Kosé Corporation is #20 on our Top Global Beauty Companies 2024 Report.
 
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.

#20 Kosé Corporation
Chuo, Tokyo, Japan
www.corp.kose.co.jp

Beauty Sales:

$2.1 Billion

Key Personnel:

• Kazutoshi Kobayashi, President and Chief Executive Officer
• Takao Kobayashi, President and CEO, Kosé Cosmeport Co
• Masanori Kobayashi, President and CEO, Kosé Industries Co

Major Products/Brands:

Decorté, Jill Stuart, Sekkisei Miyabi, Sekkisei, One by Kosé, Lechéri, Esprique, Astaluxe by Kose, X-Barrier by Dr. Phil Cosmetics, Acneo by Dr. Phil Cosmetics, Visée, Fasio, Nailholic, Stephen Knoll New York, Tarte.

New Products:

• One by Kosé Wrinkle Double Repair
• Fascio Matsupa mascara
• Haste mascara remover
• Addiction lip balm and lip balm glow tin
• Jill Stuart Airy Stay brow liner
• Mousse brow mascara
• Bloom Nuance brow palette
• Dr. Phil Cosmetics Summer Aging Care
• Moisture Barrier Care and Medicated Moist formula
• Sekkisei Cylcator B
• Medicated Brightening Emulsion and Medicated Brightening Essence
• Moisture Mild White Repair Essence C100 + Perfect Essence
• Stephen Noll New York Moisture Control shampoo and conditioner
• Infinity Innovative Bright Serum

Comments:

In his address to shareholders, Kosé President and CEO Kazutoshi Kobayashi, reported that sales in Japan grew across all sales channels, and sales of Tarte products (sold mainly in the United States and Europe) were strong in every region. Businesses in China, however, were plagued by “sluggish consumption due to slow economic recovery in the region, and by the impact of the release of treated wastewater into the ocean from the Fukushima nuclear power plant.” 

Furthermore, in Kose’s travel retail market, purchases of merchandise by travel retailers were reduced in South Korea and then in China, which led to a drastic reduction in shipments during the second half of the year. As a result, Kosé’s fiscal 2023 overall net sales and operating profit were both significantly lower than initially forecast.

Kosé’s cosmetics represented 81.3% of overall sales, and toiletries accounted for 18.1%. Albion’s Elégance and Jill Stuart brands gave a boost to the company’s domestic cosmetics sales, which rose 2.3%. Brands like Visée, Make Keep and Kosé Cosmeport’s Clear Turn turned in performances that lifted the Cosmetaries unit by 10.4%. Amenities sales rose 19% thanks to increased demand from hotels and golf clubs.

2023 Highlights:

In August 2023, Kosé announced that its collaborative research with South China Botanical Garden of the Chinese Academy of Sciences, one of the world’s leading botanical research institutes, had resulted in the development of a Magnolia champaca flower extract that enhanced the skin barrier function. They also reported that the fragrance of the flower had also been found to have the effect of “increasing positive feelings.” These findings, they said, would help pioneer research and development into products that address the holistic needs of customers rooted in the concept that wellbeing contributes to helping people to be healthy in both mind and body.

Earlier in 2023, the company Kosé and Niigata University jointly announced the development of a 3D epithelial model that reproduced the human lip area, an achievement that will be used for evaluating the efficacy and safety of cosmetic ingredients and products, making it possible to verify efficacy and safety evaluations of cosmetic ingredients and products on a structure more similar to the actual lip area. The results of the joint research were published online in the scientific journal Histochemistry and Cell Biology in June 2023.

Looking Ahead:

Despite its concern for the fiscal impacts of ongoing global conflicts and global economic activity, Kosé projected year-on-year sales for 2024 to increase 3.9%. In the United States—although the impact of interest rate increases through to 2023 may start to become more evident—Kosé said it expected the labor market and consumer spending to remain stable.

In addition, Kosé expected sales to continue to be challenging in the South Korea market, to recover gradually in China (primarily in travel retail), and to grow steadily in Japan. Strong operating results are also expected at Tarte, where the main markets are the United States and Europe. In terms of capital investment, construction of the Minami Alps Factory is scheduled to begin during the fiscal year and the company plans to invest ¥25.5 billion in total and record depreciation expenses of ¥10.5 billion.