Sales: $1.9 billion
Key Personnel: Satoshi Suzuki, president and chief executive officer; Naoki Kume, vice president, finance; Yutaka Den, chief global business officer.
Major Products: Skin care, cosmetics, personal care and fragrance. Companies and brands include Pola, Orbis, Jurlique, H20 Plus, PDC Inc., Future Labo, Medi Labo, Decenia, Acro and Three.
New Products: Pola—Signs Shot, Apex (relaunch); Orbis—Orbis=U; To be launched— Jurlique Nutri-Define Collection (September), Red B.A. anti-aging skin care series (October).
Comments: Cosmetic sales rose 7% last year. The Pola brand accounts for 56% of sales, while Orbis represents 27% of sales. Pola’s sales rose 7.9% last year and Orbis’ sales increased 18.3%; and both brands contributed to improved earnings for the parent company. To keep things moving in the right direction, the company has decided to concentrate resources into skin care, to improve product supply capabilities and make operations more efficient. As a second point of its growth strategy, Pola Orbis is building its emerging brands, including Three and PDC, with the hopes of reaching a compound annual growth rate of 10% by 2016.
But the biggest improvements have come from international results. Back in 2011, overseas markets accounted for just 3% of corporate sales. But after the acquisitions of H2O Plus in July, 2011 and Jurlique in February 2012, international sales now account for 12% of revenue and have aided Pola Orbis in its mission to become a “highly profitable global company.”
In a key personnel move, last month the company appointed Yutaka Den as chief global business officer responsible for international business. Den, a Chinese national, holds a BA from Purdue University and an MBA from Wharton School of Business at the University of Pennsylvania. Prior to joining Pola Orbis, Den worked at cosmetic companies based in the US and Europe, where he held a variety of senior roles in brand management and marketing.
This Fall, Pola Orbis will relaunch the current B.A. Red as Red B.A., the entry level line within the high-end B.A. family of products. The reintroduction is enhanced with new data that explains how mental stress affects skin. After debuting in Japan in October, the line will roll out in Russia, Thailand, Taiwan, Hong Kong and Australia in November. A launch in China will take place in September 2015.
For fiscal 2014, company executives expect sales to increase 3.5%. Things got off to a strong start, as Q1 sales rose nearly 22% in local currency. Beauty care sales rose 22%. The Pola business is making “concerted” efforts to boost customer satisfaction by developing Pola the Beauty stores, expanding direct sales operations, boosting a department store presence and improving the skill sets of Pola consultants. Orbis’ sales rose in the quarter, thanks to its renewed focus on skin care, which was enhanced by the February introduction of Orbis-U, an oil-free line. Meanwhile, outside Japan, Jurlique expanded in China and H2O Plus posted favorable results in North America, according to the company.