Data Monitor - Hair Care Cateogory in Asia

7/30/2019 Data Monitor - Hair Care Cateogory in Asia

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Asia-Pacific - Haircare 0200 - 2242 - 2009

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

INDUSTRY PROFILE

Haircare in

Asia-Pacific

Reference Code: 0200-2242

Publication Date: July 2010


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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The Asia-Pacific haircare market grew by 5.1% in 2009 to reach a value of $10,627.9 million.

Market value forecast

In 2014, the Asia-Pacific haircare market is forecast to have a value of $13,331.1 million, an increase of

25.4% since 2009.

Market volume

The Asia-Pacific haircare market grew by 6.6% in 2009 to reach a volume of 4,323.6 million units.

Market volume forecast

In 2014, the Asia-Pacific haircare market is forecast to have a volume of 5,656.4 million units, an increase

of 30.8% since 2009.

Market segmentation I

Shampoo is the largest segment of the haircare market in Asia-Pacific, accounting for 42% of the

market's total value.

Market segmentation II

Japan accounts for 36.7% of the Asia-Pacific haircare market value.

Market share

Procter & Gamble Company, The is the leading player in the Asia-Pacific haircare market, generating a

19.8% share of the market's value.Market rivalry

The Asia-Pacific haircare market is fairly fragmented with P&G, Unilever and Kao Corporation collectively

holding 43.8% of the market value.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 7

Market definition 7

Research highlights 8

Market analysis 9

MARKET VALUE 10

MARKET VOLUME 11

MARKET SEGMENTATION I 12

MARKET SEGMENTATION II 13

MARKET SHARE 14

FIVE FORCES ANALYSIS 15

Summary 15

Buyer power 16

Supplier power 17

New entrants 18

Substitutes 19

Rivalry 20

LEADING COMPANIES 21

Procter & Gamble Company, The 21

Unilever 26

Kao Corporation 30

MARKET DISTRIBUTION 34

MARKET FORECASTS 35

Market value forecast 35

Market volume forecast 36

APPENDIX 37

Methodology 37

Industry associations 38


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CONTENTS



Related Datamonitor research 38

Disclaimer 39

ABOUT DATAMONITOR 40

Premium Reports 40

Summary Reports 40

Datamonitor consulting 40


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CONTENTS



LIST OF TABLES

Table 1: Asia-Pacific haircare market value: $ million, 200509 10

Table 2: AsiaPacific haircare market volume: million units, 200509 11

Table 3: Asia-Pacific haircare market segmentation I:% share, by value, 2009 12

Table 4: Asia-Pacific haircare market segmentation II: % share, by value, 2009 13

Table 5: Asia-Pacific haircare market share: % share, by value, 2009 14

Table 6: Procter & Gamble Company, The: key facts 21

Table 7: Procter & Gamble Company, The: key financials ($) 24

Table 8: Procter & Gamble Company, The: key financial ratios 24

Table 9: Unilever: key facts 26

Table 10:

Unilever: key financials ($) 28

Table 11: Unilever: key financials () 28

Table 12: Unilever: key financial ratios 28

Table 13: Kao Corporation: key facts 30

Table 14: Kao Corporation: key financials ($) 32

Table 15: Kao Corporation: key financials (JPY) 32

Table 16: Kao Corporation: key financial ratios 32

Table 17: Asia-Pacific haircare market distribution: % share, by value, 2009 34

Table 18:

Asia-Pacific haircare market value forecast: $ million, 200914 35

Table 19: AsiaPacific haircare market volume forecast: million units, 200914 36


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CONTENTS



LIST OF FIGURES

Figure 1: Asia-Pacific haircare market value: $ million, 200509 10

Figure 2: AsiaPacific haircare market volume: million units, 200509 11

Figure 3: Asia-Pacific haircare market segmentation I:% share, by value, 2009 12

Figure 4: Asia-Pacific haircare market segmentation II: % share, by value, 2009 13

Figure 5: Asia-Pacific haircare market share: % share, by value, 2009 14

Figure 6: Forces driving competition in the haircare market in Asia-Pacific, 2009 15

Figure 7: Drivers of buyer power in the haircare market in Asia-Pacific, 2009 16

Figure 8: Drivers of supplier power in the haircare market in Asia-Pacific, 2009 17

Figure 9: Factors influencing the likelihood of new entrants in the haircare market in Asia-Pacific,

2009 18

Figure 10: Factors influencing the threat of substitutes in the haircare market in Asia-Pacific, 2009 19

Figure 11: Drivers of degree of rivalry in the haircare market in Asia-Pacific, 2009 20

Figure 12: Procter & Gamble Company, The: revenues & profitability 25

Figure 13: Procter & Gamble Company, The: assets & liabilities 25

Figure 14: Unilever: revenues & profitability 29

Figure 15: Unilever: assets & liabilities 29

Figure 16: Kao Corporation: revenues & profitability 33

Figure 17:

Kao Corporation: assets & liabilities 33

Figure 18: Asia-Pacific haircare market distribution: % share, by value, 2009 34

Figure 19: Asia-Pacific haircare market value forecast: $ million, 200914 35

Figure 20: AsiaPacific haircare market volume forecast: million units, 200914 36


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MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The haircare market consists of the retail sale of conditioner, hair colorants, salon products, shampoo andstyling agents. The market is valued according to retail selling price (RSP) and includes any applicable

taxes. Any currency conversions used in the compilation of this report have been calculated using 2009

annual average exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Japan, Singapore, South

Korea, and Taiwan.


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MARKET OVERVIEW



Research highlights

The Asia-Pacific haircare market generated total revenues of $10.6 billion in 2009, representing a

compound annual growth rate (CAGR) of 5% for the period spanning 2005-2009.

Shampoo sales proved the most lucrative for the Asia-Pacific haircare market in 2009, generating total

revenues of $4.5 billion, equivalent to 42% of the market's overall value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.6% for the five-

year period 2009-2014, which is expected to lead the market to a value of $13.3 billion by the end of

2014.


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MARKET OVERVIEW



Market analysis

The Asia-Pacific haircare market grew at a strong rate between 2005-2009. The growth in this market is

expected to decelerate in the forthcoming five years.

The Asia-Pacific haircare market generated total revenues of $10.6 billion in 2009, representing a

compound annual growth rate (CAGR) of 5% for the period spanning 2005-2009. In comparison, the

Japanese and Chinese markets grew with CAGRs of 1.2% and 6.2%, respectively, over the same period,

to reach respective values of $4.9 billion and $2.4 billion in 2009.

Market consumption volumes increased with a CAGR of 5.7% during 2005-2009, to reach a total of 4.3

billion units in 2009. The market's volume is expected to rise to 5.7 billion units by the end of 2014,

representing a CAGR of 5.5% for the 2009-2014 period.

Shampoo sales proved the most lucrative for the Asia-Pacific haircare market in 2009, generating total

revenues of $4.5 billion, equivalent to 42% of the market's overall value. In comparison, sales of

conditioner generated revenues of $2.7 billion in 2009, equating to 25.4% of the market's aggregaterevenues.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.6% for the five-

year period 2009-2014, which is expected to lead the market to a value of $13.3 billion by the end of

2014. Comparatively, the Japanese and Chinese markets will grow with CAGRs of 1% and 4.9%,

respectively, over the same period, to reach respective values of $5.2 billion and $3 billion in 2014.


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MARKET VALUE



MARKET VALUE

The Asia-Pacific haircare market grew by 5.1% in 2009 to reach a value of $10,627.9 million.

The compound annual growth rate of the market in the period 200509 was 5%.

Table 1: Asia-Pacific haircare market value: $ million, 200509

Year $ million million % Growth

2005 8,759.1 6,299.2

2006 9,182.6 6,603.8 4.8%

2007 9,632.7 6,927.5 4.9%

2008 10,116.4 7,275.3 5.0%

2009 10,627.9 7,643.2 5.1%

CAGR: 200509 5.0%

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

Figure 1: Asia-Pacific haircare market value: $ million, 200509



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MARKET VOLUME



MARKET VOLUME

The Asia-Pacific haircare market grew by 6.6% in 2009 to reach a volume of 4,323.6 million units.

The compound annual growth rate of the market in the period 200509 was 5.7%.

Table 2: AsiaPacific haircare market volume: million units, 200509

Year million units % Growth

2005 3,458.2

2006 3,631.8 5.0%

2007 3,815.1 5.0%

2008 4,057.1 6.3%

2009 4,323.6 6.6%

CAGR: 200509 5.7%


Figure 2: AsiaPacific haircare market volume: million units, 200509



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MARKET SEGMENTATION I



MARKET SEGMENTATION I

Shampoo is the largest segment of the haircare market in Asia-Pacific, accounting for 42% of the

market's total value.

The conditioner segment accounts for a further 25.4% of the market.

Table 3: Asia-Pacific haircare market segmentation I:% share, by value, 2009

Category % Share

Shampoo 42.0%

Conditioner 25.4%

Hair colorants 19.3%

Styling agents 11.5%

Perms & relaxers 1.8%

Total 100%


Figure 3: Asia-Pacific haircare market segmentation I:% share, by value, 2009



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MARKET SEGMENTATION II



MARKET SEGMENTATION II

Japan accounts for 36.7% of the Asia-Pacific haircare market value.

China accounts for a further 20.1% of the Asia-Pacific market.

Table 4: Asia-Pacific haircare market segmentation II: % share, by value, 2009

Category % Share

Japan 36.7%

China 20.1%

India 16.1%

South Korea 16.1%

Rest of Asia-Pacific 10.9%

Total 100%


Figure 4: Asia-Pacific haircare market segmentation II: % share, by value, 2009



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MARKET SHARE



MARKET SHARE

Procter & Gamble Company, The is the leading player in the Asia-Pacific haircare market, generating a

19.8% share of the market's value.

Unilever accounts for a further 12.2% of the market.

Table 5: Asia-Pacific haircare market share: % share, by value, 2009

Company % Share

Procter & Gamble Company, The 19.8%

Unilever 12.2%

Kao Corporation 11.8%

Others 56.2%

Total 100%


Figure 5: Asia-Pacific haircare market share: % share, by value, 2009



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FIVE FORCES ANALYSIS




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

buyers will be taken as retailers, and manufacturers of chemical ingredients as the key suppliers.

Summary

Figure 6: Forces driving competition in the haircare market in Asia-Pacific, 2009



holding 43.8% of the market value.

Large MNCs whose scale economies and investment in product development and brand identity are

formidable incumbents for prospective new entrants to challenge. This weakens the retailers' buyer power

to some degree. Manufacturers of surfactants are the main suppliers to the market. Steady growth in the

Asia-Pacific market value reduces the rivalry between the market leaders, who offer a broadly diversified

portfolio of personal care products, in an attempt to reduce dependence on haircare product revenues

alone. The wide range of available products with an accompanying variance in quality and price means

that buyer power is prevented from becoming disproportionately strong in this market. Regional variations

and cultural differences also play a factor; some local strong players such as Kao Corporation hold a

significant market share within the Asia-Pacific market, but their presence within others is not strong. New

entrants have the chance to enter a market even on a modest scale by offering the hand-made specialty

haircare products. Substitutes to the market are other home made hair products.


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Buyer power

Figure 7: Drivers of buyer power in the haircare market in Asia-Pacific, 2009


The major retailers in the Asia-Pacific haircare market are supermarkets/hypermarkets, specialist

retailers, hair salons, pharmacies and drugstores and department stores. These buyers have

considerable bulk-purchasing power, and are in a position to negotiate favorable prices as switching costsare not particularly high (only the customers' loyalty to the product deters the buyers' form turning to

cheaper players). This enhances buyer power significantly. Forward integration is less likely; however,

some market players are entering the retail market with specialized services. Furthermore, the main

players have developed broad portfolios of brands targeted at different consumer segments and price

points. High product differentiation in the market, together with forward vertical integration lowers buyer

power. End-user loyalty to manufacturer brands tends to weaken the buyer power of retailers even

further. However, the fact that buyers offer a wide range of products, with the haircare segment

constituting only a small part of their business, strengthens buyer power. Overall, buyer power is

assessed to be moderate.


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Supplier power

Figure 8: Drivers of supplier power in the haircare market in Asia-Pacific, 2009


Suppliers in the haircare market include manufacturers of chemical ingredients, such as foam boosters,

thickeners, conditioning agents, preservatives, modifiers, and special additives, and packaging materials.

The main active ingredients of haircare products are surfactants, which are typically derived frompetrochemicals. However the increasing scarcity of oil and subsequent increases in the prices of

surfactants have led some players to increase their use of palm oil as an alternative raw material. It is

important for market players to focus on environmentally friendly; ingredients which perform well whilst at

the same time follow the latest trends. This heightens the need for research, which is costly, decreasing

supplier power. Plastic, glass and metal (aerosol) packaging is an additional input for the industry;

companies offering these products are generally small in comparison to major personal products

companies, and their supplier power is correspondingly reduced. Haircare products constitute a relatively

small part of the chemical and packaging companies' total market, strengthening supplier power. Overall,

supplier power is moderate.


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New entrants

Figure 9: Factors influencing the likelihood of new entrants in the haircare market in Asia-

Pacific, 2009


The main manufacturers are large international companies. These players sell their products on the

global scope, and invest heavily in both, product innovation and building wide brand portfolios. Thus, newentrants face formidable competition. New entrants may be able to start on a small scale as niche

companies, selling only handmade products. However, major players, by applying the strategies of micro-

segmentation, are able to launch niche products into new markets and narrow down the opportunities for

new entrants. Entering the Asia-Pacific market requires a new player to establish production facilities,

which means significant capital outlay on machinery and factories. Potential new entrants will also need to

persuade stores, aware of their importance in the distribution chain, to stock their products. Haircare

products are generally sold in high volume to virtually all consumers, which suggest that scale economies

in manufacturing are likely to be important to the margins of players. The market growth rate is quite

steady, which makes the market more attractive to potential new entrants. Overall, there is a weak

likelihood of new entrants.


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Substitutes

Figure 10: Factors influencing the threat of substitutes in the haircare market in Asia-Pacific, 2009


Substitutes for consumer haircare products include soaps and traditional or homemade hair cleaning

agents. However, any substitutes prepared at home, are relatively time-consuming, and may have

unpredictable results. But this kind of substitute may be significant in some undeveloped markets.Furthermore the use of domestically made haircare products may prevent the consumer from exposure to

some potentially allergic ingredients. Overall, the threat of substitutes is assessed as very weak.


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Rivalry

Figure 11: Drivers of degree of rivalry in the haircare market in Asia-Pacific, 2009



holding 43.8% of the market value. As most players own their own production facilities, fixed costs are

relatively high, and, as a successful presence in the market requires significant capital outlay for financingfixed assets, the rivalry level is enhanced. The switching costs may not be high but retailers are usually

unwilling to switch between market players, as their customers will seek the leading brands they are

accustomed to. Furthermore, the diverse product range produced by the leading market players, including

other personal care products, and household products and food, reduces their reliance on the haircare

market, easing rivalry. Also, the market's innovations, like ethnic haircare and other niche products

decrease the degree of rivalry, enabling manufacturers to strengthen their position and giving them an

edge in emerging markets. Steady market growth helps to reduce the level of rivalry even further. Overall,

rivalry is assessed to be moderate.


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LEADING COMPANIES



LEADING COMPANIES

Procter & Gamble Company, The

Table 6: Procter & Gamble Company, The: key facts

Head office: One Procter & Gamble Plaza, Cincinnati, Ohio 45201, USA

Telephone: 1 513 983 1100

Website: www.pg.com

Financial year-end: June

Ticker: PG

Stock exchange: New York Stock Exchange

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

Procter & Gamble Company (P&G) engages 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 the Asian region. It is headquartered in Cincinnati, Ohio.

P&G owns and operates 39 manufacturing facilities in the US located in 21 different states. Furthermore,

the company owns and operates a total of 103 manufacturing facilities in 42 countries. P&G manufactures

beauty products (42 locations), grooming products (13); fabric care and home care products (49); baby

care and family care products (29); pet care, snacks and coffee products (15); and health care products

(37). 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 three global business units (GBUs) and a global operations group.

The GBUs of the company consist of beauty, health and well-being, and household care business units.

The GBUs develop and 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

GBU includes the beauty and the grooming businesses; the health and well-being GBU consists of the

health care, and the snacks and pet care businesses. The household care GBU comprises the fabric care

and home care as well as the baby care and family care businesses.

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,


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LEADING COMPANIES



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

Pantene, Head and Shoulders, Aussie, Fekkai, Nioxin and Wella.

In February 2010, P&G launched a plant-based hair care range under the brand Nature Fusion,

comprising shampoo, conditioner and leave-in conditioner. The product range consists of ingredients

derived from plants known for their traditional medicinal qualities.

In April 2009, P&G sold its ethnic hair care company Johnson Products to a group of investors. Johnson

Products is a major player in the ethnic hair care market in the Americas with a range of 30 products that

includes the Gentle Treatment and Ultra Sheen brands. In September 2008, Procter & Gamble purchased

NIOXIN Research Laboratories, a player in the scalp care professional haircare segment. NIOXIN offers a

range of products that focus on the scalp and are distributed through salons and salon stores in more

than 40 countries.

In March 2008, P&G purchased Frederic Fekkai, owner of the exclusive Fekkai brand. Fekkai offers arange of products for salons across the US. In April 2009, P&G sold of its global Infusium 23 hair care

business to Helen of Troy, a designer, developer and worldwide marketer of personal care and household

consumer products.

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 oral care, feminine care, pharmaceuticals and personal health care

businesses. The key brands marketed by the segment comprise Actonel, Always, Crest and Oral-B. In

pharmaceuticals and personal health, P&G serves the global bisphosphonates market for the treatment of

osteoporosis under the Actonel brand. It is one of the leaders in the nonprescription heartburn

medications and in respiratory treatments.

The snacks and pet care segment markets its products under the brands lams and Pringles. In the snacks

business, the company sells potato chips through its Pringles brand.

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 Ariel, Dawn, Downy, Duracell,

Gain and Tide brands.

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

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

primarily operates in North America.


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LEADING COMPANIES



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

services (GBS). 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 GBS also provides technology, processes and standard data tools to support the operations of GBUs

and the MDO. P&G also operates P&G Professional, a business-to-business division that serves food

services, commercial cleaning, lodging and vending industries.

P&G operates nine research centers in Western Europe and 27 research centers worldwide. Each center

focuses on a specific area of the business. The Brussels Innovation Centre (Strombeek-Bever, Belgium)

focuses on fabric care, home care, snacks; Gillette Advanced Technology Centre (Reading, UK) focuses

on Gillette; Rusham Park Technology Centre (Egham, UK) on health care, beauty care; Newcastle

Technology Centre (Newcastle, UK) on fabric care, home care; Schwalbach Technology Centre(Schwalbach, Germany) on baby care, feminine care, family care; Braun Technology Centre (Kronberg,

Germany) on electric appliances; Wella Technology Centre (Darmstadt, Germany) on hair care; Italian

Innovation Centres (Pomezia and Pescara, Italy) on fabric care, home care, feminine care, adult

incontinence products and Wella Technology Centre (Freiburg, Switzerland) on hair care.

The Asia-Pacific operations of P&G are divided into three sub-regions: Asean, Australia and India (AAI),

Greater China (China and Taiwan) and North Asia (Japan and Korea).

However, P&G is centralizing its Asia-Pacific operations into a single entity to increase its focus on

emerging economies. The company is expected to merge GBUs for the three regional hubs into one to

improve efficiency.

P&G operates across Western Europe. The region represents about a quarter of the companys total

business. P&G markets over 100 brands in Europe.

Key Metrics

Procter & Gamble generated revenues of $79 billion in the financial year (FY) ended June 2009, a

decrease of 3.3% over 2008. The company's net income totaled $13.4 billion in FY2009, an increase of

11.3% over 2008.

The beauty GBU recorded revenues of $26.3 billion in FY2009, a decrease of 5.2% over 2008. The

beauty sub-segment (including hair care products) accounted for 71.4% of the total revenues of beauty

GBU in FY2009. Revenues from beauty sub-segment reached $18.8 billion in FY2009, a decrease of

3.7% over 2008. The decrease in revenues was attributable to 2% decline in unit volumes of beauty care


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LEADING COMPANIES



products, as a result of unfavorable foreign exchange rates and the decline in the professional hair care

volumes due to market contractions and trade inventory reductions.

Table 7: Procter & Gamble Company, The: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 56,741.0 68,222.0 74,832.0 81,748.0 79,029.0

Net income (loss) 6,925.0 8,684.0 10,340.0 12,075.0 13,436.0

Total assets 61,527.0 135,695.0 138,014.0 143,992.0 134,833.0

Total liabilities 43,052.0 72,787.0 71,254.0 74,498.0 71,734.0

Employees 110,000 138,000 138,000 138,000 135,000

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

Table 8: Procter & Gamble Company, The: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 12.2% 12.7% 13.8% 14.8% 17.0%

Revenue growth 10.4% 20.2% 9.7% 9.2% (3.3%)

Asset growth 7.9% 120.5% 1.7% 4.3% (6.4%)

Liabilities growth 8.3% 69.1% (2.1%) 4.6% (3.7%)

Debt/asset ratio 70.0% 53.6% 51.6% 51.7% 53.2%

Return on assets 11.7% 8.8% 7.6% 8.6% 9.6%

Revenue per employee $515,827 $494,362 $542,261 $592,377 $585,400

Profit per employee $62,955 $62,928 $74,928 $87,500 $99,526



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LEADING COMPANIES



Figure 12: Procter & Gamble Company, The: revenues & profitability


Figure 13: Procter & Gamble Company, The: assets & liabilities



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LEADING COMPANIES



Unilever

Table 9: 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: UL

Stock exchange: New York


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 segment comprises three geographic regions: Western Europe, The

Americas and Asia-Africa Central and Eastern Europe (CEE). The Americas region includes operations inNorth America and Latin America. The Asia-Africa CEE region includes operations in the Middle East,

Africa, South Asia, South-East Asia, North-East Asia, Australasia and Central and Eastern Europe. The

Western Europe region includes operations in France, Germany, The UK, Belgium, Italy, Netherlands,

Spain, Denmark, Norway and Sweden.

Although Unilever's operations are managed on a geographical basis, the group manages its brands

under four product categories: savoury, dressings and spreads; ice cream and beverages; personal care;

and home care and others. These categories are Unilevers principal product areas.

The savoury, dressings and spreads segment includes products like soups, bouillons, sauces, snacks,

mayonnaise, salad dressings, olive oil, margarines and spreads, and cooking products such as liquidmargarines and some frozen foods. . Unilever's major brands in this segment includes: Knorr, Hellmann's,

Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calve, Wish-Bone, Amora, and Ragu.


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LEADING COMPANIES



The ice cream and beverages segment includes the 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

dOr and Solero, Walls, Kibon, Algida and Ola. Its portfolio also includes brands like Ben & Jerrys,

Breyers, Klondike and Popsicle. Its tea-based beverages include brands such as Lipton, Brooke Bond

and PG Tips. In addition, Unilever has weight management products such as Slim Fast, and nutritionally

enhanced products such as Annapurna and AdeS/Adez brands.

The personal care segment offers skin care and hair care products; deodorants and anti-perspirants; and

oral care products. The group's major brands in this segment include Axe/Lynx, Pond's, Rexona, Dove,

Lux, and Sunsilk (including Seda/Sedal). Other brands include Suave, Clear, Lifebuoy and Vaseline,

Signal and Close Up. In April 2009, Unilever acquired TIGIs professional hair product business and its

associated advanced education academies for a cash consideration of $411.5 million. TIGI's major

brands include Bed Head, Catwalk and S-Factor.

In the same year Unilever announced to acquire the personal care business of the Sara Lee Corporation.

The Sara Lee major brands include Sanex, Radox and Duschdas.

Home care and other operations include a number of products such as domestic cleaners, fabric

softeners, bleaches and laundry detergents. Unilever's global brands in the home care segment include

Omo, Surf, Comfort, Radiant, Skip, Snuggle, Cif, Domestos and Sun/Sunlight. Other brands marketed by

this segment include Omo Surf, Comfort, Radiant and Skip.

The group's operation also includes Unilever Food solutions, which is a global food service business

providing solutions for professional chefs and caterers.

Key Metrics

Unilever generated revenues of $55.4 billion in the financial year (FY) ended December 2009, a decrease

of 1.7% over 2008. The company's net income totaled $4.7 billion in FY2009, a decrease of 33.0% over

2008.

During the FY2009, the personal care division recorded revenues of $16.5 billion, an increase of 4.1%

over 2008. The increase in revenues was attributable to underlying volume growth of 2.3%, driven by

stronger innovation, advertising and promotional activities.

Asia-Africa CEE accounted for 37.4% of the total revenues in FY2009. Revenues from Asia-Africa CEE,

reached $20.7 billion in FY2009, an increase of 2.9% over 2008.


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LEADING COMPANIES



Table 10: Unilever: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 53,397.0 55,122.6 55,880.5 56,347.7 55,374.3Net income (loss) 5,236.7 6,598.0 5,406.3 6,990.1 4,686.0

Total assets 54,925.2 51,549.0 51,868.8 50,255.9 51,471.2


Employees 206,000 179,000 174,000 174,000 163,000


Table 11: Unilever: key financials ()

million 2005 2006 2007 2008 2009Revenues 38,401.0 39,642.0 40,187.0 40,523.0 39,823.0

Net income (loss) 3,766.0 4,745.0 3,888.0 5,027.0 3,370.0

Total assets 39,500.0 37,072.0 37,302.0 36,142.0 37,016.0



Table 12: Unilever: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 9.8% 12.0% 9.7% 12.4% 8.5%

Revenue growth 3.3% 3.2% 1.4% 0.8% (1.7%)

Asset growth 7.2% (6.1%) 0.6% (3.1%) 2.4%

Liabilities growth 5.1% (17.4%) (3.6%) 5.3% (5.0%)

Debt/asset ratio 77.8% 68.5% 65.6% 71.3% 66.1%

Return on assets 9.9% 12.4% 10.5% 13.7% 9.2%





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LEADING COMPANIES



Figure 14: Unilever: revenues & profitability


Figure 15: Unilever: assets & liabilities



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LEADING COMPANIES



Kao Corporation

Table 13: 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's business is divided into four segments: beauty care, fabric and home care, human health

care, and chemical products.

The beauty care 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. Premium hair care products comprise

shampoos, conditioners, hair care products and hair coloring agents.

In September 2008, the company released a new and improved version of its "Segreta" anti-ageing

shampoo, conditioner and treatment range, to address signs of hair ageing such as coarseness, loss of

bounce, gloss and manageability.

In 2008, it launched Blaune Awa Colour, a foam type hair colour and also released an improved version

of its popular "Essential" hair care range.

The fabric and home care segment offers products such as Attack, laundry detergent,; Humming, fabric

softener; Family dishwashing liquid; Magiclean and Quickle household cleaners,; and other home care

solutions. In 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


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LEADING COMPANIES



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 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 & 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 'effectivesanitation' 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

Kao Corporation generated revenues of $13.6 billion in the financial year (FY) ended March 2009, a

decrease of 3.2% over 2008. The company's net income totaled $688.6 million in FY2009, a decrease of

3.2% over 2008.

During the FY2009, the beauty care business division recorded revenues of $6.3 billion a decrease of

6.3% over 2008.

Asia and Oceania accounted for 12.7% of the total revenues in FY2009. Revenues from Asia and

Oceania reached $1.7 billion in 2009, an increase of 2.3% over 2008.


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LEADING COMPANIES



Table 14: Kao Corporation: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 10,007.3 10,374.5 13,158.0 14,084.2 13,633.4Net income (loss) 771.0 759.9 753.4 711.0 688.6

Total assets 7,359.5 13,037.9 13,328.8 13,166.5 11,960.2


Employees 19,143 29,908 32,175 32,900 33,745


Table 15: Kao Corporation: key financials (JPY)

JPY million 2005 2006 2007 2008 2009Revenues 936,851.0 971,230.0 1,231,808.0 1,318,514.0 1,276,316.0

Net income (loss) 72,180.0 71,140.0 70,528.0 66,562.0 64,463.0

Total assets 688,968.0 1,220,564.0 1,247,797.0 1,232,601.0 1,119,676.0



Table 16: Kao Corporation: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 7.7% 7.3% 5.7% 5.0% 5.1%

Revenue growth 3.8% 3.7% 26.8% 7.0% (3.2%)

Asset growth (4.8%) 77.2% 2.2% (1.2%) (9.2%)

Liabilities growth (9.4%) 195.3% (3.9%) (3.7%) (12.8%)

Debt/asset ratio 34.9% 58.2% 54.7% 53.4% 51.2%

Return on assets 10.2% 7.5% 5.7% 5.4% 5.5%





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LEADING COMPANIES



Figure 16: Kao Corporation: revenues & profitability


Figure 17: Kao Corporation: assets & liabilities



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DISTRIBUTION



MARKET DISTRIBUTION

Independent retailers form the leading distribution channel in the Asia-Pacific haircare market, accounting

for a 32.8% share of the total market's value.

Supermarkets / hypermarkets accounts for a further 24% of the market.

Table 17: Asia-Pacific haircare market distribution: % share, by value, 2009

Channel % Share

Independent retailers 32.8%

Supermarkets / hypermarkets 24.0%

Specialist Retailers 22.6%

Others 20.5%

Total 100%


Figure 18: Asia-Pacific haircare market distribution: % share, by value, 2009



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MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2014, the Asia-Pacific haircare market is forecast to have a value of $13,331.1 million, an increase of25.4% since 2009.

The compound annual growth rate of the market in the period 200914 is predicted to be 4.6%.

Table 18: Asia-Pacific haircare market value forecast: $ million, 200914

Year $ million million % Growth

2009 10,627.9 7,643.2 5.1%

2010 11,154.6 8,021.9 5.0%

2011 11,690.9 8,407.6 4.8%

2012 12,233.5 8,797.9 4.6%

2013 12,779.7 9,190.7 4.5%

2014 13,331.1 9,587.2 4.3%

CAGR: 200914 4.6%


Figure 19: Asia-Pacific haircare market value forecast: $ million, 200914



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MARKET FORECASTS



Market volume forecast

In 2014, the Asia-Pacific haircare market is forecast to have a volume of 5,656.4 million units, an increase

of 30.8% since 2009.

The compound annual growth rate of the market in the period 200914 is predicted to be 5.5%.

Table 19: AsiaPacific haircare market volume forecast: million units, 200914

Year million units % Growth

2009 4,323.6 6.6%

2010 4,596.2 6.3%

2011 4,870.0 6.0%

2012 5,137.5 5.5%

2013 5,398.0 5.1%

2014 5,656.44.8%

CAGR: 200914 5.5%


Figure 20: AsiaPacific haircare market volume forecast: million units, 200914



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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,

MalaysiaTel.: 60 3 7726 1599

Fax: 60 3 7726 8599

www.consumersinternational.org

Related Datamonitor research

Industry profiles

Global Hair Care

Hair Care in Brazil

Hair Care in Canada

Hair Care in Chile

Hair Care in Colombia

Hair Care in Argentina

Hair Care in Europe

Hair Care in Ireland

Hair Care in the Netherlands

Hair Care in the Poland

Hair Care in Russia


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APPENDIX



Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form

by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

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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Documents

Data Monitor - Hair Care Cateogory in Asia