By Yukiho Takaichi / Yomiuri Shimbun Staff Writer

Major Japanese household goods maker Lion Corp. plans to expand sales of high-margin oral care products as part of efforts to cope with the naphtha shortage crisis, according to President Masayuki Takemori.

The company is currently accelerating its high-end pricing strategy in its oral healthcare business, such as toothpaste. During an interview with The Yomiuri Shimbun, Takemori revealed that Lion's growth strategy will rely more heavily on overseas expansion.

The following is excerpted from the interview.

The Yomiuri Shimbun: The Middle East conflict has caused problems such as soaring crude oil prices and disruptions in naphtha supply. How will you handle these issues?

Masayuki Takemori: The current situation is extremely serious. Our primary challenge right now is shifting to a high-margin business model. To offset rising costs, we will aggressively sell high-value-added, high-margin products.

With the aging population, awareness of oral health is growing not only in Japan but also in Southeast and South Asia. Consumers have become willing to purchase high-priced oral care products when they perceive the value justifies the cost. Oral care products are less susceptible to crude oil prices than detergents, so expanding their sales will help us better navigate problems stemming from the naphtha supply shortage.

Yomiuri: Lion's oral health business has centered on mid-range products. Is it changing?

Takemori: We've been releasing high-end products on a full scale since the latter half of last year. In September, we released "Dent Health Medicated Toothpaste DX Premium," one of our highest-priced toothpastes at over 2,000 yen, and it is selling well. Our subsequent new product launches have also been successful, deepening our confidence.

Yomiuri: Lion has designated the detergent business as a field that "requires structural reform." How will you turn the business around?

Takemori: Our approach differs between overseas countries and Japan. We are ranked third in the (detergent) market in Japan, but hold the top two positions in Southeast Asian nations such as Thailand and Malaysia. Powder detergents have been the mainstay in Southeast Asia, but if we can transition consumers to liquid detergents, profit margins will increase dramatically.

Yomiuri: Lion has set a target of increasing the percentage of overseas sales to 50% by 2030. Could you elaborate?

Takemori: I have ambitions for the future beyond that -- I want to increase overseas sales to 70% based on achieving profitable growth. We won't just pursue sales figures. In addition to the top-priority oral healthcare business, we plan to step up efforts in the beauty care business, which includes skincare products and hand soaps.

We acquired PNB Consolidated Pty Ltd., an Australian company that sells skincare products, this fiscal year. We want to proceed further by allocating nearly 60 billion yen in growth investments by the end of next fiscal year ending December 2027. We will discuss the matter cautiously yet boldly, considering options such as mergers and acquisitions.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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May 28, 2026 01:56 ET (05:56 GMT)

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