INDUSTRY PROFILE

Skincare in Asia-Pacific Reference Code: 0200-0708 Publication Date: August 2011

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY Market value The Asia-Pacific skincare market grew by 5.1% in 2010 to reach a value of $34,395.4 million.

Market value forecast In 2015, the Asia-Pacific skincare market is forecast to have a value of $42,573.7 million, an increase of 23.8% since 2010.

Market volume The Asia-Pacific skincare market grew by 5.4% in 2010 to reach a volume of 5,641.8 million units.

Market volume forecast In 2015, the Asia-Pacific skincare market is forecast to have a volume of 7,095.3 million units, an increase of 25.8% since 2010.

Market segmentation I Facial care is the largest segment of the skincare market in Asia-Pacific, accounting for 72.1% of the market's total value.

Market segmentation II Japan accounts for 50.6% of the Asia-Pacific skincare market value.

Market share Kao Corporation is the leading player in the Asia-Pacific skincare market, generating a 10.5% share of the market's value.

Market rivalry The Asia-Pacific skincare market is relatively fragmented, with three leading players accounting for 29.2% of the market value.

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CONTENTS

TABLE OF CONTENTS EXECUTIVE SUMMARY

2

MARKET OVERVIEW

6

Market definition

6

Research highlights

7

Market analysis

8

MARKET VALUE

9

MARKET VOLUME

10

MARKET SEGMENTATION I

11

MARKET SEGMENTATION II

12

MARKET SHARE

13

COMPETITIVE LANDSCAPE

14

LEADING COMPANIES

16

Kao Corporation

16

Shiseido Company, Limited

20

Unilever

24

MARKET DISTRIBUTION

29

MARKET FORECASTS

30

Market value forecast

30

Market volume forecast

31

APPENDIX

32

Methodology

32

Industry associations

33

Related Datamonitor research

33

Disclaimer

34

ABOUT DATAMONITOR

35

Premium Reports

35

Summary Reports

35

Datamonitor consulting

35

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CONTENTS

LIST OF TABLES Table 1:

Asia-Pacific skincare market value: $ million, 2006–10

Table 2:

Asia–Pacific skincare market volume: million units, 2006–10

10

Table 3:

Asia-Pacific skincare market segmentation I:% share, by value, 2010

11

Table 4:

Asia-Pacific skincare market segmentation II: % share, by value, 2010

12

Table 5:

Asia-Pacific skincare market share: % share, by value, 2010

13

Table 6:

Kao Corporation: key facts

16

Table 7:

Kao Corporation: key financials ($)

18

Table 8:

Kao Corporation: key financials (¥)

18

Table 9:

Kao Corporation: key financial ratios

18

Table 10:

Shiseido Company, Limited: key facts

20

Table 11:

Shiseido Company, Limited: key financials ($)

22

Table 12:

Shiseido Company, Limited: key financials (¥)

22

Table 13:

Shiseido Company, Limited: key financial ratios

22

Table 14:

Unilever: key facts

24

Table 15:

Unilever: key financials ($)

26

Table 16:

Unilever: key financials (€)

26

Table 17:

Unilever: key financial ratios

27

Table 18:

Asia-Pacific skincare market distribution: % share, by value, 2010

29

Table 19:

Asia-Pacific skincare market value forecast: $ million, 2010–15

30

Table 20:

Asia–Pacific skincare market volume forecast: million units, 2010–15

31

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9

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CONTENTS

LIST OF FIGURES Figure 1:

Asia-Pacific skincare market value: $ million, 2006–10

Figure 2:

Asia–Pacific skincare market volume: million units, 2006–10

10

Figure 3:

Asia-Pacific skincare market segmentation I:% share, by value, 2010

11

Figure 4:

Asia-Pacific skincare market segmentation II: % share, by value, 2010

12

Figure 5:

Asia-Pacific skincare market share: % share, by value, 2010

13

Figure 6:

Kao Corporation: revenues & profitability

19

Figure 7:

Kao Corporation: assets & liabilities

19

Figure 8:

Shiseido Company, Limited: revenues & profitability

23

Figure 9:

Shiseido Company, Limited: assets & liabilities

23

Figure 10:

Unilever: revenues & profitability

27

Figure 11:

Unilever: assets & liabilities

28

Figure 12:

Asia-Pacific skincare market distribution: % share, by value, 2010

29

Figure 13:

Asia-Pacific skincare market value forecast: $ million, 2010–15

30

Figure 14:

Asia–Pacific skincare market volume forecast: million units, 2010–15

31

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9

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MARKET OVERVIEW

MARKET OVERVIEW Market definition The skincare market consists of the retail sale of facial care, body care, suncare, hand care, depilatories and make-up remover products. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2010 annual average exchange rates. For the purpose of this report Asia-Pacific comprises Australia, China, Japan, India, Singapore, South Korea, Indonesia, the Philippines, Thailand, Vietnam, New Zealand, Hong Kong, Malaysia, Pakistan and Taiwan.

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MARKET OVERVIEW

Research highlights The Asia-Pacific skincare market generated total revenues of $34.4 billion in 2010, representing a compound annual growth rate (CAGR) of 5% for the period spanning 2006-2010. Facial care sales proved the most lucrative for the Asia-Pacific skincare market in 2010, generating total revenues of $24.8 billion, equivalent to 72.1% of the market's overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.4% for the fiveyear period 2010-2015, which is expected to lead the market to a value of $42.6 billion by the end of 2015.

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MARKET OVERVIEW

Market analysis The Asia-Pacific skincare market grew at a fairly strong rate during the period 2006-2010, as a result of strong sales growth in the facial care and suncare category. The overall market growth is expected to decelerate in the forthcoming five years. The Asia-Pacific skincare market generated total revenues of $34.4 billion in 2010, representing a compound annual growth rate (CAGR) of 5% for the period spanning 2006-2010. In comparison, the Chinese and South Korean markets grew with CAGRs of 9.4% and 3.8% respectively, over the same period, to reach respective values of $9.4 billion and $2.4 billion in 2010. Market consumption volumes increased with a CAGR of 5.7% between 2006 and 2010, to reach a total of 5.6 billion units in 2010. The market's volume is expected to rise to 7.1 billion units by the end of 2015, representing a CAGR of 4.7% for the 2010-2015 period. Facial care sales proved the most lucrative for the Asia-Pacific skincare market in 2010, generating total revenues of $24.8 billion, equivalent to 72.1% of the market's overall value. In comparison, sales of body care generated revenues of $4.5 billion in 2010, equating to 13.1% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.4% for the fiveyear period 2010-2015, which is expected to lead the market to a value of $42.6 billion by the end of 2015. Comparatively, the Chinese and South Korean markets will grow with CAGRs of 7.5% and 2.7% respectively, over the same period, to reach respective values of $13.5 billion and $2.8 billion in 2015.

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MARKET VALUE

MARKET VALUE The Asia-Pacific skincare market grew by 5.1% in 2010 to reach a value of $34,395.4 million. The compound annual growth rate of the market in the period 2006–10 was 5%. Table 1:

Asia-Pacific skincare market value: $ million, 2006–10

Year

$ million

€ million

% Growth

2006 2007 2008 2009 2010

28,312.5 29,775.7 31,262.4 32,737.4 34,395.4

21,321.4 22,423.3 23,542.9 24,653.7 25,902.3

5.2% 5.0% 4.7% 5.1%

CAGR: 2006–10 Source: Datamonitor

Figure 1:

5.0% DATAMONITOR

Asia-Pacific skincare market value: $ million, 2006–10

Source: Datamonitor

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DATAMONITOR

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MARKET VOLUME

MARKET VOLUME The Asia-Pacific skincare market grew by 5.4% in 2010 to reach a volume of 5,641.8 million units. The compound annual growth rate of the market in the period 2006–10 was 5.7%. Table 2:

Asia–Pacific skincare market volume: million units, 2006–10

Year

million units

% Growth

2006 2007 2008 2009 2010

4,518.5 4,784.6 5,064.1 5,351.2 5,641.8

5.9% 5.8% 5.7% 5.4%

CAGR: 2006–10 Source: Datamonitor

Figure 2:

5.7% DATAMONITOR

Asia–Pacific skincare market volume: million units, 2006–10

Source: Datamonitor

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DATAMONITOR

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MARKET SEGMENTATION I

MARKET SEGMENTATION I Facial care is the largest segment of the skincare market in Asia-Pacific, accounting for 72.1% of the market's total value. The body care segment accounts for a further 13.1% of the market. Table 3:

Asia-Pacific skincare market segmentation I:% share, by value, 2010

Category

% Share 72.1% 13.1% 7.3% 6.0% 1.0% 0.5%

Facial care Body care Hand care Suncare Depilatories Make-up remover Total

100%

Source: Datamonitor

Figure 3:

DATAMONITOR

Asia-Pacific skincare market segmentation I:% share, by value, 2010

Source: Datamonitor

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DATAMONITOR

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MARKET SEGMENTATION II

MARKET SEGMENTATION II Japan accounts for 50.6% of the Asia-Pacific skincare market value. China accounts for a further 27.2% of the Asia-Pacific market. Table 4:

Asia-Pacific skincare market segmentation II: % share, by value, 2010

Category

% Share 50.6% 27.2% 6.5% 2.7% 13.0%

Japan China South Korea India Rest of Asia-Pacific Total

100%

Source: Datamonitor

Figure 4:

DATAMONITOR

Asia-Pacific skincare market segmentation II: % share, by value, 2010

Source: Datamonitor

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DATAMONITOR

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MARKET SHARE

MARKET SHARE Kao Corporation is the leading player in the Asia-Pacific skincare market, generating a 10.5% share of the market's value. Shiseido Company, Limited accounts for a further 10.3% of the market. Table 5:

Asia-Pacific skincare market share: % share, by value, 2010

Company Kao Corporation Shiseido Company, Limited Unilever Others Total

100%

Source: Datamonitor

Figure 5:

% Share 10.5% 10.3% 8.4% 70.8%

DATAMONITOR

Asia-Pacific skincare market share: % share, by value, 2010

Source: Datamonitor

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COMPETITIVE LANDSCAPE

COMPETITIVE LANDSCAPE The skincare market will be analyzed taking manufacturers of body care, depilatories, facial care, hand care, make-up remover and sun care products as players. The key buyers will be taken as retailers, and manufacturers of fine chemicals, vegetable oils, and other ingredients needed for cosmetic production as the key suppliers. The Asia-Pacific skincare market is 29.2% of the market value.

relatively fragmented, with three leading players accounting for

However, the strong brand identities built by the main players lead to end-user brand loyalty, which weakens the effective buyer power of retailers. Most raw materials are fine and specialty chemicals, which are available from several suppliers. The availability of effective alternatives weakens supplier power. However, the high standard of the raw materials required adds to supplier power. The likelihood of new entrants is moderate as high demand in the market for anti ageing solutions, natural products and formulations are offset by the existence of well established market players with a portfolio of strong brands. Substitutes, such as homemade products, are unlikely to pose substantial threat, as they may be either unpredictable in results or fulfill the basic requirements. Rivalry is moderate, with leading players being relatively diversified, reducing their reliance on the skincare market. Overall, the Asia Pacific skincare market is assessed as moderate. The Asia-Pacific skincare market includes buyers as retailers, with the main distribution channel being specialist retailers (37.8%). In many countries within the region the retail industry is much more fragmented than in the West. The major retailers in the Asia-Pacific market have considerable bulkpurchasing power, and also own a range of private-label brands. Both of those factors increase buyer power considerably. In countries like India, South Korea, Hong Kong and Japan consumers are demanding higher margin products such as nourishers/anti-agers. This trend is observed in the recent years with more women entering the work force, resulting in such women having higher disposable incomes to spend on products previously perceived as superfluous. Also in markets like Japan, South Korea and Taiwan, the thriving bihaku (white beauty) boom remains one of the most significant driving forces for overall growth, as manufacturers cater to the Asian preference for a fair complexion. The main players invest a significant amount of resources in research and development to create new skincare products to meet new demand triggered by changes in the lifestyle and purchasing power of consumers, especially those from developed and emerging economies like India and China. Both strategies serve to differentiate manufacturers in the market, and weaken buyer power: end-user loyalty to manufacturer brands means that retailers are under pressure to stock products of particular player. Some players have integrated forwards with retail operations of their own, further weakening buyer power, although this is not a very common strategy. Unlike its European and the US counterparts the Asia-Pacific market is comprised of specialist stores which form the main retail channels. For a cosmetics specialist, skincare products are a significant part of the business, and buyer power is accordingly weakened. Overall, buyer power is assessed as moderate.

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COMPETITIVE LANDSCAPE

Suppliers in the skincare market include manufacturers of fine chemicals, vegetable oils, and other ingredients needed for production of cosmetics. The quality of many of the raw materials is highly important. Chemicals used in these products must be of a standard suitable for manufacturing consumer products. For some chemicals there are no substitutes, which increase supplier power. However, there are generally several alternative products within each ingredient category, which reduces players' dependence on any particular supplier. Plastic, glass and metal packaging is an additional input for this market and companies. Overall, supplier power is assessed as moderate. The main manufacturers are large, international companies which invest heavily in both product innovation and building of brand portfolios. Thus, new entrants face formidable competition. There is also an issue of persuading stores to stock their products, and major retailers are aware of their importance in the distribution chain and may be unwilling to take the risk of displacing existing well established brands for new ones. Entering the skincare market also requires a new player to establish production facilities, which means significant capital outlay on machinery and factories. Skincare products are generally sold in high volume to a large number of consumers. Additionally, the reasonably high level of consolidation seen in most skincare markets, suggests that scale economies in manufacturing are likely to be important to the margins of players. New entrants may be able to start on a small scale as niche companies or through the introduction of new technologies. Overall, there is a moderate likelihood of new entrants. Substitutes for consumer skincare products include traditional or homemade products. The usage of homemade products may be significant in some undeveloped markets. However, such homemade alternatives require time and specific knowledge on product composition for their preparation. Furthermore substitutes may not offer the same effect as the products provided by branded cosmetics and may only fulfill the basic requirements. Overall, the threat of substitutes is assessed as weak. The three leading players collectively hold a market share of 29.2%. This is less concentrated than some personal product markets, and retailers with their private-label offerings, as well as some smaller manufacturers, are correspondingly more significant. The main market players are large, international companies who have the ability to compete more intensely on price. Rivalry is intensified by the fact that a significant proportion of market players produce mass-market goods, which implies high fixed costs along with high exit barriers. However, the diverse product range produced by some major players, including not just other personal care products, but also household products and food, reduces their reliance on the skincare market, which eases rivalry. Overall, rivalry is assessed as moderate.

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LEADING COMPANIES

LEADING COMPANIES Kao Corporation Table 6:

Kao Corporation: key facts

Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange:

14-10, Nihonbashi Kayabacho 1-chome, Chuo-ku, Tokyo, JPN 81 3 3660 7111 81 3 3660 8978 www.kao.com March 4452 Tokyo

Source: company website

DATAMONITOR

Kao is a Japanese manufacturer of personal care, laundry, and cleaning products. The company operates in Japan, Europe, North America, Asia, South Africa and Australia. Kao is one of Asia’s leading manufacturers of household and personal care products. The company operates through two business segments: consumer products and chemicals. The consumer product segment has three sub-segments including beauty care, fabric and home care, and human health care. The beauty care sub-segment offers cosmetic products under the brands such as the Kao Sofina, Kanebo and Molton Brown. It also offers a range of skin and body care products including facial and body wash, shampoo, hair rinse and other hair care products, and hair styling products. The segment offers its products in three categories: prestige cosmetics, premium skin care products, and premium hair care products. Prestige cosmetics include counseling cosmetics and self-selection cosmetics. Premium skin care products include soaps, facial cleansers and body cleansers. The key facial care brand marketed by the company includes Sofina Beaute, a foaming massage facial cleanser. Premium hair care products comprise shampoos, conditioners, hair care products and hair coloring agents. The company offers its makeup products under COFFRET D’OR, Aube and Sofina brand names. In June 2009, Kao Corporation, through its subsidiary Kao Corporation GmbH, acquired Reichardt International AG's Eberstadt plant for premium hair care products in Germany to enhance its beauty care business base in Europe. With this acquisition, Kao Group will develop its core production base for the beauty care business in Europe.

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LEADING COMPANIES

The fabric and home care sub-segment offers products such as Attack, laundry detergent, fabric softener; Family dishwashing liquid; Magiclean and Quickle household cleaners, and other home care solutions. In dishwashing product category, the company also offers Family Kyukyutto dishwashing detergent that was launched in Japan, in 2004. Furthermore, Kao is engaged in the production and sale of laundry and dishwashing detergents in China through its joint venture, Kao Transfer (Hangzhou) Co., established along with Zhejiang Transfer Group. Kao also has completed the construction of an R&D center in Shanghai in 2006. The center focuses on research of beauty care and cosmetics products along with other consumer products such as sanitary napkins and household cleaning detergents. The human health care sub-segment offers functional foods such as Econa Cooking Oil, Healthya Green Tea and Healthya Water. It also offers Laurier sanitary napkin series, Merries disposable baby diapers, as well as Pyuora and Clear Clean oral hygiene products, and the bath product Bub. The chemical products segment manufactures and sells fatty and specialty chemicals such as surface active agents. The company's chemical segment serves industries such as paper and pulp, food, pharmaceuticals, civil engineering and construction, information media, electronics, and many other industries, on a global scale. Kao also offers total hygiene consulting based on the concepts of 'sufficient cleanliness' and 'effective sanitation' for restaurants, recreational and other service industries, and medical facilities. The company also offers professional use products such as dishwashing liquids, shampoos and hair rinses, body washes, hotel amenity products, sanitation products for hospitals and nursing care facilities, laundry cleaning detergents, and hair care products. Key Metrics The company recorded revenues of $13.5 billion in the financial year (FY) ended March 2011, an increase of 0.2% over FY2010. The net profit of the company was $532.1 million in FY2011, an increase of 15.4% over FY2010. During FY2011, the beauty care business division recorded revenues of $6.1 billion, a decrease of 2.6% over 2010. Japan accounted for 79.4% of the total revenues in FY2011. Revenues from Japan reached $10.7 billion in FY2011, a decrease of 0.4% over FY2010. Asia and Oceania accounted for 13% of the total revenues in FY2011. Revenues from Asia and Oceania reached $1.8 billion in FY2011, an increase of 16.2% over FY2010.

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LEADING COMPANIES

Table 7:

Kao Corporation: key financials ($)

$ million Revenues Net income (loss) Total assets Total liabilities Employees

2007

2008

2009

2010

14,025.1 803.0 14,207.1 7,663.2 564,830

15,012.3 757.8 14,034.1 7,376.7 574,640

14,531.9 734.0 12,748.4 6,438.5 546,070

13,485.1 461.2 12,134.4 5,584.2 566,155

Source: company filings

Table 8:

DATAMONITOR

Kao Corporation: key financials (¥)

¥ million

2007

Revenues Net income (loss) Total assets Total liabilities

1,231,808.0 70,527.0 1,247,797.0 673,046.0

2008

2009

2010

1,318,513.0 1,276,316.0 1,184,384.0 66,561.0 64,462.0 40,506.0 1,232,601.0 1,119,676.0 1,065,751.0 647,891.0 565,482.0 490,456.0

Source: company filings

Table 9:

2011 13,513.0 532.1 11,645.4 5,502.0 34,743

2011 1,186,831.0 46,737.0 1,022,799.0 483,234.0

DATAMONITOR

Kao Corporation: key financial ratios

Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee

2007

2008

2009

2010

5.7% 26.8% 2.2% (4.1%) 53.9% 5.7% $24,831 $1,422

5.0% 7.0% (1.2%) (3.7%) 52.6% 5.4% $26,125 $1,319

5.1% (3.2%) (9.2%) (12.7%) 50.5% 5.5% $26,612 $1,344

3.4% (7.2%) (4.8%) (13.3%) 46.0% 3.7% $23,819 $815

Source: company filings

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2011 3.9% 0.2% (4.0%) (1.5%) 47.2% 4.5% $388,942 $15,316

DATAMONITOR

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LEADING COMPANIES

Figure 6:

Kao Corporation: revenues & profitability

Source: company filings

Figure 7:

DATAMONITOR

Kao Corporation: assets & liabilities

Source: company filings

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DATAMONITOR

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LEADING COMPANIES

Shiseido Company, Limited Table 10:

Shiseido Company, Limited: key facts

Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange:

5-5, Ginza 7-chome, Chuo-ku, Tokyo 104-0061, JPN 81 3 3572 5111 81 3 3289 1235 www.shiseido.co.jp March 4911 Tokyo

Source: company website

DATAMONITOR

Shiseido Company (Shiseido) is engaged in the manufacturing and marketing of cosmetics, toiletries, beauty products, health foods, beauty foods and pharmaceutical products for men and women. The company primarily operates in Japan and is headquartered in Tokyo, Japan. Shiseido has 15 manufacturing facilities and five research and development facilities across Europe, North America and Japan. The company markets its products in 70 countries spanning Asia, the Americas, and Europe. Shiseido sells its products through approximately 83,000 stores in Japan and 39,000 stores in the overseas market. The company has 96 subsidiaries and 22 affiliate companies. It has significant presence in Japan, Europe, Americas and Asia/Oceania. The company operates through three business segments: domestic cosmetics, overseas cosmetics and others. The domestic cosmetics segment consists of four sub-segments: cosmetics, professional, healthcare, and non-Shiseido and mail-order. The core cosmetics sub-segment manufactures and markets cosmetics, cosmetics equipment and toiletries. The professional sub-segment manufactures and markets products/services for hair and beauty salons. The healthcare sub-segment manufactures and markets food products and over-the-counter drugs. The non-Shiseido and mail-order sub-segment manufactures and markets cosmetics that are not branded as Shiseido products. Shiseido’s

overseas

cosmetics

segment

manufactures

and

markets

cosmetics

and

other

products/services in the Americas, Europe and Asia/Oceania. The other business segment includes the frontier science division, which is engaged in the production and sale of cosmetic ingredients, medical-use pharmaceuticals, and beauty therapy cosmetics. The

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LEADING COMPANIES

company's other business also includes a variety of other activities including the sale of clothing and accessories, and restaurant operations. It sells cosmetic, healthcare and personal care products in the global retail market through self-owned as well as third party retail chain stores, general merchandisers and drugstores. The company offers makeup products under two product lines, namely base makeup and color makeup. Base makeup products comprise liquid foundation, powdery foundation, cream foundation, creamy compact foundation, emulsion foundation, stick foundation, makeup base and concealer. Color makeup products line comprises lip stick, lip pencil, eye shadow, eyeliner, mascara, eyebrow, powder, blush, makeup remover and accessories. The company offers makeup products under Shiseido, White Lucent, Benefiance and Pureness brand names. Key Metrics The company recorded revenues of $7.6 billion in the financial year (FY) ended March 2011, an increase of 4.1% over FY2010. The net profit of the company was $145.7 million in FY2011, a decrease of 62% over FY2010. During FY2011, the cosmetics division recorded revenues of $4.1 billion, a decrease of 6.6% over 2010. The global business division recorded revenues of $3.4 billion in FY2011, an increase of 20.8% over 2010. The others division recorded revenues of $110.4 million in FY2011, a decrease of 3% over 2010. Japan accounted for 57.1% of the total revenues in FY2011. Revenues from Japan reached $4.4 billion in FY2011, a decrease of 5.9% over FY2010. Asia/Oceania accounted for 18.2% of the total revenues in FY2011. Revenues from Asia/Oceania reached $1.4 billion in FY2011, an increase of 5.9% over FY2010.

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LEADING COMPANIES

Table 11:

Shiseido Company, Limited: key financials ($)

$ million Revenues Net income (loss) Total assets Total liabilities Employees

2007

2008

2009

2010

7,908.5 288.0 8,423.6 3,826.0 27,460

8,237.4 403.7 7,695.2 3,143.9 28,793

7,859.1 220.6 6,906.3 50,202.9 28,810

7,334.7 383.4 8,828.5 4,670.9 28,968

Source: company filings

Table 12:

DATAMONITOR

Shiseido Company, Limited: key financials (¥)

¥ million

2007

Revenues Net income (loss) Total assets Total liabilities

694,594.0 25,293.0 739,833.0 336,036.0

2008

2009

2010

723,485.0 690,256.0 35,460.0 19,373.0 675,864.0 606,569.0 276,125.0 4,409,265.0

644,201.0 33,671.0 775,400.0 410,238.0

Source: company filings

Table 13:

2011 7,636.4 145.7 8,427.8 4,910.1 31,310

2011 670,700.0 12,800.0 740,200.0 431,250.0

DATAMONITOR

Shiseido Company, Limited: key financial ratios

Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee

2007

2008

2009

2010

3.6% 3.5% 10.1% 18.2% 45.4% 3.6% $288,001 $10,487

4.9% 4.2% (8.6%) (17.8%) 40.9% 5.0% $286,092 $14,022

2.8% (4.6%) (10.3%) 1496.8% 726.9% 3.0% $272,791 $7,656

5.2% (6.7%) 27.8% (90.7%) 52.9% 4.9% $253,201 $13,234

Source: company filings

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2011 1.9% 4.1% (4.5%) 5.1% 58.3% 1.7% $243,898 $4,655

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LEADING COMPANIES

Figure 8:

Shiseido Company, Limited: revenues & profitability

Source: company filings

Figure 9:

DATAMONITOR

Shiseido Company, Limited: assets & liabilities

Source: company filings

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LEADING COMPANIES

Unilever Table 14:

Unilever: key facts

Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange:

Unilever House, 100 Victoria Embankment, London EC4Y0DY, GBR 44 20 7822 5252 44 20 7822 5951 www.unilever.com December ULVR London

Source: company website

DATAMONITOR

Unilever is a global manufacturer and marketer of consumer goods in the food, personal and homecare segments. Unilever operates under a dual structure. The group has two parent companies: Unilever NV and Unilever plc. Unilever NV is a public limited company registered in the Netherlands, while Unilever plc is a public limited company registered in the UK and Wales. The two parent companies, Unilever NV and Unilever plc, along with the group companies, operate as a single economic entity: Unilever. It operates through subsidiaries in Germany, Switzerland, France, the UK, the US, and China and has operations in over 170 countries. The group's primary operating segments comprises three geographic regions: Asia, Africa, Central and Eastern Europe; the Americas; and Western Europe. Although Unilever's operations are managed on a geographical basis, the group manages its products under four categories: savoury, dressings and spreads; ice cream and beverages; personal care; and home care and other operations. These categories are Unilever’s principal product areas. The savoury, dressings and spreads product category includes products like soups, bouillons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarines, spreads and cooking products such as liquid margarines, and frozen food products. Unilever's major brands in this segment includes: Knorr, Hellmann's, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calve, Wish-Bone, Amora, Ragu and Bertolli. The company markets its frozen food products under Findus, Sagit, Cogesal and Iglo brand names among others. The ice cream and beverages product category includes sales of ice cream, tea-based beverages, weight management products, and nutritionally enhanced staples sold in developing markets. Unilever's major brands in ice cream are sold under the international Heart brand which includes Cornetto, Magnum, Carte

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LEADING COMPANIES

d’Or and Solero, Wall’s, Kibon, Algida and Ola. Its tea-based beverage brands include Lipton, Brooke Bond and PG Tips. In addition, Unilever has weight management products such as Slim Fast, and nutritionally enhanced products include Annapurna and AdeS brands. The personal care product category offers skin care and hair care products; deodorants and antiperspirants; and oral care products. The company offers six global brands which are the core of company's business in the mass skin care, daily hair care and deodorants product areas that includes Dove, Lux, Rexona (including Sure and Degree), Sunsilk (including Seda/Sedal), Axe/Lynx and Pond’s. Other key brands include Suave, Clear, Lifebuoy and Vaseline, along with Signal and Close Up in the oral care category. In April 2009, Unilever acquired TIGI’s professional hair product business and its associated advanced education academies for a cash consideration of $411.5 million. TIGI's major brands include Bed Head, Catwalk and S-Factor. Home care and other operations include household products, such as laundry tablets, powders and liquids, soap bars and cleaning products. Unilever's global brands in home care products include Cif, Comfort, Domestos, Omo, Radiant, Surf and Sunlight brands. Other brands marketed by this segment include Omo Surf, Comfort, Radiant and Skip. Unilever also announced plans to expand its Asia Pacific operations within home care division. In line with this, Unilever Sri Lanka made an offer to acquire the trademark of Wonderlight Consumer Products Company, in February 2009. Wonderlight Consumer Products Company is a Sri Lankan-based manufacturer of laundry soaps, baby soap, herbal soap, toilet soap, washing powder, scouring powder, and dish powder. In December 2010, the company acquired the personal care business of the Sara Lee Corporation, which was announced in September 2009. The Sara Lee brands include Sanex, Radox and Duschdas. On May 2011, Unilever acquired Alberto Culver, the US based manufacturer and distributor of branded beauty care products including the hair care products. Alberto Culver’s hair care brands include Alberto VO5, Nexxus, Just For Me, TRESemme, Soft & Beautiful, Consort, Motions, and TCB. Key Metrics The company recorded revenues of $58.6 billion in the financial year (FY) ended December 2010, an increase of 11.1% over FY2009. The net profit of the company was $5.6 billion in FY2010, an increase of 25.9% over FY2009. The Personal Care division recorded revenues of $18.2 billion in FY2010, an increase of 16.2% over 2009.

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LEADING COMPANIES

Asia, Africa, Central and Eastern Europe accounted for 40% of the total revenues in FY2010. Revenues from Asia, Africa, Central and Eastern Europe reached $23.4 billion in FY2010, an increase of 18.7% over FY2009.

Table 15:

Unilever: key financials ($)

$ million Revenues Net income (loss) Total assets Total liabilities Employees

2006

2007

2008

2009

52,514.3 6,285.8 49,109.8 33,647.7 179,000

53,236.3 5,150.5 49,414.5 32,433.0 174,000

53,681.4 6,659.3 47,877.8 34,137.9 174,000

52,754.1 4,464.3 49,035.6 32,429.0 163,000

Source: company filings

Table 16:

2010 58,634.5 5,622.1 54,534.5 34,560.5 167,000

DATAMONITOR

Unilever: key financials (€)

€ million Revenues Net income (loss) Total assets Total liabilities

2006

2007

2008

2009

39,642.0 4,745.0 37,072.0 25,400.0

40,187.0 3,888.0 37,302.0 24,483.0

40,523.0 5,027.0 36,142.0 25,770.0

39,823.0 3,370.0 37,016.0 24,480.0

Source: company filings

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2010 44,262.0 4,244.0 41,167.0 26,089.0

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LEADING COMPANIES

Table 17:

Unilever: key financial ratios

Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee

2006

2007

2008

2009

12.0% 3.2% (6.1%) (17.4%) 68.5% 12.4% $293,376 $35,116

9.7% 1.4% 0.6% (3.6%) 65.6% 10.5% $305,956 $29,601

12.4% 0.8% (3.1%) 5.3% 71.3% 13.7% $308,514 $38,272

8.5% (1.7%) 2.4% (5.0%) 66.1% 9.2% $323,645 $27,388

Source: company filings

2010 9.6% 11.1% 11.2% 6.6% 63.4% 10.9% $351,105 $33,665

DATAMONITOR

Figure 10: Unilever: revenues & profitability

Source: company filings

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LEADING COMPANIES

Figure 11: Unilever: assets & liabilities

Source: company filings

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DISTRIBUTION

MARKET DISTRIBUTION Specialist Retailers form the leading distribution channel in the Asia-Pacific skincare market, accounting for a 37.8% share of the total market's value. Supermarkets / hypermarkets accounts for a further 23% of the market. Table 18:

Asia-Pacific skincare market distribution: % share, by value, 2010

Channel

% Share 37.8% 23.0% 15.7% 23.6%

Specialist Retailers Supermarkets / hypermarkets Department Stores (incl. Duty-Free Shops) Others Total Source: Datamonitor

100% DATAMONITOR

Figure 12: Asia-Pacific skincare market distribution: % share, by value, 2010

Source: Datamonitor

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MARKET FORECASTS

MARKET FORECASTS Market value forecast In 2015, the Asia-Pacific skincare market is forecast to have a value of $42,573.7 million, an increase of 23.8% since 2010. The compound annual growth rate of the market in the period 2010–15 is predicted to be 4.4%. Table 19:

Asia-Pacific skincare market value forecast: $ million, 2010–15

Year

$ million

€ million

2010 2011 2012 2013 2014 2015

34,395.4 35,982.0 37,592.9 39,228.3 40,912.9 42,573.7

25,902.3 27,097.1 28,310.3 29,541.8 30,810.5 32,061.2

CAGR: 2010–15 Source: Datamonitor

% Growth 5.1% 4.6% 4.5% 4.4% 4.3% 4.1% 4.4% DATAMONITOR

Figure 13: Asia-Pacific skincare market value forecast: $ million, 2010–15

Source: Datamonitor

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MARKET FORECASTS

Market volume forecast In 2015, the Asia-Pacific skincare market is forecast to have a volume of 7,095.3 million units, an increase of 25.8% since 2010. The compound annual growth rate of the market in the period 2010–15 is predicted to be 4.7%. Table 20:

Asia–Pacific skincare market volume forecast: million units, 2010–15

Year

million units

2010 2011 2012 2013 2014 2015

5,641.8 5,939.2 6,230.3 6,521.6 6,808.4 7,095.3

% Growth 5.4% 5.3% 4.9% 4.7% 4.4% 4.2%

CAGR: 2010–15 Source: Datamonitor

4.7% DATAMONITOR

Figure 14: Asia–Pacific skincare market volume forecast: million units, 2010–15

Source: Datamonitor

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APPENDIX

APPENDIX Methodology Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: -

National/Governmental statistics

-

International data (official international sources)

-

National and International trade associations

-

Broker and analyst reports

-

Company Annual Reports

-

Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

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APPENDIX

Industry associations Cosmetic, Toiletry, and Fragrance Association 1101 17th Street, NW, Suite 300, Washington D.C. 20036-4702, USA Tel.: 1 202 3311 770 Fax: 1 202 3311 969 www.ctfa.org

Related Datamonitor research Industry profiles Skincare in the United States Skincare in Argentina Skincare in Chile Skincare in Colombia Skincare in Venezuela Skincare in France Skincare in Germany Skincare in the United Kingdom Skincare in the Europe Skincare in the Japan Global Skincare Skincare in Ireland Skincare in Portugal Skincare in Peru Skincare in Uruguay

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APPENDIX

Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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