The beauty industry is seeing a lot of personalized products lately. And, now the consumer goods company Kao is all set to join the trend in the coming year with its personalized skin care offerings designed on the basis of genetic information.
The Japanese company is going to use genetic data present in ribonucleic acid to predict the customers’ chances of getting wrinkles and experiencing other aging-related conditions, and dermatologic disorders also. Thereafter, it will formulate skin care products to maintain healthy skin. The company is yet to determine the prices and sales channels for the products.
In a statement, Michitaka Sawada, President and CEO of Kao said that the company wants to come up with an affordable genetics-based products. Sawada added that products aren’t required to be showcased on the sales floor, hinting at novel offerings being sold to customers online.
The company is a mass production and marketing powerhouse, but changing needs of customers and their picky and diverse range of needs are persuading companies to change their business models. The trend of customization is gaining a lot of ground in the cosmetic industry.
Kao has been looking forward to develop niche-market products and step forwards with social-media-driven marketing strategies. The Tokyo-based company has now decided to step a step further by offering customized items in the beauty and household goods industry.
The cosmetic market of Japan is highly robust, with shipments soaring 7.3% every year to 1.63 trillion yen that is $14.4 billion in 2017, which is the second straight yearly record so far. Japan’s cosmetic industry is triggered by growing faith of international tourists in made-in-Japan products and the growing inclination of domestic consumers towards high-end anti-aging products.
The company has been focusing on the middle rungs of the pricing spectrum, owing to which it missed the anti-aging boom and recorded just 6 percent operating margin for the cosmetics business during the initial nine months in this year. The number was quite less as compared to one of the main competitors Shiseido and other upmarket competitors. Up with the customization strategy, Kao is expecting to bounce back in the coming year, to get a strong grip on the market.