Chinese women give Japanese razor maker a reason to invest- Nikkei Asian Review
asia.nikkei.com
TOKYO -- A Japanese-made women's razor has become so popular in China that its manufacturer intends to triple output by next year. With dimming growth prospects at home, this is an opportunity the company does not want to miss.
Kai, which is based in Tokyo, plans to expand production lines for the Beauty Guard razor at its plant in Japan's western Gifu Prefecture. Including other products, the company aims to boost Chinese sales 40% to 1 billion yen ($8.91 million) in 2018.
The Beauty Guard is designed for removing unwanted facial hair with little risk of cuts. In China, it is carried at about 1,000 drugstores. A set of five sells for the equivalent of roughly 350 yen -- making the product competitive with local options. Online sales are on the rise, too.
While Kai said the razor is mainly popular with elderly women in Japan, the Chinese clientele tends to be younger -- often teenagers and women in their 20s.
Kai sold about 380,000 razors in China in the first six months of fiscal 2017, which began in March. That is more than the 18,000 it sold in all of fiscal 2015.
Managing Director Takeshi Mizutani said the company aims to use the Beauty Guard to further boost its customer base in China. "Chinese women's awareness of beauty is growing in step with the country's economic growth, and we aim to capture the demand," he said.
Hence the plan to boost production with a 40 million yen investment in the Gifu factory, which is run by group affiliate Kai Industries. The plant currently has one line; it will be expanded to three.
The investment is to increase output from 1.3 million razors to 3.4 million.
Something for everyone
Japanese beauty products, including cosmetics, have a reputation for quality in China. Kai offers a wide range, from inexpensive grooming supplies to pricier products like an electric razor with a vibrating blade.
Group revenue reached 46.5 billion yen for the year ended in March, and the company is not expecting much growth in Japan over the medium to long term due to the aging population. This is why Kai is looking overseas.
In China, it wants to boost sales of not only beauty supplies but also high-end kitchen knives. And in India, Kai opened its first retail outlet for cooking and beauty products in August.
Source asia.nikkei.com