TOKYO -- On September 19, 2025, Kao Corporation (TOKYO:4452) announced a revamp of its Cosmetics Business strategy to accelerate growth. Positioned as a key growth driver within the Kao Group, the Cosmetics Business is targeting net sales of 400 billion yen and an operating margin of 15% at the earliest feasible timing after 2030. As a milestone toward this ambition and in alignment with the medium-term management plan “K27,” Kao will pursue a set of strategic initiatives to drive further expansion.

·Kao will divide the six brands poised for global growth into three distinct overseas expansion models, sharpening brand positioning and enhancing competitiveness in the global market.
·Leveraging its broad technological assets as a diversified chemical manufacturer, Kao will apply its distinct fundamental technologies across categories and brands.
·By integrating human expertise with AI, the company will maximize sales capabilities, further streamline supply chain management, and reduce fixed costs to strengthen business foundation.

Growth Strategy for Six Focus Brands

Kao will position SENSAI, MOLTON BROWN, KANEBO, SOFINA, Curél, and KATE as its focused global growth brands. The company will accelerate overseas expansion in markets where these brands address consumer needs and can leverage Kao’s extensive resources and expertise.

Japan-Origin model:

[1] INTAGE SRI+ Sensitive Skin Care Market - Value Share, July 2024 to June 2025

Europe-Origin Model:

Kao is expanding its luxury brands SENSAI and MOLTON BROWN, both of which embody distinctive aesthetics and philosophies that have strongly resonated with consumers in Europe’s luxury segment. The strategy now focuses on capturing growth in the rapidly expanding Asian luxury market. Through “Integrated operations” that manages Asia as one market for global shoppers, Kao aims to increase SENSAI sales in Asia (including Japan) by 150% and MOLTON BROWN sales by 100% by 2027, compared with 2024 levels.

Asia Model:

This model adapts brand values developed in Japan to meet the unique characteristics of Asian markets. Thailand, with its strong cultural affinity to Japan in areas such as makeup and anime, will serve as the pilot market. Kao will concentrate on the KANEBO and KATE brands to establish a successful blueprint for regional rollout, targeting sales growth of 150% in Thailand by 2027 compared with 2024 levels. In parallel, Kao will reposition SOFINA, unifying its sub-brands under the SOFINA umbrella. Since its establishment in 1982, SOFINA has built a strong presence in Japan with its science-driven approach to skincare and makeup. By 2027, Kao aims to increase SOFINA sales in Asia (excluding Japan) by approximately 50%.

Improving Soundness by Enhancing Earning Power and Streamlining Fixed Costs

Kao will reinforce profitability and long-term growth by focusing resources on the six brands, while also strengthening business foundation.

The company plans to implement its fundamental technologies across various brands and categories. By integrating its extensive technological assets—spanning dermatology, bioscience, chemicals, and production processes—Kao will achieve effective investment by sharing of strong technology-driven differentiation. This strategy is unique to a diversified chemical manufacturer like Kao.

Additionally, by leveraging the expertise of its workforce and incorporating digital capabilities and artificial intelligence, Kao intends to maximize sales potential and enhance supply chain management efficiency. This will lead to further fixed cost reductions and establish a more resilient business structure.

Leadership and Vision

These initiatives will be led by Tomoko Uchiyama, Executive Officer and President of Global Consumer Care - Cosmetics Business, who assumed her role in January 2025. Having successfully transformed Kao’s hair care business, Uchiyama will now apply her expertise to drive the growth and renewal of the Cosmetics Business.

Uchiyama commented:

“Our Cosmetics Business has the flexibility to respond to changing times and market dynamics with a diverse portfolio of brands. By combining this agility with the broad and solid foundation of the Kao Group, we will serve as a pioneer within the company in advancing globalization and accumulating expertise. To that end, we will pursue a strategy centered on the six brands, aiming to establish a strong earnings base by 2027 through both growth initiatives and structural reforms. Building on this foundation, we will target sustainable growth beyond, striving to achieve ‘Global Sharp Top’ with a brand portfolio that blends scientific evidence with sensorial beauty.”