Kao Corporation, the Japanese beauty conglomerate, is revamping its Cosmetics Business division strategy to kickstart sales growth.
The Molton Brown-owner is targeting net sales of ¥400bn (US$2.69bn) and an operating margin of 15% by 2030.
Underpinning this sales growth ambition is a medium-term management plan, dubbed ‘K27’, which will see a “set of strategic initiatives to drive further expansion”, Kao Corporation said in a company statement.
This will divide the company’s six beauty brands, which include skin care and make-up ranges Sensai and Kanebo, into three distinct overseas expansion models.
The business stated that this aims to “sharpen brand positioning and enhance competitiveness in the global market”.
Kao Corporation will also better utilise its “technological assets” as a diversified chemical manufacturer and apply this across its categories and brands.
It is also tapping into the increasing use of artificial intelligence (AI) within the beauty industry, intending to blend “human expertise with AI” to maximise sales capabilities.
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.
“Our Cosmetics Business [division] has the flexibility to respond to changing times and market dynamics with a diverse portfolio of brands,” said Uchiyama.
“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.”
As part of the strategy, sensitive skin care brand Curél will accelerate its expansion in the European market.
Kao Corporation will expand Curél’s store presence in Europe by six times, to generate 50% of total brand sales outside Japan by 2027.
Sensai and Molton Brown, meanwhile, will adopt its European strategy for the Asian market, aiming to increase brand sales by 2027, compared with 2024 levels.
The focus on Asia will also extend to Kanebo and make-up brand Kate, targeting sales growth of 150% specifically in Thailand by 2027.
Kao will also reposition cosmetics brand Sofina, unifying its sub-brands under one umbrella company.
By 2027, Sofina sales in Asia, excluding Japan, are expected to increase by approximately 50%.
Uchiyama added: “To that end, we will pursue a strategy centred 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.”