Tokyo Report: New Flu Fires Up Competition in Mask Market

Tokyo, Nov. 9 (Jiji Press)--Competition in the market for
high-performance face masks is intensifying among makers of daily
necessities in Japan, amid widespread fears over a new strain of influenza.

One after another, Unicharm Corp. <8113> and other companies have
released masks that meet the N95 specifications set by the U.S. National
Institute for Occupational Safety and Health, under which certified masks
block 95 pct of particles 0.075 micron in size.
As flu viruses are said to be around 0.1 micron in size, certified
N95 masks prevent infection not only from coughing and sneezing but also via
airborne routes.
In November last year, Hakugen Co. was the first maker to put an
N95-designated mask on the retail market in Japan. Industry leader Unicharm
and Kowa Co. followed suit amid growing consumer anxiety in the wake of a
series of deaths caused by the H1N1 flu strain.
Manufacturers are striving to offer products that have a better
ability to block the flu virus. In September, for example, Earth Chemical
Co. <4985> released a mask that sticks airtight to the face with an adhesive
tape.
Inquiries about the product are increasing from people who
"absolutely" want to avoid being infected with the flu, such as pregnant
women and students preparing for entrance examinations next spring, says an
Earth Chemical official.
As children generally do not want to wear masks, manufacturers have
devised various ingenious strategies. Kobayashi Pharmaceutical Co. <4967>,
for example, adds a fruit flavor to a filter woven in the mask to avoid a
dry throat.
For women, Kowa has coated the inside of the mask with fluorine,
which helps prevent makeup from coming off. It also offers masks in
attractive colors such as pink and beige.
Market research firm Fuji Keizai Co forecast that the market for
general-use face masks will grow 80 pct this year over the previous year to
34 billion yen.
Production is expected to more than double to four billion masks,
according to the Japan Face Mask Industry Association.
Face mask makers are benefiting from "special demand" created by
the new flu, but they are eager to avoid masks from selling out at many
retailers as happened early this year.
Manufacturers usually begin to reduce their production of face
masks in May, after the pollen allergy season. This year, however, they have
continued output at full capacity.
But as manufacturers are unable to expand their capacity anytime
soon, the supply-demand balance remains extremely tight, says a senior
official at the industry body.
As a conventional industry practice, manufacturers buy back unsold
face masks. The special demand therefore may become a burden to them at some
stage.
Despite such risks, manufacturers are set to supply as many masks
as possible, believing that they have a social responsibility to prevent the
new flu from spreading further.