Recently, according to report, Japanese skincare company Axzia Co. is embarking on a major strategic shift to reduce its heavy dependence on the Chinese market. Following years of strong growth driven by Chinese demand for its salon-exclusive skincare and inner beauty products, the company is now pursuing diversification across both business segments and regions. .
By investing in new categories such as beauty devices, fragrances, and artificial intelligence, and strengthening its presence in Japan and other Asian markets, Axzia aims to bring China’s share of total sales down from around 70% today to about 50% by 2030 — while lifting total revenue to ¥25 billion ($165.4 million).
Founded in 2011, Axzia gained traction in China with products like the “AGTheory” beauty drinks and “Axzia” eye sheet masks, achieving record-high sales even through the pandemic. However, since 2023, tightening consumer spending, a slowdown in demand for premium products, rising live commerce fees, and intensified competition from local brands have dampened momentum. In the fiscal year ending July 2025, sales in Japan rose 10.6% year-on-year to ¥13.4 billion ($88.6 million), while China declined 3.1% to ¥9.7 billion ($64.2 million).
To counteract China’s downturn, the company is accelerating portfolio diversification. In Japan, Axzia acquired cosmetics importer and e-commerce operator M&D Co., expanding its domestic online sales and retail network, now totaling five directly operated stores. It has also set up subsidiaries in Singapore, the U.S., and Shenzhen. The acquisition of Huit Laboratories in 2022 and the establishment of an in-house logistics center have further strengthened Axzia’s supply chain control, helping reduce China’s sales share from 88% in 2023 to 72% in 2025, while Japan’s contribution climbed to 25%.
Under its three-year plan (FY2026–FY2028), Axzia will focus on deepening investment in Japan while sustaining growth in China, targeting ¥17 billion ($112.5 million) in sales and a 10% operating margin by FY2028. The company also plans active M&A and alliances in the AI field, aiming for ¥25 billion ($165.4 million) in revenue and a 16% operating margin by FY2030.
