Kao Unveils New Strategy For Cosmetics Division

Kao Corp. (KAO.F,4452.T) has unveiled a comprehensive revamp of its Cosmetics Business strategy to accelerate global growth. As a key pillar within the Kao Group, the Cosmetics Business targets net sales of 400 billion yen and an operating margin of 15% at the earliest feasible timing after 2030. This transformation aligns with Kao's medium-term management plan "K27" and includes a series of strategic initiatives to expand its global footprint.Kao said it will divide six globally poised brands—SENSAI, MOLTON BROWN, KANEBO, SOFINA, Curél, and KATE—into three distinct overseas expansion models. The company will leverage its proprietary technologies across categories and brands, integrating human expertise with artificial intelligence to boost sales capabilities, streamline supply chain operations, and reduce fixed costs.According to the company, Curél will see a sixfold increase in store presence across Europe, with a goal of generating 50% of total brand sales outside Japan by 2027. Meanwhile, luxury brands SENSAI and MOLTON BROWN, which have gained strong traction in Europe, will now focus on Asia's fast-growing luxury market. Through integrated operations treating Asia as a unified market, Kao aims to grow SENSAI sales by 150% and MOLTON BROWN by 100% in Asia (including Japan) by 2027, compared to 2024 levels.Under its "Asia Model," Kao will adapt Japanese brand values to suit regional preferences. Thailand, with its cultural affinity for Japanese aesthetics, will serve as the pilot market. Kao will concentrate on KANEBO and KATE to establish a scalable blueprint, targeting 150% sales growth in Thailand by 2027. In parallel, SOFINA will unify its sub-brands under a single identity, aiming for a 50% increase in sales across Asia (excluding Japan) by 2027.To reinforce profitability and long-term growth, Kao will focus resources on these six brands while strengthening its business foundation. The company will deploy its deep technological assets—spanning dermatology, bioscience, chemicals, and manufacturing—to drive innovation and differentiation across its portfolio.By combining workforce expertise with digital tools and AI, Kao plans to maximize sales potential, improve supply chain efficiency, and reduce fixed costs. These efforts aim to build a more resilient and agile business structure, positioning Kao's Cosmetics Business for sustainable global leadership. For comments and feedback contact: editorial@rttnews.comBusiness News