Table of Contents
- Key Highlights:
- Introduction
- Strategic Vision: The "K27" Initiative
- Global Framework: Three Distinct Models for Expansion
- Fostering Growth Through Technological Integration
- Leadership Direction: Tomoko Uchiyama at the Helm
- Commitment to Sustainability
- Conclusion
- FAQ
Key Highlights:
- Kao Corporation aims for 400 billion yen in net sales and a 15% operating margin in its Cosmetics Business post-2030, primarily driven by six key brands.
- The company is implementing three distinct overseas expansion models to tailor brand positioning and enhance global competitiveness.
- Digital integration and AI will play crucial roles in streamlining operations and maximizing sales potential.
Introduction
Kao Corporation, a major player in the personal care and cosmetics industry, has taken a significant step forward with the announcement of a revamped strategy for its Cosmetics Business. On September 19, 2025, the Tokyo-based company outlined ambitious targets focused on global expansion and increased profitability. As the demand for personal care products continues to rise, particularly in specialized areas like sensitive skin care and luxury cosmetics, Kao seeks to position itself as a leader in innovation and market presence. By aligning its strategic initiatives with its medium-term management plan known as "K27," the company aims to not only meet but exceed its aspirations for growth and sustainability in the evolving global market.
Strategic Vision: The "K27" Initiative
Kao’s "K27" initiative forms the backbone of its aspirations for the Cosmetics Business. This plan is distinguished by its focus on six select brands, each chosen for their potential to resonate with consumers around the globe. These brands include SENSAI, MOLTON BROWN, KANEBO, SOFINA, Curél, and KATE. Central to this strategy is the aim to achieve net sales of 400 billion yen and a strong operating margin of 15%. Such goals reflect Kao's vision of becoming a formidable player in international markets, leveraging its heritage and reputation for quality built over more than 130 years.
Global Framework: Three Distinct Models for Expansion
Kao's approach to international growth revolves around three core models—Japan-Origin, Europe-Origin, and Asia Model—designed to optimize the performance and reach of its brands across different markets.
Japan-Origin Model: Curél's European Expansion
Curél, celebrated as Japan's leading brand for sensitive skin care, epitomizes the Japan-Origin model. After entering the European market in 2019, Curél has demonstrated remarkable growth, particularly in the UK, where sales surged by 70% year-on-year in the first half of 2025. This success underscores Curél's strong market fit derived from over four decades of research and expertise in addressing scenarios that plague those with sensitive skin. By expanding its retail presence to six times its initial footprint and aiming for 50% of total sales to originate outside Japan by 2027, Kao is positioning Curél to meet increasing consumer demand in Europe.
Europe-Origin Model: Luxury Brands Taking on Asia
In response to the booming luxury segment, Kao is also focused on scaling its premier brands, SENSAI and MOLTON BROWN. With their unique blends of aesthetics and philosophy, both brands have found a solid customer base in Europe. However, this expansion strategy aims to tap into the lucrative Asian luxury market. Kao plans to manage Asia as a singular market, targeting a significant increase in sales—150% for SENSAI and 100% for MOLTON BROWN by 2027—compared to 2024 figures. This integrated approach will likely strengthen Kao's overall footprint in Asia, connecting affluent shoppers through a consistent brand experience.
Asia Model: Adapting for Local Markets
Recognizing the unique characteristics of Asian markets, Kao is introducing the Asia model. This involves customizing brand values for markets like Thailand, which has cultural affinities with Japan, specifically in makeup and anime culture. The KANEBO and KATE brands will serve as flagship initiatives within this model, which aims for a 150% increase in sales by 2027 relative to 2024. Additionally, Kao will reformulate the SOFINA brand, unifying its various sub-brands under one umbrella to enhance brand recognition and business performance across Asia.
Fostering Growth Through Technological Integration
Kao's commitment to modernizing its Cosmetics Business extends beyond branding and market strategies. The company intends to amplify its technological capabilities to actualize growth. By leveraging its extensive portfolio as a diversified chemical manufacturer, Kao aims to apply its advanced technologies across all brands, emphasizing dermatology, bioscience, and production processes.
AI and Workforce Integration
The implementation of AI and digital capabilities marks another cornerstone of Kao’s strategic overhaul. This integration is intended to optimize supply chain management and refine operational efficiencies. By maximizing sales potential through data-driven insights and resource allocation, Kao expects to reduce fixed costs significantly. Such measures will ultimately form a resilient foundation for sustained growth in the face of evolving consumer demands.
Leadership Direction: Tomoko Uchiyama at the Helm
The initiatives set forth by Kao will be spearheaded by Executive Officer and President of Global Consumer Care - Cosmetics Business, Tomoko Uchiyama. Since assuming her position in January 2025, Uchiyama has brought a transformative vision, drawing from her previous success in revitalizing Kao’s hair care segment. Her commitment to leveraging Kao's strengths while fostering agility in response to market dynamics reflects a forward-thinking approach essential for the company's continued success.
In her own words, Uchiyama emphasizes the importance of merging Kao’s rich heritage with nimbleness: “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.”
Commitment to Sustainability
Kao’s forward-looking initiatives also intersect with its firm commitment to sustainability. The company actively seeks to reduce its environmental footprint in line with its ESG strategy encapsulated in the Kirei Lifestyle Plan, launched in 2019. This holistic approach emphasizes ecological responsibility throughout the product lifecycle, demonstrating that while striving for robust profitability, Kao remains dedicated to enhancing quality of life and caring for the planet.
Conclusion
Kao Corporation's comprehensive revamp of its Cosmetics Business strategy is a strategic response to both market opportunities and contemporary challenges within the industry. By targeting six focus brands and utilizing diverse expansion models, along with cutting-edge technological integration, Kao is meticulously positioning itself for future growth beyond 2030. Under the guidance of Tomoko Uchiyama, the company's proactive measures resonate with its long-standing commitment to quality and sustainability, ensuring that it remains a competitive force in the global cosmetics arena.
FAQ
Why is Kao focusing on six specific brands? Kao has identified six brands—SENSAI, MOLTON BROWN, KANEBO, SOFINA, Curél, and KATE—as key drivers for their strategic growth. This focused approach allows for targeted investment and marketing, amplifying their ability to resonate with specific consumer needs across global markets.
How does the three-model approach benefit Kao's global expansion? By implementing tailored expansion models—Japan-Origin, Europe-Origin, and Asia—Kao can effectively adapt its brands to meet cultural and market-specific demands. This strategic alignment cultivates a deeper connection with consumers while enhancing overall brand positioning.
What role does technology play in Kao's growth strategy? Kao is leveraging its robust technological assets and integrating AI to optimize its operations and enhance supply chain efficiency, which in turn is designed to maximize sales potential. This dual approach of human expertise combined with advanced technologies is essential for the company to maintain competitiveness in the evolving market landscape.
How does Kao plan to address sustainability? Kao is committed to sustainability through its ESG strategy outlined in the Kirei Lifestyle Plan. This initiative focuses on minimizing the environmental impact of its products and promoting responsible consumption practices, aligning corporate growth with ecological stewardship.
Who is leading the initiatives in Kao’s Cosmetics Business? The initiatives are spearheaded by Tomoko Uchiyama, the Executive Officer and President of Global Consumer Care - Cosmetics Business. With her extensive experience in the industry, Uchiyama is poised to drive the transformation, ensuring the company meets its ambitious growth targets while maintaining its core values.