In Japan, two major companies take the lead in organic cosmetics
With the rise of the global clean beauty movement, the trend of organic cosmetics is flourishing. The organic beauty market in Japan is growing at an annual rate of 3 to 4 percent, indicating that a boom is on its way. We look at two companies that foresaw this trend and raced ahead to develop organic cosmetics for the mass market: Matsumoto Kiyoshi and Kobayashi Pharmaceutical.
The private brand of a drug store
Japan’s domestic market for natural and organic cosmetics (based on shipment values) swelled by 104.9 percent to 129.7 billion yen (approx. US$1.106 billion) in FY2017 from the previous year. It is expected to grow by 104.1 percent to 135 billion yen (approx. US$1.207 billion) for FY2018.
An early mover and a forerunner of organic cosmetics in Japan was Argelan, a private brand under major drug store chain Matsumoto Kiyoshi. Argelan started developing organic products about 10 years ago and had its first release in 2012.
Matsumoto Kiyoshi had noticed more women with sensitive skin and a heightening awareness towards products that give a sense of safety and peace of mind. Customers have also been increasingly voicing their concerns in-store about products that take environmental issues into account. So the company felt assured that organic products have the potential to become more popular, even in Japan, and began developing organic goods for daily usage.
First, it announced shampoos and treatments, then went on to expand the skincare and body care line-up. By May 2018, Argelan’s total number of goods sold reached 10 million. In particular, its haircare products have proved so popular that the brand is now ranked among the top five selling haircare brands out of the roughly 100 carried in Matsumoto Kiyoshi stores.
Argelan customers include mothers in their 30s to 40s who are concerned about environmental issues and seek the safest products for their children. Although the shampoo and treatment are high-quality organic products, they are priced at 1,625 yen (approx. US$14.50) for a 500mL bottle. This fair pricing is one reason why Argelan has such a strong following.
Apart from its face wash, all of Argelan’s items have attained ECOCERT certification. In fact, the company is preparing to obtain organic certification of an even stricter standard, Europe’s COSMOS (or Cosmetic Organic and Natural Standard).
Released over a limited period during Fall/Winter 2018, the highly acclaimed Argelan Color Lipstick is a renowned cheek and lip multitasker and quickly sold out. Argelan is now planning similar types of limited-edition cosmetics and is furthering its organic efforts in other lifestyle categories, such as detergents.
Aloe vera based beauty
Kobayashi Pharmaceutical Group, which excels at developing hygiene products along with traditional pharmaceutical goods, opened Japan’s only aloe specialty boutique store Aloe Garden in Tokyo in 2015. Products use organic aloe sourced from around the world along with its own independently-developed products.
So why is Kobayashi Pharmaceutical fixated on aloe vera?
The plant’s benefits are well-known — it’s said to be good for sunburn and insect bites and can heal wounds faster — but for a long time aloe vera had not been scientifically verified. It was only when Chairman of Kobayashi Pharmaceutical’s board, and aloe vera fan, Kazumasa Kobayashi, led efforts at his company’s central research lab to verify the regenerative and restorative effects of aloe vera on skin and hair that the company began to develop a product backed up by science. Aloe Garden President Tsuyoshi Tominaga was, at the time, Project Manager of the endeavor. Having seen organic cosmetics take off in the US, he remains convinced the trend will similarly succeed in Japan, which has driven him to develop these new cosmetics.
In 2015, Kobayashi Pharmaceutical began considering how to develop organic aloe vera cosmetics that meet the product standards of a pharmaceutical company. However, finding an appropriate factory within Japan proved difficult. Nevertheless, thanks to connections with South Korean original equipment manufacturer COTDE Inc., which manufactures aloe vera skincare brand O’sum, owns organic aloe farms and maintains COSMOS certification, joint development began in South Korea.
After two years of pushing out numerous prototypes in pursuit of a product that would satisfy consumers in texture and fragrance, Kobayashi Pharmaceutical finally released the Aloe Garden-produced O’sum skincare series. The series of four items — face wash, skin lotion, skin milk, and skin cream — went on sale in Aloe Garden stores in October 2018.
The series didn’t have a huge promotional campaign behind it, but awareness gradually spread. Customers try it in-store, many take a liking to it and buy it in bulk. There have also been reports of high school boys buying them for their acne problems.
In the meantime, Aloe Garden still needs to address one issue: while it may aim for mass-market penetration, its price range is still high. To acquire potential customers, the key is likely to actively communicate with them more, including through digital marketing.
Aloe Garden’s Tominaga continues to nurture the O’sum brand while working with organic aloe vera cosmetics makers from around the world. His plan is to realize specialty boutique shops that stock the most complete line-up of organic aloe vera cosmetics that you can’t get anywhere else. It’s definitely a one-of-a-kind endeavor, something unique not just in terms of Japan but the global market.
Text: Denyse Yeo
Original Text(Japanese 1 & 2): Lina Ono
Cooperator: Mijoung Yoon
