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Shiseido, Unicharm, Lion Forge Alliance

Companies team up to battle Kao

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By: Karen McIntyre

Editor, Nonwovens Industry

Shiseido, Unicharm and Lion are working together to challenge rival Kao, which has logged six straight years of sales and profit growth. Unicharm and Lion have announced they will each take a 20% share in wholly owned Shiseido subsidiary Japan Retail Innovation. This collaboration will allow the three Japanese companies to share shelf space and run joint sales promotions on the retail level.
 
While competitive in some markets, each of the three companies has a separate distinct specialty—Shiseido in cosmetics; Unicharm in disposable diapers and Lion in detergents and toothpaste. The three were reportedly driven to cooperation by Kao’s dominance. The company enjoys strong bargaining power with retailers thanks to a subsidiary that handles activities ranging from marketing and wholesaling to distribution of Kao products. Kao’s sales are about double of Shiseido and Unicharm.

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