J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-02
Japanese beauty giants Shiseido and Kao reported strong first-half results driven by structural reforms and a rebound in inbound tourism, with Kao hitting record operating profits. Meanwhile, Chinese beauty brands like Florasis and Judydoll are accelerating their physical retail expansion in Japan and Southeast Asia, challenging established Japanese brands in premium segments.
J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-02
Top developments
Kao Achieves Record Operating Profit in H1 2026
Kao Corporation announced that its operating profit for the first half of 2026 reached a historical high, driven by successful structural reforms and growth in its cosmetics and chemical segments. The company highlighted that high-value-added products are now the primary drivers of stable growth, allowing it to maintain profitability despite market volatility. This performance underscores the effectiveness of Kao's strategy to focus on premiumization and efficiency, setting a robust baseline for the second half of the fiscal year.
Shiseido Transitions from Restructuring to Growth Phase
Shiseido reported a 6.2% increase in net sales for the first half of 2026, with core operating profit surging 90.1% year-on-year. President Tsunehisa Kitamura stated that the company has successfully pivoted from its restructuring phase to a growth phase, citing improved profitability and the recovery of inbound demand in Japan. The significant jump in net profit (3.1 times year-on-year) reflects the immediate benefits of cost-cutting measures and brand portfolio optimization.
Florasis and Judydoll Expand Physical Presence in Japan and SEA
Chinese beauty brands are moving beyond online sales to secure prime retail space in key international markets. Florasis has established a foothold in Japan's premium market, leveraging traditional Chinese aesthetics, while Judydoll is expanding offline in Southeast Asia after building a base on TikTok Shop and Shopee. This shift marks a maturation in C-beauty's global strategy, aiming to compete directly with Japanese and Western brands in brick-and-mortar venues.
High-End Cream Market Re-expands in Japan
The Japanese market for high-price-range creams is seeing renewed expansion, with major manufacturers accelerating product launches. Inbound tourism recovery is significantly boosting sales for Shiseido and Kose's premium lines, as overseas consumers continue to drive demand for high-end Japanese skincare. Domestic consumers are also showing less resistance to price increases, prioritizing perceived efficacy and quality over cost.
Local view
Japanese business media highlight the divergent strategies of domestic giants. Nihon Commercial News notes that Kose is undergoing a significant operational restructuring, merging its cosmetics sales division into the main entity by January 2028 to streamline operations. Analysts observe that while Shiseido is recovering from past struggles, Kao's steady growth is attributed to its consistent focus on high-margin products.
Context & numbers
- Shiseido H1 2026: Net sales ¥498.96 billion (+6.2% YoY); Core operating profit ¥44.43 billion (+90.1% YoY).
- Kao H1 2026: Operating profit hit a record high, driven by cosmetics and chemical segments.
- C-Beauty Trend: Chinese brands are increasingly targeting "definition rights" in the global market, moving from low-cost alternatives to premium positioning in Japan and Europe.
On the radar
- Kose Restructuring Completion: Watch for the full integration of Kose's cosmetics sales division into the main company by January 2028, which may affect distribution channels and brand visibility.
- IT Cosmetics Exit: L'Oréal-owned IT Cosmetics officially terminated operations in China on September 2, 2026, signaling a shift in how Western brands approach the competitive C-beauty landscape.
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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