Under the terms of the agreement, the former Sojitz Cosmetics was renamed Kagayaku Cosmetics. Following the transaction, Yukio Matsuki continues to serve as the company’s representative director.
Kagayaku Cosmetics notified its customers of the changes in shareholder and corporate name, following the transfer of all of the shares held by its 100% parent company, Sojitz Corporation.
In the announcement, the newly-named Kagayaku Cosmetics said: “Since foundation, we have been following the corporate vision of contributing to society by satisfying customers through planning, development, sales, and services concerning cosmetics.”
Ant Bridge is a fund managed by Ant Capital Partners, a Japanese private equity and venture capital firm. Ant Capital Partners was set up in 2000 and focuses on investments in small and middle market Japanese companies.
The company states that small and medium-sized enterprises are said to represent more than 99% of Japanese companies.
It is, therefore, the rapid diversification of supply chains and the globalisation of target markets that are causing companies in the APAC region to seek international skills, overseas operation experience and capital.
Ryosuke Iinuma, Representative Director and President, Ant Capital Partners states: “Through our private equity investment activities, [we] hope to contribute, even in a small way, to reviving Japanese industry and getting the Japanese economy on track again.”
Building the brand
Kagayaku Cosmetics prides itself on creating innovative ideas that aim to improve functions. In planning, developing and selling cosmetics, the Japanese brands hopes to continue using the latest information to enable customers to “enjoy the beauty, safety and security” of its products.
"Following this corporate vision...we aim to become a company that continues to be trusted and favoured by more customers under the theme reflected in the new corporate name — ‘All the employees become bright together with customers’,” Kagayaku Cosmetics went on to say in its announcement.
In Japan, the company has launched a range of products in the skincare, makeup, body care and hair care markets. Its BelleCio: Skin-Lightening Product for CO-OP has recently celebrated its 25th Anniversary. Known for its Skin-Lightening and Moisturising properties, its was further developed as a UV anti-aging product to represent the growing trend.
In the rapidly growing Southeast Asia region, the female consumer demand for cosmetics is growing and so the Japanese-based brand sought to create and develop lines for the overseas market.
In June 2015, the company began selling its naturecia range, which is certified as a Halal product, at approximately 160 stores near Jakarta, Indonesia. The company hopes to concentrate on Southeast Asia as a target market and expand the business by examining the scale of the local market, market growth potential, along with the purchasing trend of rival companies and customers.
As consumers lead product development in the marketplace, Kagayaku has previously sought to respond to various requests about beauty and health from customers.
Euromonitor International explained that Japan’s slow growth could be explained by its lack of product innovation and successful marketing techniques that have failed to gain consumer appeal.
However, as the forecast period anticipates growth, it will be the brands' ability to diversify and innovate their product ranges and direct marketing at consumers that will help companies such as Kagayaku Cosmetics, under Ant Bridge, realise their full potential.