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1 An Introduc-on to Health & Beauty Foods in Japan
June 2015
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Introduc-on
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This presenta-on is a brief introduc-on to the marke-ng and sales of health and beauty products in Japan. Japan is one of the world’s most innova-ve markets for health products and services. Whilst there are many strong domes-c companies, there are also significant opportuni-es for Interna-onal companies with novel technologies, brand and business concepts. Please feel free to contact us to find out more! [email protected]
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Wellness in Japan
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Japanese people visit doctor on average 14x a year, one of the highest rates in the world!
“No 1 is Health”
Source: Exigo research
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Japan Health Foods, Vitamins & OTC
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42%
29%
5%
16%
8%
Health Foods VMS Switch OTC
Other OTC drug Quasi OTC (mild)
Source: Exigo research
USD24.8bn Consumer Health Market (excluding Rx)
Fit & Healthy
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Japan Headline Regulatory Overview
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Rx – can only be sold under prescrip-on
OTC – can be sold by drug stores or
pharmacies and on-‐line (except 23 recently switched)
Class 1 5%
Class 2 65%
Class 3 30%
Class 1: Drugs with ingredients demanding special precau<ons, including ingredients not widely used in OTC drugs. Example: Medicines containing H2 blockers, which reduce stomach acid Class 2: Drugs containing ingredients that in rare cases may cause health problems requiring hospitaliza<on or worse. Example: Cold medica<on, pain and fever reducers Class 3: Drugs containing ingredients that may cause minor discomfort or other mild symptom Examples: Vitamin supplements, indiges<on medica<on and similar remedies
Tokuho/Foshu Health foods with quasi pharma claims
New Kinosei Hyoji law effec-ve April ’15 allows stronger health claims on food & beverages
Source: Exigo research
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A Consumer’s Perspec-ve
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Chinese medicine
Vegetable & fruit nutrition
Vitamins & Supplements
Vitamin Jelly
Dairy probiotic
Plant probiotic
Functional
Medicine
Beauty Drinks
A complex market with 000s of SKUs…
Source: Exigo research
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Consumer Headlines
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44% penetra-on
(health foods & supplements)
USD 240 average spend
Skew to Older people
Source: Exigo research
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Japan Health & Beauty RTM
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Company W.Saler
Importer
Source: Exigo Research
Supers, CVS
Drug, Pharmacy
Web, direct sales
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Non Retail Channels Account for >70% of Sales!
9 Source: Exigo research
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Drug Stores are a key channel for brand exposure
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11 Matsumoto Kiyoshi is No 1 Chain and strongest in East Japan, its stores are
typically close to railway sta-ons and wide open to apract shoppers.
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12 Sundrug has over 900 stores na-onwide and its own DC network
which is operated in conjunc-on with key wholesalers
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13 Tomod’s is strong in East Japan and is a Sumitomo Group company (Shosha)
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14 Daikoku drug is an Osaka based chain with over 130 stores
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15 Categories are typically well “sign-‐posted”
within drug stores
Cold medicine Intes-nal medicine
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16 There is a lot of scope for
crea-vity with in store displays!
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5 Key Health & Beauty Trends
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1. Ac-ve Seniors
18 Source: Exigo research
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2. High Awareness of Lifestyle Diseases
19 Source: Exigo research
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3. Green Juices & Teas
20 Source: Exigo research
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4. Deregula-on, new health labelling laws
21 Source: Exigo research
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5. Channel & Category Expansion 22
Source: Exigo research
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Lessons from Japan 1. Japan health laws are changing
allowing for stronger manufacturer claims
2. Product life cycles are short, have a clear view of your innova-on pipeline before launch
3. Develop & test alterna-ve brand and product concepts for comprehension & appeal
4. Trade is s-ll fragmented with large number of chains, find strong (exclusive) local partner cri-cal
5. Focus on a dis-nct segment (category & channel) and be the expert
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$!
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Export & Expand with Exigo Category & Market Entry Customer Partnerships Capability Programmes
Using consumer, shopper, customer, category and
compe-tor insights, find the best ways to enter and expand in new
markets
Research, screen, contact and nego-ate with new partners to execute
market entry strategies
Embed and implement strategy with best prac-ce learning
24
Contact: [email protected] www.exigomarke-ng.com hpps://www.facebook.com/exigomarke-ng @exigomarke-ng
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25 An Introduc-on to Health & Beauty Foods in Japan
June 2015