Kao targets USD 2.7B in cosmetics sales with revamped growth strategy
This move divides the brands into three distinct overseas expansion models based on market suitability and brand positioning.
JAPAN – Kao Corporation has announced a significant revamp of its Cosmetics Business strategy with the ambitious goal of reaching net sales of ¥400 billion(USD 2.7 billion) and achieving an operating margin of 15% by 2035.
This growth target is a key part of Kao’s “K27” medium-term management plan, which entails a series of strategic initiatives designed to accelerate expansion and strengthen the global presence of its cosmetics division.
The strategy centres on six core brands, SENSAI, MOLTON BROWN, KANEBO, SOFINA, Curél, and KATE, which Kao positions as pivotal to its global growth ambitions.
These brands will be developed under three distinct overseas expansion models tailored to diverse market characteristics and consumer needs:
The “Japan-Origin” model highlights Curél, a brand known for sensitive skin care and ceramide expertise, with plans to scale its reach in Europe by multiplying store presence sixfold and targeting 50% of sales from outside Japan by 2027.
For the Asian luxury market, SENSAI and MOLTON BROWN will deepen their presence across Asia, with Kao projecting a 150% sales increase for SENSAI and a 100% increase for MOLTON BROWN by 2027 compared to 2024.
The Asia model focuses on Thailand as a pilot market for KANEBO and KATE, aiming for a 150% sales growth by 2027. SOFINA will streamline its sub-brands under one unified brand and target a 50% increase in sales in Asia, excluding Japan, within the same period.
Kao is leveraging its diverse technological capabilities as a chemical manufacturer, applying core technologies across brands to create differentiated products.
By integrating human expertise with artificial intelligence, Kao plans to maximize sales efficiency, optimize supply chain operations, and cut fixed costs to reinforce its business foundation for long-term success.
Leadership under Tomoko Uchiyama, who brings experience from transforming Kao’s hair care division, is pivotal to executing this revamped strategy, which aims to build brand competitiveness and sustainable growth in the global cosmetics market.
This move comes after Kao Corporation recently expanded its advanced skincare portfolio with several innovative product launches across its core premium and specialized brands, reinforcing its Global Sharp Top growth strategy.
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