Japanese beauty group Kao Corporation has outlined a renewed global growth plan for its cosmetics division, focusing on six core brands and three overseas expansion strategies.
The strategy aims to achieve long-term financial targets of ¥400 billion (US$2.7 billion) in sales and a 15% margin beyond 2030.
As a key step toward this goal, Kao will roll out strategic initiatives under its ‘K27’ medium-term plan to accelerate 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 maximise sales capabilities, further streamline supply chain management and reduce fixed costs to strengthen its business foundation.
Expansion strategy
Sensai, Molton Brown, Kanebo, Sofina, Curél and Kate will underpin Kao’s global expansion, focusing on international markets where consumer demand aligns with the company’s capabilities.
Backed by 40 years of sensitive skin expertise and 25 years of ceramide research, Curél is extending its European footprint. The brand entered the region in 2019 and has built strong momentum since then.
Reflecting a strong demand in the UK, Curél has recorded a +70% year-on-year increase in the first half of 2025.
To meet growing market demand, Kao noted its plans to expand the brand’s store network across the region sixfold, targeting 50% of total brand sales outside Japan by 2027.
Having established a strong presence in Europe, premium brands Sensai and Molton Brown are driving Kao’s expansion into the rapidly growing Asian luxury market.
Kao is implementing what it calls “integrated operations” to manage Asia as a single market, aiming to increase Sensai sales (including Japan) by +150% and Molton Brown sales by +100% by 2027, compared with 2024 levels.
Adapting Japanese brand values for the Asian market, the company is piloting its approach in Thailand, where cultural ties to Japan in makeup and anime are particularly strong.
The Kanebo and Kate brands will be central to Kao’s regional launch strategy, with a goal of achieving +150% sales growth in Thailand by 2027 compared with 2024, while Sofina’s sub-brands will be consolidated under one umbrella.
Leveraging Sofina’s strong reputation in Japan and its science-focused approach, Kao targets a +50% rise in the brand’s sales across Asia (excluding Japan) by 2027.
Kao’s approach to growth and profitability combines a focus on six key brands with efforts to reinforce its business foundation, applying its key technologies across brands and categories.
The company highlighted its plans to deploy its technological assets, using expertise in dermatology, bioscience, chemicals and production to achieve efficient, differentiated growth.
By combining workforce expertise with digital and AI capabilities, Kao also aims to boost sales, streamline supply chains, cut fixed costs and build a more resilient business.
Leading these initiatives will be Tomoko Uchiyama, appointed Executive Officer and President of Global Consumer Care – Cosmetics Business in January 2025. She will build on her haircare experience to guide the division’s growth and renewal.
Uchiyama said, “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 globalisation 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.” ✈
