Kao Group at a Glance
(As of March 31, 2011)
The Kao Group Operates Four Businesses Globally
Net Sales by Segment (Year ended March 31, 2011) Founded
1887 Consolidated Net Sales
Number of Countries/Areas with Sales Offices
29
1,186.8 billion yen
R&D Expenses
45.5 billion yen
Consolidated Number of Employees
Consolidated Net Assets
34,743
539.6 billion yen
Consolidated Net Income
Number of Patents Held
46.7
13,600
billion yen
Note: Figures are rounded to the nearest whole number or decimal.
(Billions of yen)
Chemical Business Sales Breakdown by Region Japan Asia North America Europe Eliminations
(Billions of yen)
198.5
Consumer Products Business Sales
988.3
125.0 72.6 29.5 51.5 (80.0)
Breakdown by Region Japan Asia & Oceania North America Europe Eliminations
817.3 82.0 51.0 60.7 (22.8)
Chemical Business Oleo chemicals Performance chemicals Specialty chemicals Fabric and Home Care Business Fabric care products Home care products
¥198.5 billion 16.7%
¥533.5 billion Consolidated Net Sales
45.0%
¥1,186.8 ¥279.0 billion
Beauty Care Business Prestige cosmetics Premium skin care products Premium hair care products
billion
23.5%
¥175.8 billion
Human Health Care Business Food and beverage products Sanitary products Personal health products
14.8%
Notes: 1. Figures are rounded to the nearest whole number or decimal. 2. Figures in the graph represent net sales to outside customers only. 3. Eliminations represent intersegment sales.
Principal Subsidiaries and Affiliates
■ Beauty Care Business ■ Human Health Care Business ■ Fabric and Home Care Business ■ Chemical Business
The Netherlands
China
Japan
KPSS Nederland B.V. ■
Kao (China) Holding Co., Ltd. ■ ■ ■ ■
Kao Customer Marketing Co., Ltd. ■ ■ ■
Kao Corporation Shanghai ■ ■ ■
Kanebo Cosmetics Inc. ■
Kao Commercial (Shanghai) Co., Ltd. ■ ■ ■
Kanebo Cosmetics Sales Inc. ■
Kao Brands Europe Ltd. ■
Shanghai Kanebo Cosmetics Co., Ltd. ■
E’quipe, Ltd. ■
KPSS (UK) Ltd. ■
Kao Chemical Corporation Shanghai ■
Lissage Ltd. ■
Molton Brown Ltd. ■
Kao Trading Corporation Shanghai ■
Kanebo Cosmillion, Ltd. ■
United Kingdom
Nivea-Kao Co., Ltd. ■
Canada
Vietnam
Ehime Sanitary Products Co., Ltd. ■ ■
Kao Brands Canada Inc. ■
Kao Professional Services Co., Ltd. ■
KPSS Canada Ltd. ■
Kao Vietnam Co., Ltd. ■ ■
Kao-Quaker Co., Ltd. ■
Kao (Hong Kong) Ltd. ■ ■ ■
Germany KPSS-Kao Professional Salon Services GmbH ■ Guhl Ikebana GmbH ■ Kao Corporation GmbH ■ Kao Chemicals GmbH ■
Spain Kao Chemicals Europe, S.L. ■
Thailand Kao Industrial (Thailand) Co., Ltd. ■ ■ ■ ■
Taiwan
Kao Consumer Products (Southeast Asia) Co., Ltd. ■ ■ ■
Kao (Taiwan) Corporation ■ ■ ■ ■
Kao Specialties Americas LLC ■
Philippines
Mexico
Malaysia Kao Soap (Malaysia) Sdn. Bhd. ■
KPSS AG ■ Kanebo Cosmetics (Europe) Ltd. ■
Kao (Malaysia) Sdn. Bhd. ■ ■ ■ Fatty Chemical (Malaysia) Sdn. Bhd. ■ Kao Plasticizer (Malaysia) Sdn. Bhd. ■ Kao Oleochemical (Malaysia) Sdn. Bhd. ■
Singapore Kao (Singapore) Private Ltd. ■ ■ ■ ■
References to Kao in this report mean the Kao Group. When it is necessary to make a distinction, the name of the organization in question will be shown separately.
●
Kao Brands Company ■
Kao Commercial (Thailand) Co., Ltd. ■ ■ ■
Kao Corporation S.A. ■
Switzerland
U.S.A.
Pilipinas Kao, Incorporated ■
Indonesia P.T. Kao Indonesia ■ ■ ■ P.T. Kao Indonesia Chemicals ■
Australia KPSS Australia Pty. Ltd. ■ Kao (Australia) Marketing Pty. Ltd. ■
KPSS, Inc. ■
Quimi-Kao, S.A. de C.V. ■
Consumer Products Business
Beauty Care Business
Human Health Care Business
In order to allow every consumer to achieve their own unique
Kao Human Health Care Business offers products which help
beauty with leading technologies, Kao Beauty Care Business
consumers to live healthily and comfortably, including sanitary
offers products ranging from prestige cosmetics to premium
products created using proprietary technologies, functional
skin care products such as facial and body cleansers, and
health beverages that offer new performance values, and
shampoo and conditioner premium hair care products.
other products such as bath additives and toothpaste. The main Human Health Care brands include Laurier
The main Beauty Care brands include Kanebo, Sofina and Molton Brown in prestige cosmetics; Bioré, Curél and
sanitary napkins; Merries baby diapers; the Healthya series
Jergens in premium skin care; John Frieda, Essential,
of functional health beverages; and personal health products
Asience and Liese in premium hair care, and Goldwell for
Clearclean oral care and Bub bath additives. In particular, our
professional hair salons. Each brand offers distinctive features
highly absorbent, soft and gentle high-value-added sanitary
and performance values that can be experienced directly. Kao
napkins and baby diapers are very popular among consumers
Beauty Care products are available to consumers in Japan, Asia, Oceania, North America and Europe.
in Asia, our main market for sanitary products.
Segment Sales (Billions of yen)
(Billions of yen)
800
600
Segment Sales 400
584.3
627.9
588.3
547.9
300
533.5
400
200
200
100
0
2007
2008
2009
2010
0
2011
183.6
191.3
191.3
183.2
175.8
2007
2008
2009
2010
2011
Notes: 1. Shown for fiscal years ended March 31. 2. Figures are rounded to the nearest whole number or decimal.
1
Kao Group Profile 2011
8000
2
Kao Group Profile 2011
200
Chemical Business
Fabric and Home Care Business
Chemical Business
Kao Fabric and Home Care Business offers products designed
Kao Chemical Business offers customers worldwide a range
for quality, functionality, and ease of use in order to help
of chemical products designed to meet the diverse needs of
consumers enjoy a clean, comfortable lifestyle, including
global industry, including oleo chemicals manufactured from
fabric care products such as laundry detergents and fabric
natural oil and fat raw materials, surfactants, toners and toner
softener, as well as dishwashing detergents, kitchen cleaners
binders, and fragrances and aroma chemicals. Products such as KALCOL fatty alcohol, EMAL
and other home care products. The main Fabric and Home Care brands are Attack
surfactant, and MIGHTY high performance superplasticizer
laundry detergent, Haiter bleach and Magiclean household
for concrete, help enrich people’s lives in a broad range of
cleaner, products popular among consumers in Japan, Asia
industrial sectors around the world from paper and pulp, food,
and Oceania. In light of growing concern for the environment,
pharmaceutical, civil engineering and construction, to
in the past few years we have actively introduced super-
information media, electronics, and plastic products.
compact eco-conscious products like Attack Neo, an ultraconcentrated liquid laundry detergent, which saves significantly on water and electricity use, and fabric softener
Kao Chemical has also introduced plant-based plastics
Segment Sales
and other eco-conscious products developed through
(Billions of yen)
original technology and will continue to work toward
400
Segment Sales (Billions of yen) 400
contributing to reduction of the environmental impact of
Humming Neo. 300
269.5
274.7
274.2
276.9
diverse industry sectors.
279.0
300 224.6
200
200
100
100
0
2007
2008
2009
2010
0
2011
Kao Group Profile 2011
3
4000
194.4
2007
222.5 176.4
2008
2009
2010
198.5
2011
Kao Group Profile 2011
4
400
Embracing the Kao Way
Message from the President and CEO
Viewing our mission as helping enrich the lives of people around the world, Kao aims to contribute to sustainable society by sharing and putting into practice the Kao Way corporate philosophy globally across group companies.
Mission
Satisfaction and enrichment of the lives of people
Mission : Our mission is to strive for the wholehearted satisfaction and enrichment of the lives of people globally and to contribute to the sustainability of the world, with products and brands of excellent value that are created from the
Vision
To be closest to consumers and customers
Since the introduction of Kao Sekken (Kao Soap) premium
Values
domestic facial soap in 1890, Kao has engaged in Yoki-
Yoki-Monozukuri Innovation Integrity
Monozukuri (our commitment as a manufacturer to providing excellent products) for more than 120 years.
Principles
In line with the principles of Consumer Driven and
consumer’s and customer’s perspective. This commitment is embraced by all members of the Kao Group as we work together with passion to share joy with consumers and customers in our core domains of cleanliness, beauty, health and chemicals.
●
Consumer Driven Genba-ism Respect & Teamwork Global Perspective
Genba-ism, we have continued to develop products that respond effectively to changes in consumers’ values and
F or more details about the Kao Way, please visit our website. http://www.kao.com/group/en/group/kaoway.html
product needs over time. Today, Kao is engaged in a broad range of businesses globally in Beauty Care, Human Health Care, Fabric and Home Care, and Chemicals. At Kao, we have made it our mission to strive for the
Contributing to the Sustainability of Society through Yoki-Monozukuri
enrichment of the lives of people all over the world and contribute to the sustainability of society through Yoki-
As we work toward the creation of a sustainable society, Kao
observance of 10 principles concerning human rights, labor,
Monozukuri, objectives clearly enunciated in the our corporate
has identified three major themes which take into
and the environment.
philosophy the Kao Way. Based on this mission, in 2009 we
consideration social issues and our corporate strategies over
adopted the new corporate message of “Enriching lives, in
the medium to long term.
harmony with nature” and announced our Kao Environmental Statement, which we are working steadily to achieve. In accordance with our commitment to ecology-centered management, Kao will strengthen its integration of
These are “global,” which encompasses bringing
In fiscal 2010, we also announced our support for the “women’s empowerment guidelines,”* which promote the participation of women in society. Kao takes a proactive
cleanliness, beauty and health to more people around the
stance toward enabling everyone in society, not just our own
world; “eco,” which aims to contribute to the global
employees, to make full use of their capabilities.
environment and resource sustainability; and “human capital
Our sustainability initiatives have been favorably evaluated
environmental perspectives in the creation of new
development,” a foundation of corporate sustainability. We
by leading global socially responsible investment (SRI)
performance values.
have set objectives for these respective goals and adopted a
indexes, and we are also listed in the FTSE4Good Global
strategic approach toward fulfilling them by fiscal 2015.
Index and others. We will continue devoting efforts to
As we know there can be no corporate sustainability without a sustainable society, we believe that we must fulfill
sustainability initiatives across our global group of companies to further establish our reliability.
our responsibilities as a member of society in countries Motoki Ozaki President and Chief Executive Officer
around the world. One indicator of Kao’s commitment to this objective is our ongoing support since 2005 of the United Nations Global Compact, which is dedicated to the The Global Compact Dedicated to encouraging corporations worldwide to support and put into practice as global citizens 10 principles concerning human rights, labor, the environment, and the prevention of corruption, the Global Compact embodies a philosophy advanced at the World Economic Forum held in Davos, Switzerland, in 1999.
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Kao Group Profile 2011
Certificate awarded to Kao by the United Nations Development Fund for Women (UNIFEM). *G uidelines for women’s participation in society set out by the United Nations Development Fund for Women (UNIFEM) and the United Nations Global Compact. ●
F or details on sustainability at Kao, please see our Sustainability Report (scheduled to appear in early September 2011). http://www.kao.com/jp/en/corp_csr/csr.html
Kao Group Profile 2011
7
Fundamental Approach to Corporate Activities
Detailed Surveys of Living Conditions to Identify Real Consumer Needs To make consumer-driven product development and manufacturing a reality, Kao conducts detailed surveys of consumers lives. For example, Attack Easy laundry detergent for hand washing available in Thailand and Indonesia was developed after a year-long study of local living conditions where project members consisting of marketers, product developers and researchers visited over 400 homes to painstakingly investigate laundry methods, characteristics of the water used for washing, and types of stains on clothing. Attack Easy, a detergent with “a unique smoothness that makes it effortless to wash clothes by rubbing,” is now widely used by consumers.
Indonesian researchers avidly solicit a consumer’s opinions about a product during a home visit.
Total Supply Chain Management for Optimization from a Global Perspective Kao conducts total supply chain management, a unified approach from raw materials procurement to production, logistics and sales, on a global scale across group companies. For example, from the standpoints of quality, cost and speed, Vietnam is one of the main production bases for Bioré facial cleanser, shipping to eight countries in Asia, including Japan. In the case of global brands such as this, total optimization is adopted, factoring in items produced, production volume, time of production and other factors, while accurately gauging demand in each country, for Visiting a home in a suburban area in Thailand during a multi-faceted study on local laundry habits and needs for detergent for washing clothes by hand.
Working toward Yoki-Monozukuri manufacturer to providing excellent products), striving for
Kao sales divisions provide products, brands, information and other valuable resources to consumers through retailers. Our
the wholehearted satisfaction and enrichment of the lives of people all over the world. To come up with products from the perspective of consumers and customers, Kao’s approach to business activities integrates research and
Sales
Marketing Yoki-Monozukuri
meet local consumer needs.
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Kao Group Profile 2011
information and distribution networks, effective in-store displays and selling method proposals, as well as marketingmany years in Japan. These activities are also beginning to
sales. Putting Yoki-Monozukuri into practice based on the over the world, Kao provides high-value-added products to
unique proposal-oriented sales activities, such as our
linked communication with consumers, have developed over
development, marketing, production, distribution and Consumer Driven and Genba-ism principles in markets all
A production facility in Vietnam which supplies quality products to customers throughout Asia.
Sales Activities Coordinated with Retailers for True Customer Satisfaction
Research and Development
Kao practices Yoki-Monozukuri (our commitment as a
optimally efficient operation.
Distribution
Production
be applied outside Japan. To further facilitate this process and achieve greater globalization, Kao is standardizing operations and pursuing stronger collaboration with global retail partners.
In Singapore, a Kao employee offers suggestions to a retailer on how to create an appealing sales floor.
Kao Group Profile 2011
9
Quality Management Undertakings
Creating Quality Products That Customers Trust Kao carries out company-wide quality management activities, ensuring peace of mind as products are used. We painstakingly consider product quality at every stage, from product development to production, distribution and sales, and even when consumers use and dispose of the products, in order to continue making improvements. Kao has obtained ISO9001 certification for each of its production bases. For production of food ingredients in particular, we endeavor to ensure traceability of all elements from materials to consumption and have also implemented a food safety management system in line with standards such as HACCP (Hazard Analysis and Critical Control Point).* *Food safety management system in use worldwide
Thorough quality control at every stage of the manufacturing process ensures peace of mind when consumers use our products.
Management of Chemical Substances in Accordance with Global Agreements Kao practices an integrated approach to chemical substance management using a proprietary Comprehensive Management System for Chemical Substances. Through this system, integrated management from raw materials to finished products is carried out to confirm safety and compliance with legal regulations. We are committed to strengthening our Responsible Care (RC) activities across our global operations. We are also working to further minimize the impact of chemical substances on health and the environment by 2020, in accordance with the international agreement Strategic The research, production, sales and other divisions share consumer feedback for input into new product development and improvements.
Ensuring Reliability Globally Consumers/Customers Decide on the Quality of the Products
Monozukuri (our commitment as a manufacturer to providing excellent products) from the perspective of consumers and customers. Since the company was founded we have consistently maintained this spirit, carrying out product development and manufacturing in order to share our passion with consumers and customers. We put into practice quality
Policies for Quality Management Activities
Kao bases its quality management activities on Yoki-
Providing Products That Users Wish to Continue to Use Ensuring Safe Usage for Consumers/Customers Legal Compliance
management undertakings around the world—listening carefully to customers, developing new and improved products and services that give satisfaction, in order to continue to provide peace of mind as customers use Kao products.
Transparency and Accountability
Approach to International Chemicals Management (SAICM).
Reflecting Consumer Feedback through the Kao ECHO System in Product Development Started in Japan in 1978 as a consumer communication system, the Kao ECHO System has become a basis for Kao’s Yoki-Monozukuri in the form of customer feedback stored in a database. We get nearly 148,000* consumer inquiries or comments yearly, from which we glean ideas for improving product performance and container usability. With Kao’s products now distributed globally, knowledge acquired in this way has also spread among group companies. Before launching our foam hair color product in Asia, North America and Europe, we held seminars for local staff to help them respond effectively to consumer’s questions. *Fiscal 2010
10
Kao Group Profile 2011
Chemical substances to be used in raw materials are rigorously checked to confirm that they meet our own management standards.
Group companies outside Japan also respond to consumer inquiries accurately and promptly so that consumers may use our products with peace of mind.
Kao Group Profile 2011
11
Environment-related Undertakings
Yoki-Monozukuri for Reducing Environmental Impact throughout the Product Life Cycle According to the life cycle assessment (LCA) method measuring the impact of products on the environment, around 66%* of CO2 emissions are generated when consumers use a Kao product in their homes and dispose of it as trash after use. To reduce the environmental impact of its products in the home, Kao is actively involved in developing eco-conscious products. The first such product is Attack Neo, an ultra-concentrated liquid laundry detergent that offers a high level of cleansing power despite requiring just one rinse cycle, thus saving water and electricity. *Fiscal 2010 figures based on Kao research conducted in Japan.
Promoting development of products with reduced environmental impact and whose benefits consumers can experience for themselves.
Reducing Waste by Improving Products Using Refills and Replacement Products As part of everyday eco-conscious living, more and more consumers are using refills and replacement products, which not only reduce waste after use but cut down on packaging material use. Kao has been a front-runner in promoting the use of refills and replacement products. Ever since our first refillable products went on sale in 1991, we have continued their development, and we now have 152* such products available. Further, to encourage more customers to use refills and make refilling easier, we continue to make improvements to the shape of the refills’ pouring spouts depending on what Attack Neo, an ultra-concentrated liquid laundry detergent that embodies “eco together” with consumers/customers.
the package contains. *As of April 2011
Promoting “eco together”
“Eco together” with Society—Activities as a Responsible Corporate Citizen
As expressed in the Kao Environmental Statement, Kao is
Kao’s “eco together” activities focus not only on consumers
committed to ecology-centered management and
and business partners but also programs carried out together
continuing to strengthen our focus on corporate activities
with industry, government and environmental groups. The
from an environmental perspective. “Eco together” is the
“Kao Creating Forests for Everyone” program, a unique
principle which represents this environmental
greening program that is one of our best-known initiatives in
commitment. As a corporation which offers everyday
this field, has planted over 100,000 trees and preserved
household goods to consumers, we are working toward environmental goals to achieve “eco together” with stakeholders including consumers/customers, business partners and society. Please see p.18 for related item.
●
Refills and replacement products not only conserve resources but also cut down on waste after use.
Consumers/ Customers
Business partners
Society
woods and forests covering over 3,000 hectares. In 2010, we also held the 1st Kao International Environment Painting Contest for Children on the theme of “eco together,” attracting entries from children in 37 countries. The winning work, selected from among 4,339 entries, for the “eco together” Planet Earth Grand Prix and the awards ceremony.
12
Kao Group Profile 2011
Kao Group Profile 2011
13
Research and Development
Using Biomass to Develop New Eco-conscious Materials In the materials development field, we are actively developing new eco-conscious materials from biomass. For example, to make polylactide resin, a plastic derived from plants, easier to use, modification research was carried out to develop ECOLA, a modified polylactide resin. While ECOLA is a plant-derived plastic with lower environmental impact, it offers the same quality and workability as conventional petroleum-based plastics. ECOLA is currently used for personal computers and multi-function printer-copiers, and wider use of this material is expected in the future. Developing new materials with the same properties and lower environmental impact than conventional petroleum-based plastics.
Foam Control Technology for Making Foam Hair Color Easier to Use Foam hair color is a revolutionary hair colorant whose development was made possible by Kao’s comprehensive consumer research and technological capabilities. It is distinguished by use of foam that does not drip and spreads easily through the hair. The Research & Development Division conducted more detailed research into foam control technology for foam color and, using a specific surfactant and gel, succeeded in creating a product with better foaming and foam retention properties. This technology works for all types of hair textures, hairstyles and hair color variations, speeding the introduction of Researching hair care products for salon use. Pursuing products offering innovative functions and high quality, and new beauty performance values.
Creating Innovation At Kao, we conduct research and development to create
Research & Development Division Product Development Research
Fundamental Research
innovative products through a fusion of product
technology in a diverse range of fields. Matrix management of these two types of research allows for speedier and more efficient research and development.
Life Science Chemical
Fabric and Home Care
Fundamental Research explores cutting-edge science and
Beauty Care
lives and needs of consumers around the world. Our
Human Health Care
Materials Science
Product Development Research promotes development of and satisfying to use, based on deep understanding of the
Foam hair color technology works for all types of hair textures and hairstyles, helping spread the product across global markets.
Accelerating Eco-innovation by Centralizing Environmental Research Functions In order to see our ecology-centered management vision come to fruition in the development and manufacture of
development research and fundamental research. Our technologies for creating products designed to be pleasant
the product across markets in Asia, North America and Europe.
products, Kao launched the Eco-Technology Research Center (ETRC), a new research facility at the Wakayama Complex in Wakayama City. By centralizing environmental research
Production Technology Human Science
functions at the ETRC, we will actively work to further develop technologies related to utilization of renewable raw materials such as vegetable fats and oils and next-generation
Environmental Science
environmental technologies in the fields of water, food and green chemicals. The Eco-Technology Research Center serves as our research and development base for next-generation environmental technologies.
14
Kao Group Profile 2011
Kao Group Profile 2011
15
120 Years of Yoki-Monozukuri, for the World and for the Future Kao has put in practice Yoki-Monozukuri (our commitment as a manufacturer to providing excellent products) from the consumer’s perspective for over 120 years. During that time, we have used our proprietary technologies to create dozens of products bringing new changes to everyday living. We will continue improving our Yoki-Monozukuri to enrich the lives of people everywhere around the world.
Kao Feather Shampoo was packaged in aluminum foil, to keep dampness out.
Manufacturing process for Kao Feather Shampoo (the Tokyo Plant at the time).
Research facility capable of measuring human energy consumption over long periods of time.
time were starting to become more
cues from how the skin works
over were overweight.
varied. Consumers took to this product
naturally and was conceived to help
as it was pH neutral, foamed well and
the skin’s functions. Incorporating a
Caucasians, being even slightly
felt refreshing, and it soon became
simple beauty routine and offering
overweight makes Japanese more
very popular.
scientific counseling, it soon became
prone to developing chronic diseases
very popular among women.
associated with living habits. Thus was
scores of innovative products over
Foundation was added in 1984,
born the project to develop Healthya,
the years and made major
followed by makeup products in 1985.
to help people control their weight for
contributions to enhancing the
Kao Sofina continues to be a total
healthier daily living.
Japanese culture of cleanliness.
beauty cosmetics brand in Japan and
In this way, Kao has come up with
Asia today.
Kao Sekken (Kao Soap) (set of three bars in a paulownia box), launched in 1890, and metal mold for Kao’s “moon” imprint.
Innovative Products for the Culture of Cleanliness Kao’s Yoki-Monozukuri began in 1890
It is said that, compared with
Other skin care products
Kao had been studying metabolism since the 1980s and aimed to take various approaches to applying the
Natural Skin Beauty Based on Dermatology
developed by Kao include facial
knowledge gained in this research to
cleanser Bioré and body wash Bioré U,
develop products with health benefits
In the 1970s, the cosmetics market
both products which also offer skin
which would assist in weight control.
continued to grow as more women
moisturizing properties. Kao seeks to
During the process, the research and
worked outside the home and wanted
give consumers beautiful healthy skin
development team focused on
as “face” in Japanese. Kao was later
was launched the following year. This
better-quality cosmetics. This led Kao
by basing its products on the
polyphenols. After analyzing over 100
adopted as the company name.
product made “shampoo” a household
to enter the cosmetics market in
mechanism of the skin.
types of plant materials, researchers
Continuous improvements were
word and initiated major changes in
earnest, and in 1976 the company set
determined that tea catechin, a
Japanese hair-washing habits.
up the Beauty Technology Center and
polyphenol found in green tea, excelled
when the company introduced Kao
made to the quality of Kao Sekken,
Sekken (Kao Soap), domestically
which was then re-launched nationwide
produced quality facial soap
with new packaging in 1931.
laundry detergent Kao Kona Sentaku
Household Products Research
Healthy Daily Living through Metabolism Research
Healthya Green Tea, which also won
comparable in quality to imported
Modernization of the manufacturing
(rebranded to Wonderful in 1953). The
Laboratories in Tokyo. Following six
Healthya Green Tea, a functional health
approval from Japan’s Ministry of
In 1951, Kao launched powder
Skin Research Laboratry within its
in promting the reduction of body fat.
soaps. The product was named “Kao”
process and other improvements made
product became a hit along with the
years of research into skin physiology
drink, was created in 2003 after a
Health, Labour and Welfare as a
to communicate the premium feeling
it possible to price the product
rapid growth in popularity of electric
and studies on the safety of cosmetics
national health and nutrition survey at
FOSHU (Food for Specified Health
of facial soap, a product called kao-arai
affordably. As a result, it became part of
washing machines. In 1955, powder
ingredients and fragrances, the
the time revealed that one in three
Use) product, was launched in 2003.
(literally, “face-washer”) at the time
daily life among a broad segment of the
shampoo Kao Feather Shampoo was
company launched Kao Sofina in 1982.
men between the ages of 30 and 60
The line expanded to include Healthya
because the pronunciation is the same
population. Kao Shampoo (in solid form)
launched, as women’s hairstyles at the
This skin care product line took its
and one in three women age 60 and
Water in 2006 and Healthya Sparkling
Repeated manufacturing experiments were carried out (research lab, and Kao Sekken [Kao Soap] re-launched).
Kao Shampoo became very popular among consumers for its quality and its new-style advertising.
Pioneering synthetic laundry detergent Kao Kona Sentaku and Wonderful.
Kao’s research into skin physiology and safety bore fruit with the birth of the Kao Sofina in 1982.
Cosmetics advisers learning the scientific counseling method (Kao Sofina School at the time).
Comprehensive research in dermatological science, working toward the creation of new value for beauty.
16
Kao Group Profile 2011
Kao Group Profile 2011
17
Kao Group History
1887 Kao founder Mr.Tomiro Nagase starts Nagase Shoten, a Western sundry goods dealer that would later become Kao.
The safety and traceability of raw materials are strictly ensured in developing functional health beverages.
Announcing Kao’s new corporate identity and corporate message in June 2009.
Products embodying “eco together”—from left, Attack Neo, New Beads Neo and Humming Neo.
in 2009, developed to meet varied
centered management, Kao has
consumer preferences. These products
adopted “eco together” as its
help people live more healthy lives and
Environmental Statement slogan. This
value-added product development and
remain very popular today.
slogan refers to Kao’s desire, as a
manufacturing with the dual objectives
1902 Ukechi Factory is completed as a directly managed plant capable of handling the entire production process, from raw material preparation to final product packaging.
Neo and New Beads Neo. Kao has a long history of high-
Kao also offers other health-
manufacturer of household products
of improving product performance and
oriented products. For example,
for daily use, to motivate consumers
reducing environmental impact. For
1923 Tokyo Azuma Factory (currently the Sumida Complex) begins operations, expanding the scale of the company’s soap production.
1985 Kao Soap Co., Ltd. is renamed Kao Corporation to reflect the increasingly broad scope of its businesses. (The English corporate name is changed in 1982.) Kao acquires a stake in P.T. Dino Indonesia Industrial Ltd. (The company is renamed P.T. Kao Indonesia in 1997.) 1987 Kao acquires High Point Chemical Corporation (U.S.). (Reorganized into Kao Specialties Americas LLC and two other companies in 1999.) 1988 Kao acquires the Andrew Jergens Company (U.S.). (The company is renamed Kao Brands Company in 2004.) Fatty Chemical (Malaysia) Sdn. Bhd. is established.
1989 Kao acquires Goldwell AG (West Germany). (The company is renamed KPSS-Kao Professional Salon Services GmbH in 2003.)
carbonation released by bath additive
to use its products responsibly, to
example, Attack, a pioneering compact
Bub enhances the effects of bathing in
lessen the environmental impact
laundry detergent introduced in 1987,
warm water and stimulates circulation.
associated with their use, and to make
has undergone over 20 modifications
Megurhythm warming sheets produce
it easy for them to continue being
since then, both to improve the
steam to warm affected parts of the
environmentally-aware through those
product’s cleaning performance and to
1993 Kao Corporation Shanghai is established.
body and relieve discomfort. Research
products. Attack Neo, an ultra-
streamline the production process,
and development at Kao continues to
concentrated liquid laundry detergent,
further reducing its environmental
1995 Kao adopts the Kao Management Principles as its corporate philosophy.
take new approaches from various
is a product that embodies these new
impact from many different angles.
perspectives, for more healthy
values. Created using proprietary Kao
everyday living.
Ecology-centered Management for a Sustainable Society
1964 Kao Industrial (Thailand) Co., Ltd. is established as Kao’s first company outside Japan.
Kao was also a front-runner in
technology, Attack Neo delivers
developing refills and replacement
significant water savings while
products to make containers reusable,
lowering electricity use by making
in order to reduce the amount of
laundering possible with only one rinse
plastic required for packaging. Today,
cycle. The product’s packaging is also
refills and replacement products are
less than half the size of previous liquid
available for over 150 products in
Kao announced its Environmental
detergent containers, greatly reducing
various product categories.
Statement in June 2009. This
the amount of plastic used. The
statement clearly positions Kao as a
environmental impact-reducing Attack Neo technology is also being used
consumer living while protecting the
today for products sold in China and
earth’s environment.
areas of cleanliness, beauty and health
Australia. Kao has also launched other
through ecology-centered
products embodying the “eco
management. In promoting ecology-
together” concept, such as Humming
1965 Malaysia Kao Company (Private) Ltd. is established in Singapore. (The company is renamed Kao (Singapore) Private Ltd. in 1973.)
1970 Kao (Hong Kong) Ltd. is established. 1971 Nivea-Kao Co., Ltd. is established as a joint venture with Beiersdorf AG (West Germany).
Monozukuri to create new value for
company working to enrich the lives of
Taiwan-Kao Company, Ltd. is established. (The company is renamed Kao (Taiwan) Corporation in 1991.)
1966 Takiya Kao Shoji (Tokyo) and Matsuhana Shoji (Kobe) are established as Kao’s first sales companies specializing in wholesaling of Kao products.
Kao will further enhance its Yoki-
people all around the world in the
1934 Kao Housework Science Laboratory is founded as a research facility that takes a scientific approach to housework. (The facility is renamed the Nagase Housework Science Laboratory in 1937.)
Kao Life Science Laboratory is founded to carry on and expand on the functions of Kao Housework Science Laboratory. 1973 Kao (Malaysia) Sdn. Bhd. is established. 1975 Quimi-Kao, S.A. de C.V. (Mexico) is established. Kitt Siam (Thailand) Co., Ltd. is established. （The company is renamed Kao Commercial (Thailand) Co., Ltd. in 1991.） 1977 Pilipinas Kao, Incorporated (Philippines) is established.
Environmental Undertakings Associated with Attack
P.T. Pole Kao Indonesia Chemicals is established. (The company is renamed P.T. Kao Indonesia Chemicals in 1996.)
1991 Kao Oleochemical (Malaysia) Sdn. Bhd. is established. 1992 Kao (Australia) Marketing Pty. Ltd. is established.
Kao Chemical Corporation Shanghai is established. 1996 Kao Vietnam Co., Ltd. is established. 1999 Kao Hanbai Co., Ltd. is established following the merger of nine regional Hansha, or sales companies specializing in the wholesaling of Kao products. (The company becomes a 100% subsidiary in 2004, and merges with Kao Cosmetics Sales Co., Ltd. in 2007, which is renamed Kao Customer Marketing Co., Ltd.) Kao Chemicals Europe, S.L. (Spain) is established.
2002 Kao acquires John Frieda Professional Hair Care, Inc., a premium hair care product manufacturer with bases in the U.S. and U.K. (The company is merged into Kao Brands Company in 2004.) Kao (China) Holding Co., Ltd. is established in China. 2004 The Kao Management Principles are revised and adopted as the Kao Way, a statement of the Kao Group’s corporate philosophy. 2005 Kao acquires Molton Brown Ltd. (U.K.). 2006 The Kao Group acquires Kanebo Cosmetics Inc. The Kao (China) Research and Development Center Co., Ltd. is established in China. A new fatty alcohol plant is constructed and begins operations at Pilipinas Kao, Incorporated in the Phlippines.
1978 Ehime Sanitary Products Co., Ltd. is established.
Typical laundry detergent before introduction of Attack
1987 Attack is introduced. Using active bio-enzymes cuts volume of detergent needed to 1/4 of conventional products
1995 Attack is made more concentrated, reducing the amount of detergent used in 30L of water from 25g to 20g
2001 Microparticles are developed, which reduces surfactant use by 30%
2003/2004 Product packaging is modified to use a paper lid, and the plastic handle and metal rivets are eliminated
2008 Highly-active bio-enzyme content is increased, to improve cleaning performance and odor removal effect
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1979 Guhl Kosmetik is established in West Germany as a joint venture with Beiersdorf AG. (The company is renamed Guhl Ikebana GmbH in 1986.) The company develops its hair care business in Europe.
2009 Kao announces the Kao Environmental Statement and unveils a new corporate identity. Kao acquires a premium hair care products factory in Germany through Kao Corporation GmbH.
Kao Group Profile 2011
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