Sales: $2.2 billion

Key Personnel: Kazutoshi Kobayashi, president and CEO; Yasukiyo Kobayashi, Honorary Chairman; Takao Kobayashi, senior executive director; Masanori Kobayashi,  executive director;  Koichi Shibusawa, executive director; Yusuke Kobayashi, director; Shinichi Mochizuki, director; Masahiro Horita, director;  Atsuko Ogura, director, R&D Laboratories

Major Products: Cosmetics, skin care, fragrance, haircare and sun care sold by Decorté, Jill Stuart, Tarte, Sekkisei Miyabi, Infinity, Predia, Addiction, Imprea, One by Kosé, Sekkisei, Lerchéri, Espirque, Astaluxe, X-Barrier by Dr. Phil Cosmetics, Acneo by Dr. Phil Cosmetics, Maidada, Carté HD, Visée, Fasio Nailholic, Make Keep Mist, Stephen Knoll New York, Softymo, Je l’aime, Magnifique, Bioliss,  Clear Turn, Suncut, Grace One

New Products: Decorté—Liposome Advanced Repair Cream; Tarte—Maracuja Juicy Lip series, Shape Tape Radiant; Je l’aime—Relax (relaunch)

Comments: In Japan, Kosé said sales and profits in 2022 were up mainly due to its high prestige category, with strong sales at both department stores and specialty cosmetics stores. Kosé said since the entire cosmetics market recovered,  2022’s sales were above 2021 and the company’s revised estimates. Earnings were also above 2021 due to efforts to hold down the cost of sales ratio and control marketing expenses, it said.In China (excluding TR), sales and profits were below 2021. According to Kosé, the country’s zero-covid policy prevented a return to normal economic activity and performance was also impacted by intense e-commerce competition and temporary store closures and reduced hours. In China/South Korea TR, China duty-free sales were above 2021 but slightly below its revised plan. Profits exceeded 2021 and the revised plan. South Korean duty-free sales and profits were far below 2021 but sales reached the revised plan and earnings surpassed the plan due to a lower cost of sales ratio and cost controls.

Overseas, Kosé said sales were above those in 2021 and its revised plan due to strong consumer spending and the yen’s depreciation (+6.2% excluding forex). Earnings, however, were lower than in 2021—which Kosé attributed to the higher cost of sales ratio and increase in SG&A expenses—but topped Kosé’s revised plan due to strong holiday shopping season sales.

By category, cosmetics segment sales increased as higher sales came from Tarte, Decorté, Albion, Jill Stuart and other high prestige brands.

Sales: $2.7 billion

Sales rose less than 1% last year. By region, Japan accounted for 50.7% of sales, followed by Asia (33.1%), North America (14.5%) and other (1.7%).

In Japan, consumer spending began to recover in October, once the state of emergency was lifted. By brand, Kosé sales were strong in specialty stores throughout the year. Cosmetaries (cosmetics and toiletries) sales improved as brands such as Softymo and Clear Turn recovered.

In Asia, sales rose 4.5% as cosmetic sales remained high even as China’s zero-covid policy took hold.

In North America, US sales remained strong due to solid consumer spending. Top-selling prestige brands include Decorté, Albion, Addiction, Jill Stuart and Tarte. Sales of makeup and other “cosmetaries” declined less than 1%.

For Q1 2022, sales fell 3.7%. The company blamed the decline, in part, on the pandemic in China. In Japan, sales of cosmetics were strong in department stores. Sales of Tarte jumped nearly 20%, due to gains in North America.
For the rest of the year, Kosé said it is focused on selling products to young people and people not yet using skin care products.

Looking further ahead, Kosé’s Vision2026 plan calls for sales of ¥500 billion (an increase of 40% from 2021). To get there, the company has three growth strategies:

• Accelerate globalization of brands;
• Proactively develop unique products; and
• Explore new growth domains.

Sales: $2.6 billion

The Kosé cosmetic counter at CentralPlaza Nakhon Ratchasima, Thailand.

Corporate sales fell 14.7% last year, which the company blamed on COVID-19. Cosmetics sales fell 13.3% last year, while sales of “cosmetaries” dropped 18.7%. While Decorté sales were strong in China, Albion and Cosmeport sales were severely impacted by a decline in consumer spending in Japan. Lockdowns held down consumer spending last year, but Kosé noted that the overall market is slowly recovering. Specifically, in fiscal Q4, Decorté and Albion posted big gains in sales.

Outside Japan results were mixed. Rapid e-commerce growth in China lifted sales in Asia by more than 27%. However, sales in North America, Europe and other regions fell nearly 27%, but Kosé noted that there were signs of recovery in the US. Sales of Tarte rose 35%, excluding results in Ulta and Sephora.

This year, Kosé expects sales in China to grow 20%. Tarte is expanding its European and US sales networks, and will start international e-commerce activities in China. Elsewhere, Kosé predicts a 10% gain in South Korea, and mid-single-digit increases in Japan, Europe and the US.

Sales: $3.0 billion

Sales fell 1.6% last year, and sales of cosmetics declined 1.2%. In the “high prestige” channel, higher sales of Decorté and Infinity brands were offset by declines in Albion and Tarte. Similarly, in the prestige cosmetic segment, higher Esprique sales were offset by lower Sekkisei sales. Within the cosmetaries category, a catch-all segment for personal care products, sales declined 3.6%, as higher sales of hair and skin care brands such as Stephen Knoll, Bioliss and Grace One, were offset by sales declines for Clear Turn and Visée.

By region, sales in Japan fell 7.3%, as sales to tourists tumbled more than 37%; Kosé blamed the decline on a slowdown in Q4 results due to the COVID-19 crisis, as well as previous stockpiling by consumers ahead of a consumption tax hike and an expansion of Asia and duty-free store sales channels. In contrast, the expansion of duty-free stores in South Korea, along with gains in China, helped sales in Asia jump 25%. Sales in North America and other regions fell 1.2%, as gains in Europe were not enough to offset lower US sales.

Kosé said COVID-19 knocked nearly 7% off its initial sales estimate for the year. Looking ahead to the end of the current fiscal year, the company expects overall sales to drop more than 12% due to lockdowns, stay-at-home requests and travel restrictions caused by COVID-19.

Still, Kosé remains determined to become a company with a global presence, as noted in its Future Vision 2026 statement. The company said it will grow by accelerating brand globalization, develop unique products and explore new markets. Furthermore, it will use digital technology to provide a better customer experience and finally, create a sustainability strategy across its entire value chain.
The ultimate goal is to become a customer-driven company appreciated by people worldwide, according to Kosé executives.

Sales: $2.7 billion for cosmetics.
Corporate sales: $3.3 billion.

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.

The global outlook extends beyond P/L. For 10 years, Kosé’s Save the Blue coral reef project has been designed to protect Okinawa’s reef. Every year, the company plants an area of coral equivalent to the total area of the bases of all the Sekkisei bottles sold during the campaign. Last year, the company expanded the project to China, Taiwan, Hong Kong, South Korea, Thailand, Singapore, Malaysia, Indonesia and the US.

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.

Sales: $2.7 billion

Corporate sales increased nearly 14% and sales of cosmetics, which account for more than two-thirds of sales, rose more than 15% last year. Sales of cosmetaries  increased nearly 9%. Both sales and operating profits reached all-time highs.

Sales in Japan increased nearly 8%, but Kosé noted that markets outside its home country accounted for nearly 25% of sales last year. International sales surged almost 37% in 2017, driven by strong growth in China and South Korea. In North America, sales increased more than 38% on the strength of the Tarte franchise. The number of stores selling Tarte reached 2,500 last year.

Looking ahead, Kosé expects sales to rise 6.5% this year, led by a 7.6% gain in cosmetics sales. The company noted, however, that its license with Rimmel London expires on Oct. 31, 2018.
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.

If successful, Kosé will have sales of ¥500 billion and an operating market of 16% or more 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.

The global outlook extends beyond P/L. For 10 years, Kosé’s Save the Blue coral reef project has been designed to protect Okinawa’s reef. Now, the company is expanding the project to China, Taiwan, Hong Kong, South Korea, Thailand, Singapore, Malaysia, Indonesia and the US.

Sales: $2.3 billion

Kosé marked its 70th anniversary last year and there was plenty to celebrate as sales rose more than 9%, enabling Kosé to post its fourth consecutive year of record sales. Company executives credited the gain to strong sales of high-prestige brands in the cosmetics business, major brands in the cosmetaries business and higher sales of all makeup brands.

Specifically, high prestige sales rose on the strength of the Cosme Decorte brand. Company executives also noted that Tarte’s sales were much higher than planned, while Jill Stuart, Addiction and other makeup brands recorded higher sales. Prestige sales increased due to the popularity of new Esprique makeup products and the launch of One by Kosé, a serum that promises to improve the skin’s ability to retain moisture. These new products, combined with new marketing campaigns, helped cosmetic sales rise more than 10%.
Sales of cosmetaries rose 7.6%. The company credited higher sales of Je l’aime hair care products, Suncut sunscreen products, Fasio and Visée makeup and Nail Holic nail care products.

International sales accounted for nearly 21% of sales last year. Sales in Japan rose 5.7%, as the company added new customers for its makeup and skin care offerings. However, sales in the rest of Asia rose less than 1% as structural reforms are underway in China. Elsewhere, North American sales rose on the strength of Tarte. Last year, Kosé launched Sekkisei in the US. Global expansion with higher earnings are all part of the company’s Phase III Vision2020 plan.

Kosé’s Fundamental Research Laboratory is scheduled for completion in 2019. When finished, it will consolidate Kosé’s three research areas to two locations in Oji.

Currently, company researchers are studying induced pluripotent stem cells to learn if they have applications in anti-aging products.

Sales: $2.0 billion

Sales rose 17% in local currency last year, with cosmetics accounting for nearly 75% of sales and “cosmetaries” the remainder. It marked the third consecutive year of record sales and growth was achieved in all business segments. And yet, Kosé, like Shiseido and others, is looking beyond its borders for growth. The current management plan, unveiled last year, calls for building and strengthening global brands. International markets accounted for nearly 18% of sales last year, helped along by the 2014 acquisition of Tarte. According to Kosé, the brand exceeded performance targets.

Domestic cosmetic sales rose on the popularity of prestige brands such as Albion, Cosme Decorte, Sekkisei and Jill Stuart. Outside Japan, sales rose in Taiwan, South Korea and China.

Sales of cosmetaries, a word Kosé coined years ago by combining “cosmetics” and “toiletries,” increased more than 14%, helped along by demand for Clear Turn facial masks and Suncut sunscreens.

Looking ahead, Kosé management predicted that sales would rise 4.4% in fiscal 2017. Sales of upscale cosmetics are expected to lead the way, with a gain of 4.7%. Further down the road, Kosé expects sales to reach ¥277 billion by the end of fiscal 2019. To get there, the company must grow nearly 14%.

Sales: $1.7 billion

Kozaburo Kobayashi founded Kosé in 1946, pouring his limitless passion into making cosmetics to provide people with dreams and hope. Even in the post-war period of struggle and shortages, Kobayashi was committed to making quality products that truly exceeded the expectations of each customer., according to the company. His ideals, according to Kosé, are alive in all facets of the business today. From research and development to manufacturing, from customer-oriented marketing system that perfectly matches brands and sales channels. This spirit is what gives Kosé strength and drive to do more.

For the fiscal year ended March 31, 2015, net sales increased 9.4% and operating income soared 19.6%. The company forecasts net sales to rise 3.9% in the current fiscal year.

According to Kosé, sales increased due to the acquisition of Tarte and strong sales of Albion. In fact, despite the effects of a consumption tax hike, Albion posted record sales. There were strong sales of current skin care products and base makeup products with different type of foundations were successful. Also, in Japan, sales of Sekkisei and Esprique increased primarily in drug stores. Sales of AQ Meliority and AQ MW, two high-end lines, increased and new lines of skinc are and base makeup products were launched to attract new customers. Self-selection makeup brands Visée and Elsia brands for sale exclusively through convenience stores additionally performed well this year.

Kosé also moved into the Indian cosmetics market for the first time with the April launch of a new skin care brand, Spawake, by the local Indian operating company Kosé Corporation IndiaPvt. Ltd. The Spawake portfolio is targeted to Indian women in the middle-income bracket and is available at urban supermarkets, mainly in Delhi, as well as online.

Meanwhile, Cosme Decorte is preparing for a “facelift” as it enters its 45th year. Often considered Asia’s best-kept secret, this techno-innovative beauty powerhouse is setting its sights on global expansion, streamlining its name to Decorte and tapping into some of fashion and beauty’s top talents—Kate Moss and Mario Testino. A global ad campaign, the brand’s largest to date, will hit September 2015 books and kick off a multi-year contract with Moss. The illustrious model will also appear in a pre-release, behind-the-scenes video in August. The initial campaign will highlight the Moisture Liposome franchise, the best-selling prestige face serum in Japan, as well as the new Liposome Treatment Liquid.

President and CEO Kazutoshi Kobayashi stated, “During the Decorte brand’s long history, we have established a strong bond and trust with women of Asia based on our innovative and superior formulations. As Decorte starts a new chapter, we are pleased to work with the globally recognized and revered Kate Moss. It’s the perfect pairing.”

Sales: $1.8 billion

Kosé breaks its operations into three main areas. Cosmetic sales rose 9.1% to more than $1.3 billion. Sales were higher in Japan, with a big increase in sales of skin care brand products in the prestige, namely Sekkisei and Astablanc. In addition, sales of brands handled by Albion Co., which sells luxury cosmetics, and Cosme Decorte were also up for the year.

Kosé’s “cosmetaries” business recorded a sizeable 19.1% gain in sales to $479 million. Within this area, Kosé Cosmeport Corp. sales set a new record, thanks to solid performances by all of the core major brands, such as Je l’aime, Suncut, Softymo and Clear Turn. In addition, Viseée and Fasio self-selection makeup brands, which were given a new look, posted higher sales, according to the company.

In Kose’s “other business” segment, sales fell 5.5% to $15 million. Within this sector, there were decreases in sales of amenity products and orders for the manufacture of OEM products, noted the firm.

The big news from Kosé Corporation came on March 4, when it announced a deal to acquire US-based Tarte, Inc. The purchase fits well with the firm’s strategy to expand its overseas operations outside its primary regions of Japan and the Association of Southeastern Asian Nations (ASEAN). In addition, Tarte adds new sales channels and customers—for example, 20- and 30-year olds who like to shop at Sephora, Ulta and QVC.

According to Kose, Tarte’s sales had risen from less than $25 million in 2010 to $52 million in 2012. Maureen Kelly, who founded the cheeky cosmetics firm in her New York City bedroom, remains at the helm at Tarte and is a stakeholder in the new setup as well.

North America isn’t the only new territory for Kose; the firm is breaking into the Indian cosmetics industry too by establishing a wholly-owned subsidiary there. Going it alone is a change in plans for Kose, which had initially planned to establish a JV with Elder Pharmaceuticals Limited. However, a “mutual agreement to cancel the basic agreement” ended that approach.

Sales: $1.8 billion

With all business segments posting gains, sales rose 2.5% for the year ended March 31, 2013, which is an improvement over the previous year’s results when sales fell 2.7%. Kosé noted that Japan’s economic activity appeared to pick up with a new government in place and reconstruction activities well underway following the Great East Japan Earthquake.

Skin care product sales, which account for about 75% of corporate sales, rose 2% as the company nurtured high-prestige brands such as Cosme Decorteand Jill Stuart. In the prestige segment, Sekkisei and Esprique benefitted from increased advertising and promotion campaigns.

International cosmetic sales rose modestly, held back by weakness in China and challenging market conditions in other countries.
Sales of hair care, sunscreen and other personal care products increased 3.6%, driven by the launch of Suncut sunscreens and the Je I’aime hair care products.

Earlier this year, Kosé formed a joint venture with Elder Pharmaceuticals to manufacture and sell cosmetics in India under the name Kosé Elder (India) Private Limited. The move was made to supply this fast-growing market with products that are tailored specifically to consumers’ needs. The JV will be located in Mumbai and is expected to begin operations next month.

This month, Kosé will launch Stylegenic hair styling products under the Stephen Knoll label. The formula includes a novel cationic acrylic silicone resin that was created in a joint research project with Shin-Etsu Chemical Co. Ltd.

Kosé expects cosmetics sales to increase 3% and personal care sales to rise 1% this year.

Sales: $2.0 billion

Sales fell 2.7% after declining nearly 1% the year before. 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. Still, according to data from the Ministry of Economy, Trade and Industry, there was an increase in sales volume but a decrease in monetary sales in calendar 2011 compared with 2010.

In Asia, the Chinese economy continued to expand but economic growth stalled in other areas with only a few exceptions, according to Kosé. In this difficult environment, the company, Kosé executives decided to switch from “defensive reforms” to “offensive reforms.” One objective is to make core brands in Japan even more powerful. At the same time, the group is expanding overseas operations and new businesses that have growth potential. In addition, the group is taking measures in response properly to limitations on the supply of electricity and the environment for procuring raw materials as well as reinforcing the base of operations. The goal is to build a framework for business operations that can adapt with flexibility to shifts in market conditions.

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. Kosé entered new business domains by introducing prestige cosmetics for men and establishing an e-commerce subsidiary for the full-scale launch of an e-commerce business.

This year, Kosé expects sales to rise 2.7% based on three initiatives: strengthen mass market businesses, cut the cost of manufacturing products and improve labor productivity. Company executives are hoping government economic initiatives provide a lift to Japan’s economy, although they admit Japan’s long-term deflation, European debt and rising energy costs are difficult problems to solve.

Sales: $2.0 billion

According to statistics for cosmetics shipments compiled by the Ministry of Economy, Trade and Industry, the Japanese cosmetics industry saw increases in unit volume and monetary sales in 2010 compared with 2009. However, as it is well known, the March 11, 2011 earthquake had a severe impact on the Japanese economy overall—and as a result, times were tough on many companies, including Kosé.

According to Kosé, during the current fiscal year, there were signs of a recovery in consumer spending as the downturn in the Japanese economy ended, but market conditions remained lackluster and there was a drop in sales immediately after the Great East Japan Earthquake. As a result, the firm’s net sales decreased 0.9% for the year ended March 2011.

On a more positive note, in Asia, the Chinese economy has been expanding and economies in other Asian countries are also recovering, propelling Kosé’s overseas sales to represent 12.3% of total consolidated sales, led by China, the company said.

Net income was up 30.5% to more than $78 million due to a gain on sales of noncurrent assets associated with the outsourcing of logistics operations, an extraordinary loss associated with the Great East Japan Earthquake, and other items.

As for its own earthquake related issues, Kose’s Tohoku Distribution Center in Sukagawa in Fukushima prefecture was damaged, but operations resumed on March 29 and it was pretty much business as usual, except for deliveries to certain regions. In April, Kosé said rolling blackouts were disrupting operations at factories in Saitama and Gunma prefectures. However, the firm said it was working to minimize the impact of these blackouts as much as possible by using flexible times for work shifts and other tactics.

Sales: $1.8 billion

Sales fell 3.1% last year, primarily due to weak consumer spending caused by the poor economy, according to the company. Cosmetics sales fell 4.8%, as Kosé focused on expanding luxury brands distributed through specialty cosmetics stores and department stores. Two highlights were the debut of the Addiction brand of makeup products for sale in department stores and the relaunch of the Cosme Decorte AQ Meliority brand.

Sales of cosmetaries increased 2.6%, as Kosé boosted advertising and promotions. Last year, Kosé entered the male cosmetics business with the introduction of Adidas skin protection.

Looking ahead, Kosé management predicts sales will increase 3.4% through March 31, 2011.

Sales: $1.8 billion

For the year ended March 31, 2009, Kosé’s sales dropped 1.2% to $1.8 billion. Company officials pointed to lackluster consumer spending caused by the poor economy and the yen’s strength as the reasons for the decline.

Kosé hopes to make a big splash with its new department store cosmetics brand, Addiction, which was created by makeup artist Ayako Yoshimura. The line, which is targeted at career-driven, urban women, was unveiled in mid-July at retailer Isetan in Shinjuku, Tokyo, before rolling out to other stores in Kobe and Osaka. Kosé has created a dedicated website for the new line at www.addiction-beauty.com.

Sales: $1.58 billion.

For the year ended March 31, 2008, Kosé recorded sales of $1.58 billion, a 2.2% gain.  Cosmetics sales were bolstered by Cosme Decorte and Jill Stuart. Sales of its luxury cosmetics line, Albion, were better than expected, the company said.

Overseas, Kosé said sales initiatives to raise awareness of the Sekkisei brand, mainly in Asia, were effective. The company also started operations in the Middle East in December.

Since June, Kosé has been importing, manufacturing and selling Rimmel in China via a deal with Coty. The new deal, which enables Kosé to distribute Rimmel in other Asian countries for the first time, follows a 2006 accord in which Kosé acquired the license to import, manufacture and distribute Rimmel in Japan. Kosé will customize products to the taste of the local Chinese market and sell them in individual stands in department stores and drugstores. The goal is to have 300 Rimmel shops in the country within three years.

Kosé is also trying to make it even easier for the most time-crunched Japanese woman to buy product. The firm is selling Junkisui, a new line of skin care at more than 12,000 convenience stores owned by Seven-Eleven Japan Co. The five products in the line all feature ingredients from oriental  plants as well as coenzyme Q-10, hyaluronic acid and collagen. Kosé contends the Seven-Eleven stores are easily accessible to working women with limited time for shopping, and they have some evidence: Kosé began selling Sekkisui brightening skin care products in Seven-Elevens in 2004.

Last October, Kosé and the Graduate School of Pharmaceutical Sciences of the University of Tokyo established a collaborative lab, and this June they had a breakthrough. Working with professor Mitsunori Fukuda to find a novel approach for skin brightening, they discovered that inhibiting the transport of melanosomes in melanocytes is an effective way to prevent skin pigmentation. Kosé, which has filed patent applications in conjunction with the findings, plans to present a paper on the research at the International Federation of Societies of Cosmetics Chemists (IFSCC) congress in Barcelona in October.