J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-02

Top developments

Kao’s Curél Launches in the Nordics

Kao Corporation is accelerating its J-beauty globalization strategy by launching its sensitive-skin brand Curél in the Nordic market this September. This move highlights the sector's shift toward leveraging established Japanese skincare credibility to capture value in high-income Western markets, complementing Shiseido’s recent structural reforms that have already boosted core operating profits by 90.1% in the first half of 2026.

High-End Cream Market Expands with Inbound Support

The premium cream market in Japan is experiencing renewed growth, driven significantly by inbound tourism and a resilient domestic appetite for high-efficacy products. Major manufacturers, including Shiseido and Kose, are accelerating product launches in this category, noting that overseas customers account for a high proportion of purchases for their luxury lines. This trend supports the valuation of Japanese cosmetics stocks as "defensive" plays with exposure to both inbound recovery and the Chinese market.

C-Beauty Brands Shift from E-commerce to Physical Retail

Chinese brands such as Florasis and Judydoll are transitioning from purely online expansion to establishing brick-and-mortar presence in key cities like Tokyo and Paris. While they initially built customer bases via Amazon, Shopee, and TikTok Shop, they are now securing counter space in high-footfall locations to compete directly with established Japanese and Western brands in premium retail environments.

IT Cosmetics Exits China Market

L’Oréal-owned IT Cosmetics announced it will terminate operations in China on September 2, 2026, closing its Tmall flagship store. This withdrawal contrasts with the aggressive inbound strategies of other international players and highlights the increasing competitiveness of the Chinese domestic market, where local brands are gaining significant share against foreign entrants.

Local view

Shousapo (Japan) reports that the high-price-tier cream market is expanding again, with Shiseido and Kose benefiting heavily from the return of inbound tourists who favor their luxury lines. The outlet notes that domestic consumers are showing less resistance to price increases than anticipated, prioritizing proven efficacy over cost savings.

Cosmetic News (China) highlights the maturation of Chinese beauty exports, noting that brands are no longer just chasing viral e-commerce sales but are building sustainable brand equity through physical retail and localized marketing in overseas markets.

Context & numbers

• Shiseido H1 2026 Results: Core operating profit increased by 90.1% year-on-year to ¥44.4 billion, driven by successful structural reforms and a return to growth phase under President Fujiwara.
• Kao H1 2026 Results: Operating profit hit a record high, supported by strong performance in cosmetics and chemicals segments following restructuring efforts.
• Florasis Japan Sales: Japan accounted for 40% of Florasis's total overseas sales revenue last year, underscoring the importance of the Japanese market for C-beauty brands seeking premium positioning.

On the radar

• September 2: IT Cosmetics officially ceases operations in China; watch for shifts in Tmall traffic distribution among remaining competitors.
• September Launch: Curél’s official launch in the Nordic region serves as a test case for J-beauty’s ability to penetrate Northern European markets with sensitive-skin formulations.
• Q3 Earnings Season: Investors are watching for further signs of stabilization in Chinese demand for Japanese cosmetics, particularly from Shiseido and Kose, after earlier volatility due to geopolitical tensions.