Kao to exit 13 more cosmetics brands by 2024

Kanebo and Kate owners discontinue or sell more brands to focus on core products

Kao’s Twany was identified as one of the company’s investment brands. So which brand do you sell?

Kao is considering selling or discontinuing 13 more cosmetics brands by 2024, the owners of Kanebo and Kate said during their 2021 full-year earnings call.

A total of 28 brands were planned to be discontinued by Kao, and 15 brands have already been discontinued.

Cutting 13 as-yet-unnamed brands will allow Kao to allocate investment to growth driver brands and regional strategic brands, the Tokyo-based company said.

Kao has identified 11 growth driver (G11) brands, including luxury brands Sensai and Kanebo, and eight regional strategic brands (R8), including Lissage, Twany and Primavista.

Kao’s full-year 2021 net sales growth increased by 2.7% to 1,418.8 billion yen, while net sales in the cosmetics business decreased by 0.6%.

By comparison, however, sales of the G11 brand increased by 8%, accounting for 65% of the company’s total cosmetics sales, and its business also covers hygiene and personal care, as well as chemicals.

Kao isn’t the only Japanese brand to cut back on foreign brands in recent months.

Shiseido recently streamlined its business to focus on premium skincare, outsourcing its luxury makeup brand to Advent International last year and its Asia Pacific professional haircare business to Henkel earlier this month.

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