Kinohimitsu is as a prominent player in the beauty and wellness industry across Asia. Renowned for its high-quality, natural products that cater to the growing health-conscious consumer base, it is the number one best-selling collagen brand in Singapore.
This article explores the factors behind Kinohimitsu’s success, and its effective retail strategy. Additionally, we highlight four key areas where Kinohimitsu excels and offer insights for western brands aiming to enter the Southeast Asian market.
Brand Overview and Market Placement
Founded in 1998, Kinohimitsu is a flagship brand under Kino Biotech, which specialises in health and wellness products. The brand has established a strong foothold in Southeast Asia, particularly in Singapore and Malaysia, where it is the leading collagen drink brand.
KINOHIMITSU is the number one best-selling collagen drink brand in Singapore and Malaysia for 2022, and 2023, according to global data analytics firm NielsenIQ.
Food Malaysia, 2023
Kinohimitsu’s product portfolio includes collagen drinks, detox supplements, and various health products, with the Collagen Diamond 5300 mg being one of its bestsellers. The brand’s commitment to quality has been recognised with numerous awards, including the Gold Award from Monde Selection in 2023.
The global collagen drinks market was valued at approximately USD 356.55 million in 2022 and is projected to grow at a CAGR of 13.7%, reaching nearly USD 995.86 million by 2030.
Asia-Pacific is expected to exhibit significant growth due to rising demand in the fashion and modelling industry, particularly among millennials who are primary consumers of nutraceutical and wellness drinks.
Unique Selling Proposition
Kinohimitsu’s USP is rooted in its dedication to natural ingredients and scientific innovation. The brand uses high-quality marine collagen peptides, which are known for their superior absorption and efficacy. These ingredients are combined using advanced technologies, such as nanotechnology, to enhance bioavailability.
Kinohimitsu’s products are free from preservatives, artificial colouring, and harmful chemicals, ensuring safety and effectiveness for consumers. In addition, all Kinohimitsu’s dietary products are certified Halal.
Retail Strategy
Kinohimitsu employs a robust retail strategy that integrates both physical and digital channels to maximise its market reach. The brand’s products are widely available in pharmacies, supermarkets, and specialty stores across Southeast Asia.
With the rise of e-commerce, Kinohimitsu has strengthened its online presence through platforms like Shopee and Lazada, and utilises social media marketing to engage with consumers. This omnichannel approach ensures that Kinohimitsu can meet the diverse shopping preferences of its customers.
Kinohimitsu’s annual Collagen Day is in April. Kinohimitsu Collagen Day special deals are available at leading pharmacies such as Watsons, Guardian, Caring, Aeon Wellness and Sasa.
Kinohimitsu has leveraged its local brand knowledge and savvy online marketing presence to ensure it takes advantage of Southeast Asian shopping trends. As a result, in the latest 10.10 Shopee sales, the brand was the number one bestseller in the health category.
The online sales channel segment for collagen drinks is expected to grow at a CAGR of 12.8% between 2021-2030, highlighting the importance of digital strategies for market growth.
4 Things Kinohimitsu Does Well
1. Innovation and Exploiting New Opportunities
Kinohimitsu invests heavily in research and development to maintain high product quality. The use of marine collagen and nanotechnology in products like Collagen Diamond enhances absorption, ensuring that consumers receive the maximum benefits.
Their range of products is continually expanding, with innovative formulations tailored to both local markets, and even specific occasions. Partnering with RT Pastry, Kinohimitsu has even created a collagen birthday cake!
The brand successfully exploits their wide presence across differing Southeast Asian markets to roll out new products.
As an example, their latest iteration of Collagen drinks — a novel, higher price point Green Caviar variant — was initially launched in Singapore.
Once the proof of concept and distribution model had been demonstrated in Singapores small, affluent population, this drink has been rolled out across China at hugely increased volume.
2. Effective Marketing and Consumer Engagement
The brand excels in digital marketing, leveraging live-streaming and collaborations with influencers to reach a broader audience. These strategies help build strong consumer relationships and enhance brand visibility.
Kinohimitsu’s marketing effort has been strengthened by up-skilling its retail promotors with live-streaming capabilities to better take part in Southeast Asia’s video shopping boom. They also adapt product lines, promotions and have even tailored limited edition surprise boxes, for individual shopping events such as 10.10 and 11.11.
3. Strong Distribution Network
Kinohimitsu’s extensive distribution network ensures its products are accessible across Southeast Asia, with over 5,000 points of sale in the region.
The brand’s distribution network hasn’t just relied on a numbers game. Kinohimitsu’s products are available across an enviable retail portfolio, from petrol station kiosks to department stores and pharmacies — even own brand stores.
The brand’s presence in both physical and online stores caters to different consumer preferences, enhancing overall accessibility. It also enables them to have a successful online to offline (O2O) offering, with customers able to order online and collect in store — capitalising on a post-Covid trend.
4. Commitment to Natural and Safe Ingredients
Kinohimitsu’s products are made from natural ingredients, free from harmful additives, which appeals to health-conscious consumers. This commitment to safety and quality has helped build a loyal customer base.
The company has had all of their products certified as Halal — key for attracting consumers in predominantly Muslim markets. This has helped see strong uptake in Malaysia and Indonesia.
Conclusion
Kinohimitsu’s rise to prominence in the beauty and wellness industry is a result of its innovative approach, high-quality products, and tailored marketing strategies. The brand’s ability to adapt to changing consumer preferences and exploit local market dynamics has solidified its position as a leader in Southeast Asia.
By leveraging an omnichannel approach, the brand has complimented a strong online offering with various different physical retail formats, ensuring the products reach a wide range of demographics.
Having built such a solid foundation in the region, Kinohimitsu has used smaller markets like Singapore, and the additional Halal certification process, as a springboard to open up new markets across the region. Expansion plans for Myanmar, Vietnam, and Cambodia look set to continue this trend.
Lessons for Western Brands
Western brands looking to succeed in Southeast Asia can learn several valuable lessons from Kinohimitsu:
- Embrace Innovation: Invest in research and development to enhance product efficacy and differentiation. Continue this innovation through to the marketing and brand building phase.
- Leverage Local Insights: Understand and adapt to local consumer preferences and market dynamics. For supplement brands, Halal certification in many parts of South East Asia is a must.
- Utilise Multi-Channel Strategies: Combine physical retail presence with robust e-commerce and digital marketing strategies to maximise reach and accessibility.
- Prioritise Quality and Transparency: Build trust through the use of high-quality, safe ingredients and transparent marketing practices.
Kinohimitsu’s success story underscores the importance of these strategies in navigating and thriving in the competitive landscape of the beauty and wellness industry in Southeast Asia. By adopting similar approaches, western brands can tap into the immense potential of this dynamic and rapidly growing market.