Sales: $2.7 billion for cosmetics. Corporate sales: $3.3 billion.
Key Personnel: Kazutoshi Kobayashi, president and chief executive officer; Jiro Nakabayashi, senior executive officer; Tadanobu Hayashi, executive officer; Koichi Shinmoto, executive officer; Tomoyuki Nio, executive officer; Takumi Hasegawa, executive officer; Minoru Ushimura, executive officer; Akinobu Hayashi, executive officer; Noboru Matsumoto, executive officer; Shinichi Mochizuki, executive officer; Isao Fujiwara, executive officer; Noriyuki Arai, executive officer; Yoshinori Haratani, executive officer; Masahiro Horita, executive officer; Atsuko Ogura, executive officer.
Major Products: Skin care, cosmetics and toiletries sold under several brand names in different sectors. High Prestige—Decorte, Jill Stuart, Sekkisei MYV, Infinity, Predia, Addiction, Paul Stuart, Awake, Tarte; Prestige—Sekkisei, One by Kosé, Shirosumi, Hadakiwami, Astablanc, Esprique, Carté Clinity, Crie, Phil Naturant, Formule, Maihada; Cosmetaries—Visée, Fasio, Elsia, Nature & Co, SportsBeauty, Nailholic, Stephen Knoll New York, Rimmel (distribution in China), Softymo, Je l’aime, Clear Turn, Suncut, Kokutousei, Grace One.
New Products: Lechéri skin care products, One by Kosé medicated whitening serum, One by Kosé medicated cream for reducing wrinkles.
Comments: Corporate sales increased 9.8% and sales of cosmetics, which account for about three quarters of sales, rose 11% in the fiscal year that ended on March 31, 2019. Sales of cosmetaries increased 4.6%. This was the sixth consecutive year of record sales.
Sales in Japan increased 5.4%, but Kosé noted that markets outside of its home country accounted for 27.9% of total sales last year. Overseas, sales were higher in all Asian countries were Kosé operates, including higher sales in South Korea and China due to strong sales of key global brands. In North America, sales increased 1.6% on the strength of the Tarte franchise. Sales increased 13.0% in Europe because of a strong increase in e-commerce sales of Tarte.
Looking ahead, Kosé expects sales to rise 5.7% this year. Japan’s slow economic recovery is expected to continue, but there is still risk involving foreign exchange rates, increasing uncertainty about the global economy and the effects of trade policies of various countries.
Long-term, the Vision 2026 plan calls for Kosé to become a company with a global presence; one that creates a diverse range of brands backed by human resources that can succeed worldwide. Vision2026 has the goals of raising net sales to 500,000 million yen and the operating margin to at least 16% by 2027. International sales will account for 35% of that total and e-commerce/new channel sales will top 15%. Five key brands will be part of that global strategy: Decorté, Sekkisei, Jill Stuart, Addiction and Clear Turn.
To accomplish these goals, the group has defined three phases that will enable it to become an organization with global presence:
- Phase I: Upgrade global brands and reinforce customer points of contact.
- Phase II: Increase Kosé’s global presence and improve the customer experience.
- Phase III: Become a customer-driven company appreciated by people worldwide.
In January, Kosé signed an agreement to establish a jointly owned company with Maruho Co., a pharmaceutical company engaged in the research, development, manufacture, import, export and sale of dermatological and medical drugs to patients with skin disorders and diseases. Maruho will be a source of pharmaceutical value as a supplier of high-quality skin care products incorporating the latest advances in the field of dermatology as well as a diverse lineup of dermatology drugs for treating skin diseases. The deal is expected to be finalized in July 2019.