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Company background history the history of sk ii back

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Company Background & History The history of SK-II back to the 1970s is when a scientist in Japan noticed the very soft and youthful hands of women working in a Japanese sake brewery. After yeas or research the scientists were able to isolate the natural, nutrient-rich liquid which they called it as Pitera. Following by 1980, the Japanese branch of Max Factor acquired the copy rights to the ingredient and launched the cosmetic product with the ingredient: Max Factor Secret Key with Pitera. Although only modestly successful, its customer base was loyal so Max Factor changes the name to Max Factor SK-II ( ). In the succeeding of 15 years, the products pass through different owners but each of them ignored the product until executive and brand manager A.G Lafley from P&G made 5
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several changes and focus on the product SK-II cream. Within 5 years, it became Japan’s top prestige cosmetics brand, outselling Shiseido who the brand once top 5 in the world. SK-II since expanded into several markets share of countries. The products sold throughout Asia and also to Europe and USA. Cause of Issues In our studies, we found out P&G is a global corporation that produces numerous products including the SK-II line of skin and beauty care. P&G has had a problem with trust with its Chinese consumers since an advertisement in 2005 for which they received a $24000 USD fine for false advertising. P&G did not take responsibility for the customer’s skin reaction to the product, though its advertising for SK-II was found to be at fault. This shows that P&G has some failures in professional ethics in producing products batches that may be dangerous or defective and harm customers. In September 2006, the People’s Republic of China boycotts all imports of SK-II products, after a consumer found traces of neodymium and chromium chemical components. Both are banned in cosmetics and can cause allergic skin disease such as dermatitis and eczema. In this case, we can see that SK-II organization has shown it’s unethical in their products regarding to consumers. Proctor and Gamble (P&G) is a global corporation that produces numerous products including the SK-II line of skin and beauty care is now losing money because it is not selling any products. All SK-II products are pulled from the shelves. Unless an immediate and respectful response is taken, if not 6
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P&G will lose even more money and may have to pull SK-II from China. This will be a devastating loss due to Chinese market share is huge for SK-II. Our research found that according shop ethical consumer website rating, SK-II was rated 59 over 100 at Climate Counts.org ( ). It is also shows that P&G has received criticism for participation in laboratory experiments on and cruelty to animals such as cat and rabbits with their cosmetic trials products. A boycott has been called on this company.
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