personal products in asia pacific

7/29/2019 Personal products in asia pacific

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Asia-Pacific - Personal Products 0200 - 2124 - 2010

Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

INDUSTRY PROFILE

Personal Products in

Asia-Pacific

Reference Code: 0200-2124

Publication Date: December 2011


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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The Asia-Pacific personal products market grew by 4.8% in 2010 to reach a value of $133,786.1 million.

Market value forecast

In 2015, the Asia-Pacific personal products market is forecast to have a value of $166,284.5 million, an

increase of 24.3% since 2010.

Market segmentation I

OTC healthcare is the largest segment of the personal products market in Asia-Pacific, accounting for

27.8% of the market's total value.

Market segmentation II

Japan accounts for 37.5% of the Asia-Pacific personal products market value.

Market share

The Procter & Gamble Company is the leading player in the Asia-Pacific personal products market,

generating a 7.6% share of the market's value.

Market rivalry

The Asia-Pacific personal products market is highly fragmented with top three players accounting for

20.6% of the total market value.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2MARKET OVERVIEW 7

Market definition 7Research highlights 8Market analysis 9

MARKET VALUE 10MARKET SEGMENTATION I 11MARKET SEGMENTATION II 12MARKET SHARE 13FIVE FORCES ANALYSIS 14

Summary 14Buyer power 15Supplier power 16New entrants 17Substitutes 19Rivalry 20

LEADING COMPANIES 21The Procter & Gamble Company 21Unilever 26Kao Corporation 30

MARKET DISTRIBUTION 34MARKET FORECASTS 35

Market value forecast 35APPENDIX 36

Methodology 36Industry associations 37Related Datamonitor research 37Disclaimer 38


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CONTENTS



ABOUT DATAMONITOR 39Premium Reports 39Summary Reports 39Datamonitor consulting 39


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CONTENTS



LIST OF TABLES

Table 1: Asia-Pacific personal products market value: $ million, 200610 10Table 2: Asia-Pacific personal products market segmentation I:% share, by value, 2010 11Table 3: Asia-Pacific personal products market segmentation II: % share, by value, 2010 12Table 4: Asia-Pacific personal products market share: % share, by value, 2010 13Table 5: The Procter & Gamble Company: key facts 21Table 6: The Procter & Gamble Company: key financials ($) 24Table 7: The Procter & Gamble Company: key financial ratios 24Table 8: Unilever: key facts 26Table 9: Unilever: key financials ($) 28Table 10:

Unilever: key financials () 28

Table 11: Unilever: key financial ratios 28Table 12: Kao Corporation: key facts 30Table 13: Kao Corporation: key financials ($) 32Table 14: Kao Corporation: key financials () 32Table 15: Kao Corporation: key financial ratios 32Table 16: Asia-Pacific personal products market distribution: % share, by value, 2010 34Table 17: Asia-Pacific personal products market value forecast: $ million, 201015 35


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CONTENTS



LIST OF FIGURES

Figure 1: Asia-Pacific personal products market value: $ million, 200610 10Figure 2: Asia-Pacific personal products market segmentation I:% share, by value, 2010 11Figure 3: Asia-Pacific personal products market segmentation II: % share, by value, 2010 12Figure 4: Asia-Pacific personal products market share: % share, by value, 2010 13Figure 5: Forces driving competition in the personal products market in Asia-Pacific, 2010 14Figure 6: Drivers of buyer power in the personal products market in Asia-Pacific, 2010 15Figure 7: Drivers of supplier power in the personal products market in Asia-Pacific, 2010 16Figure 8: Factors influencing the likelihood of new entrants in the personal products market in

Asia-Pacific, 2010 17Figure 9: Factors influencing the threat of substitutes in the personal products market in Asia-

Pacific, 2010 19Figure 10: Drivers of degree of rivalry in the personal products market in Asia-Pacific, 2010 20Figure 11: The Procter & Gamble Company: revenues & profitability 25Figure 12: The Procter & Gamble Company: assets & liabilities 25Figure 13: Unilever: revenues & profitability 29Figure 14: Unilever: assets & liabilities 29Figure 15: Kao Corporation: revenues & profitability 33Figure 16: Kao Corporation: assets & liabilities 33Figure 17: Asia-Pacific personal products market distribution: % share, by value, 2010 34Figure 18: Asia-Pacific personal products market value forecast: $ million, 201015 35


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MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The personal products market consists of retail sales of OTC healthcare products, skincare, haircare,make-up, fragrances and other 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 personal products market generated total revenues of $133.8 billion in 2010,

representing a compound annual growth rate (CAGR) of 4.8% for the period spanning 2006-2010.

OTC healthcare sales proved the most lucrative for the Asia-Pacific personal products market in 2010,

generating total revenues of $37.3 billion, equivalent to 27.8% of the market's overall value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.4% for the five-

year period 2010-2015, which is expected to lead the market to a value of $166.3 billion by the end of

2015.


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MARKET OVERVIEW



Market analysis

The Asia-Pacific personal products market grew at a fairly strong rate during the period 2006-2010, as a

result of strong sales growth in skincare and haircare categories. The overall market growth is expected

to decelerate in the forthcoming five years.

The Asia-Pacific personal products market generated total revenues of $133.8 billion in 2010,

representing a compound annual growth rate (CAGR) of 4.8% for the period spanning 2006-2010. In

comparison, the Chinese and South Korean markets grew with CAGRs of 7.9% and 4.5% respectively,

over the same period, to reach respective values of $34.9 billion and $9.3 billion in 2010.

OTC healthcare sales proved the most lucrative for the Asia-Pacific personal products market in 2010,

generating total revenues of $37.3 billion, equivalent to 27.8% of the market's overall value. In

comparison, sales of skincare generated revenues of $34.4 billion in 2010, equating to 25.7% of the

market's aggregate revenues.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.4% for the five-year period 2010-2015, which is expected to lead the market to a value of $166.3 billion by the end of

2015. Comparatively, the Chinese and South Korean markets will grow with CAGRs of 7% and 4.6%

respectively, over the same period, to reach respective values of $48.9 billion and $11.7 billion in 2015.


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MARKET VALUE



MARKET VALUE

The Asia-Pacific personal products market grew by 4.8% in 2010 to reach a value of $133,786.1 million.

The compound annual growth rate of the market in the period 200610 was 4.8%.

Table 1: Asia-Pacific personal products market value: $ million, 200610

Year $ million million % Growth

2006 110,916.6 83,528.5

2007 116,344.1 87,615.8 4.9%

2008 121,926.3 91,819.6 4.8%

2009 127,676.3 96,149.8 4.7%

2010 133,786.1 100,750.9 4.8%

CAGR: 200610 4.8%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Asia-Pacific personal products market value: $ million, 200610



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MARKET SEGMENTATION I



MARKET SEGMENTATION I

OTC healthcare is the largest segment of the personal products market in Asia-Pacific, accounting for

27.8% of the market's total value.

The skincare segment accounts for a further 25.7% of the market.

Table 2: Asia-Pacific personal products market segmentation I:% share, by value, 2010

Category % Share

OTC healthcare 27.8%

Skincare 25.7%

Haircare 10.9%

Make-up 6.6%

Fragrances 2.9%

Others 26.0%

Total 100%


Figure 2: Asia-Pacific personal products market segmentation I:% share, by value, 2010



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MARKET SEGMENTATION II



MARKET SEGMENTATION II

Japan accounts for 37.5% of the Asia-Pacific personal products market value.

China accounts for a further 25.9% of the Asia-Pacific market.

Table 3: Asia-Pacific personal products market segmentation II: % share, by value, 2010

Category % Share

Japan 37.5%

China 25.9%

India 6.6%

South Korea 6.3%

Rest of Asia-Pacific 23.7%

Total 100%


Figure 3: Asia-Pacific personal products market segmentation II: % share, by value, 2010



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MARKET SHARE



MARKET SHARE

The Procter & Gamble Company is the leading player in the Asia-Pacific personal products market,

generating a 7.6% share of the market's value.

Unilever accounts for a further 7.3% of the market.

Table 4: Asia-Pacific personal products market share: % share, by value, 2010

Company % Share

The Procter & Gamble Company 7.6%

Unilever 7.3%

Kao Corporation 5.8%

Others 79.4%

Total 100%


Figure 4: Asia-Pacific personal products market share: % share, by value, 2010



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FIVE FORCES ANALYSIS




The personal products market will be analyzed taking manufacturers of personal products as players. The

key buyers will be taken as retailers such as supermarkets / hypermarkets and specialist retailers, and

manufacturers of fine chemicals and other ingredients needed for production of personal care products as

the key suppliers.

Summary

Figure 5: Forces driving competition in the personal products market in Asia-Pacific, 2010


The Asia-Pacific personal products market is highly fragmented with top three players accounting for

20.6% of the total market value.

The Asia-Pacific personal products market has the presence of leading players like Procter & Gamble

Company, Unilever and Kao Corporation. Specialist retailers and supermarkets and hypermarkets are the

main buyers in many countries and generally exert strong buyer power, especially if they are large chains.

The fact that manufacturers of personal products are able to source some of their raw material inputs

from only a relatively small number of suppliers suggests that supplier power is boosted. However, some

of the major players have integrated backwards and own palm olive plantations, etc, which significantly

reduces their reliance on supply chain. The existence of some strong brands and the scale economies

associated with the necessary high-volume production facilities prevent the threat of new entrants from

becoming a significant factor. Rivalry is intensified by high fixed-costs and exit barriers.


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Buyer power

Figure 6: Drivers of buyer power in the personal products market in Asia-Pacific, 2010


The retail market for personal products in Asia-Pacific is concentrated. Retailers often occupy a position

of power in the supply chain which allows them to negotiate favorable contracts with manufacturers,

which enhances buyer power. Manufacturers of personal products can differentiate their products quite

strongly, not only by the overall function (shampoo or toothpaste, for example) but also by properties like

brand, fragrance, design, and health benefits etc. Branding is an important way of maintaining end-user

loyalty, and as a result retailers are required to stock the more popular brands, which reduce their

bargaining strength and buyer power. However, the fact that major buyers usually offer a wide range of

products for their own customers, tend to weaken buyer power. Switching costs for buyers are not

particularly high, which also increases buyer power in this market. Some retailers have attempted

backward integration with supermarkets developing their own brand personal products, putting market

players under significant pressure. Overall, buyer power is assessed as moderate.


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Supplier power

Figure 7: Drivers of supplier power in the personal products market in Asia-Pacific, 2010


Most modern personal products contain a variety of both synthetic and organic ingredients. Skin care

creams and bath and shower products, for example, are manufactured from raw materials such as

vegetable fats, surfactants, foam boosters, colorants, pearlizing agents, clarifying agents, fragrances,

preservatives, antioxidants, skin conditioners, botanical extracts and antibacterial agents. Supplier power

is alleviated by the fact that the production of the chemicals used in the manufacture of many personal

products is by nature a large-scale operation, and relatively few companies are able to supply each

specific material. Moreover, suppliers to the industry include major chemical manufacturers like Shell

Chemical, Dial Industrial Chemicals and Dow, increase supplier power. However, a number of personal

product manufacturers have integrated backwards into producing raw materials required by the industry.

For example, Unilever owns a palm oil production company in Malaysia along with large coconut

plantations for the manufacture of coconut oil. Plastic and cardboard packaging is also a significant input

in this market and some market players enter into long-term contracts with their suppliers, which

strengthen supplier power. It may be possible to find substitutes for some raw materials used in the

production of personal products. For instance, if the price of one kind of chemical rises, a manufacturerwould have an option of buying less of it and more of a cheaper alternative. However, companies are

often restricted to certain product formulae, which make them reliant on the suppliers that can provide

specific inputs, and it may be difficult to find substitutes for certain components like fragrance. Overall,

supplier power is assessed as moderate.


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New entrants

Figure 8: Factors influencing the likelihood of new entrants in the personal products market in

Asia-Pacific, 2010


A large number of brands, many of which are globally recognized, have a strong position in this market.

Potential entrants will need to compete with major companies which are large firms whose scale

economies allow them to compete more effectively on price, and invest in their own business; companies

entering the market may find it difficult to compete. Substantial funds are needed to start up a business in

this market, with a significant capital required for investing in production, distribution, and also advertising,

which is crucial to success in this market. Due to the high brand strength of leading personal products

manufacturers, it is difficult for companies to develop their brands to compete on an international level.

However, the rising popularity of environmentally-friendly skin, body, hair and oral health care products in

many countries makes it possible to enter this market on a small scale. Specialty and custom-made

personal care products, which are usually handmade and created using all-natural ingredients, can be

sold at higher prices and any initial investment in raw materials, production equipment, can be recouped

by adding a substantial margin to the price of the end-product. The larger companies produce a range of

consumer items, including personal products. Producers need to distribute their personal products widely,

which generally involves channels such as supermarkets. These retail chains often have considerable

buyer power, which forces down the prices that the manufacturers of personal products can obtain. In

such a market, scale economies of production become much more important, and as a result, barriers to

entry, such as capital outlay on large-scale production plants, and the need to establish reliable supplies


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from multiple third-party chemical plants, become much higher. An additional entry barrier for potential

entrants is the issue of persuading stores to stock their products, and major retailers, aware of their

importance in the distribution chain, may be unwilling to take the risk of displacing existing well

established brands for new ones. Overall, there is a moderate likelihood of new entrants.


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Substitutes

Figure 9: Factors influencing the threat of substitutes in the personal products market in Asia-

Pacific, 2010


Substitutes for personal products include some traditional alternatives. Toothpaste may be made at home

using baking soda, salt, glycerin and peppermint extract, a variety of skin and hair care products can be

created with ingredients such as olive oil, milk, honey, fruit and herbs. However, any substitutes for

commercially-produced personal products need to be prepared at home, which is a relatively time-

consuming process, and may not provide the desired end results. Moreover, make-up and OTC

healthcare products are difficult to substitute. Although using traditional alternatives to manufacture

personal products avoids exposure to many chemicals but, the relative inconvenience and ineffectiveness

of some home-made alternatives makes it a potentially weak threat as substitute. However, with the

internet being such an integral part of society, users have access to a potentially vast database of

alternatives, methods and means of making their own substitutes domestically. Overall, the threat from

substitutes is assessed as weak.


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Rivalry

Figure 10: Drivers of degree of rivalry in the personal products market in Asia-Pacific, 2010


The Asia-Pacific market for personal products is highly fragmented, with the top three players, Procter &

Gamble, Unilever, and Kao Corporation holding 20.6% of the total market in value terms. While it is

possible to differentiate this product effectively, and some manufacturers of hand and body care products

have developed strong brands, end-users have a very wide range of products to choose from with low

switching costs. Moreover the major players can, and often do, operate in various markets. This

diversification defends their performance against competitive pressures in any one market. Fixed costs

are high in this market, as most companies own large production facilities. The need to divest such assets

on exiting the global market constitutes an exit barrier and therefore a driver of rivalry. Most of these

companies are geographically diversified which weakens rivalry to some extent. Major players may offer

specialty products, but much of their business involves mass-market goods. This implies high fixed costs,

because of the need to operate large manufacturing plants, which also boosts rivalry. Whilst a number of

companies in this market also manufacture other items such as home and pet care products, making

them less reliant on sales of personal products. The recent strong growth in the Asia-Pacific personal

products market eases rivalry to a certain degree. Overall, rivalry is assessed as moderate.


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LEADING COMPANIES



LEADING COMPANIES

The Procter & Gamble Company

Table 5: The Procter & Gamble Company: key facts

Head office: 1 Procter & Gamble Plaza, Cincinnati, Ohio 45202, USA

Telephone: 1 513 983 1100

Fax: 1 513 983 4381

Website: www.pg.com

Financial year-end: June

Ticker: PG

Stock exchange: New York

Source: company website D A T A M O N I T O R

Procter & Gamble Company (P&G) is engaged in the manufacture and marketing of consumer products.

The company markets more than 300 brands in over 180 countries spanning the Americas, Europe, the

Middle East and Africa (EMEA), and Asian region. It is headquartered in Cincinnati, Ohio and employs

about 129,000 people.

P&G sells its products through mass merchandisers, grocery stores, membership club stores, drug stores

and in high-frequency stores. P&G is organized into two global business units (GBUs): beauty & grooming

and household care.

The GBUs identify common consumer needs, develop new products and build its brands. The business

units comprising the GBUs are aggregated into six reportable segments: beauty; grooming; health care;

snacks and pet care; fabric care and home care; and baby care and family care. The beauty and

grooming comprises of the beauty, grooming and healthcare businesses while household care GBU

consists of snacks and pet care; fabric care and home care; baby care and family care businesses.

The company also operates in five geographical segments: North America, Western Europe, Central &

Eastern Europe, Middle East & Africa, Latin America and Asia.

The beauty segment includes cosmetics, deodorants, hair care, skin care, prestige fragrances and

personal cleansing. The hair care sub-segment consists of conditioner, hair colorants, salon products,

shampoo and styling agents. The key brands offered by the segment include Head & Shoulders, Olay,

Pantene, Head and Shoulders, Aussie, Fekkai, Nioxin and Wella. The key brands offered in the

deodorant category include Old Spice, Secret and Gillette. Personal cleansing products include brands


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LEADING COMPANIES



such as Camay, Gillette, Ivory, Olay, Old spice, and Zest in the body wash category. The key facial care

brand marketed by the company includes Olay.

The grooming segment comprises blades and razors, face and shave preparation products (such as

shaving cream), electric hair removal devices and small household appliances. The key brands marketed

by the grooming segment include Braun, Fusion, Gillette and Mach3. The electric hair removal devices

and small home appliances are marketed under the Braun brand.

The healthcare segment includes feminine care, gastrointestinal, incontinence, rapid diagnostics,

respiratory, toothbrush, toothpaste, water filtration and other oral care. The oral care products are

marketed worldwide under the brands Always, Crest and Oral-B. In December 2008, Panasonic Electric

Works entered into a supply agreement with P&G to supply its Palsonic electric toothbrush, which P&G

introduced in the US and European markets during late 2009 under its own brand name.

The snacks and pet care segment markets its products under the brands lams and Pringles. In the snacksbusiness, the company sells potato chips through its Pringles brand. In April 2011, the company has

decided to divest the companys snacks business through a merger with Diamond Foods, Inc. in an all-

stock Reverse Morris Trust transaction.

The fabric care and home care segment offers a wide range of fabric care products including laundry

cleaning products and fabric conditioners; and home care products, including dish care, surface cleaners

and air fresheners; and batteries. The segment markets its products under Ace, Ariel, Dawn, Downy,

Duracell, Gain, Tide and Febreze brands.

The baby care and family care segment offers baby wipes, diapers, tissues, paper towels and paper

tissues under the following brands: Bounty, Charmin and Pampers. The companys family care business

primarily operates in North America.

The global operations group consists of the market development organization (MDO). The MDO

comprises retail customer, trade channel and country-specific teams. . It is organized along five

geographic regions: North America, Western Europe, Central & Eastern Europe/Middle East/Africa

(CEEMEA), Latin America and Asia (comprises Japan, Greater China and ASEAN/Australia/India/Korea

(AAIK)). The developing markets include CEEMEA, Latin America, AAIK and Greater China while the

developed markets are comprised of North America, Western Europe and Japan.

The global business services (GBS) provides technology, processes and standard data tools to support

the operations of GBUs and the MDO. The GBS organization is responsible for providing world-class

solutions at a low cost and with minimal capital investment.


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LEADING COMPANIES



Corporate functions provide company-level strategy and portfolio analysis, corporate accounting,

treasury, external relations, governance, human resources and legal, as well as other centralized

functional support.

In the US, the company operates through 36 manufacturing facilities located in 22 different states or

territories. The company operates other 102 manufacturing facilities in 41 other countries. Beauty

products are manufactured at 39 of these manufacturing facilities, grooming products at 17; fabric care

and home care products at 52; baby care and family care products at 31; snacks and pet care products at

11 and health care products at 35.

In March 2011, Procter and Gamble signed a joint venture with Teva, a producer of generic drugs to

create a new company dealing in over-the-counter drug.

In July 2011 P&G opened a distribution center in Colombia through which the company will distribute 20

P&G brands available in Peru.

In July, 2011, P&G launched Paralisalos, a new variety of conditioner and shampoo in Argentina. These

hair-care products are marketed under the Herbal Essences brand name.

Key Metrics

The company recorded revenues of $82.6 billion in the financial year (FY) ended June 2011, an increase

of 4.6% over FY2010. The net profit of the company was $11.8 billion in FY2011, a decrease of 7.4%

over FY2010.

During FY2011, the beauty division recorded revenues of $20.2 billion, an increase of 3.4% over 2010.

The grooming division recorded revenues of $8 billion in FY2011, an increase of 5.2% over 2010.

The health care division recorded revenues of $12 billion in FY2011, an increase of 4.7% over 2010.

The baby care and family care division recorded revenues of $15.6 billion in FY2011, an increase of 5.9%

over 2010.

Asia accounted for 16% of the total revenues in FY2011. Revenues from Asia reached $13.2 billion in

FY2011, an increase of 11.6% over FY2010.


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LEADING COMPANIES



Table 6: The Procter & Gamble Company: key financials ($)

$ million 2007 2008 2009 2010 2011

Revenues 72,441.0 79,257.0 76,694.0 78,938.0 82,559.0Net income (loss) 10,340.0 12,075.0 13,436.0 12,736.0 11,797.0

Total assets 138,014.0 143,992.0 134,833.0 128,172.0 138,354.0

Total liabilities 71,254.0 74,208.0 71,451.0 66,733.0 70,353.0

Employees 138,000 138,000 135,000 127,000 129,000

Source: company filings D A T A M O N I T O R

Table 7: The Procter & Gamble Company: key financial ratios

Ratio 2007 2008 2009 2010 2011Profit margin 14.3% 15.2% 17.5% 16.1% 14.3%

Revenue growth 12.5% 9.4% (3.2%) 2.9% 4.6%

Asset growth 1.7% 4.3% (6.4%) (4.9%) 7.9%

Liabilities growth (2.1%) 4.1% (3.7%) (6.6%) 5.4%

Debt/asset ratio 51.6% 51.5% 53.0% 52.1% 50.8%

Return on assets 7.6% 8.6% 9.6% 9.7% 8.9%

Revenue per employee $524,935 $574,326 $568,104 $621,559 $639,992

Profit per employee $74,928 $87,500 $99,526 $100,283 $91,450



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LEADING COMPANIES



Figure 11: The Procter & Gamble Company: revenues & profitability


Figure 12: The Procter & Gamble Company: assets & liabilities



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LEADING COMPANIES



Unilever

Table 8: Unilever: key facts

Head office: Unilever House, 100 Victoria Embankment, London EC4Y 0DY, GBR

Telephone: 44 20 7822 5252

Fax: 44 20 7822 5951

Website: www.unilever.com

Financial year-end: December

Ticker: ULVR

Stock exchange: London


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 Unilevers 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



dOr and Solero, Walls, 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 Ponds.

Other key brands include Suave, Clear, Lifebuoy and Vaseline, along with Signal and Close Up in the oral

care category.

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.

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.

In May 2011, Unilever acquired Alberto Culver, the US based manufacturer and distributor of branded

beauty care products and the hair care products. Alberto Culvers 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, anincrease 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.

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.


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LEADING COMPANIES



Table 9: Unilever: key financials ($)

$ million 2006 2007 2008 2009 2010

Revenues 52,514.3 53,236.3 53,681.4 52,754.1 58,634.5Net income (loss) 6,285.8 5,150.5 6,659.3 4,464.3 5,622.1

Total assets 49,109.8 49,414.5 47,877.8 49,035.6 54,534.5


Employees 179,000 174,000 174,000 163,000 167,000


Table 10: Unilever: key financials ()

million 2006 2007 2008 2009 2010Revenues 39,642.0 40,187.0 40,523.0 39,823.0 44,262.0

Net income (loss) 4,745.0 3,888.0 5,027.0 3,370.0 4,244.0

Total assets 37,072.0 37,302.0 36,142.0 37,016.0 41,167.0



Table 11: Unilever: key financial ratios

Ratio 2006 2007 2008 2009 2010

Profit margin 12.0% 9.7% 12.4% 8.5% 9.6%

Revenue growth 3.2% 1.4% 0.8% (1.7%) 11.1%

Asset growth (6.1%) 0.6% (3.1%) 2.4% 11.2%

Liabilities growth (17.4%) (3.6%) 5.3% (5.0%) 6.6%

Debt/asset ratio 68.5% 65.6% 71.3% 66.1% 63.4%

Return on assets 12.4% 10.5% 13.7% 9.2% 10.9%





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LEADING COMPANIES



Figure 13: Unilever: revenues & profitability


Figure 14: Unilever: assets & liabilities



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LEADING COMPANIES



Kao Corporation

Table 12: Kao Corporation: key facts

Head office: 14-10, Nihonbashi Kayabacho 1-chome, Chuo-ku, Tokyo, JPN

Telephone: 81 3 3660 7111

Fax: 81 3 3660 8978

Website: www.kao.co.jp

Financial year-end: March

Ticker: 4452

Stock exchange: Tokyo


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 Asias 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

hair care products under Asience, John Frieda, Goldwell 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 thebeauty care business in Europe.

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


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LEADING COMPANIES



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 increaseof 15.4% over FY2010.

During FY2011, the beauty care business division recorded revenues of $6.1 billion, a decrease of 2.6%

over 2010.

The human health care business division recorded revenues of $2 billion in FY2011, a decrease of 4%

over 2010.

Japan accounted for 73.7% of the total revenues in FY2011. Revenues from Japan reached $10 billion in

FY2011, a decrease of 2.8% over FY2010.

Asia and Oceania accounted for 11.1% of the total revenues in FY2011. Revenues from Asia and

Oceania reached $1.5 billion in FY2011, an increase of 25.6% over FY2010.


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LEADING COMPANIES



Table 13: Kao Corporation: key financials ($)

$ million 2007 2008 2009 2010 2011

Revenues 14,025.1 15,012.3 14,531.9 13,485.1 13,513.0Net income (loss) 803.0 757.8 734.0 461.2 532.1

Total assets 14,207.1 14,034.1 12,748.4 12,134.4 11,645.4


Employees 32,175 32,900 33,745 34,913 34,743


Table 14: Kao Corporation: key financials ()

million 2007 2008 2009 2010 2011Revenues 1,231,808.0 1,318,513.0 1,276,316.0 1,184,385.0 1,186,831.0

Net income (loss) 70,527.0 66,561.0 64,462.0 40,507.0 46,738.0

Total assets 1,247,797.0 1,232,601.0 1,119,676.0 1,065,751.0 1,022,799.0



Table 15: Kao Corporation: key financial ratios

Ratio 2007 2008 2009 2010 2011

Profit margin 5.7% 5.0% 5.1% 3.4% 3.9%

Revenue growth 26.8% 7.0% (3.2%) (7.2%) 0.2%

Asset growth 2.2% (1.2%) (9.2%) (4.8%) (4.0%)

Liabilities growth (4.1%) (3.7%) (12.7%) (13.3%) (1.5%)

Debt/asset ratio 53.9% 52.6% 50.5% 46.0% 47.2%

Return on assets 5.7% 5.4% 5.5% 3.7% 4.5%





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LEADING COMPANIES



Figure 15: Kao Corporation: revenues & profitability


Figure 16: Kao Corporation: assets & liabilities



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DISTRIBUTION



MARKET DISTRIBUTION

Pharmacies / drugstores form the leading distribution channel in the Asia-Pacific personal products

market, accounting for a 25.3% share of the total market's value.

Specialist retailers accounts for a further 20.3% of the market.

Table 16: Asia-Pacific personal products market distribution: % share, by value, 2010

Channel % Share

Pharmacies / drugstores 25.3%

Specialist retailers 20.3%

Supermarkets / hypermarkets 18.9%

Others 35.5%

Total 100%


Figure 17: Asia-Pacific personal products market distribution: % share, by value, 2010



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MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2015, the Asia-Pacific personal products market is forecast to have a value of $166,284.5 million, anincrease of 24.3% since 2010.

The compound annual growth rate of the market in the period 201015 is predicted to be 4.4%.

Table 17: Asia-Pacific personal products market value forecast: $ million, 201015

Year $ million million % Growth

2010 133,786.1 100,750.9 4.8%

2011 139,985.2 105,419.3 4.6%

2012 146,372.4 110,229.3 4.6%

2013 152,923.1 115,162.5 4.5%

2014 159,639.9 120,220.7 4.4%

2015 166,284.5 125,224.6 4.2%

CAGR: 201015 4.4%


Figure 18: Asia-Pacific personal products market value forecast: $ million, 201015



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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,

Datamonitors 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

Consumers International Asia Pacific

Lot 5-1 Wisma WIM, No.7 Jalan Abang Haji Openg, Taman Tun Dr Ismail, Kuala Lumpur, 60000,Malaysia

Tel.: 60 3 7726 1599

Fax: 60 3 7726 8599

http://www.consumersinternational.org/roap

Related Datamonitor research

Industry profiles

Global Personal Products

Personal Products in Germany

Personal Products in France

Personal Products in the United Kingdom

Personal Products in Europe

Personal Products in Japan

Personal Products in the United States


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APPENDIX



Disclaimer

All Rights Reserved.

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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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