rose significantly, as demand for Verite, available only through home shopping networks, soared. Online sales of Sulwhasoo and Hera were also strong, according to the company. Sales of personal care products, such as hair care and body care, increased 8%, driven by gains for Illi.

Sales in China jumped 30%, due to the popularity of Laneige, Mamonde, Innisfree and Etude. In fact, Amore Pacific says Laneige is the preferred premium cosmetic brand among young Chinese women, which explains its 40% sales gain last year.

Elsewhere, sales in North America increased 26% due to the introduction of new Amore Pacific products in the US. And while sales declined overall in Europe, results in France got a boost from the popularity of Lolita Lempicka fragrances.

For the first quarter of 2014, sales increased nearly 16%, driven by gains in department store and travel retail sales, tempered by a decline in door-to-door sales. Outside Korea, sales in China were up on the strength of Laneige and the premium Sulwhasoo brand. Sales rose in the US, too, as Laneige debuted in Target.

Major Products Household – laundry and dishwashing detergents, fabric softener and kitchen cleaners. Personal care – toothpaste, shampoo, soap, baby care, skin care, color cosmetics and toiletries.

New Products Household Care – Nature Pong Real Natural and Saffron Flower Vinegar Fabric Softener; Personal Care – Babience baby care, Beyond franchise store; Cosmetics – Davi and Kachet.

LG said the economy weakened and, as a result, the domestic household and cosmetics market fell 4% and 5%, respectively last year. And yet, LG managed to increase corporate sales by 11% in local currency. Leading the way was the cosmetic, fragrance and toiletry business, where sales increased nearly 14% to almost $1.3 billion.  Gains were attributed to the success of the Elastine and On the Body lines. The company said its home care business was challenged by a competitor’s aggressive discounts for fabric softeners. Still, demand for Nature Pong, and Han IP detergents was strong enough to lift sales of laundry detergent and dish detergents by 4% and 9%, respectively. To maintain momentum, LG entered the baby and child care business with the launch of Babience and is expanding its fabric care operations into China and the Middle East via joint ventures.

Beauty sales increased more than 12% to almost $1.5 billion and LG said its share of the domestic cosmetics market reached 20% for the first time. Prestige sales increased on the strength of the Whoo and Belif brands. Masstige business increased as well, as consumers approved Beyond’s anti-animal testing campaign. LG maintains consumer interest in eco-friendly brands is growing in Korea. Mass cosmetics sales also increased, driven by the success of CC cream formulas and the startup of direct operation of Coty’s perfume brands.

International sales jumped 50% last year, as beauty, personal care and home care all made contributions.

For the first quarter, personal care and home care sales rose 6.9% due to the success of Silk Therapy hair care products, as well as the oral care business, which now includes the No. 1 toothbrush in Korea. It was a mixed bag in beauty, however, as prestige cosmetics sales rose 16%, but sales within masstige channels fell 12%. Mass cosmetic sales increased 9% for the quarter. Overall, sales rose 5.2% to just over $1 billion

Major Products Oral care, skin care, beauty products, toiletries, fabric care, home care and household cleaners.

New Products  Fabric Care – Top Hygia Fabric Refresher, Top Platinum Clear; Beauty – Ban Shower Deodorant, Ban Antiperspirant Deodorant Block Sweat Gland, Fleuria hair care; Household – Look Mame-Pika antibacterial toilet cleaner, Pharmaceutical – Smile 40 Premium eye drops, Halix Hogrela Cool and Heat analgesics; Clinica oral care (relaunch).

Lion saw domestic sales of new products exceeded expectations, primarily in the Consumer Products Business segment, owing to a surge with last-minute demand ahead of the consumption tax hike that was imposed in Japan in April 2014.  The  Consumer  Products  Business  segment  is  divided  into  the  Oral  Care,  Beauty  Care, Fabric Care, Living Care, Pharmaceutical, and Other Products businesses.

The group worked to take full advantage of this surge in demand preceding the tax rate increase and launched and worked to nurture new, high-value-added products, such as toothpastes, antiperspirants and deodorants and analgesics. In the first quarter of 2014, sales jumped 25% to nearly $880 million, as every consumer product category posted gains, ranging from 31% for OTC pharmaceuticals to nearly 43% for oral care products. Oral care sales rose as Lion completed the relaunch of its mainstay Clinica brand of products to appeal to the growing trend toward preventive dentistry. Sales of household products rose substantially, with Lion crediting sales of Charmy dishwashing detergents for the gain.

In the first half of 2014, Consumer Products segment net sales increased 7.1% compared with the previous fiscal year. Segment income increased 71.8%, Lion said in its financial statement at end-June 2014. Accordingly, net sales are expected to outstrip predictions made at the beginning of the year. As a result of the increase in net sales, operating income, ordinary income and net income are also expected to surpass predictions made at the beginning of the year.

Internationally, the Group engaged in aggressive marketing, thus cultivating of key brands in the mainstay oral care and laundry detergent fields. The overseas businesses operations are primarily in Thailand, South Korea and China. Segment net sales increased 6.9% year on year (or in terms of real net sales, which exclude the influence of exchange rate conversions, increased 4.5%). Segment income decreased 53.8% year on year due in part to an increase in investment in marketing aimed at brand cultivation.

In Thailand, sales of Systema toothbrushes and Shokubutsu-Monogatari (Plant Story) body wash were favorable, but sales of Lipon dishwashing detergent were sluggish. Overall sales edged up compared with the same period of the previous fiscal year, but flat year on year after exchange conversions.

In South Korea, sales of KireiKirei hand soap were favorable, but sales of Chamgreen dishwashing detergent were weak, resulting in sales that were level year on year. However, due to exchange rate fluctuations, overall sales after yen conversions increased substantially year on year.

Overall sales in China after yen conversions also increased substantially year on year, with sales of Systema toothbrushes were favorable and overall sales increased substantially. In the same period,   sales of super-concentrated liquid laundry detergent Top Nanox were favorable in Hong Kong.