Europe Makes Gains, Japan's Losses Mount
Location, location, location. That's the mantra among real estate agents and the slogan seems appropriate for this year's edition of The International Top 30, our annual report on the leading manufacturers of household and personal products with corporate headquarters outside the U.S.

A company's home market is more important than ever this year because the differences between Japan and Europe are like night and day. Although the Japanese economy has remained mired in a decade-long slump, it was only during the past year that Japanese companies began to take a hard look at their corporate structures and philosophies in an effort to fix their financial woes. To find out what steps they're all taking be sure to read the writeups on companies such as Shiseido, Kao and Lion.

In contrast, many European companies reported excellent results in 2001. And, after posting strong first and second quarter results, nearly all of them remain confident for the remainder of 2002. That's because European countries have managed to shake off the recession that hit the U.S. Plus, the weak euro gave a big boost to exports in 2001. Location too, has played an important role in the European Renaissance. After all, Eastern Europe remains a growth engine for several European companies listed in The International Top 30. At the same time, many European companies have made excellent inroads into the fast-growing Chinese household and personal care market, even as their Japanese competitors were slow to enter the country.

Once again, Unilever tops our list of the biggest companies in the household and personal products industry. In 2001, Unilever's household and personal products sales exceeded $20 billion. The company is one of the best in the world at entering emerging markets and tapping into new growth opportunities. No. 2 on the list is L'Oréal, the largest "pure play" beauty care company in the world. Like Unilever, L'Oréal benefitted from a relatively stable market in Western Europe and good growth in emerging countries such as Russia, China and India. Rounding out the top 10 are Kao, Reckitt Benckiser, Henkel, Shiseido, Beiersdorf, LVMH, Wella and Kanebo.

A year ago, we wondered if the economic slump that was already evident in the U.S. would spread to Europe. Obviously, that wasn't the case. Now, we are left to wonder if the European economic engine is strong enough to pull the U.S. out of the doldrums. At the same time, will the reforms that are finally underway in Japan be enough to spark the No. 2 economy in the world? No one really has an answer.

We hope you enjoy this edition of The International Top 30. As always, we welcome your comments on our ranking, as well as anything else that appears in Happi.

Tom Branna
Editorial Director
tomb@rodpub.com