Japanese trading giant Marubeni is gearing up for a significant expansion into the Southeast Asian cosmetics market, setting its sights on achieving 100 billion yen ($671 million) in sales by 2030. The focal point of this strategic move is the promotion of Osaji, a rising skincare brand popular among young Japanese women.
Marubeni plans to execute three to four acquisitions annually within the cosmetics sector, banking on the region’s promising market where increasing incomes align with the appeal of Japan’s high-quality skincare products.
Investing over 1 billion yen in Osaji, based in Takasaki, Marubeni solidifies its position as an equity-method affiliate. Osaji, known for its dermatologically researched toners and hand soaps for sensitive skin, targets women in their 20s and 30s.
Marubeni’s proactive investments extend to the broader Southeast Asian market, including a partnership with Ain Holdings in operating Ainz & Tulpe drugstores in Malaysia and a substantial investment in Thai cosmetics maker Karmarts. The company envisions leveraging this expertise to bolster Osaji product sales.
The infusion of funds from Marubeni will aid Osaji’s expansion, including establishing a plant to facilitate exports to Southeast Asia by 2027. Marubeni strategically aims for the cosmetics business to become a cornerstone of its operations, with a target sales figure on par with midsize Japanese companies like Fancl.
Recognizing the plateauing Japanese cosmetics market, Marubeni eyes the dynamic growth potential in Southeast Asia, where skincare products constitute a significant 60% of cosmetics sales, outpacing the global average. Marubeni envisions capitalizing on this demand, driven by the favorable reputation of Japanese skincare products, forecasting a 10% annual growth in Southeast Asia’s $33.1 billion cosmetics market.
