Kao Reshapes Cosmetics Division Strategy to Accelerate Global Growth
Kao Corporation has unveiled a major revamp of its Cosmetics Division strategy, positioning the business as a central growth driver within the Kao Group. With the ambition of achieving net sales of 400 billion yen and an operating margin of 15% as soon as possible after 2030, the company is rolling out a renewed plan of action under its “K27” mid-term management framework. This transformation combines brand-specific expansion models, advanced technological capabilities, and operational optimization to fuel long-term competitiveness in the global beauty market.
A Three-Model Framework for Global Expansion
At the heart of Kao’s strategy is the restructuring of six flagship cosmetics brands—SENSAI, MOLTON BROWN, KANEBO, SOFINA, Curél, and KATE—into three distinct models for international growth. Each model is tailored to the brand’s origin, market identity, and consumer resonance.
- Model of Japanese Origin:
Curél, Japan’s leading sensitive skincare brand, will be the centerpiece of Kao’s expansion in Europe. With more than four decades of expertise in dry and sensitive skin care, supported by 25 years of ceramide research, Curél entered the European market in 2019. The results have been promising: in the first half of 2025, UK sales surged 70% year-on-year, proving the strength of consumer demand. Kao now plans to expand Curél’s European store presence sixfold by 2027, with the goal of generating half of the brand’s global sales outside Japan within two years. - Model of European Origin:
Kao’s luxury beauty portfolio, represented by SENSAI and MOLTON BROWN, is deeply rooted in European aesthetics and consumer values. While these brands have already earned strong recognition in Europe, Kao now sees immense growth potential in Asia’s fast-growing luxury beauty sector. By managing Asia as a unified market for global buyers, Kao aims to lift SENSAI’s Asian sales by 150% and MOLTON BROWN’s by 100% by 2027 compared with 2024 levels. - Asian Model:
Designed to adapt Japanese-origin brands to broader Asian markets, this approach will begin with a pilot program in Thailand, a country with strong cultural ties to Japanese fashion, beauty, and pop culture. KANEBO and KATE will spearhead this model, with the goal of increasing sales in Thailand by 150% by 2027 relative to 2024. Meanwhile, SOFINA, established in 1982, will undergo a brand consolidation, bringing its sub-brands under the main name to create a stronger unified presence. Kao expects SOFINA’s sales in Asia (excluding Japan) to rise by 50% by 2027.
Strengthening Profitability and Efficiency
In parallel with brand expansion, Kao is sharpening its focus on profitability and operational solidity. By concentrating resources on six global flagship brands, the company intends to optimize fixed costs while driving consistent long-term returns.
Kao’s diversified foundation as both a cosmetics leader and a chemical manufacturer provides a unique advantage. Its wide-ranging expertise—spanning dermatology, bioscience, chemistry, and advanced manufacturing—will be shared across product categories and brand portfolios. This cross-application of proprietary technologies is expected to generate stronger differentiation in the global market.
Moreover, Kao plans to leverage artificial intelligence alongside human expertise to unlock greater efficiency. AI-driven tools will be integrated into sales operations, supply chain optimization, and cost management. This dual approach is designed to maximize sales opportunities while reducing structural inefficiencies, resulting in a leaner and more resilient business model.
Leadership Driving Transformation
The renewed Cosmetics Division will be guided by Tomoko Uchiyama, CEO and President of the Global Consumer Care Division – Cosmetics, who assumed her role in January 2025. Uchiyama has a proven track record, having previously transformed Kao’s hair care division into a more competitive and profitable unit.
Commenting on the new strategy, Uchiyama stated:
“Our Cosmetics Division has the flexibility to respond to evolving consumer needs and global market trends through a diversified brand portfolio. By combining this agility with Kao Group’s solid foundation, we aim to pioneer globalization within the company. Our six flagship brands will form the core of this strategy, supporting structural reforms and sustainable growth. From this foundation, we will pursue long-term global leadership, blending scientific credibility with sensorial beauty.”
About Kao Corporation
Founded more than 130 years ago, Kao Corporation is a Japanese multinational known for its portfolio of personal care, household, and specialty chemical products. Its globally recognized brands include Attack laundry detergents, Bioré and Jergens skin care, Laurier feminine hygiene products, Curél, SENSAI, MOLTON BROWN cosmetics, and Oribe hair care. Today, the company’s products reach consumers across Asia, the Americas, Europe, the Middle East, and Africa.
In fiscal 2024, Kao recorded approximately 1.63 trillion yen in annual sales and employed around 32,600 people worldwide. Beyond consumer goods, its specialty chemicals business supports a wide range of industrial sectors.
Kao also emphasizes sustainability as a core component of its long-term vision. Guided by its ESG strategy, the “Kirei Lifestyle Plan” introduced in 2019, the company strives to reduce the environmental footprint of its products throughout their lifecycle while enriching everyday life for people around the world.
Through this combination of strategic brand expansion, advanced technology, and operational reform, Kao is positioning its Cosmetics Division as a true engine of growth—one that balances profitability with innovation and sustainability while capturing new opportunities in global beauty markets.
