J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-12
Japanese cosmetics giants are showing divergent financial recoveries, with Shiseido reporting a significant surge in core operating profit driven by restructuring, while Kao hits record highs in its H1 2026 performance. Meanwhile, Chinese beauty brands like Florasis and Proya are intensifying their global expansion strategies, moving beyond viral social media hits to establish physical retail footprints in Southeast Asia and the US, challenging the traditional dominance of Japanese and Western brands.
J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-12
Shiseido’s Restructuring Pays Off with 90% Profit Jump
Shiseido reported that its core operating profit for the first half of 2026 (January–June) increased by 90.1% year-on-year to ¥44.43 billion, with net sales rising 6.2% to ¥498.96 billion. President Keisuke Fujihara stated that the company has successfully shifted from a restructuring phase to a growth phase, citing improved profitability in key markets despite ongoing challenges in China. This recovery is critical for investors watching how Japanese legacy brands navigate post-pandemic demand shifts and competitive pressure from Asian rivals.
Kao Achieves Record H1 Operating Profit
Kao Corporation announced that its operating profit for the first half of 2026 reached an all-time high, driven by successful structural reforms and strong growth in its cosmetics and chemical segments. The company’s ability to maintain stable growth through high-value-added product strategies contrasts with Shiseido’s more aggressive turnaround efforts, highlighting two different paths for Japanese beauty conglomerates. This performance reinforces Kao’s resilience in both domestic and international markets, particularly as inbound tourism to Japan continues to recover.
C-Beauty Brands Move from Viral Hits to Physical Retail
Chinese beauty brands are increasingly focusing on brand building through physical retail presence rather than relying solely on cross-border e-commerce viral trends. Florasis, for instance, has seen significant traction in Japan, where its floral and herbal-inspired products account for a substantial portion of its overseas sales, while Proya has expanded into major US retailers like Ulta Beauty. This shift marks a maturation of the "C-beauty" export strategy, aiming for long-term brand equity in Southeast Asia and Western markets.
Global Brands Ride the K-Beauty Wave, Pressuring J-Beauty
Major global players like L’Oréal and YSL Beauty are integrating Korean technology and aesthetics into their offerings, while US retailers such as Ulta, Sephora, and Target are expanding their K-beauty assortments. This trend poses a direct challenge to Japanese brands’ traditional strengths in skincare innovation and prestige positioning, forcing companies like Shiseido and Kao to accelerate their own innovation cycles and digital marketing strategies to retain market share among younger consumers.
Local view
Japanese media outlets like WWD Japan and Kokusai Shogyo are highlighting the divergence between Shiseido’s sharp profit recovery and the broader sector’s cautious outlook on Chinese consumer sentiment. Analysts note that while inbound tourism is boosting tax-free sales of prestige brands like Clé de Peau Beauté and SK-II, the long-term sustainability of this revenue stream depends on deeper engagement with local Chinese consumers beyond travel retail. Meanwhile, Chinese industry publications like Cosmetic News are framing the current period as a turning point where C-beauty brands must prove they can sustain growth outside of algorithmic social media spikes.
Context & numbers
- Shiseido H1 2026: Net sales ¥498.96 billion (+6.2% YoY); Core operating profit ¥44.43 billion (+90.1% YoY).
- Florasis Japan Performance: In previous years, Japan accounted for approximately 40% of Florasis's total overseas sales, highlighting it as a key test market for C-beauty in developed Asia.
- Proya US Expansion: Proya has entered approximately 400 Ulta Beauty stores in the US, marking one of the most significant physical retail entries by a Chinese skincare brand in North America.
- Japan Beauty Exports: Data indicates a 38% decline in Japan beauty exports between 2021 and 2024, prompting strategic pivots by major manufacturers toward higher-margin premium products and diversified geographic exposure.
On the radar
- Kao’s Sensai Haircare Relaunch: Kao is re-entering the premium haircare segment with its Sensai brand, targeting travel retail and new international markets as part of its "Global Top Sharp" strategy. This move aims to capture high-margin niches previously dominated by Western prestige brands.
- IT Cosmetics Exit from China: L’Oréal-owned IT Cosmetics is terminating operations in China by September 2026, closing its Tmall flagship store. This signals increasing difficulty for foreign mid-prestige brands competing against agile local C-beauty players in the digital space.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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