An introduction to marketing health & beauty foods in Japan

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1 An Introduc-on to Health & Beauty Foods in Japan

June 2015


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]


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


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)


USD24.8bn Consumer Health Market (excluding Rx)

Fit & Healthy


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



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…



Consumer Headlines

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44% penetra-on

(health foods & supplements)

USD 240 average spend

Skew to Older people



Japan Health & Beauty RTM

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Company W.Saler

Importer

Source: Exigo Research

Supers, CVS

Drug, Pharmacy

Web, direct sales


Non Retail Channels Account for >70% of Sales!

9 Source: Exigo research


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.


12 Sundrug has over 900 stores na-onwide and its own DC network

which is operated in conjunc-on with key wholesalers


13 Tomod’s is strong in East Japan and is a Sumitomo Group company (Shosha)


14 Daikoku drug is an Osaka based chain with over 130 stores


15 Categories are typically well “sign-‐posted”

within drug stores

Cold medicine Intes-nal medicine


16 There is a lot of scope for

crea-vity with in store displays!


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5 Key Health & Beauty Trends


1. Ac-ve Seniors



2. High Awareness of Lifestyle Diseases



3. Green Juices & Teas



4. Deregula-on, new health labelling laws



5. Channel & Category Expansion 22



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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$!


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

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Contact: [email protected] www.exigomarke-ng.com hpps://www.facebook.com/exigomarke-ng @exigomarke-ng


25 An Introduc-on to Health & Beauty Foods in Japan

June 2015

An introduction to marketing health & beauty foods in Japan

Business

exigoresearch usd24

no1ishealth source

rxcanonlybesold underprescrip

brandandbusiness concepts