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Japan www.fancl.co.jp Sales: $810 million Key Personnel: Kenji Ikemori, chairman and chief executive officer; Kazuyoshi Miyajima, president; Tsuyoshi Tatai, vice president; Yasushi Sumida, executive director and general manager of Fancl Research Institute; Norihiro Shigematsu, executive director and vice president of health company; Yoshihisa Hosaka, executive director and vice president of beauty company and general manager of online sales division; Gen Inomata, director; Kenichi Sugama, president and representative director of Attenir. Major Products: Cosmetics and skin care products sold under the Fancl and Attenir banners as well as by its non-consolidated subsidiary Boscia. New Products: Mutenka skin care promotion, Mild Cleansing Oil (relaunch). Comments: Fancl got its start in 1980 with the launch of additive-free Mutenka skin care, which was packaged in tiny vials. Since then, the company has continued to meld skin care and nutrition, but with varying degrees of success. In November, company executives resolved to withdraw from Taiwan and Singapore retail businesses and, as a result, liquidate Fancl Taiwan Co. Ltd. due to losses in sales. That move underscored the company’s 8% decline in sales for the year ended March 31, 2014. Effective April 1, 2014, Fancl Corporation’s cosmetics division and health foods division was split up and incorporated as new companies—Fancl Cosmetics Corporation and Fancl Health Science Corporation, respectively. On the research and development front, Fancl Cosmetics is working toward further advancements in preservative-free technologies.
Japan www.fancl.co.jp Sales: $810 million
Fancl got its start in 1980 with the launch of additive-free Mutenka skin care, which was packaged in tiny vials. Since then, the company has continued to meld skin care and nutrition, but with varying degrees of success.
In November, company executives resolved to withdraw from Taiwan and Singapore retail businesses and, as a result, liquidate Fancl Taiwan Co. Ltd. due to losses in sales. That move underscored the company’s 8% decline in sales for the year ended March 31, 2014.
Effective April 1, 2014, Fancl Corporation’s cosmetics division and health foods division was split up and incorporated as new companies—Fancl Cosmetics Corporation and Fancl Health Science Corporation, respectively.
On the research and development front, Fancl Cosmetics is working toward further advancements in preservative-free technologies.
Japan www.fancl.co.jp
Sales: $877 million
Fancl’s total net sales increased 0.6% for the year ended March 31, 2013. The slight gain was attributed to an increase in revenue from Fancl cosmetic products, which underwent a major rebranding effort. But marketing expenses from that rebranding endeavor impacted the company’s operating income; it decreased 5.7% to about $41 million despite an increase in revenues, the company said.
Cosmetics sales for its most recent fiscal year increased 2.3%. Sales of Fancl brand cosmetics increased 2.5%, due to strong sales of Mutenka Skincare products launched in March 2012. Sales of Attenir cosmetics fell 2.5% due to lackluster results of certain campaigns, the company reported. Fancl’s nutritional supplement sales fell 1.6%.
In May, Fancl announced that it would make the transition to a holding company. Effective April 1, 2014, Fancl Corporation’s cosmetics division and health foods division will be split and incorporated as new companies—Fancl Cosmetics Corporation and Fancl Health Science Corporation, respectively. Minako Yamaoka, who joined Fancl in 1995, will head the cosmetics unit.
Attenir Corp. will remain a separate company, according to the firm.
Japan www.fancl.jp
Sales: $874 million
Corporate sales of $1.05 billion were down 6% for the year ended March 31, 2012. Cosmetics sales fell 3.9% to just under $550 million and its nutritional business sales fell 4.3% to approximately $324 million.
Within its cosmetics business, the Fancl and Attenir brands reported that their sales fall 2.8% and 6.5%, respectively, to $436.8 million and $97.8 million. The firm said the sales dip at Fancl came from restrained purchasing prior to a rebranding effort, despite firm sales of the brand’s Mild Cleansing Oil, Facial Washing Powder and other principle products. There was a similar tale at Attenir, as sales skidded despite a “firm showing” from renewed and re-released Class A Basic Skin Care, according to the company. Fancl’s “other” cosmetics business tallied sales of $14.3 million, down 16.5%.
The largest sales outlet for Fancl’s cosmetics business is mail order, and within that sector, cosmetics sales fell 4.9%. Retail cosmetic sales fell 3.6% and wholesale/others fell 11.9%. On a positive note, overseas cosmetics sales posted a 3.5% gain, according to the company.
Fancl’s nutrition business also took a hit this past year as sales sunk by 4.3%. Specifically, sales of Tense Up beauty supplement declined and other products dropped too, following restrictions on the imports of foodstuffs by the Chinese government.
Fancl’s other operations (including kale juice) accounted for just over 17% of total corporate revenues, coming in at $183.6 million.
With corporate performance sliding, Fancl has decided to give itself a makeover of sorts, including the reaffirmation of its commitment to cosmetics and health food products and sale of the Iimono Ohoku mail order business. The changes are aimed at achieving consolidated net sales of 101.0 billion yen for fiscal 2014, according to the company.
To reach that goal, company executives will establish Fancl as a global premium brand with a core focus on “preservative free” technology beauty products; promote the seamless expansion of a new counseling system throughout its mail order, direct and internet sales; and ramp up its overseas business.
In January, the company’s health business will begin official operations as the Fancl Health Science brand, offering expanded products for both middle age and elderly consumers.
Japan
www.fancl.co.jp
Sales: $1.1 billion
In 1980, Fancl was first in the cosmetics industry to launch a distinct lineup of preservative-free cosmetic products. During fiscal 2010, the company celebrated its third decade in business. To mark the occasion it offered a variety of special products and services throughout the year.
“In fiscal 2010, the Fancl Group took concerted action to bolster our transition to a high-profit structure, resulting in substantial earnings growth,” said Yoshifumi Narimatsu, CEO and representative director. “As we continue to strengthen profitability, we will promote the global advancement of the Fancl brand, and will pursue business in health and beauty backed by meticulous attention to the needs of every customer. Through these steps, we will put us on track for new growth.”
Its cosmetics business, which consists of Fancl and Attenir cosmetics, represents 52.2% of total net sales for the company. Nutritional supplements, which includes beauty supplements, is 28.6%; the rest goes to Fancl’s brown rice, kale juice and other businesses.
Japan www.fancl.co.jp Sales: $512 million
Based in Yokohama, Japan, Fancl Corporation was founded by Kenji Ikemori, a Japanese entrepreneur who envisioned a holistic approach to skin care that would include botanically-based, preservative-free products as well as oral supplements. Fancl International, located in Irvine, CA, was established in 1997 and is the first wholly owned subsidiary of the Fancl Corporation.
For fiscal 2009, cosmetics sales increased 2.1%. Corporate sales were $997 million, which includes the company’s nutritional products.
For 2010, Fancl will strive to attract new cosmetics customers through stronger marketing of its Mild Cleansing Oil, which is slated for a revamp this summer. Attentir cosmetics will aim for profit growth through more efficient use of marketing expenses, with an emphasis on profitability, as it celebrates its 20th anniversary this year.
In other financial news, Fancl Corp. plans to purchase 40% stakes in two Chinese sales agents. It will buy shares in Fantastic Natural Cosmetics Ltd. and Fantastic Natural Cosmetics (China) Ltd. and will co-develop products and stores, exchange personnel and share information.
For the fiscal year ended March 31, 2009 Fancl’s sales in skin care and cosmetics rose 2.1% to nearly $501 million. Corporate sales were $980 million, which includes the company’s nutritional products.
For the year, Fancl branded skin care and cosmetics, which represent 76.7% of the company’s beauty sales, rose 1.5%, which the company attributed to the effects of renewals of skin care products, beauty essence and facial washing powder. Sales of Attenir cosmetics, however, fell 2.1%. By sales channel, mail order sales rose 0.6% and retail store sales slid 2.1% due to a decline in the number of shops.
In June, Fancl acquired shares in Neues K.K., a company that manages Estio beauty salons, part of its plan to expand beyond products to beauty salon services. Neues, which has 235 employees, will operate as a consolidated subsidiary of Fancl Corp.
$430 million for the fiscal year ended March 31, 2008.
Born out of its founder’s quest to solve his wife’s chronic skin problems, Fancl has grown considerably from the small mail order firm it was in 1980. Fancl’s primary focus is on preservative-free products; it sells products in freshness date-stamped unit offering a two-to-four week supply.
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