Arie Milott Leads J-Beauty Revolution

In the highly competitive world of cosmetics, Japanese beauty (J-Beauty) brands like Arie Milott are carving out a unique niche. The global cosmetics industry, expected to grow from USD 580 billion to USD 716 billion over the next five years, is increasingly influenced by consumer demand for natural ingredients and ethical sourcing. Arie Milott, under the leadership of Naoko Ishibashi, is not only meeting these demands but also setting new standards in the industry.

Arie Milott, a J-Beauty brand, emphasizes the development of unique, high-quality products. "We strive for Japanese quality that is made here in Japan, which we commonly refer to as the Japanese quality standard," says Ms. Ishibashi. This commitment to quality is evident in Arie Milott's signature innovations, such as the Earth Plus antibacterial photocatalyst and the Refresh Aroma stress-relieving agent. These proprietary formulas have become synonymous with the brand's dedication to excellence and innovation.

One of the key advantages of J-Beauty brands like Arie Milott is their alignment with the Japanese mindset of “less is more” and the focus on ethically sourced ingredients. This approach resonates with the growing number of consumers who are becoming more educated and conscientious about the ingredients in their products. Ms. Ishibashi highlights this by noting: "Our company has remained steadfast in our sustainable production mindset, something that came about much earlier than when sustainability became a mainstream topic of discussion."

Filling machine

Arie Milott's commitment to sustainability is exemplified by their ISO 14001 certification, obtained in 2003, and their continuous efforts to reduce CO₂ emissions and promote recycling. Their Eco Press products, featuring eco-friendly packaging, are a testament to their dedication to minimizing environmental impact. "In terms of ethical and sustainable sourcing, we procure ingredients domestically and create formulas with minimalistic ingredients that do not require complicated supply chains," Ms. Ishibashi explains.

The cosmetics industry is poised for significant growth, driven by Gen-Z's increasing purchases, especially through social media, and a shift towards natural ingredients. Ms. Ishibashi believes that the expansion of J-Beauty brands into overseas markets will be a major growth driver. "There will be more exports of J-Beauty brands and greater penetration in overseas markets. On the other hand, inbound purchases from tourists have been increasing now that COVID-19 lockdowns have been removed," she notes.

Arie Milott is also tapping into the market opportunities presented by an aging population. With the rise in healthy lifespans, there is a growing demand for cosmetics among senior citizens. Ms. Ishibashi sees this as a significant opportunity: "There will continuously be more consumption of cosmetics, and as an ODM maker, it is important for us to cater to this elderly generation and develop products that are best suited to them."

Innovation is at the heart of Arie Milott's success. The company's Earth Plus ingredient is used in various products, including hand soap and hand milk used in hospitals, and masks designed to kill bacteria. Another notable innovation is their EGC Oil, the world’s first functional antioxidant oil. This oil dissolves green tea essence into vegetable oil without the use of surfactants or emulsifiers, creating products with high antioxidant power. Ms. Ishibashi shares: "The EGC Oil you mentioned essentially dissolves green tea essence into vegetable oil and was another example of a joint development with an ingredient manufacturer."

Small manufacturing machine

Arie Milott's extensive product range, from skincare and haircare to quasi-drugs and perfumes, is a result of their responsiveness to customer needs. This adaptability has allowed them to expand their product portfolio and collaborate with various partners. "Our continuous efforts to meet our client’s demands have led to the enlargement of our product portfolio. Since we are limited in production capacity, collaborations and partnerships with academia and other companies are very important to us," says Ms. Ishibashi.

Arie Milott's global presence is supported by two main production bases, one in Japan and another in the Philippines. Ensuring Japanese quality standards across both locations is crucial. Ms. Ishibashi explains their approach: "We ensure regular audits where the Japanese quality assurance (QA) team visits Cebu, giving locals instructions and training the staff there. There is also an exchange program where Cebu workers come and work in our factory in Japan for a certain period of time."

Looking ahead, Arie Milott is focused on expanding their horizons and forming new partnerships. Ms. Ishibashi expresses their ambition: "We are actively looking for partnerships. Overseas we have a partnership with a Taiwanese pharmaceutical university to develop ingredients before then applying those ingredients to cosmetics."

As Arie Milott continues to innovate and grow, their vision for the future remains clear. Ms. Ishibashi envisions a global presence where Arie Milott's unique, high-quality cosmetics bring happiness to people worldwide. With their unwavering commitment to quality, sustainability and innovation, Arie Milott is well on its way to achieving this dream.