Kline: Investments pay off for beauty device brands in Asia
La Lumière with its illuMask brand of wearable LED light masks (pictured above). Available in two varieties — anti-acne and anti-aging — illuMask caters to the mass market.
PARSIPPANY, N.J. — High returns are rewarded to the majority of at-home beauty device firms that had the foresight to enter Asia, according to Kline’s just published Asia reports on China, Japan, and South Korea from Beauty Devices: Global Market Analysis and Opportunities.
Asia’s sales growth for the beauty devices market outpaces the United States and Europe, growing much higher than the industry average, increasing by over 29% in 2014, according to Kline, a worldwide consulting and research firm.
New product launches are plentiful throughout the region, helping to fuel overall sales growth. A large number of the newly launched devices in China target skin cleansing. For instance, Kingdom, a leading local brand, launched a heat-based cleansing device in spring 2014. In Japan, MTG launched its ReFa ACTIVE, while YA-MAN expanded its portfolio by launching new devices targeting hair removal and anti-aging. Philips introduced its first cleansing device for men called VisaPure Men in South Korea in 2014.
Local marketers expanded their distribution channels, with some going beyond traditional outlets by entering fitness facilities. Local player MTG diversified its distribution through entering television home shopping in South Korea. In China, many global marketers expanded their distribution into prestige outlets where sales grow at the highest rate among all channels, by almost 60% in 2014. In addition, local marketers are partnering with tmall.com or lotte.com, key online platforms in China and South Korea.
According to Kline, established skin care brands are launching devices to compete with electronic beauty gadgets and increase the efficiency of their existing skin care lines. AmorePacific introduces MakeON cleansing products in South Korea, and Dr. Ci:Labo launches the anti-aging device Sonic Lift Special in Japan. On the other end of the spectrum, beauty device brands begin launching topical skin care products to sell together with devices.
“Each market in Asia carries its own nuances,” Prashant Sharma, project manager for the report series at Kline, said. “In terms of sales of devices by skin care concern, the differences are dramatic, with anti-aging being a key concern in South Korea, cleansing in China, and hair removal in Japan. However, with the entrance of new global players to these markets and the introduction of a variety of new products, this landscape is changing. For example, the cleansing segment in South Korea nearly triples in size in 2014. The changes are remarkable and vary from one region to another.”
The local brands in Asia represent sustainable competition to multinationals. Many have been introducing enticing new products. For instance, in South Korea, local companies such as Eyesel Creative and Pobling are filling the void of the lower-end price segment to target younger consumers, such as students. This resonates well with the U.S. introduction of the first lower-priced product by La Lumiere, illuMask introduced in 2014.
The Little Clinic expands into Kansas
NASHVILLE, Tenn. — The Little Clinic, a wholly owned subsidiary of Kroger, has expanded into Kansas, marking the company's 10th state to operate retail clinics.
The clinic operator expanded its operational footprint with Wednesday’s opening of its first clinic inside Dillons in Derby. With Wednesday's opening, the company now operates 163 clinics. Five additional locations are scheduled to open in the Wichita area this summer.
“Convenience is the primary reason why our patients choose to utilize the clinic for non-emergency health issues,” stated Halie Guinn, regional clinical director, The Little Clinic. “From vaccinations and sports physicals to health screenings and minor injury care, The Little Clinic helps patients be seen quickly, receive care and get back to their busy lives. We make healthcare fit into their schedules because we don’t require appointments and we are open seven days a week. The convenience is there and patients respond to it. We are very excited to open the clinics and start serving these communities.”
The Little Clinic locations in Dillon’s stores include:
- 1624 N. Rock Road, Derby – opened June 24
- 225 E. Cloud, Andover – opening June 25
- 10222 W. 21st Street North, Wichita – opening July 1
- 3200 Plaza East Drive, Hutchinson – opening July 2
- 7707 E. Central, Wichita – opening late August
- 4747 S. Broadway, Wichita – opening late August
“We are very excited to welcome The Little Clinic to Dillons,” Marlene Stewart, president of Dillon Stores, said. “More and more, our customers are becoming proactive about managing their health and wellness. Our customers already rely on the professional expert counsel our Dillons Pharmacists provide. This partnership with The Little Clinic is one more way Dillons makes it easy for customers to have convenient, quality care.”
Rite Aid completes acquisition of EnvisionRx
CAMP HILL, Pa. — Rite Aid announced on Wednesday that it has completed its previously announced acquisition of Envision Pharmaceutical Services from global private investment firm TPG and other shareholders. The transaction is valued at approximately $2 billion, including approximately $1.8 billion in cash and approximately 27.9 million Rite Aid shares.
“The completion of this acquisition is an important step in our strategy to expand Rite Aid's retail healthcare platform and enhance our health and wellness offerings,” Rite Aid chairman and CEO John Standley said. “EnvisionRx's talented management team and valued associates are a tremendous addition to our Rite Aid family. The combination of EnvisionRx's broad suite of PBM and pharmacy-related businesses with Rite Aid's retail platform will provide our customers and patients with an integrated offering across retail, specialty and mail-order channels.”
EnvisionRx will operate as a wholly owned subsidiary of Rite Aid led by Frank Sheehy, EnvisionRx CEO, and current management. EnvisionRx's headquarters will remain in Twinsburg, Ohio.
The transaction, which was announced in February, is expected to be accretive to Rite Aid's earnings per share in fiscal year 2017.
“As part of Rite Aid, we are well positioned to deliver a truly integrated healthcare offering which will provide tremendous benefits to both plan sponsors and patients. Our work is already well underway and we look forward to accelerating our efforts now that the transaction is complete,” Sheehy said.