Hue Knew? Hoyu Colors the World

To begin, I would like to ask about the Japanese haircare industry. Traditionally, Japanese brands have been known for their high quality and strong commitment to safety. However, today they face growing competition both from established Western companies and from dynamic regional players—K-beauty brands being a good example—who often excel in marketing and consumer engagement. At the same time, consumer preferences are shifting: people increasingly want products that are easy to use and that fit seamlessly into their lifestyles. How do you view the strengths of the Japanese haircare market compared with these competitors, and what opportunities do you see?

Since our core business is hair color, let me respond specifically from that perspective. Hoyu has been in the hair color business for more than a century. Hair color products, by their very nature, come with inherent challenges—such as the risk of allergic reactions, concerns around safety, potential hair damage, and issues with odor. These are not minor points; they have historically been serious drawbacks. We currently allocate around 21% of our workforce to research and development, and throughout our history, a large portion of this effort has gone into addressing exactly those issues. Year after year, we have steadily improved our products—reducing unpleasant odor, minimizing damage, and raising the level of safety. As a result, we have built a robust technological foundation that supports highly reliable and competitive products.

Because we have concentrated our expertise so deeply in this narrow but demanding category of hair color, we possess a unique strength. It’s not just about our company alone—Japan as a whole has cultivated a culture of developing technically rigorous, trustworthy products that genuinely benefit consumers. I believe this is the most important factor for sustaining leadership both in Japan and in overseas markets.

Another issue facing all Japanese industries is demographic change. Japan’s population is shrinking and aging, which naturally reduces overall purchasing power. In fact, forecasts suggest that one in three Japanese people will be over 65 within the next decade. How is Hoyu addressing this demographic challenge, and how does it connect with your global business strategy?

We have created what we call our ikiiki-wakuwaku Vision2030. In this scenario planning, overseas business plays the role of growth engine. Our target is that by 2030, 60% of our growth will come from outside Japan.

Of course, Japan’s population decline is not a new issue. For many years, we have paid close attention to our overseas ratio and steadily increased our global presence. At the same time, it is worth noting that the domestic hair color market has not contracted as sharply as many expected.

There are two reasons. First, longevity: people remain active and socially engaged well into their later years. For them, covering gray hair is not simply cosmetic—it symbolizes vitality and youthfulness. As life expectancy has increased, the duration of demand for gray coverage has also extended. Second, inbound tourism: international visitors, particularly from Asia, purchase our products, such as Bigen and CIELO, in Japanese drugstores because prices here are often lower than in their home markets. Nevertheless, we cannot rely on hair color alone in Japan. That’s why domestically we are also strengthening adjacent areas such as haircare, styling products, and entirely new businesses.

You mentioned inbound demand, particularly from Chinese tourists. Could you elaborate on how this affects your business?

Yes. When Chinese travelers visit Japan, they often purchase our products in drugstores. Hoyu is already well-known in China, but Japanese retail prices are significantly lower. As a result, inbound demand has become a noticeable additional growth driver.

Hoyu Offers a Truly International Lineup of Products

Returning to Vision 2030, could you explain what your core business will remain going forward, and how you see the role of new businesses?

Our core business will continue to be hair color, both in Japan and abroad. The strength of our technologies, cultivated over decades in Japan, is embodied within our products themselves, and we aim to export that excellence worldwide. Beyond hair color, however, our research into hair cosmetics has produced a variety of innovations that can be applied to other categories, and we are actively expanding into areas such as haircare and styling.

As for new businesses, there are two major initiatives. First, allergy diagnostics. Hair color products are unique in that they can trigger both immediate-type allergic reactions (similar to food allergies from wheat, buckwheat, or eggs) and delayed-type reactions. Our long history of allergy research in hair color has positioned us to apply this expertise to the food allergy field. We are now developing a new diagnostic kit with significantly higher accuracy than existing products, which we plan to launch in the coming years.

The second new business comes from our internal new business creation program, launched three years ago. From this initiative, we have already introduced a skincare line, including serums under the brand name One.st, sold online. Customer feedback has been very positive, and other ideas from the program are now in test marketing.

Let’s turn to international markets. Different countries and regions have very diverse hair types and textures. How do you adapt your products to these differences?

Our primary target is consumers with black or dark hair. Of course, if you analyze in detail, there are variations in texture between countries, but broadly speaking, the characteristics are similar enough that we do not need to make fundamental adjustments for each market.

You have also expanded into men’s grooming, traditionally a somewhat hidden or understated market. Could you tell us about your men’s products, such as beard color, and how they have been received internationally?

Indeed, men have historically been more discreet about grooming. But this is changing, and we see growing acceptance of products like beard color. For example, in the Middle East, where competitor products once dominated, we entered later but gained ground by offering stronger technology.

When coloring beards, odor can be an issue because of proximity to the nose, and staining of the skin is also a problem. Our products address these challenges with odor-reduction and stain-resistant technologies. As a result, Hoyu is now the number one brand for men’s hair color in the Middle East. We apply the same strengths to regular hair color as well—for example, our unique “cream-cream” format, where both components are creams. Unlike the cream-liquid systems commonly sold overseas, our cream-cream formula adheres more precisely to the hairline and delivers excellent coloring results. This is a uniquely Japanese innovation and a real competitive advantage.

Hoyu's International Offerings of Beard Coloring

Looking ahead, do you foresee revolutionary innovations such as AI-driven color customization, or hair color that works simply by using shampoo or gel?

Shampoo-type coloring products already exist, but their coloring power is weak, and there are risks such as dripping into the eyes. So while the concept is appealing, there are still technical hurdles. Nevertheless, advancing technology—including AI—may eventually make this kind of personalized, effortless coloring possible.

Research and development is central to Hoyu. One area that has attracted attention is your research into Yerba Santa, which has shown potential in preventing gray hair. Could you share milestones in this research, and when consumers might see it in products?

Technologies like Yerba Santa take a very long time to develop. Preventing or delaying gray hair is an entirely new category—there is no established concept for this in the market. Scientifically, we have evidence, but launching such a product requires careful consideration. We continue joint research with universities, but at this stage no comparable breakthrough is ready.

That said, we have successfully embedded other innovations into products. For instance, our professional BYKARTE haircare line, based on cystine-encapsulation technology, has been extremely well received in salons. While we continue to pursue major breakthroughs like Yerba Santa, we are steadily incorporating advanced technologies into our current lines.

Could you share what products are currently driving overseas sales?

The cream format I mentioned earlier is central. We have two delivery formats: traditional aluminum tubes, and a dual chamber system where pressing a button dispenses both creams simultaneously. The choice depends on the market. In the United States, our men’s color products—particularly tube-based formats under the Bigen brand—are growing strongly. In China, our CIELO brand, with its push-button dual-dispenser system, is especially popular.

Hoyu's Headquarters

Looking at the future, which markets will you prioritize?

China and the United States will remain our twin pillars, given their size and growth potential. In addition, we see strong opportunities in the Middle East, where we are already successful in men’s grooming, and in India, which we view as a promising growth frontier.

Finally, on geopolitics: with tariffs, trade tensions, and shifting global supply chains, how is Hoyu positioning itself?

The U.S. tariffs were challenging, and ultimately we had no choice but to raise prices from August 1st. With China, we recognize the risks, but the demographic potential is enormous. China has a large 50s population today, and a growing 30s segment that will soon enter the gray hair coverage market. Given our deep expertise in gray hair coloring, China remains highly attractive despite the uncertainties.

We already operate in more than 70 countries, with established local partners. While we are not seeking new global partnerships at this moment, we are committed to strengthening our relationships with existing partners, especially in priority markets.

My last question: looking ahead to your tenure as president, what do you most want to achieve before you eventually hand over leadership?

It’s difficult to predict how long I will remain president, but my focus is clear: to advance Vision 2030. We have set ambitious goals and identified critical issues that must be resolved. My role is to ensure these challenges are cascaded across all divisions, so that solutions come from our teams rather than from myself alone. Ultimately, success will depend on the collective strength of our people. My responsibility is to empower each department to own and solve its challenges, so that together we can bring our vision to life.

For more information, visit their website at: https://www.hoyu.co.jp/