10.25.21
Update: Kao ranks at #12 on our latest report Top 20 Global Beauty Companies 2022.
Kao is #11 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$13.4 billion
Beauty Sales
$5.2 billion
Key Personnel
Yoshihiro Hasebe, president and CEO; Toshiaki Takeuchi, senior managing executive officer; managing executive officers: Tomoharu Matsuda, Shigeru Ueyama, Masakazu Negoro, Yasushi Wada, Osamu Tabata, Yoshihiro Murakami, Hideaki Kubo, Toru Nishiguchhi, managing executive officer
Major Products/Brands
athletia, Curél, est, freeplus, Kanebo, Kate, Molton Brown, RMK, Sensai, Sofina iP, Suqqu, and and, Asience, Bioré, Blauné, Cape, Essential, Guhl, Jergens, John Frieda, Kao Sekken White, Liese, Merit, My Kirei, Rerise, Segreta, Success, Goldwell, kms, Oribe
New Products
Oribe Signature Hair Care Line, Sofina iP Interlink Serum Pore Refining Moisture, Smile Performer Sheet Mask, Wakati Hair Care
Comments
In Kao Group’s key markets in 2020, the domestic cosmetics market shrank significantly from the previous year due to a substantial decline in inbound demand and people’s voluntary restraint in going outside. On the other hand, the household and personal care products market grew because of an increase in demand for hygiene-related products, among other factors.
Outside Japan, the Kao Group was affected by mandated temporary store closures and restrictions on going outside all over the world except China, and also incurred extra expenses to respond to the pandemic, resulting in an overall decrease in consolidated financial results compared with the previous fiscal year.
Amid these circumstances, net sales decreased 8% compared with the previous fiscal year to $13.4 billion. On a like-for-like basis, net sales decreased 5.2% in every product category, but the share of the e-commerce channel increased further.
In April 2020, Kao USA Inc unveiled MyKirei by Kao. The brand’s innovations include vegan-friendly, plant-based formulas that are 95% biodegradable and eco-friendly delivery systems. But the biggest leap forward was the bottle—the packaging uses up to 50% less plastic than traditional bottles, addressing the global reliance on plastic.
Toward the end of the year, Kao announced two key leadership changes, with Michitaka Sawada being promoted to director, chair, and Yoshihiro Hasebe to representative director, president and CEO. Prior to this appointment, Hasebe was senior managing executive officer.
2020 was also the final year of the Kao Group Mid-term Plan “K20,” under which the group set and aimed to achieve three goals: fostering a distinctive corporate image, profitable growth, and returns to stakeholders. By making a major shift toward ESG-driven management and further strengthening its initiatives, the group says it succeeded in improving its image globally as a company that is contributing toward the realization of a sustainable society. At the same time, it has committed to delivering returns to stakeholders, achieving objectives such as continuing to increase cash dividends to shareholders. Despite these accomplishments, the group was unable to fulfill its commitment to profitable growth.
After wrapping up K20, the group initiated the Kao Group Mid-term Plan 2025 “K25,” covering the next five years from 2021 to 2025. To this end, Kao formulated three new policies focused on the Sustainable Development Goals adopted as international targets for global action to create a better world by 2030: becoming an essential company in a sustainable world, transforming to build robust business through investment, and maximizing the power and potential of employees.
As a part of K25, Kao says it will take its promotion of ESG-driven management a step further, striving to make both a positive contribution to society and achieve financial growth.
2021 Highlights
Expectations for vaccines grew at the start of 2021, but conditions in the global economy remained unclear. As a result of delays in the recovery of consumption, Kao Corporation reported net sales of $2.92 billion for the first quarter of 2021, a decline of 5.1% compared to the first quarter of the previous year.
In February 2021, Kao Corporation merged Sofina Beauty Counseling Co. Ltd. and Kanebo Beauty Counseling Co. Ltd. to establish a new business unit called Kao Beauty Brands Counseling Co. Ltd. The new company will develop synergies within the group by stepping up the productivity of its beauty consultants and the appropriate allocation of personnel.
Kao also launched Wakati, a new product line designed for natural hair textures—a first for the company. Wakati was developed to answer one question, “Why are there not more effective hair care formulas specifically designed for natural, Black hair?” The product line includes a conditioner, shampoo, oil-infused cream and conditioning mist.
In March, Kao eliminated words such as “whitening” and “lightening” from its products, citing concerns surrounding racial inequality as highlighted by the Black Lives Matter movement. Kao said it didn’t want to send out the message that one skin tone is inferior or superior to another, and decided to drop the wording as a part of its commitment to promoting diversity.
In May, the Kao Group set new sustainability goals—and a target to reduce its carbon dioxide (CO2) emissions to zero by 2040. Furthermore, by 2050, the company plans to be carbon-negative.
The group also signed the “Business Ambition for 1.5°C” initiative, a corporate pledge for businesses to set science-based targets aligned with limiting global temperature rise to 1.5°C instead of 2.0°C. In addition, Kao is aiming to join RE100, an international program which brings together hundreds of large businesses committed to 100% renewable electricity.
Read Next: LG Household & Healthcare is #12.
Kao is #11 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$13.4 billion
Beauty Sales
$5.2 billion
Key Personnel
Yoshihiro Hasebe, president and CEO; Toshiaki Takeuchi, senior managing executive officer; managing executive officers: Tomoharu Matsuda, Shigeru Ueyama, Masakazu Negoro, Yasushi Wada, Osamu Tabata, Yoshihiro Murakami, Hideaki Kubo, Toru Nishiguchhi, managing executive officer
Major Products/Brands
athletia, Curél, est, freeplus, Kanebo, Kate, Molton Brown, RMK, Sensai, Sofina iP, Suqqu, and and, Asience, Bioré, Blauné, Cape, Essential, Guhl, Jergens, John Frieda, Kao Sekken White, Liese, Merit, My Kirei, Rerise, Segreta, Success, Goldwell, kms, Oribe
New Products
Oribe Signature Hair Care Line, Sofina iP Interlink Serum Pore Refining Moisture, Smile Performer Sheet Mask, Wakati Hair Care
Comments
In Kao Group’s key markets in 2020, the domestic cosmetics market shrank significantly from the previous year due to a substantial decline in inbound demand and people’s voluntary restraint in going outside. On the other hand, the household and personal care products market grew because of an increase in demand for hygiene-related products, among other factors.
Outside Japan, the Kao Group was affected by mandated temporary store closures and restrictions on going outside all over the world except China, and also incurred extra expenses to respond to the pandemic, resulting in an overall decrease in consolidated financial results compared with the previous fiscal year.
Amid these circumstances, net sales decreased 8% compared with the previous fiscal year to $13.4 billion. On a like-for-like basis, net sales decreased 5.2% in every product category, but the share of the e-commerce channel increased further.
In April 2020, Kao USA Inc unveiled MyKirei by Kao. The brand’s innovations include vegan-friendly, plant-based formulas that are 95% biodegradable and eco-friendly delivery systems. But the biggest leap forward was the bottle—the packaging uses up to 50% less plastic than traditional bottles, addressing the global reliance on plastic.
Toward the end of the year, Kao announced two key leadership changes, with Michitaka Sawada being promoted to director, chair, and Yoshihiro Hasebe to representative director, president and CEO. Prior to this appointment, Hasebe was senior managing executive officer.
2020 was also the final year of the Kao Group Mid-term Plan “K20,” under which the group set and aimed to achieve three goals: fostering a distinctive corporate image, profitable growth, and returns to stakeholders. By making a major shift toward ESG-driven management and further strengthening its initiatives, the group says it succeeded in improving its image globally as a company that is contributing toward the realization of a sustainable society. At the same time, it has committed to delivering returns to stakeholders, achieving objectives such as continuing to increase cash dividends to shareholders. Despite these accomplishments, the group was unable to fulfill its commitment to profitable growth.
After wrapping up K20, the group initiated the Kao Group Mid-term Plan 2025 “K25,” covering the next five years from 2021 to 2025. To this end, Kao formulated three new policies focused on the Sustainable Development Goals adopted as international targets for global action to create a better world by 2030: becoming an essential company in a sustainable world, transforming to build robust business through investment, and maximizing the power and potential of employees.
As a part of K25, Kao says it will take its promotion of ESG-driven management a step further, striving to make both a positive contribution to society and achieve financial growth.
2021 Highlights
Expectations for vaccines grew at the start of 2021, but conditions in the global economy remained unclear. As a result of delays in the recovery of consumption, Kao Corporation reported net sales of $2.92 billion for the first quarter of 2021, a decline of 5.1% compared to the first quarter of the previous year.
In February 2021, Kao Corporation merged Sofina Beauty Counseling Co. Ltd. and Kanebo Beauty Counseling Co. Ltd. to establish a new business unit called Kao Beauty Brands Counseling Co. Ltd. The new company will develop synergies within the group by stepping up the productivity of its beauty consultants and the appropriate allocation of personnel.
Kao also launched Wakati, a new product line designed for natural hair textures—a first for the company. Wakati was developed to answer one question, “Why are there not more effective hair care formulas specifically designed for natural, Black hair?” The product line includes a conditioner, shampoo, oil-infused cream and conditioning mist.
In March, Kao eliminated words such as “whitening” and “lightening” from its products, citing concerns surrounding racial inequality as highlighted by the Black Lives Matter movement. Kao said it didn’t want to send out the message that one skin tone is inferior or superior to another, and decided to drop the wording as a part of its commitment to promoting diversity.
In May, the Kao Group set new sustainability goals—and a target to reduce its carbon dioxide (CO2) emissions to zero by 2040. Furthermore, by 2050, the company plans to be carbon-negative.
The group also signed the “Business Ambition for 1.5°C” initiative, a corporate pledge for businesses to set science-based targets aligned with limiting global temperature rise to 1.5°C instead of 2.0°C. In addition, Kao is aiming to join RE100, an international program which brings together hundreds of large businesses committed to 100% renewable electricity.
Read Next: LG Household & Healthcare is #12.
