Kao Corporation, headquartered in Tokyo, Japan, has announced that it will commence its prestige cosmetics business in China in March 2004. In the first fiscal year, the Company will focus on the establishment of the operating base at approximately 10 stores in Shanghai and neighboring areas. The Company aims to achieve sales of one billion yen (equivalent to approx. USD 9.4 million) at 50 luxury department stores in large cities by fiscal 2007. The actual business will be conducted through Kao's wholly owned subsidiary, Kao (China) Holding Co., Ltd. (Headquarter: Shanghai, China).
Kao's prestige cosmetics business began under the Kao Sofina brand in Japan in 1982, achieving sales of over 75.8 billion yen (equivalent to approx. USD 707.8 million) in the previous fiscal year. The products are also currently marketed and sold in Hong Kong and Taiwan. With the aim of further expanding the business in the global market, the Company has decided to develop its prestige cosmetics business in mainland China, where the market for prestige cosmetics has entered a full-fledged growth phase.
Approximately 40 items, mainly skin care product lines under the Kao Sofina brand, will be imported from Japan. The retail price of a product will be set at around 250 yuen (approx. USD 33.0) - a premium price range equal to that in the Japanese market to attract fashion-conscious females aged 25 to 35 in urban areas. The products will be sold based on detailed face-to-face dermatology-oriented counseling - a unique approach for Kao Sofina - to increase the number of users. – less – More from ZoomInfo »