Cosmetic

Shiseido, Kao, L’Occitane and more feature in our latest beauty business and finance update

1 – Laying the groundwork: Shiseido’s focus on ‘skin beauty’ pays off as Q1 2021 operating profits increase

Japanese beauty giant Shiseido Group has reported an operating profit increase​ of 67.6% year-on-year to surpass US$100m after pivoting towards a focus on skin care following the COVID-19 outbreak.

In the first quarter of the 2021 fiscal year, the firm’s net sales grew 7.5% YoY to JPY244bn (US$2.24bn).

The sales were driven by the growth of the firm’s skin care brands and the growth of e-commerce, particularly in the prestige category.

This follow’s Shiseido’s strategy to focus on skin care and health to stay in line with the changing consumer needs and concerns post-outbreak.

2 – Accelerating recovery: Kao outlines plans to raise cosmetics business back up to pre-pandemic levels by 2023

Japanese conglomerate Kao Corporation is working to put its cosmetics division back on a path​ of high growth with a series of moves including ‘structural reform’ and ramping up marketing spend.

The firm’s cosmetics business suffered net sales losses of 14.7% on a like-for-like basis and its operating margin fell by 5.9% – a consequence of the pandemic impacts in Japan and Europe.

The impact on the cosmetics business was also greater because of its higher ratio of make-up products, which is approximately 10% higher than the market.

The base and lip make-up categories continued to suffer because of the change of consumer habits such as mask-wearing.

3 – L’Occitane Q4 results: China now firm’s largest market after sales surge by 60%

Staggering fourth-quarter growth of 60% has propelled China​ to become L’Occitane International’s largest market in FY2021.

L’Occitane International is the parent company of six brands – L’OCCITANE en Provence, Melvita, Erborian, L’OCCITANE au Brésil, LimeLife by Alcone and ELEMIS.


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