“We are targeting the expansion of our cosmetics and personal care business through the development of our hair and skin care ingredients portfolio, which we will be increasingly marketed beyond Japan by focusing on greater international exposure,” said Atushi Shibato, personal care materials group, who was speaking to CosmeticsDesign-Asia.com at the PCHi event last week.
“China and Southeast Asia are the two biggest markets we are looking to target in the future, and we will be looking to grow our business there mainly through supplying skin whitening and anti-ageing ingredients.”
Emerging Asian markets form new focus
Currently, the company is focused on Japan's market, which accounts for 80% of its revenues, but like many Japanese businesses, Showa Denko is turning to emerging markets in Asia as a means of overcoming stagnation in the domestic market.
It currently produces a small portfolio of ingredients, highlighted by its APM, APS and APPS vitamin C-based formulations that mainly target anti-ageing and skin whitening.
“In the near future we are targeting to increase the current total revenues from our international markets from 20% to 40%, which we expect will mainly come from the China and Southeast Asian markets,” Shibato said.
Currently, Showa Denko has an annual turnover of approximately JPY¥2 billion for its personal care business, with a total group turnover in excess of JPY¥850 billion, derived from the manufacturing of a variety of chemical and industrial materials – figures that indicate how relatively small the business is.
Launch of new ingredient at PCHi
Exhibiting at last week’s PCHi event in Shanghai, the company was profiling a number of ingredients, including its brand new Hi-Carnitine HLC, a skin care and hair care ingredient targeting cell revitalisation.
Promoted as being having a high level of skin penetration, allowing it to enzymatically release carnitine, in turn activating cells and accelerating cellular metabolism. Carnitine is a quarternary ammonium compound and plays an important part in fat metabolism.
According to the company’s development team, this means the ingredient can be used to prevent sagging, dullness and fine lines, as well as providing moisturization, hair regrowth and anti-cellulite properties.