The new distribution agreement focuses on Europe, and allows Azelis to market SDK's vitamin derivatives for skin care, a slimming agent (Hi-Carnitine) and its hair care products across the continent.
It plays a part in SDK’s longer term strategic plan, according to the company, which relies on expansion across overseas markets.
Europe in focus
The company notes that it has deliberately chosen Europe as its first point of expansion because it predicts the market for raw cosmetics materials is set to boom there.
“SDK expects that the sales of its cosmetic raw materials in Europe will significantly increase,” the company has stated, noting that following the deal, it will be “taking advantage of Azelis' sales network in European countries and expertise and know-how.”
Expanding its reach initially in Europe will allow SDK to bring its cosmetics raw materials to the attention of the global industry.
Global reach
Turning its sights to the global industry is a deliberate strategy for the Japanese company.
“Under its ongoing medium-term consolidated business plan "Project 2020+," SDK aims to expand its individualized businesses by accelerating development of overseas markets,” the company noted on the announcement of the deal.
“SDK will further improve its sales network for cosmetic raw materials, thereby meeting customers' expectations at home and abroad,” it confirmed.
SDK also supplies specialty chemicals to a range of neighbouring industries, including heavy industry, electronics and computing.The Azelis deal, however, is limited to its cosmetics and personal care offering, indicating that the company is marking this market its initial focus.