Basic Approach・Strengths of the Pigeon Group・Skin Care Basic Policy
While baby skin care is a growing market worldwide, it is a highly competitive category with many competing brands both globally and locally in each market. Currently, our market share*1 in Japan is about 30%, and our market share*2 in China is about 10%, leaving ample room for further business expansion in all markets where we operate, including Japan and China. Although the current market share in the major countries overseen by the Singapore operation is small, we recognize that there are very promising growth opportunities for the future. We will enhance the presence of our brands by developing and rapidly launching high value-added product lineups that are backed by evidence and that provide optimal skincare for babies, tailored to the needs of each market.
The Pigeon Group has established research bases in Japan and China, where it has conducted basic research for decades focused on babies' skin. In addition to Japan and China, we have our own factory in Indonesia, and we are differentiating ourselves from our competitors by leveraging our knowledge and technologies in research and development for product commercialization and mass production. In addition to the existing baby skin care business, we are also working on the development of a new area, kids' skin care.
*1According to our own research (Intage POS nationwide baby stores and drugstores combined expansion estimates)
*2 Share among our target customers, according to our own research
Specific initiatives and collaboration with external parties
A newborn babyʼs skin is about half the thickness of an adultʼs, making it more susceptible to external stimuli, while having a similar number of sweat glands to adults, which makes babies prone to sweating. In addition, from around three months of age, babies have less sebum to protect their skin from dryness, making them the most susceptible to dry, fl aky skin throughout their lifetime. It is well-known that many children develop atopic dermatitis, commonly known as eczema, during the period when their skin barrier is immature. Pigeonʼs baby skincare products are designed based on the mechanisms of a babyʼs skin health and development. Considering moisturizing capabilities and sensitivity, they are formulated to complement and nurture the healthy development of the skin barrier, aiding its growth and function. Moreover, in addition to ensuring quality and safety, we focus on customer satisfaction by considering factors such as ease of pumping, rinsing, and spreading, so that skincare does not become burdensome for parents.
In 2023, Pigeon Home Products Corporation, which is responsible for manufacturing skincare products and other items, completed the construction of a new factory in Fuji City, Shizuoka Prefecture, consolidating its first and second factories, which were previously located separately. This consolidation aims to increase production effi ciency and profi tability. Also, expanding research-and-development facilities and increasing the number of development personnel serves to strengthen development capabilities. This will enable delving into new areas such as research on skin microbiota, collaborative research with universities, and the development of proprietary ingredients using plants sourced from Shizuoka Prefecture. The factory is open to the community, with tours for the public starting in April 2024, making it a venue for community engagement activities involving private organizations, government agencies, and others in the region. Explanations of the processes involved in completing a product, from development and manufacturing to inspection, as well as interactive exhibits where customers can enjoy learning about babies and childcare, enhance communication with customers, thereby boosting the brand presence in the baby skincare category and driving the growth of the category.
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Pigeon Home Products Corporationʼs New Factory