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Japanese, Indian Companies Team Up for Expansion in India's Beauty Market
Posted: March 19, 2013
Japanese beauty company Kosé Corporation and Elder Pharmaceuticals Limited, an Indian pharmaceuticals manufacturer, agreed to establish a joint venture company with the provisional name of Kosé Elder (India) Private Limited. The agreement stipulates that Kosé will focus on the Indian market and arrange to manufacture and sell cosmetics in India.
India is developing a consumer market with growth potential. Its population stands at 1.2 billion, second only to China’s, and forms a pyramid structure with young people at the base. Half of all Indians are aged 25 or under. Women’s fashion is also diversifying, and tastes in cosmetics are changing dramatically. Kosé’s key means of advancing into overseas markets up to now has been to export from Japan only those of its existing brand products that matched the requirements of the target country’s market. But in India, where culture and tastes are very different, the company considers it essential to undertake strategic and business planning tailored to the region, and are proceeding with its investigations through agreements with local enterprises that are familiar with the local markets.
On this occasion, Kosé sees the potential for steady development with Elder Pharmaceuticals, a listed Indian company with a strong reputation for reliable quality and a track record for manufacturing medical products and producing and selling quality health products, cosmetics and other items. Through the joint venture, the companies aim to capture synergies by combining their strengths of technological prowess and creation of high value?added cosmetics thorough knowledge of local markets and strong sales networks within India. The aim is to develop new products assimilating Japan’s refined, advanced technology with the universal aesthetic demanded by the Indian woman, and to expand in the Indian market. Once the joint venture is established, Kosé will consider the details of how to share tasks between the two companies and specifics such as sales channels, products and brands.
With this news, Kosé plans to continue aggressively entering markets in new countries with high growth rates in which its can exploit its strengths and expand its global presence still further.
Currently, the provisional headquarters of Kosé Elder (India) Private Limited is planned to be in Mumbai, with September 2013 as the opening target. Its primary business focus will be the manufacture, importation and wholesale sales of cosmetics, and Kosé owns 60% of the venture, while Elder owns 40%.