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Showing posts with label PG. Show all posts
Showing posts with label PG. Show all posts

Friday, January 05, 2007

Top 10 event in Beauty Biotech industry in Year 2006 (updated)

qnDamaged in last week's earthquake off southern Taiwan on internet access plus my own tight schedule cause the delay of such post.

However, my friend said it better late than never.

Top 10 event in Beauty Biotech industry in Year 2006

1 L’Oreal acquired The Body Shop

2 "The Body Shop" franchise in Malaysia sold by Bolton for RM80m at a Management Buyout (MBO)

3 INS legal battle with Lim Chew Yin and Yigaho

4 P&G Halts SK-II Cosmetics Sales in China

5 Pig farmer in Malaysia used banned beta agonist (BA)
Pig farmer in Malaysia used banned beta agonist because the price of a legal growth-inducing substance, Ractopamine by Eli Lily's animal health unit: Elanco, costs three times higher than Beta Agonist.

6 Mystery death of Malaysia's cosmetic surgery centres operators in China

7 F&N buying Nestle milk operation

8 Scrapped listing Hospitech Resources Bhd and GP Ocean Food on Mesdaq

Hospitech Resources Bhd and GP Ocean Food Bhd. Hospitech — manufacturer of disposable hospital equipment — made history by aborting its IPO exercise the day before it was scheduled to trade on Mesdaq on April 20. The company had raised more than RM12 million from its listing to build a new factory and repay borrowings. The IPO was oversubscribed by 18.4 times. The company voluntarily withdrew its listing after the SC started probing into its financial history upon receiving information from a whistleblower. The listing proceeds were refunded to investors. The regulator unearthed falsified documents such as sales invoices and as a result, Hospitech's managing director Jimmy Goh Kai Tong was slapped with a RM500,000 fine. Barely two months later, GP Ocean, a seafood processor, withdrew its listing plans following a probe by the SC into a possible breach in securities laws, also on a whistleblower's tip.

GP Ocean's chairman and former SC chairman Datuk Ali Abdul Kadir said at the time that the company was postponing its listing in order to strengthen the company. He has since resigned from his position. The GP Ocean case also hit the limelight because it had big name investors like the Razak Foundation and Rio Capital Sdn Bhd, which was owned by Ali, Datuk Azman Yahya and Datuk Amin Rafie Othman.

9 Song Hae-Gyo (宋慧乔) dropped as Etude spokeperson

10 Elianto fastest growing cosmetic company in Malaysia in 2006 at least in term of number of outlet

11 France honours Dr Lam who discover Nipah virus

Blog that link to this page: Nerdy Science Blog

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Saturday, November 19, 2005

Shiseido, the first to set up counter at Department Store in Asia

Shiseido is the largest beauty and cosmetic company in Japan and it rank No 5 in the world largest beauty and cosmetic company. After Loreal,Unilevel,P&G and Estee Lauder.

Shiseido, Loreal and Estee Lauder is consider the only three focus company in top 10 beauty and cosmetic company in the world. Others like Unilevel and P&G is diversified company in other industry as well, like food and detergent.

Loreal and Estee Lauder acquired a lot of brand over the years. However, to maintain each individual brand is an expensive process. Each brand must have achieve a critical mas and economic of scale to cover cost of spoke person, R&D, cost of international channel.

Unilevel and P&G has start streamlining their brand over the years and only maintain their first and second brand in each category.

Shiseido also face the problem of too much secondary brand.Which face difficulty in resources allocation. A lot of brand unable to recoup the resources invested.

Thus, Shiseido plan to streamline it brand from 140 to 35 (Like Za, Uno and Fitit) at the end of 2005. This will further reduce to 20.

Loreal, however view that if you have 5 or 6 brand in each channel , you may have problem of too many brand and overlap in investment. But if you only have 2 brand, it is insufficient. Loreal now have 4 brand (L'Oreal Professional, Redken, Matrix and Kerastase) under it haircare professional product.It is function much better than only have 2 brand (L'Oreal Professional and Kerastase)previously.

Taiwan Sofnon chairman,Champion Huang which own several international brand like New York Alway Black , German Nobori, low cost product for teenages JUSTa100 ,Japanese herb PLUS+ , and Italy in Ocean said that Shiseido is the first company that market their product via professional counter in Department Store. This is a one of the Japanese marketing and management method.

In Malaysia, Shiseido is distributed by Tung Pau, a wholly own subsidiary of Warisan TC Holdings Bhd previously.

Warisan TC Holdings Bhd, a company under Tan Chong Group, which distribute Japan Nissan car in Malaysia. Their connection build up with Japanese during they become distributor of Nissan vehicle enable them to secure a franchise of Shiseido in Malaysia.

With globalization and liberalization of trade. A lot of automobile company take back the distribution right like Honda.

Beauty and cosmetic company Shiseido also doing the same. Shiseido Malaysia Sdn Bhd, a 50-50 joint-venture company between the Shiseido group and Warisan TC Holdings Bhd set up to handle the distribution of Malaysia since April 2005. Thus, now the distribution of Shiseido in Malaysia is operate by Japanese despite Warisan TC Holdings Bhd still half 50% shares.

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Friday, November 11, 2005

How SK-II become market leader from nearly bankrupt

SK-II is a product under a US company call Max
Factor. Thus, before I start talking about SK-II. Lets talk about Max Factor.

Max Factor is a make-up artist, complete his study in Russia and work as make-up apprentice in an opera performing company. Due to his passion on ladies movies star. He started his own retail business.

In 1936, Max Factor has become a leading cosmetic company in US. He build his reputation with cooperation with Hollywood movies star.

Max Factor is a family business as all his 4 sons work for the company. But non of it daughter in law work for the company. Thus, The company is manage and dominance by male even this is a famine business.

Max Factor family later dispose off the company and the new owner listed the company in stock Exchange in 1961. However, the new owner dispose to another company in 1971. He claim than operating a public listed cosmetic company is not fun as much of his time emphasis on profit and growth rather than creative and beauty previously.

A scientist in Japan, in search for a cure for his friend sickness, accidentally found a yeast called saccharomycopsis has successfully cure his friend illness. They name it Pitera. The scientist then sell the recipe formula to Max Factor in Japan.

In 1980, Max Factor launch it first product base on the recipe formula. They call it success Key initially. Only second generation product, they call it SK-II which used until today.

Procter and Gamble (P&G) acquired Max Factor (including SK-II ) in 1991. However, as the company used to sell detergent and pampers or what we call mass market product. This is first time P&G enter into beauty & cosmetic industry. Max Factor making loss of USD30million for continuously 3 years accumulating total loss of USD100million.

A 30 years old brand manager of Olay product in Taiwan's P&G's Olay division, Michelle was send to Japan as SK-II brand manager January 1994. She does not know Japanese language at that point of time.

Michelle was the third batch of brand manager assigned to revive the brand. The company has try numerous method but fail. Thus, an out of the box or breakthrough strategy was needed.

SK-II, despite an unpopular product with merely 5% of the population heard of it at that point of time, have a batch of loyal customer including movies star and royal family. It market through word of mouth.

Michelle, look for a spoke person for SK-II among it loyal customer. They decide to used Momoi Kaori (right picture) eventually. She is 45 years old at that point of time. Michelle also replace the TV advertisement prepared by the advertising company with a black & white advertorial in magazine.

After the launch of the new promotion. Sales start picking up and the division stop bleeding. Thus now the target is to become top mega brand in Japan.

She convinced P&G in Japan to allocate 50billion yen budget for TV advertising expenses. They also provide a hotline on the TV advertisement for customer to call up to request for sample product. From the first day of the launch of TV commercial, they received 100 thousand call. They retrieved the hotline number after 5 days as they only prepare 500 thousand sample sets.

It take 7 days for the yeast to convert to Pitera like brewing alcohol. It become the factory unable to produce enough to meet demand. Whole country women age 35 to 50 in Japan are talking about SK-II.

Michelle get promoted immediately. P&G in Taiwan & Hong Kong also shooting similar TV advertisement using local spoke person. P&G hq in US also consider launching the product in North American.

Later, Michelle launch another TV commercial to target for customer age below 35. She used same spoke person Momoi Kaori describing she start using the product since at the age of 20.

Michelle however, request to transfer to other department after that. P&G transfer her to hair care product Pantene division. She has left P&G now.

Spoke person Momoi Kaori career in entertainment industry pick up again after such incident

P&G acquired Cover Gil in late 1990 and hair care product Wella in 2003.

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Monday, October 10, 2005

Qiqi will be in Malaysia on Wednesday & Thursday

KARINA FOO met actor Simon Yam and his international supermodel wife Qiqi in Hong Kong while they were wrapping up the production of their new television commercial for SK-II’s Facial Treatment Essence (FTE).

While REVITALISED skin with a beautifully supple texture that defies description is testimony of those who have used SK-II skincare products.

Celebrities and ambassadors of SK-II have provided similar endorsements and the brand is well-established in Japan, Korea, Taiwan, Singapore, Britain, Australia and Hong Kong.

"We call it ‘Miracle Water’ because of an ingredient called pitera. I’ve been using in for many years before becoming an SK-II ambassador. Simon only started using it recently and his skin is looking much better," said Qiqi, who has been endorsing SK-II products since 1996.

Their youthful and radiant skin clearly belies their age (over 40) and they attribute it to FTE, their favourite product.

The new advertisement, which took 10 weeks to produce, portrays Qiqi’s life-long intimate relationship with the FTE as her skin condition and needs change over the years.

"When I was 20, FTE helped to keep my skin fresh and moist. When I reached my 30s, it gave it a radiant tone and now it still looks healthy and I’ve received many compliments for my smooth and clear appearance."

Qiqi has appeared in several SK-II advertisements on different mediums but most people remember her in the television commercial for the brand’s Facial Treatment Mask where she comes home after a long day of work and treats herself to an exquisite "facial treatment", much to the bewilderment of her friend over the phone.

This is the first time Qiqi is appearing in an SK-II advertisement with her husband. "I’m very happy to work with Simon because he’s been a great support in whatever I believe in," said Qiqi.

"Many men may be apprehensive about trying something associated with women and I admit that I wasn’t so sure about SK-II and its products. But I saw that Qiqi’s skin was the result of the brand and it didn’t take me long to become an SK-II user. Now I use it before and after any film shooting," Yam said.

Kaewta Tachamahachai, assistant brand manager for beauty care, Asean/Australasia/India, for Procter & Gamble, which manages the brand, said: "We did a consumer study in Malaysia to assess audience responses to the new advertisement and the result was sufficiently encouraging for us to believe that consumers will take to it very positively. We found that they could connect with the advertisement."

"I feel that the new commercial will tell people what FTE can really do for them, especially those who are seeking a natural and simple way to improve their skin," Qiqi said. The advertisement will be screened this month and Qiqi will be in the country on Wednesday and Thursday.

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Tuesday, October 04, 2005

Maybelline invent Mascara

In 1913, William, a 19 years old chemist like to help his younger sister Mabel to attract the eye of her admiry. He uses a mixture of chemical together with Vaseline to put on her sister eyelash to make her sister look beauty and attractive. Her sister married to her admiry eventually.

William invented the first Mascara in the history. He used his sister name and the name of his raw material to create a brand name......That how Maybelline born.

William's family operate the business for 50 years. Then, it sold to a drug manufacture Plough in 1967. In 1990, Plough sold the company to an investment group call Wassertein Perella & Company.

Investment banker Bruce Wassertein like to buy a near bankruptcy company, revive the company and dispose off at higher price.

In late 1990, Protect and Gamble ( P&G )buy a cosmetic brand Cover Girl. P&G competitor Unilever eying to buy Maybelline.

Unilever back out eventually. They feel it is difficult to revive Maybelline and do not feel P&G would successfully revive Cover Girl. Loreal CEO feel he able to revive this American brand into a global brand.

To revive a brand does not depend on instinct, Loreal already have similar brand. They have a similar brand in French call Gemey and Jade in German. Loreal feel that by combining Maybelline with it existing 2 brand Gemey and Jade. The deal has more advantage than P&G acquired Cover Girl.

Maybelline already venture to Asia back in 1994, when Loreal acquired Maybelline. Maybelline have penetrate China's market. And have a 300 workers factory in Suzhou. At that point of time, Loreal only has a one man representative office in Shanghai and Beijing respectively.

When Loreal executive visit Maybelline China operation. They discover that they have far behind that P&G in China's market. Thus, they want Maybelline to be a starting base in China, and hope that every Chinese's lady have a Maybelline lipstick.

The merger of 3 brand start immediately. Maybelline star product mascara was introduce quickly into Gemey and Jade preduct line and market it in European Market. Gemey flagship product Volume Express become a product under Maybelline brand as well.

Purchasing of raw material and packaging material quickly reach critical mass to take advantage of economic of scale by requesting a bulk discount. Cost saving quickly turn to budget on advertising and promotion to penetrate market.

They put a New York label under Maybelline. Loreal retain the same advertising company and it slogan at that time:

Maybe she's born with it, maybe it's Maybelline

In Europe, Gemey and Jade would add a Maybelline brand on it packaging. Slowly, it enlarge the Maybelline the make the word Gemey and Jade smaller on it packaging. Today, you still can see Gemey and Jade printed on Maybelline product in Europe.

In 1999, R&D division of Maybelline launch a Nail Polish that able to dry in one minutes. This fulfill the requirement of fast pce environment of office lady. It later make all the product to dry faster, like mascara, eye liner and lip liner.

Water Shine Lipstick is the first "globalize" product that produce by the company. This is also the first product not invent in Europe or US within Loreal Group. It invented in Asia.

Kose was an agent in Japan for Maybelline before takeover of Loreal. Sales of mascara was very good than. After the Loreal take-over, Loreal want lipstick become core product.

Product recommended by US team Moisture Whip too dry. Color and quality also not suitable for Japan market, and it fail in Japan market eventually. Japanese team reinvent the product to make it more suitable for Japanese market.

In August, 2000. Water Shine launch in China, then Japan, then other Asia country. From Tokyo, Shanghai to Singapore. Water Shine lipstick make a record sales.

From Water shine, Maybelline become a global brand. It become the first choice brand for 15-19 Japanese girl. In Taiwan, Maybelline control 40% market shares. Star product mascara even control more than 75%, almost monopoly. In China, Maybelline can sell 10 million units of lipstick per year and growth at 200% per year. In Europe, it control 20% market shares.

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