KOSE

Basic Information

Stock Code
4922
Industry
Chemicals
Category Detail
Daily Necessities & Household Products
Prefecture
Tokyo
Establishment Year
June 1948
Listing Year
December 1999
Official Website
https://www.kose.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

KOSE is a major Japanese cosmetics manufacturer founded in 1948, primarily manufacturing and selling high-value-added cosmetics, with strengths in the Asian market.

Current Situation

For the fiscal year ending December 2024, KOSE achieved consolidated sales of approximately 322.8 billion yen, operating profit of approximately 17.4 billion yen, and net profit of approximately 7.5 billion yen, advancing business development leveraging brand power domestically and internationally. Key brands include SEK and Cosme Decorte, with sales strengthening particularly in the Asian market. In technological innovation, it actively introduces cutting-edge technologies such as the development of facial cleansing oil using quantum computers. Regarding sustainability, it continues to receive certification as a superior health management corporation, reflecting consideration for the global environment in its corporate philosophy. Its mid-to-long-term strategy emphasizes expansion of new businesses and overseas operations, revenue enhancement of core brand businesses, and improvement of cost competitiveness. In recent years, it has focused on acquiring North American subsidiaries, entering the European market, and strengthening digital marketing. From 2025 onward, it aims to establish global competitive superiority by leveraging multifaceted growth drivers.

Trivia

Interesting Facts

  • First in cosmetics industry to develop serum and powder foundation
  • ''SEK'' brand maintains popularity in China through repeated improvements
  • Long history as sponsor of TV and radio programs
  • ''Jill Stuart'' brand adopts out-of-brand strategy
  • Multiple famous celebrities serve as brand ambassadors
  • Founder Kosaburo Kobayashi's philosophy remains core of management
  • Owns multiple factories in Japan as production bases
  • Pioneered introduction of quantum computers in product development
  • Global expansion with numerous subsidiaries domestically and internationally
  • Established local corporations in Asian countries to address local markets
  • Multi-year consecutive acquisition of Health Management Superior Corporation White 500
  • Long-term sole sponsor of Japanese TV anime programs
  • Also offers fragrance and men's cosmetics brands
  • Promoting store expansion utilizing IT and digital technology
  • Active support for women's empowerment including women-only IR seminars

Hidden Connections

  • Company and brand names derive from founder Kosaburo Kobayashi
  • Enhanced exposure through Fuji TV drama and CM linked campaigns
  • Fully subsidiary of U.S. brand ''Tarte'' for U.S. and Europe market expansion
  • Industry-top level with representative beauty advisor training program
  • Leveraging local subsidiaries in growth strategies for Korea and China markets
  • Group-wide health management promotion contributes to employee satisfaction
  • One of the pioneering companies applying quantum information technology to cosmetics development
  • Strong in ODM business backed by long-cultivated technology and brand power

Future Outlook

Growth Drivers

  • Ongoing expansion of cosmetics demand in Asia
  • Increasing customer needs for high-function and high-value-added products
  • Strengthening product development capabilities through advanced technology applications
  • Expansion and promotion of sales networks via overseas local corporations
  • Expansion of digital marketing and e-commerce utilization
  • Talent acquisition through health management and sustainability initiatives
  • Sales diversification through ODM business expansion
  • Enhanced recognition via international brand deployment
  • Aggressive entry into new markets and fields
  • Product improvements and development responding to changes in consumer awareness
  • Expansion of health and beauty-related businesses beyond cosmetics
  • Sophistication of customer services through data analysis

Strategic Goals

  • Increase overseas sales ratio to 60%
  • Adopt sustainable materials in over 50% of all brands
  • Launch new products applying quantum technology
  • Deploy global beauty advisor training programs
  • Increase digital and online sales ratio to over 40%
  • Sustain Superior Health Management Corporation certification
  • Improve brand recognition in North America and Europe by 50%
  • Achieve over 80 billion yen in ODM business sales
  • Reduce CO2 emissions by 30% compared to 2010
  • Achieve over 30% female manager ratio through women's empowerment

Business Segments

Travel Retail Business

Overview
Provides high-value-added cosmetics to airports and overseas duty-free shops.
Competitiveness
Strong sales network in overseas duty-free markets
Customers
  • Duty-free shops
  • Airport specialty stores
  • Overseas retailers
Products
  • Premium cosmetics
  • Limited package products

Beauty Advisor Training & Salon Support

Overview
Provides training for beauty advisors and support for specialty store operations.
Competitiveness
Industry-leading training expertise
Customers
  • Department stores
  • Cosmetics specialty stores
  • Beauty salons
Products
  • Beauty advisor training programs
  • Sales promotion tools

ODM Supply & OEM Production

Overview
Provides contract manufacturing of high-quality cosmetics domestically and internationally.
Competitiveness
Advanced manufacturing technology and quality control
Customers
  • Domestic and international cosmetics brands
  • Small manufacturers
  • Companies expanding sales channels
Products
  • Serums
  • Foundations
  • Skin care products

R&D Contract Services

Overview
Contract research business utilizing advanced laboratories.
Competitiveness
Top-level analytical technology and research capabilities
Customers
  • Cosmetics development companies
  • Raw material manufacturers
Products
  • New ingredient evaluation
  • Product formulation

Logistics Services

Overview
Improves customer satisfaction with efficient logistics system.
Competitiveness
Wide-area order acceptance and IT integration
Customers
  • Own product sales network
  • External retailers
Products
  • Product delivery
  • Inventory management optimization

Raw Materials & Supplies Procurement

Overview
Operations of procurement division aiming for stable supply.
Competitiveness
Global procurement network
Customers
  • Group companies
  • External manufacturers
Products
  • Cosmetics raw materials
  • Packaging materials

Competitive Advantage

Strengths

  • Specialized manufacturing capabilities in high-value-added cosmetics
  • Extensive sales network domestically and internationally
  • Powerful and diverse brand portfolio
  • Advanced technology development including quantum computer utilization
  • High employee satisfaction from superior health management certification
  • Customer trust gained through long-term beauty advisor training
  • Aggressive overseas market expansion (especially Asia strengthening)
  • Solid management foundation and healthy assets
  • Comprehensive coverage of diverse sales channels
  • Strong group structure including related companies
  • High social contribution awareness and sustainability promotion
  • Enhanced international brand recognition
  • Multifaceted product development capabilities
  • High-quality OEM/ODM business provision
  • Digital transformation initiatives

Competitive Advantages

  • Strength of proprietary brands such as SEK and Cosme Decorte
  • Solid foundation and sales network in major Asian countries
  • High-performance serums and innovative foundation technology
  • Unique process development using quantum computers
  • Diversity and high technological prowess in ODM business
  • Industry-leading health management initiatives
  • Strengthened customer touchpoints via robust beauty advisor network
  • Advancement of expansion strategies in North America and Europe
  • Target diversification and expansion through multiple brands
  • Stable supply system via logistics optimization
  • Long-term financial stability and growth potential
  • Active utilization of digital marketing
  • High R&D investment and innovation promotion system
  • Product differentiation via patented technologies
  • Multinational and multicultural management resources

Threats

  • Intensifying competition domestically and internationally
  • Rapid changes in consumer preferences
  • Profit pressure from exchange rate fluctuations
  • Impact of strengthened cosmetics regulations
  • Market share decline due to rise of emerging brands
  • Supply chain instability risks
  • Rising raw material prices
  • Competitive disadvantage from delayed technological innovation
  • Challenges in responding to diversifying health awareness
  • Offensive from digital competitor companies
  • Consumption decline due to economic downturn
  • Production impact from labor shortages

Innovations

2024: Development of Facial Cleansing Oil Using Quantum Computer

Overview
Developed high-function facial cleansing oil through high-speed process calculations.
Impact
Contributes to enhancing product competitiveness and opening new markets

2023: Subsidiary Acquisition of U.S. Tarte

Overview
Strengthened deployment of high-value-added brands in the North American market.
Impact
Sales expansion and brand diversity improvement

2022: Opening of Maison KOSE Europe Concept Shop

Overview
Established a new brand experience space in the European market.
Impact
Improved recognition in Europe and expanded customer touchpoints

2021: Opening of New Concept Store Integrating Digital Platform

Overview
Developed digitally integrated shopping experience in Ginza.
Impact
Improved consumer convenience and promoted sales

2020: Strengthening Overseas Expansion Utilizing ODM

Overview
Promoted penetration into overseas markets through product diversification via ODM.
Impact
Increase in overseas sales ratio

2025: Ongoing Development of New Products Applying Quantum Technology

Overview
Plans to create new product lineup using quantum computer technology.
Impact
Maintenance and expansion of competitive superiority

Sustainability

  • Continuous acquisition of Superior Health Management Corporation certification
  • ISO14001 certification for reducing environmental impact
  • Active adoption of sustainable materials
  • Promotion of employee diversity and work-life balance
  • Expansion of social contribution activities