Consumer Products Business

Increase our market position in mainstay fields, and secure a foundation for

Yugo Kume
Director, Executive Officer
Percentage of Consolidated Net Sales
(Japanese GAAP)

64.5%

Net Sales*

* External sales, IFRS standard (Figures for 2017 are approximate values, and have not been audited by the accounting auditor.)

The V-2 Plan and Review of 2017

Under the V-2 Plan (Vision 2020 Part-2), Lion worked to develop high-value-added products, raise its market position, and bolster profitability. We also increased the business scale for e-commerce products with expanded product development centered on functional foods and a proactive marketing promotion.

During 2017, the final year of the V-2 Plan, sale unit prices were increased 2% year on year on a unit sales price basis, but sales volume slowed because of the launch of high-value-added products by daily necessities manufacturers and increased capacity of refill products.

Amid rising health care needs, Lion improved its product mix through efforts to enhance the added value of products. We also concentrated investment in priority fields, and increased business efficiency. As a result, despite the negative effects of higher raw material prices and other external factors, the Consumer Products Business achieved increases in both revenue and earnings.

Market Position of Products in Japan

Market scale and position of Lion’s main products

Toothpastes
Share No. 1
¥88 billion

Toothbrushes
Share No. 1
¥48 billion

Laundry detergents
Share No. 3
¥141 billion

Fabric softeners
Share No. 3
¥96 billion

Hand soaps
Share No. 1
¥23 billion

Dishwashing detergents
Share No. 3
¥50 billion

Note: Figures for market size are based on retail sales, not including sales of gift packages.

Source: INTAGE Inc., SRI survey, each category. Data are from January through December 2017, on the basis of sales amount.

The LIVE Plan and Business Strategies

1. Expand and evolve our business domains through new value creation

  1. Oral-to-Body Solution
    • Continue to focus investment in the CLINICA, SYSTEMA, Dent Health, and NONIO brands, and greatly increase our market position by gaining solid support from users in the mid- to high-price range
    • Strengthen mouthwashes, and expand business to growth categories such as denture products
    • Contribute oral care to whole-body health care to establish a preventative dentistry support service business
  2. Daily Self-Care Enhancement
    • Pursue expansion in new fields, and advance into the business for OTC drugs with Lion’s unique value
    • In functional foods, strengthen counseling in the metabolic and aging care fields
    • In home care businesses such as fabric and living care, advance into health care providing QOL improvements in daily living
  3. Infotech Health Support
    • Create new health care business models that leverage cutting-edge technologies, such as IoT and AI

2. Enhance business and production infrastructure

  • Expand production capacity centered on the mainstay oral care sector, in order to ensure stable supply
  • Build more-advanced and sustainable supply chains

3. Acquire category presence

  • Further enhance high added value, and expand markets by creating “customer experience-based value”

Looking toward 2020

Lion will pursue measures to raise brands and product positions to the next level by creating “customer experience-based value,” as well as expand business scale and business fields, in order to establish the foundation for an advanced daily healthcare company.