J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-13
Chinese beauty brands are shifting from viral cross-border e-commerce to physical retail expansion in Southeast Asia, with Florasis and Proya leading the charge in offline channels. Meanwhile, Japanese giants like Shiseido and Kao are focusing on structural reforms and high-value product strategies to navigate a recovering inbound market and stable domestic growth. The sector is seeing a divergence where C-beauty brands aggressively define global standards while J-beauty firms consolidate through M&A and premiumization.
J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-13
Chinese Beauty Brands Deepen Physical Presence in Southeast Asia
In early September 2026, reports highlighted a strategic shift among Chinese beauty brands like Florasis and Perfect Diary, moving beyond "viral hits" on TikTok and cross-border e-commerce to establish physical brand-building efforts in Southeast Asia. This transition marks a maturation phase where brands are investing in local retail partnerships and offline presence to secure long-term market share in emerging economies with young populations. This move challenges the traditional dominance of Japanese and Korean brands in the region's department store and drugstore channels.
Kao Reports Record First-Half Operating Profit
Kao Corporation announced that its operating profit for the first half of 2026 reached a record high, driven by successful structural reforms and strong performance in its cosmetics and chemical segments. The company's strategy of focusing on high-value-added products has allowed it to maintain stable growth despite competitive pressures from rising C-beauty brands. This financial resilience underscores Kao's ability to balance defensive stability with growth initiatives in the global beauty market.
Shiseido's Core Operating Profit Surges 90% in H1
Shiseido reported a 90.1% year-on-year increase in core operating profit for the first half of fiscal 2026 (January–June), reaching ¥44.43 billion, with sales up 6.2% to ¥498.96 billion. President Fumiko Moriyama stated that the company has shifted from a restructuring phase to a growth phase, with significant gains attributed to improved profitability and strategic category reorganization. This rebound highlights the effectiveness of Shiseido's aggressive cost-cutting and brand rationalization measures implemented over the past year.
J-Beauty Global Expansion: Curél Enters Nordics
Kao-owned skincare brand Curél is launching in the Nordic markets in September 2026, signaling a broader push by Japanese beauty companies to diversify their geographic footprint beyond Asia. This expansion leverages Curél's reputation for sensitive skin care and aligns with the growing global demand for gentle, science-backed skincare formulations. The move represents a key step in J-beauty's strategy to capture market share in Western regions where consumer trust in Japanese quality remains high.
Local view
Local industry analysts note that the cosmetics sector in Japan is being re-evaluated based on three axes: defensive stability, inbound tourism recovery, and the Chinese market. Despite earlier concerns about China's slowdown, there are signs of bottoming out for Shiseido and Kosé in China, with a return to Japanese brands observed on cross-border e-commerce platforms like Tmall and Douyin in late 2025. Additionally, the sector is undergoing consolidation, with fewer listed cosmetics stocks due to MBOs and acquisitions, such as Mandom's delisting and FANCL becoming a wholly-owned subsidiary of Kirin.
Context & numbers
- Shiseido H1 FY2026: Sales ¥498.96 billion (+6.2% YoY); Core Operating Profit ¥44.43 billion (+90.1% YoY).
- Florasis Japan Revenue: In 2024, sales in Japan accounted for 40% of Florasis's total overseas revenue, driven by consumer preference for flower and herbal-based cosmetics.
- Judydoll Growth: Judydoll's annual retail sales surpassed US$345 million (RMB 2.5 billion), with international business expanding over 400%.
- Proya Scale: Proya became the first local Chinese beauty company to surpass RMB 10 billion in annual revenue, ranking first on Tmall cosmetics charts in 2025.
On the radar
- Shiseido Full-Year Forecast: The company maintains its full-year 2026 forecast of net sales ¥990 billion (+2.1% YoY) and core operating profit ¥69 billion (+55.0%), indicating continued confidence in its recovery trajectory.
- TikTok Shop & Livestream Commerce: APAC beauty brands are increasingly relying on platform-led commerce via TikTok Shop and Douyin, which compresses discovery-to-purchase cycles and forces traditional retailers to adapt their sales strategies.
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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