J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-10
Kao Corporation reported record-high first-half operating profits for 2026, driven by structural reforms and strong cosmetics growth, while Shiseido continues to navigate a complex recovery in China with mixed sales signals. Meanwhile, Chinese beauty brands like Florasis and Proya are shifting from viral cross-border e-commerce hits to deeper brand-building efforts in Southeast Asia, marking a maturation of the "C-beauty" global strategy.
J-Beauty and C-Beauty: Shiseido, Kao, Florasis Abroad — 2026-09-10
Top developments
Kao Hits Record First-Half Operating Profit on Structural Reforms
Kao Corporation announced that its operating profit for the first half of 2026 reached an all-time high, surpassing previous records. The company attributed this success to ongoing structural reforms that have enhanced profitability, with the Cosmetics and Chemicals segments acting as primary growth drivers. This performance underscores Kao’s resilience in the face of fluctuating demand in key markets like China, leveraging high-value-added products to maintain stability.
Shiseido’s Core Profit Surges Despite Flat Like-for-Like Sales
Shiseido reported a 90.1% year-on-year increase in core operating profit for the first half of fiscal 2026, reaching ¥44.4 billion, alongside a 131.8% jump in operating profit. However, detailed analysis reveals that like-for-like net sales actually declined by 0.2%, indicating that the profit surge is primarily driven by cost-cutting measures and structural reforms rather than organic volume growth. This divergence highlights the effectiveness of Shiseido’s efficiency initiatives but raises questions about top-line recovery in its critical Chinese market.
C-Beauty Brands Shift from Viral Hits to Deep Brand Building in SEA
Chinese beauty giants including Proya, Florasis, and Judydoll are transitioning their Southeast Asia strategies from relying on viral e-commerce spikes to establishing long-term brand equity. Data indicates that China’s cosmetics exports grew by 9.2% year-on-year to $7.82 billion in 2025, with Southeast Asia serving as the primary launchpad due to demographic similarities and proximity. This shift involves more localized marketing and physical retail presence, aiming to compete directly with established Japanese and Western brands in the region.
J-Beauty Global Expansion Accelerates with Curél’s Nordic Launch
Kao-owned skincare brand Curél is set to launch in the Nordic countries this September, part of a broader J-beauty global expansion strategy. This move reflects Japanese brands' efforts to diversify revenue streams beyond the volatile Chinese market by targeting regions with high demand for sensitive-skin solutions. The expansion aligns with Kao’s "Global Top Sharp" strategy, which also includes premium brand Sensai’s return to haircare and travel retail.
Local view
Japanese financial analysts are closely monitoring the divergence between Shiseido’s profit recovery and its flat sales, noting that while structural reforms have successfully boosted margins, sustainable growth requires renewed consumer demand in China. Market commentary suggests that the cosmetics sector is being re-evaluated based on three axes: defensive stability, inbound tourism recovery, and Chinese market exposure, with some "laggard" stocks seeing renewed interest due to these factors.
In China, industry observers note that the "C-beauty" narrative has matured; brands are no longer just seeking quick wins on TikTok but are investing in R&D and offline experiences to build lasting loyalty in overseas markets.
Context & numbers
- Shiseido H1 FY2026: Core operating profit up 90.1% to ¥44.4 billion; Net sales up 6.2% to ¥498.9 billion (reported), but like-for-like sales down 0.2%.
- China Cosmetics Exports: Reached $7.82 billion in 2025, up 9.2% YoY.
- Kao H1 2026: Record-high operating profit driven by Cosmetics and Chemicals segments.
On the radar
- Curél Nordic Launch: Scheduled for September 2026, marking a significant test for Kao’s expansion into Northern Europe.
- IT Cosmetics Exit: L’Oréal’s IT Cosmetics officially terminated operations in China as of September 2, 2026, signaling continued consolidation and challenges for foreign brands in the Chinese market.
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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