Kao reports Q3 skin care sales dip as hand hygiene demand falls


The agency’s well being and wonder division noticed gross sales lower 4.8% on a like-for-like foundation to JPY261.2bn (U$2,29bn) within the third quarter of its monetary 12 months whereas working revenue dropped JPY6.1bn (U$53.6m) to JPY41.3bn (U$490m) within the 9 months ending September 30. 

It attributed the droop to the falling demand for hygiene-related merchandise.

Gross sales of hygiene merchandise grew tremendously final 12 months because of the heightened consciousness of hygiene triggered by the COVID-19 pandemic.

In 2020, the non-public care main boosted the manufacturing​ of hand soaps and sanitisers as demand continued to exceed provide effectively into the center of the 12 months.

Nonetheless, Kao reported seeing a “substantial shrinkage”​ of demand for hand hygiene merchandise, which negatively affected skincare gross sales, which additionally suffered from low gross sales of solar care merchandise as shoppers shunned going outdoor.

“Final 12 months, there was a scarcity of hand soaps and hand sanitisers out there the place our robust provide functionality was demonstrated. Nonetheless, this 12 months, rivals have enough provide competing for market share. Our gross sales dropped as a result of the scenario turned out to be barely completely different than what we anticipated,” ​stated Tomoharu Matsuda, consultant director, managing govt officer president, client merchandise.

Regardless of the droop, Kao managed to extend its market share of hand soaps and sanitisers from the pre-pandemic days.

In keeping with the agency, Bioré now holds the most important share out there for hand soaps and hand sanitisers mixed.