After a turbulent 2022, the outlook for 2023 is shrouded in uncertainty. Consumer confidence continued to experience significant volatility in the wake of the global pandemic.
During turbulent times, consumers are expected to return self-care habits to the comfort of their homes and save money.
“In times of economic crisis, people will bring luxuries home. As a result, pedicure tools became very popular in Europe and America.” Craig Huliston, regional executive director of consumer intelligence firm Nielsen IQ, said:
“Kao’s acquisition of Australia’s leading self-tanning products company may have been prescient given market uncertainty. Many worry about potential recession and inflation challenges. But there will always be people who want to self-tan, but obviously those machines are very expensive and going to a salon can cost you even more.” he added.
AUSTRALIAN BRANDS RESPECTED
The Japanese personal care giant announced its intention to acquire Bondi Sands on August 1.
It follows the acquisition of other Australian beauty brands Aesop and Grown Alchemist by L’Oréal and L’Occitane respectively.
Huliston emphasized that Australian brands are in high demand due to their reputation for quality and safety. This was observed across multiple categories, including food.
He added that Australian sun care products tend to be highly regarded in the industry because Australia’s regulatory agency, The Medicines Agency (TGA), has strict rules on sun care formulations.
Additionally, consumers are showing sensitivity to product quality in most categories after the COVID-19 pandemic.
“Over the last few years, we have seen a number of acquisitions by Australian companies. In general, Australian products are very popular, especially among the emerging middle class in Asia. Doing so is very attractive because you know you are buying a quality product.” he said.
Kao’s Commitment to “Protection”
Kao has previously said it aims to strengthen its position in the skin protection category and become the market leader by acquiring Bondi Sands.
The company believes skin protection will become a key area within the skincare category. The focus will be on UV protection, self-tanning, and protection from risks such as allergens.
“These three categories will become more and more important to us in the future. We define them collectively as skin protection.”Yoshihiro Hasebe, President and CEO of Kao Corporation, said:
“The new force accelerating this is the acquisition of Bondi Sands, announced on August 1st. Bondi Sands has a strong brand in Australia and continues to grow in Europe and North America.”
https://www.cosmeticsdesign-asia.com/Article/2023/08/28/Kao-s-acquisition-of-Bondi-Sands-shows-foresight-in-uncertain-times-consumer-analyst
