japanese market - mkc
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Japanese MarketThe Cosmetics Industry• 1,100 cosmetics manufacturers in Japan in 1992• five companies accounted for 69% of domestic sales • imports represented 5% of total sales • Japanese cosmetics market was mature • major consumers were women in their 20s/30s• foreign-made cosmetics considered high-status
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Japanese MarketThe Direct Selling Industry• largest direct selling market in the world in 1992• estimated $19.2 billion in retail sales• bypass wholesale and retail distribution systems• attractive second career for mothers
Direct Selling Cosmetics Companies 1. Pola 2. Nippon Menard 3. Avon 4. Noevir
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Japanese MarketConsumer Behavior• further education and working outside of the home• many employed predominantly on a part-time basis• 40% of cosmetics sales were to women in their 20s/30s• fair complexion & fine-textured skin considered beautiful• spent 3x more on skin care than the average American
woman
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Japanese MarketProducts• Kao and Shiseido dominated the Japanese skin care market• foreign manufacturers more successful selling makeup than
skin care products• makeup products associated with status, image, & dreams• want highly scientific skincare products especially made for
them by Japanese manufacturers
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Japanese MarketDistribution• cosmetics were distributed through three main channels: 1. franchise systems 2. general distributorships 3. door-to-door sales
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Japanese MarketDomestic Competitors• the top five cosmetics manufacturers in 1992 were: 1. Shiseido (27%) 2. Kao (16%) 3. Kanebo (11%) 4. Pola (8%) 5. Kobayashi Kose (7%)
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Japanese MarketForeign Competitors• companies such as Max Factor, Revlon, and Clinique entered
the Japanese market in the early 80s• selective distribution through a limited number of prestigious
department stores
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Japanese MarketMKC in Japan• concern over being a late entrant in a mature, complex,
fragmented, and highly competitive market• estimated 3-5 years before turning a profit and taking share
from competitors• however it could be a good time to launch in Japan due to
demand for part-time employment