18. Kosé Corp.
Tokyo
www.kose.co.jp

Beauty Sales: $2 billion

Key Personnel: Kazutoshi Kobayashi, president.

Paul & Joe is one of Kosé’s international brands.

Major Products: High prestige, prestige and and cosmetary skin care, cosmetics and toiletries sold under brand names including Cosme Decorte, Awake, Albion, Sekkisei, Beauté de Kose, Jill Stuart, Sonia Rykiel Paris, Anna Sui, Paul & Joe, Infinity, Grandaine, Crie, Predia, Visée, Esprique, Formule, Precious, Fasio, Nature & Co, Stephen Knoll, Happy Bath Day.

New Products: Sekkesei Deluxe Junkisui Kit, Cosme Decorte White-science Premium White Lift Mask, Paul Stuart Men’s Skin Care, Predia Deep Spa Cold Cream Cleanse, Paul & Joe lipsticks.

Comments: In April 2011, Kosé adopted an aggressive new management plan focused on core brands and e-commerce, creating a site especially for high prestige brands. Outside of Japan, the company is attempting to customize marketing to each country, but focus on their more global brands. Kosé’s goal is to reach close to $2.5 billion in annual sales by 2015.

Annual net sales fell slightly from the year before, to about $2 billion. International sales accounted for 12.7% of total consolidated sales, but the segment fell 1.3% during the year.

Kosé noted that the Japanese economy was severely impacted by the Great East Japan Earthquake that occurred on March 11, 2011, but there was a slow recovery during the second half of the fiscal year.

By product category, Kosé invested in the Cosme Decorte brand and other value-added products sold at stores that provide counseling to customers. There were also effective advertising and sales promotion activities to increase the number of customers, such as giving the Esprique brand a new image.

Anticipating growth in the men’s market, in 2011, Kosé launched the Paul Stuart brand for the men’s prestige cosmetic market. It targets men in their 30s to 50s, and comprises 10 items in categories including fragrance, skincare and hair care. Products are available at specialty cosmetic stores and department stores in Japan. The Stephen Knoll professional hair care brand followed.

For the first quarter ended June 2012, net sales were up 2.6% over the previous year, to about $493 million, with higher sales in both the cosmetics and cosmetaries businesses. In the former, Sekkesei and Esprique did well, while in cosmetaries, there were many new introductions and increased promotional programs.