Kao Corporation, a Tokyo-based company specializing in chemicals and cosmetics, has recently revealed plans to revamp its cosmetics business. The strategy will focus on the growth and expansion of its six core brands.
Kao’s primary goal is to achieve a net sales target of 400 billion yen (US$2.68 billion), alongside an operating margin of 15 percent, as early as possible after 2030. To this end, the company will concentrate its growth and development efforts on six brands: Sensai, Molton Brown, Kanebo, Sofina, Curel, and Kate. The expansion strategy will be tailored to the specific markets where these brands meet consumer demands.
As part of this reorganization, skincare brand Curel is expected to experience accelerated growth. The company plans to increase Curel’s store presence in Europe by sixfold, aiming to generate 50 percent of the brand’s total sales outside Japan by 2027.
Sensai and Molton Brown, two brands that have proven successful among European consumers, will pivot their growth strategy to target the Asian luxury market. The company’s ambitious aims include a 150 percent increase in Sensai sales and a doubling of Molton Brown sales in Asia by 2027.
For Kanebo and Kate, Kao plans to adapt their expansion to the distinctive characteristics of each Asian market, using Thailand as the initial target market. The company hopes to boost sales of these two brands by 150 percent in Thailand by 2027.
In a simultaneous move, Kao intends to consolidate Sofina and its sub-brands under one umbrella. The aim is to enhance Sofina’s sales in Asia by 50 percent by 2027.
Beyond brand-specific expansion plans, Kao’s revamp includes a broader focus on improving profitability and fostering long-term growth. This will involve the implementation of core technologies, cost reductions through improved supply chain management, and the application of digital and AI technologies.
The restructuring process will be spearheaded by Tomoko Uchiyama, executive officer and president of global consumer care – cosmetics business, who began her role in January.
Uchiyama emphasized the company’s adaptability in the face of change, explaining, “Our cosmetics business has the flexibility to respond to changing times and market dynamics with a diverse portfolio of brands.” She assured that, coupled with the robust foundation of the Kao Group, the company is well-positioned to pioneer advancement of globalization.
In addition to cosmetics, Kao’s business segments also include hygiene living care (which counts Attack and Laurier among its brands), health beauty care (owner of Biore, among others), and chemical products.
What are the core brands Kao Corporation is focusing on?
Kao Corporation will be focusing on the expansion of Sensai, Molton Brown, Kanebo, Sofina, Curel, and Kate.
What are the business goals of Kao Corporation under the new strategy?
The company aims to achieve a net sales target of 400 billion yen (US$2.68 billion) and an operating margin of 15 percent, as early as possible after 2030.
Who will be leading the restructuring process at Kao Corporation?
The restructuring process will be led by Tomoko Uchiyama, executive officer and president of global consumer care – cosmetics business.
