Key Takeaways:
Kao corporate is taking bold steps to reignite growth in its cosmetics business division. The conglomerate has unveiled a medium-term management plan designed to strengthen brand positioning and accelerate international expansion. The Japanese company, best known in beauty for Molton Brown, Kanebo, and Sensai, has set ambitious targets of ¥400 billion ($2.69 billion) in net sales and a 15% operating margin by 2030.
The strategy, dubbed “K27,” segments Kao’s six beauty brands into three overseas expansion models to sharpen competitiveness and drive regional relevance. Sensitive skin brand Curél will lead the European charge, with store presence expected to increase sixfold and 50% of sales to come from outside Japan by 2027.
Sensei and Molten Brown will adopt a reverse playbook, applying their European strategies to Asia, and Kanebo and KATE, which will focus heavily on Southeast Asia, targeting a 150% sales lift in Thailand by 2027. Sofina will undergo a structural repositioning, consolidating its sub-brands under one unified umbrella to bolster its appeal across Asia.
Beyond geographic growth, Kao plans to leverage its diversified chemical expertise and expand its use of artificial intelligence to enhance sales capabilities, blending technological insights with human expertise.
“Our cosmetics business has the flexibility to respond to changing times and market dynamics with a diverse portfolio of brands,” said Tomoko Uchiyama, Executive Officer and President of Global Consumer Care, Cosmetics Business, in a company statement, who assumed leadership in January 2025. “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.”
With growth and structural reforms expected to lay a strong earnings foundation by 2027, Kao is positioning itself to evolve from a Japanese beauty stalwart into a global player. Uchiyama stated that the goal is to achieve “Global Sharp Top” status by creating a brand portfolio that combines scientific credibility with sensorial beauty.
Kao’s K27 strategy underscores the mounting pressure on heritage players to adapt quickly in an increasingly competitive global beauty landscape. By aligning scientific innovation with region-specific growth models, the company is not only repositioning its portfolio but also signaling its intent to compete head-to-head with the industry’s biggest multinationals. If successful, Kao’s transformation could serve as a blueprint for how Japanese beauty houses can scale beyond domestic strength, translating cultural credibility and technical expertise into global relevance.
