{
  "docId": "019dd923-622b-71dc-a6dd-5fbf9530fdff",
  "docSlug": "6f751c98c9d1",
  "documentTitle": "Kao Corporation (4452.JP)",
  "authorId": "25_Oasis_Management",
  "authorName": "Oasis",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2024-04-25 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.7777778,
  "pageNumber": 33,
  "pageCount": 96,
  "prevPage": 32,
  "nextPage": 34,
  "slideType": "problem_statement",
  "function": "diagnose_problem",
  "density": "overcrowded",
  "nDataPoints": 5,
  "notes": "Uses a Jefferies quote to validate the SKU growth claim.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "quote_block",
    "paragraph",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dd-5fbf9530fdff/33",
  "deckHref": "/decks/019dd923-622b-71dc-a6dd-5fbf9530fdff",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dd-5fbf9530fdff.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dd-5fbf9530fdff#slide-33",
  "components": [
    {
      "bbox": {
        "h": 0.25,
        "w": 0.42,
        "x": 0.505,
        "y": 0.59
      },
      "kind": "callout",
      "text": "Premiumization in Haircare - Kao has been caught off-guard at home by premiumization in hair care, resulting in a sharp contraction in domestic Health & Beauty revenue since 2020. I-NE, a start-up with little R&D expertise, but highly focused on marketing, has nearly doubled revenue in the past four years by creating a new “masstige” market.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "79483c2b-9c5d-4781-a067-6b6d377142c8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Premiumization in Haircare - Kao has been caught off-guard at home by premiumization in hair care, resulting in a sharp contraction in domestic Health & Beauty revenue since 2020.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1a-773e-97e5-57fe237fc186",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "SKU CAGR: 7.2%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0f1a-773e-97e5-5d1d15f3326b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.42,
        "x": 0.505,
        "y": 0.31
      },
      "kind": "paragraph",
      "text": "Premiumization has been a major trend in FMCG globally helping improve margins and offset commodity inflation. Yet this topic does not even register a mention in Kao’s 2022 annual report. This is indicative of a lack of attention towards pricing and has contributed towards declining profitability in consumer goods and low gross margins over the past few years.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3656c019-1cbc-42b5-8bae-55de422b4c25",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.41,
        "x": 0.068,
        "y": 0.75
      },
      "kind": "paragraph",
      "text": "Oasis interactions with Kao and competitors suggest the doubling of SKUs across the Group over the past decade and poor focus on inventory velocity may have driven ~200-300bps of consolidated gross margin erosion alone, and diluted marketing budgets across brands.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c3faebc3-881f-4a2d-ab40-163c69ab04aa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.41,
        "x": 0.068,
        "y": 0.56
      },
      "kind": "paragraph",
      "text": "From 2012 to 2022, the CAGR of stock-keeping units (SKUs) is 7.2%, whereas the CAGR of revenues from Consumer Goods Segments has been only 1.7%. Therefore, most SKUs, if not all, failed to add to sales growth.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d450ea54-8e91-41c7-86a7-8d26cb4b72f8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.31,
        "x": 0.11,
        "y": 0.35
      },
      "kind": "quote",
      "text": "SKUs have doubled over the past 10 years. The reason was to increase sales",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f26b2864-edec-4862-931e-fd8ff8202fca",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"SKUs have doubled over the past 10 years. The reason was to increase sales\" — Jefferies, September 1, 2023",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0f1a-773e-97e5-59af4373996d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.41,
        "x": 0.068,
        "y": 0.12
      },
      "kind": "title",
      "text": "Product Strategy is Fundamentally Flawed",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "43a7549c-5c7f-4673-bd91-8e06c8197d4b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.41,
        "x": 0.068,
        "y": 0.035
      },
      "kind": "title",
      "text": "4. Bloated Brand Portfolio",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a1edb99f-3e90-409f-8909-e45b835c7165",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}