Kao Aims to Boost Cosmetics Sales to 300 B. Yen in 2020

May 19, 2018

Tokyo- Kao Corp. said Friday that it aims to increase its annual sales of cosmetics products to 300 billion yen in 2020 from 271.2 billion yen at present.

The Japanese company will focus its advertising and development spending on 11 key cosmetics brands, including the Sensai line of high-priced goods, for sale mainly in overseas markets such as China. Kao has 49 cosmetics brands.

"We are lagging behind at a time when cosmetics sales are brisk in general. We have neglected to foster our brands," Kao Executive Officer Yoshihiro Murakami told a press conference.

The company aims to increase its operating profit ratio from the current 4.7 pct to 10 pct by 2020 and achieve an annual sales growth rate of 5 pct.

Kao acquired Kanebo Cosmetics Inc. in 2006 and has since been strengthening cosmetics operations.

But the company lags behind domestic rival Shiseido Co., which has been enjoying strong earnings thanks to bullish demand in China and from visitors to Japan. Jiji Press