The biggest and the best companies with headquarters 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: Dew Beauté, Jergens Wet Skin Moisturizer, Jergens BB Protect, Bioré Charcoal, Curél Rough Skin Rescue and Itch Defense, KMS Curl Up, Molton Brown Body Polisher, Guhl Seiden Glanz hair care collection, Attack Neo Antibacterial EX W Power detergent, Humming Fine fabric softener, Wide Haiter EX Power bleach, Magiclean Brightening Sheets, Attack Jazl.
Comments: Driven by gains in chemicals and feminine hygiene, corporate sales rose 6.6% last year, ahead of gains for beauty care (3.4%) and fabric and home care (4.3%). Taking a closer look at the beauty segment, sales of cosmetics rose 1.4% to $2.1 billion. Sales in Japan were flat, but brands such as Sofina Primavista, Alblanc and new Dew Beauté anti-aging products provided a lift. Outside its home market, sales got a lift from Molton Brown in the UK. Skin care sales rose in 2014. In Japan, sales increased due to strong performances by Bioré facial cleanser, Bioré U body cleanser and Curél derma care products. A strong performance by Bioré lifted sales in Asia, while in the Americas the launch of improved Jergens products was well-received, according to the company.
Hair care product sales were flat, but sales in Japan rose due to strong demand for shampoos, conditioners and styling products. However, an ultra-competitive retail environment hurt sales in the Americas and Europe. In Asia, sales declined as Kao trimmed its product offerings.
Within fabric and home care, detergent sales rose on the strength of Neo promotional activities and Kao drove home the environmental appeal of conserving water, electricity and resources. Mid-year, Kao rolled out Attack Neo Antibacterial EX W Power, an ultra-concentrate with anti-mold activities.
Sales of home cleaning products were up, helped along by the introduction of an improved version of CuCute dishwashing detergent and the launch of Magiclean Brightening Sheets, a home cleaning product.
By region, sales in Japan increased 3.9% to more than $7.5 billion. The company credited the increase to a rapid response to changing consumer lifestyles and social issues such as the environment, health, aging and hygiene. In Asia, sales rose 20.7% to more than $1.1 billion, as demand for consumer products rose among the growing middle class. In the Americas, sales increased nearly 16% to about $672 million, although half the gain was attributed to currency changes. In this market, sales of skin care products rose during the year, while sales of hair care products declined. Finally, in Europe, sales increased 16.7% to more than $707 million, but again, half the gain was attributed to forex moves. Cosmetic sales rose and hair care sales declined during the year.
Unfortunately, the good news didn’t continue into 2015. First quarter sales fell 3.6%. What’s worse, excluding the effects of currency translation, net sales would have decreased 6.5%.
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, Bare Escentuals.
New Products: Power Infusing Eye Concentrate, Full Lash Serum and Full Lash Volume Mascara, Benefiance WrinkleResist 24 Energizing Essence, White Lucent All Day Brightener, White Lucent Power Brightening Set, Perfecting Stick Concealer, Veiled Rouge lipstick, Glow Enhancing Primer.
Comments: Is Shiseido’s house finally in order? The company’s been long known for effective products in beautiful packaging, but for the last several years, that kind of quality didn’t translate into higher sales. But a turnaround may be underway. Sales rose 2% for the year ended March 31, 2015. Japan accounted for 47% of sales, followed by Asia/Oceania (21.9%), Americas (17.1%) and Europe (14%).
After years of getting hammered by poor conditions in its home market of Japan and being a late entry into emerging markets like China, CEO Masahiko Uotani told investors that Shiseido is changing. First, company executives now know the front lines of the business and understand essential management issues. An important part of that program is the ICHIGAN Project, which involves all employees and includes events in an effort to creating attractive selling spaces across Japan. Outside its home market, Shiseido is in the process of reengineering its China business, and is determined to empower a diverse range of employees throughout the organization. The plan seems to be working, as Shiseido is expanding market share and adding new customers in Japan. Internally, company executives say they are focused on capital cost conscious management and are making structural reforms to address core issues.
These moves are expected to lift sales over ¥900 billion by 2017 and over ¥1 trillion by 2020—all part of its Vision 2020 plan and, not so ironically, the same year that Japan with host the Olympic Games.
To reach the 2017 sales goal, Shiseido is clearly focused on China, where sales actually fell 2% during the previous three years. But by 2017, the company expects sales to grow 9%. In fact, Shiseido executives expect sales growth to improve throughout the world during the next three years. Europe’s CAGR will rise from 1 to 2%, Asia (excluding China) will rise from 3 to 7%, Japan will grow from 1% to 3%, and the Americas will grow from 4% to 6% by 2017.
To help expand its professional business in Asia, this July Shiseido formed a joint venture with the Aura Beaute Group, its current distributor for the Shiseido Professional brand in Indonesia. Shiseido now owns 65% of the JV.
From 2017 to 2020, Shiseido is aiming for a CAGR of 5-7%, driven by new brands, M&A activity and penetration into emerging countries and “unexplored areas.” At the same time, the company will boost R&D spending from 1.8% to 2.5% of sales and increase R&D personnel from 1,000 to 1,500. As part of its “Think Global. Act Local” strategy, Shiseido will set up a global innovation center in Japan and expand its research centers in the US, Europe, Southeast Asia and China.
Major Products: Skin Care—Sulwhasoo, Laneige, Mamonde, Innisfree, Hera, Iope, Happy Bath, Primera, Odyssey, Illi, Lirikos, Aestura, Makeon; Cosmetics—Etude, Hanyul, Espoir, Aritaum; Fragrance—Annick Goutal, Lolita Lempika; Inner Beauty—Vital Beauty; Hair Care—Ryo, Mise-en-Scéne; Oral Care—Median.
New Products: Seoulista skin care.
Comments: When industry executives talk about the Korean influence in the global beauty industry, they’re talking about AmorePacific. While most industry leading companies are tickled with double digit gains, AP has been posting 20%+ gains for years in a quest to become a top 10 company in the global beauty market. In recent years, Korean formulators in general and AmorePacific R&D in particular, have given the world a host of beauty concepts, such as BB creams and BB cushions.
One of the newest to watch are products formulated with ingredients derived from Jeju Island, a popular tourist spot off the coast of the Korean Pennisula. Following 2014’s results, AmorePacific has nearly reached its goal, despite beauty market weakness at home and abroad. Sales rose 21% last year. Domestic sales rose nearly 16% in 2014 and international sales surged more than 53%; during that time, duty-free sales jumped as Chinese visitors flocked to Korea.
Still they ear wasn't without challenges. Company executives noted that traditional luxury department store sales slumped, but AmorePacific increased its door-to-door efforts and found new growth in duty free channels, thanks to the opening of dufree stand-alone stores. Verite, an online-exclusive brand, continued to gain a following. AmorePacific boasts it is the No 1. player in the body care segment, thanks to the success of Happy Bath and Illi. Within the domestic cosmetics market, the company is rebuilding its Etude brand to appeal to younger consumers. As part of that plan, company executives moved the eSpoir cosmetics line out from under the Etude umbrella and aimed eSpoir at consumers interested in the growing professional cosmetics market.
International sales surged on the growing popularity of the big five brands - Sulwhasoo, Laneige, Mamonde, Innisfree and Etude. China and other ASEAN countries led the way. Outside Asia, the US business turned a profit for the first time, thanks to the success of the Amorepacific and Aritaum brands in department stores. For the first quarter, sales jumped nearly 27%. In June, Amore Pacific formed a partnership with Christian Dior regarding its cushion technology. “This agreement holds great significance in that our ‘cushion’technology is appreciated by one of the world’s most respected luxury brand companies and a powerhouse in the global beauty industry,” said Sang-Bae Shim, president, AmorePacific.
Major Products: Oral care, skin care, beauty products, toiletries, fabric care, home care and household cleaners.
New Products: Systema Haguki Plus Toothpaste, Clinica Advantage Dental Rinse, Ban Sweat-Blocking Rollon, Between Zeitaku Care and Systema Arch Fit toothbrushes.
Comments: Last year, sales took off like a rocket, thanks to the successful completion of Lion’s V-1 Plan, which ended on Dec. 31, 2014. It’s the first portion of the company’s Vision 2020 plan, which is focused on four themes: Grow domestically; Expand internationally; Develop new business; and Enhance organizational learning. Last year, consumer product sales rose 3.5%, helped by a 7.2% gain in oral care, as Lion rebranded its Clinica lineup of oral care products and launched Systema Haguki Plus toothpaste that is designed to improve gum health.
Beauty care sales increased 7.5% as Lion made a concerted effort to convince consumers to trade up to foaming soap formats. Meanwhile the launch of Ban Sweat-Blocking roll-on proved to be a big hit with consumers as sales were 240% above plan. Perhaps efforts to convert Japanese consumers to high-value products were most evident in fabric care, where the switch is on from powders to liquid concentrates. Lion also answered consumer demand for products that remove malodor from laundry. New Top Nanox contains a dual enzyme Asiaformula to break down proteins that cause odors. Similarly, the introduction of highly fragranced and deodorizing fabric softeners has proved to be a hit with consumers. Lion also noted that automatic dishwashing detergent is rising as the segment of Japanese households with dishwashing appliances topped 30%. With market leading brand Charmy, Lion is well positioned take advantage of this trend.
Outside Japan, the company continues to make inroads in Thailand, South Korea, China and the Philippines, helped along by market share gains and favorable exchange rates. But things didn’t flow as smoothly as Lion kicked off the V-2 portion of its Vision 2020 plan. For the first quarter of 2015, sales fell more than 7%, with consumer product sales falling more than 14% and sales of fabric care products plunging 27%.
LG Household & Healthcare
Major Products: Cosmetics—The History of Whoo, O Hui, SU:M37, Belif, Davi, Frostine, Kachet, Beyond, Dermalift, ChungYoonJin, Tuneage, Isa Knox, Sooryehan, Lacvert, Cathycat Vonin, Carezone, The Saga of Xiu, TheFaceShop, VDL, VOV, Philosophy; Hair Care—Elastine, Reen, Organist, Silk Therapy; Oral Care—Perioe, Bamboo Salt; Skin Care—OntheBody; Aromatics—Happybreeze, Partel, Healing&Nature; Laundry—Saffron, Hanip, Tech, Super Ti; Cleaning—Homestar, Insect Zero, Safe, Jayeonpong, PongPong.
New Products: Kachet men’s personal care line.
Comments: LG continues to make gains, as corporate sales rose 8% last year, helped to a large extent by sales of prestige cosmetics to consumers in China. In fact, sales of LG brands such as Whoo and SU:M doubled in the fourth quarter of 2014 and Whoo achieved the No. 1 spot in duty-free shopping, according to LG. According to Euromonitor International, LG Household & Health Care retained the solid leading position in Korean home care in 2014 with more than double the value share of the second-ranked player by increasing its value share by one percentage point during the year. In contrast to global players, domestic manufacturers recorded strong performances by quickly adapting to South Korean consumer demand during 2014.
For the first quarter of 2015, the good times continued as corporate sales rose more than 15%. The company proudly noted that sales have risen for 39 consecutive quarters. During the period, household and personal care sales rose 3.5%, while skin care sales soared more than 34%.
Major Products: Skin care, cosmetics and toiletries sold under several brand names including Decorte (formerly Cosme Decorte), AQ, Awake, Jill Stuart, Anna Sui, Infinity, Grandaine, Crie, Predia, Visée, Phil Naturnt, Esprique, Sekkisei, Elsia, Salon Style, Softymo, Formule, Precious, Fasio, Nature & Co, Stephen Knoll New York, Happy Bath Day, Paul & Joe, Tarte, Albion.
New Products: Spawake; Decorte Liposome Treatment Liquid; Albion Line Terminate Maximum; Sekkisei Facial Essence Soap; Esprique Smooth on Liquid Foundation UV; Tarte Fall 2015 launches, 15th Anniversary Tartelette collection; Paul & Joe Fall 2015 color collection; Kosé Cosmeport Oleo D’Or, Kosé Cosmeport Je l’aime Amino silicone-free line; Visée Lip & Cheek Cream.
Comments: Kozaburo Kobayashi founded Kosé in 1946, pouring his limitless passion into making cosmetics to provide people with dreams and hope. Even in the post-war period of struggle and shortages, Kobayashi was committed to making quality products that truly exceeded the expectations of each customer., according to the company. His ideals, according to Kosé, are alive in all facets of the business today. From research and development to manufacturing, from customer-oriented marketing system that perfectly matches brands and sales channels. This spirit is what gives Kosé strength and drive to do more.
For the fiscal year ended March 31, 2015, net sales increased 9.4% and operating income soared 19.6%. The company forecasts net sales to rise 3.9% in the current fiscal year.
According to Kosé, sales increased due to the acquisition of Tarte and strong sales of Albion. In fact, despite the effects of a consumption tax hike, Albion posted record sales. There were strong sales of current skin care products and base makeup products with different type of foundations were successful. Also, in Japan, sales of Sekkisei and Esprique increased primarily in drug stores. Sales of AQ Meliority and AQ MW, two high-end lines, increased and new lines of skinc are and base makeup products were launched to attract new customers. Self-selection makeup brands Visée and Elsia brands for sale exclusively through convenience stores additionally performed well this year.
Kosé also moved into the Indian cosmetics market for the first time with the April launch of a new skin care brand, Spawake, by the local Indian operating company Kosé Corporation IndiaPvt. Ltd. The Spawake portfolio is targeted to Indian women in the middle-income bracket and is available at urban supermarkets, mainly in Delhi, as well as online.
Meanwhile, Cosme Decorte is preparing for a “facelift” as it enters its 45th year. Often considered Asia’s best-kept secret, this techno-innovative beauty powerhouse is setting its sights on global expansion, streamlining its name to Decorte and tapping into some of fashion and beauty’s top talents—Kate Moss and Mario Testino. A global ad campaign, the brand’s largest to date, will hit September 2015 books and kick off a multi-year contract with Moss. The illustrious model will also appear in a pre-release, behind-the-scenes video in August. The initial campaign will highlight the Moisture Liposome franchise, the best-selling prestige face serum in Japan, as well as the new Liposome Treatment Liquid.
President and CEO Kazutoshi Kobayashi stated, “During the Decorte brand’s long history, we have established a strong bond and trust with women of Asia based on our innovative and superior formulations. As Decorte starts a new chapter, we are pleased to work with the globally recognized and revered Kate Moss. It’s the perfect pairing.”
Major Products: Skin care, cosmetics, personal care and fragrance. Companies and brands include Pola, Orbis, Jurlique, H20 Plus, B.A., PDC Inc., Future Labo, Orlane, Decenia and Three.
New Products: Orbis Clear (relaunch), Pola White Shot, V Lifting facial, H20 Plus Spa Black Sea Collection, H20 Plus Face Oasis Sea Foam collection, Jurlique Precious Rose Hand Cream, Pola B.A. collection.
Comments: The Beauty Care segment consists of the flagship brands Pola and Orbis; the overseas brands Jurlique and H2O Plus and the “brands under development”—pdc, Future Labo, Orlane, Decencia and Three.
In 2015, both the Pola and Jurlique brands are celebrating a 30th anniversary. In the domestic market, sales of the Pola White Shot series of medicated whitening essence and health and beauty foods progressed as expected, and sales to new customers were strong. Orbis announced its new corporate message, “Change is beautiful,” in January 2015 with the aim of further growth centered on a business platform fortified through brand rebuilding measures.
In the domestic market, the Clear series, a leading product of the brand, was renewed in March, applying the latest knowledge to acne treatment developed by Pola Chemical Industries, which won the highest award at the 28th International Federation of Societies of Cosmetic Chemists (IFSCC) Congress held the previous year.
For its overseas brands, the group endeavored to maintain a high rate of growth and contribute to revenues and earnings, focusing on Asia as a growth driver. Jurlique continued to expand sales in the Australian markets, despite the recent slowdown in China. H20 Plus carried out measures including a reduction of sales channels in line with a change in brand strategy for the North American market and the closing of underperforming stores in China.
In fact, H20 Plus made a few headlines recently with a new CEO and a headquarters relocation. The company appointed Joy Chen as its new president and chief executive officer. She brings more than 20 years of industry experience; most recently, she served as the CEO of Yes To Inc.
The headquarters for H20 Plus is going West—from Chicago to San Francisco. The announcement is part of a series of strategic changes as H2O Plus shifts its business model from a manufacturing company to one that focuses on the marketing and sales of H2O Plus products around the world. As part of its shift in strategy, the company will be closing its Chicago manufacturing plant and headquarters over the next six to 12 months. Some key employees will be offered the opportunity to transfer to San Francisco, while a recruiting effort is underway to fill the remaining roles. Also, manufacturing of H2O Plus products will gradually be transferred to third-party companies in the United States. H2O Plus anticipates that about 50 employees will be located at its new headquarters once fully occupied. By relocating to the West Coast, H2O Plus says it will gain greater access to key business markets in Asia.Mens Nike Cortez
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