Kao Maps Out Strategic Initiatives To Drive Expansion 

Kao Corporation this month announced a revamp of its cosmetics business strategy to accelerate growth. Positioned as a key growth driver within the Kao Group, the cosmetics business is targeting net sales of 400 billion yen and an operating margin of 15% at the earliest feasible timing after 2030. 

In alignment with the medium-term management plan “K27,” Kao will pursue a set of strategic initiatives to drive further 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 technological assets as a diversified chemical manufacturer, Kao will apply its distinct fundamental technologies across categories and brands. By integrating its extensive technological assets—spanning dermatology, bioscience, chemicals and production processes—Kao says it will achieve effective investment by the sharing of strong technology-driven differentiation. 

By integrating human expertise with artificial intelligence (AI), the company says it will maximize sales capabilities, further streamline supply chain management and reduce fixed costs to strengthen its business foundation. 

These initiatives will be led by Tomoko Uchiyama, executive officer and president of Global Consumer Care – Cosmetics Business, who assumed her role in January.

“Our Cosmetics Business 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 globalization 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.”

Growth Strategy for Six Focus Brands

Kao will position Sensai, Molton Brown, Kanebo, Sofina, Curél, and Kate as its focused global growth brands. The company will accelerate overseas expansion in markets where these brands address consumer needs and can leverage Kao’s extensive resources and expertise.

Japan-Origin Model

Curél, Japan’s leading brand for sensitive skin care, is accelerating its expansion in the European market. Backed by more than 40 years of expertise in dry, sensitive skin and over 25 years of ceramide research, Curél entered Europe in 2019 and has since gained strong traction. In the first half of 2025, sales in the UK rose 70% year-on-year, underscoring robust demand. Leveraging the proven efficacy of its “ceramide care,” Kao will expand Curél’s store presence in Europe by six times, with a goal of generating 50% of total brand sales outside Japan by 2027. 

Europe-Origin Model

Kao is expanding its luxury brands Sensai and Molton Brown, both of which embody distinctive aesthetics and philosophies that have strongly resonated with consumers in Europe’s luxury segment. The strategy now focuses on capturing growth in the rapidly expanding Asian luxury market. Through “Integrated operations” that manages Asia as one market for global shoppers, Kao aims to increase Sensai sales in Asia (including Japan) by 150% and Molton Brown sales by 100% by 2027, compared with 2024 levels.

Asia Model

This model adapts brand values developed in Japan to meet the unique characteristics of Asian markets. Thailand, with its strong cultural affinity to Japan in areas such as makeup and anime, will serve as the pilot market. Kao will concentrate on the Kanebo and Kate brands to establish a successful blueprint for regional rollout, targeting sales growth of 150% in Thailand by 2027 compared with 2024 levels. In parallel, Kao will reposition Sofina, unifying its sub-brands under the Sofina umbrella. Since its establishment in 1982, Sofina has built a strong presence in Japan with its science-driven approach to skincare and makeup. By 2027, Kao aims to increase Sofina sales in Asia (excluding Japan) by approximately 50%.