Kose Targets Top-Line Growth Through International Expansion

Kose is Japan’s second-largest beauty company behind Shiseido, with 65% of sales derived domestically. This concentration highlights the scope for international expansion, with management targeting more than 50% of sales from overseas markets by 2030, driven by both organic market entry and regional brand acquisitions. We view this strategy as constructive to diversifying geographic exposure, particularly as domestic sales soften amid rising inflation in Japan and weaker inbound tourism demand. To support these goals, Kose plans to spend JPY 190 billion through 2030, with JPY 110 billion earmarked for acquisitions, digital investments, and research and development.