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Segment Information |
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Consumer Products |
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Oral
Care Products |
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| Performance of newly launched products in the Clinica and Dentor Systema brand lines was favorable, and sales of this business rose above the previous fiscal year. |
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Lion provides a wide array of advanced oral care products to support everyone’s daily health needs.
Main products: Toothpastes, toothbrushes, mouthwashes, interdental products, etc. |
| Key Products Contributing to Performance in Fiscal 2012 |
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Launching Dentor Systema Toothpaste Sensitive Care
The total market for toothpastes in Japan expanded 2% over the previous year in fiscal 2012. Within this market, the demand for toothpastes to prevent hypersensitivity expanded 14%.*
According to Lion’s research, consumers who are experiencing hypersensitivity are concerned about inflammation of their gums, bleeding, and other symptoms, and are becoming increasingly aware of the need to prevent periodontal diseases and use toothpastes and toothbrushes that are effective in preventing these conditions.
Also, since there is a general belief that toothpastes for the prevention of hypersensitivity are a special type and not for the general population, there may be many people who could benefit but are not using these types of toothpaste.
With these consumers in mind, in fall 2012, Lion newly launched its Dentor Systema Toothpaste Sensitive Care under its Dentor Systema brand lineup of oral care products for consumers. This toothpaste applies Lion’s periodontal pocket care technology and provides a practical way to prevent both stinging pain from hypersensitivity and periodontal disease as well as prevent gingivitis and periodontitis.
The introduction of Dentor Systema Toothpaste Sensitive Care has enabled Lion to win new customers among those consumers who still do not use toothpastes for combating
painful hypersensitivity.
* 2012 INTAGE Inc., SRI Survey |
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| During fiscal 2013, Lion will continue to prioritize activities aimed at adding new value to products in its two major oral care brand lines, Clinica and Dentor Systema. In the Clinica line, Lion introduced its Clinica Advantage Toothbrush, which will be a top-of-the-line, high-quality product featuring a thin head and a slender neck for reaching the back of the molars, which is a design recommended by dentists. To strengthen its brand positioning, Lion has launched this high-value-added toothbrush with an original shape that gives the feeling of more-effective brushing. In the Dentor Systema brand line, Lion will further promote sales of Dentor Systema Toothpaste Sensitive Care as well as other products to raise its position in the market for periodontal disease prevention. |
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Beauty Care Products |
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| Sales of newly introduced hand soaps were strong, but performance of antiperspirants was weak because of the effects of unseasonable weather. As a result, sales of this business were below the level of the previous fiscal year. |
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Lion promotes comfort, health and wellbeing through its line of quality hair and skin care products.
Main products: Shampoos, conditioners and treatments, body washes, antiperspirants and deodorants, hair-nourishment treatments, etc. |
| Key Products Contributing to Performance in Fiscal 2012 |
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Launching KireiKirei Medicated Foaming Hand Soap
Along with epidemics of the norovirus and influenza, the market for hand soaps is continuing to expand. Consumers, including not only children but the rest of the family as well, are shifting their support especially to foaming hand soaps, because of their ease of use. As a result, these foaming soaps now account for about 65% of the hand soap market.*1 In addition, within this market segment, consumer interest in hand soaps with various fragrances is rising, and in line with this market trend, Lion launched additional new fragrances in September 2012, bringing the total fragrance lineup to three, while also introducing improved versions. Lion also offered limited edition sets comprising empty dispensers and refills as well as sets with full dispensers and refills have also been successful, and sales of these products increased over the previous year. To commemorate the 15th anniversary of the launching of the KireiKirei line of hand soaps, Lion held a special campaign, calling for consumers to submit their photos of “clean hands” and faces that had just been washed with KireiKirei hand soap. In total, about 20,000 photographs were collected, and these were used to make massive photo art panels, which were displayed in 14 major rail stations nationwide and on the Lion website.*2
*1 2012 INTAGE Inc., SRI Survey. On basis of retail sales
*2 http://kireikirei.lion.co.jp/ad/
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| In fiscal 2013, Lion launched Ban Shower Deodorant, an aqueous antiperspirant for the entire body that gives a “just showered” feeling. According to the results of Lion’s survey of working women in their 20s and 30s, about 80% said they use a deodorant in the mornings before going to work to control perspiration and odor as well as refresh them and “switch on” their minds. In addition, about 60% said they would like to take a shower in the morning but actually cannot because of “not enough time” and “it’s too much bother.” Lion has introduced Ban Shower Deodorant for working women to provide them with an antiperspirant that gives them a “just showered” feeling in the morning and enables them to refresh themselves and adopt a positive frame of mind as they tackle the challenges of the day ahead. Lion will continue to develop new market segments and encourage consumers to use existing deodorizing powders, sheets, and roll-on preparations at the appropriate times and on the appropriate occasions with the goal of revitalizing the market. |
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Fabric Care Products |
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| Liquid laundry detergents and fabric softeners with long-lasting fragrances showed robust performances in 2012, and sales in this business rose over the previous year. |
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Lion provides reliable products that make clothes not only clean but a pleasure to wear.
Main products: Laundry detergents, fabric softeners, bleaches, anti-static agents, etc. |
| Key Products Contributing to Performance in Fiscal 2012 |
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Launching of TOP HYGIA
Consumer awareness of disease prevention and personal hygiene has risen in recent years as a consequence of an increase in the frequency of cases of influenza and the norovirus. Along with this growing awareness, consumers have recognized the value of personal hygiene in the laundering of clothing and have shown a desire for being relieved of their concerns*1 in this area. In view of this trend, Lion has released TOP HYGIA, a super-concentrated liquid laundry detergent that offers the new “prevention concept”*2 to enhance the antibacterial*3 properties of laundry with each washing. This effect has been achieved by a combination of positive- ion antibacterial ingredients and detergency that removes the protein- based grime that nurtures bacteria. As a result of the launching of TOP HYGIA, a new detergent category has been created that offers “hygiene and relief” in ddition to the existing categories of “enjoyment and happiness” (product groups that focus on fragrance and softness) and “cleanliness and refreshment” (products that focus on detergency). This category is winning new consumers. Sales of this product were 6% above initial plans, and are acting as a driving force in expanding the super-concentrated liquid laundry detergent market.
*1 According to Lion research
*2 The “prevention concept” is based on the idea of forestalling in advance the growth of bacteria and odor formation on clothing through detergency and antibacterial action.
*3 TOP HYGIA does not increase the effectiveness against all types of bacteria. |
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| During fiscal 2013, Lion will continue to aggressively launch products and invest in advertising activities in the field of super-concentrated liquid laundry detergents and fabric softeners with fragrance and deodorant. The aims of these activities will be to secure growth at a higher pace than the overall market and raise its market presence. In the field of superconcentrated liquid laundry detergents, Lion introduced a new version of TOP NANOX with improved detergency that achieves greater whiteness and better removes odors coming from sebum. Lion will work to win the No. 1 market share in this category with its lineup of TOP NANOX, TOP HYGIA, and Kaori Tsuzuku (Long-Lasting Fragrance) TOP plus. Among fabric softeners, Lion added Annie, a newly developed fragrance in the Kaori to Deodorant no SOFLAN (SOFLAN with Fragrance and Deodorant) Aroma Rich line to drive growth in the market for softeners of this type and win the No. 1 market share in this category. |
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Living Care Products |
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| Sales of Lion’s new fogged type of fungicide for preventing growth of black mold in the bathroom were favorable, but performance of dishwashing detergents and cooking-aid products was weak, leading to sales below the previous year. |
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Lion offers products useful for promoting healthy, clean and comfortable eating and living habits.
Main products: Dishwashing detergents, household cleaners, cooking-aid products, etc. |
| Key Products Contributing to Performance in Fiscal 2012 |
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Lion’s newly launched fungicide LOOK Bath Antimold Fogger
According to Lion’s consumer research on household fungus growths, the biggest concern about cleaning the bathroom is mold. However, many consumers indicate dissatisfaction with the conventional chlorine-based mold cleaning agents because of their “strong smell” and “the inconvenience of having to use gloves.” Consumers also feel that mold cleaning is burdensome, because mold grows again almost immediately, and thus causes consumers to be further dissatisfied with conventional mold removers. After reviewing these results, we concluded that stopping this endless and repetitious cleaning process is the key to satisfying consumers’ potential needs.
To determine the basic reasons for the growth of black mold, we conducted a survey of the bathrooms of 25 typical households. This led us to discover that the cause of recurrence of mold growth was the black mold spores lurking on the ceiling. Based on this finding, we decided to apply Lion’s fumigation technology because mold spores in the whole bathroom, including the ceiling, have to be eliminated. The key points about the new technology are that the fungicidal agent is delivered in the form of a “fog,” and that silver ions were selected as the anti-mold agent because they are harmless to human beings.
As a consequence, Lion has made an important breakthrough in bathroom cleaning, shifting the focus from “removal of mold” to “prevention of mold growth from the spore stage.” The creation of this new category of home cleaner has helped to revitalize the household bathroom cleaner market. |
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| Lion will continue to promote LOOK Bath Antimold Fogger, which was launched in September 2012, and effectively establish this new household cleaning style as “preventing the growth of mold.” In addition, we will endeavor to win new customers for LOOK Mame-Pika Toilet Cleaner and establish an even stronger position for this product in the household cleaner market. |
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Pharmaceutical Products |
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| As a result of shrinkage in the OTC pharmaceutical market as a whole and the effects of more intense competition in the antipyretic analgesic field, sales in this business were below the level of the previous year. |
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Lion offers an abundant lineup of quality brand products to meet consumers’ increasing self-medication needs.
Main products: Analgesics, cold medicine, Antidiarrheal drugs, digestive medicines, eyedrops, tonics and nutrients, insecticides, etc. |
| Key Products Contributing to Performance in Fiscal 2012 |
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Launching Sucrate Ichoyaku
Because of the decline in recent years in the number of occasions when consumers drink alcoholic beverages, the number of people experiencing stomach discomfort and taking gastrointestinal agents for relief is also decreasing. On the other hand, the number of people experiencing stomach pain is on the rise. The causes of stomach pain include stress, overwork, and aging, and one direct cause of pain is irritation of the stomach lining.
Lion’s research has indicated that people most frequently experience pain when their stomachs are empty, after waking up in the morning, and at other times, but, because of the stereotyped notion that medicines should be taken after meals, they may not seek medicinal relief at these times.
Lion’s Sucrate Ichoyaku series contains the active ingredient sucralfate hydrate, which selectively adheres to and heals the inflamed stomach lining that is the cause of pain. Therefore, the less that the stomach contains, the more effectively Sucrate Ichoyaku can give relief to pain sufferers.
For the growing number of people experiencing stomach pain, in fall 2012, Lion introduced Sucrate Ichoyaku with a new package design and a new and clearer promotional message printed on the package: “Sucrate Ichoyaku goes directly to work on your pain at the source and is most effective when your stomach is empty or you are asleep.” Sales of this preparation were favorable, and Lion exceeded its targeted market share by winning new customers, expanding opportunities for potential customers to try Sucrate Ichoyaku, and increasing the number of stores handling Sucrate Ichoyaku by capitalizing on the medicine’s good reputation among retailers and wholesalers. |
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| In fiscal 2013, Lion will work to strengthen its core brands. In the BUFFERIN brand lineup, Lion is making an even stronger appeal to BUFFERIN’s excellence as a preparation that satisfies the two major customer needs for analgesics—fast acting and easy on the stomach. Also, through expanded corporate initiatives, Lion aims to recapture the No. 1 market share in the antipyretic analgesic category. In the Smile eyedrop lineup, Lion has introduced high-value-added products for middle-aged and older persons and aim to fully consolidate its No. 1 position in this market segment. Also, in fall 2012, Lion introduced improved versions of its Stoppa and Sucrate Ichoyaku brands, Stoppa EX Antidiarrheal and Sucrate Ichoyaku. Lion has strengthened its promotional activities for these products to establish their unique position and further expand market share. |
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Other Products |
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| The Other Products business segment includes the goods-on-order business, which markets novelty items for corporations and gift items, the direct-to consumer business, which sells functional food and other products through direct channels to consumers, and the pet supplies business. |
| Direct-to-Consumer Business |
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| Performance in Fiscal 2012 |
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Lion increased sales in the direct-to consumer business. The number of customers who have tried Nice rim essence Lactoferrin, which provides support for healthy dieting practices, exceeded one million, and the number of regular purchasers of this product rose. Lion launched Tomatosu + Milk Peptide Seikatsu, which contains powdered tomato vinegar and Milk Peptide,* in tablet form, which makes it easy, even for persons who dislike the taste of vinegar to enjoy the health advantages of this product. Thus, sales in the direct-to-consumer business expanded at double-digit rates. Total sales of this business were ¥9.7 billion for the fiscal year, almost attaining the target of the Medium-Term Management Plan of ¥10 billion set for fiscal 2014 ahead of schedule.
* Milk Peptide MKP developed by Morinaga Milk Industry Co., Ltd. |
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| Lion will continue to make investments in the direct-to-consumer business, including advertisements on TV, in newspapers, and over the Internet, and endeavor to win new customers for Nice rim essence Lactoferrin, Tomato Su Seikatsu, Denshichi Ninjin Shukan, and other products. Lion will focus on developing and expanding sales of products that can become the second mainstay of this business following Lactoferrin. |
| Performance in Fiscal 2012 |
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In the Japanese pet market, the market size for pet supplies decreased from the previous year because of low growth in the number of dogs and cats kept at home. In addition, the market structure has changed because of a number of trends, including purchasing smaller pets, an increase in the number of aging and obese pets, and raising pets indoors. In this market environment, Lion’s cat litter showed favorable sales and maintained its No. 1 market share.* Furthermore, Lion’s pet sanitary sheets for dogs also posted good sales performance because of the launching of superior new products with high waste absorbancy performance and the incorporation of deodorizing fragrance technology. As a result, sales of pet supplies were above those of the previous fiscal year.
* 2012 INTAGE Inc., SRI Survey |
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| In line with the structural changes taking place in the pet supplies market, there is an ongoing trend toward providing high- value-added oral care and sanitary products for dogs. Lion is expanding the scope of its Pet Kiss brand lineup of oral care products as well as working to expand the market by proposing and raising awareness of its “One-Week Oral Care Program,” which is recommended by veterinarians. Also, through expanding its offering of sanitary products for dogs, Lion is endeavoring to increase customer satisfaction. |
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