Natural and Environmentally Friendaly Cosmetics will be Popular

Editor’s Note

As the leader in global economic growth, China’s beauty market is booming. The market breaking through trillions of dollars in volume will soon become the top in the world. Looking into the future, international beauty giants prepare for the competition while domestic enterprises are following. Whether the big ship proceeds smoothly without a hitch, the helmsman is responsible for an important mission.CHAILEEDO holds a column “CEO on Trends” and we interview CEOs from well-known cosmetic companies at home and abroad to discuss the future increment and trends of the Chinese market.

It has been 33 years since Kose Group entered China. But because it has not appeared in many major industry events, many people still have a traditional impression of Kose Group as a few major brands such as DECORTÉ and SEKKISEI.

This year, when Kose Group participated in the 4th China International Import Expo for the first time, it gathered its brands such as DECORTE, SEKKISEI, INFINITY, ONE BY KOSÉ and Prédia, which are already present in the Chinese market, as well as foreign brands like ADDICTION, JILL STUART, VISÉE and STEPHEN KNOLL. Kose Group really gave the industry a refreshing sight.

This move by Kose Group is also intended to let the industry see their confidence and determination to cultivate the Chinese market. As one of the four Japanese beauty giants, how will Kose develop in China in the future? What trends do they see? In this regard, Qeyes interviewed Yasuhiro Miyata, Chairman of Kose Cosmetics Sales (China) Co.

Continue focus on high-end

Since its entry into China in 1988 and 33 years of developing the Chinese market, Kose China has undergone a transformation from “local production” to “introducing Japanese imported brands”. In the early days, the locally produced brands contributed a large part of the sales. But with the trend of consumer upgrading in China, consumers are more and more prefer to middle and high-end brands such as DECORTE and SEKKISEI. High-end products have become an inevitable trend of consumer upgrading.

In this context, a number of high quality Japanese imported brands such as DECORTE, SEKKISEI, INFINITY, ONE BY KOSÉ and Prédia have entered the Chinese market to open up a wide world for Kose China in the high-end cosmetics market. From the introduction of the high-end series by SEKKISEI in 2017, the introduction of the upgraded AQ Soothing Series and AQ Precious Essence Series by DECORTE in 2018 and 2019, respectively, to the introduction of the highly effective skincare brand ONE BY KOSÉ in 2020, Kose China has gradually improved its high-end product matrix and simultaneously enhanced the high-end development of the brand.

At the same time, in terms of product upgrades, Kose China has made adjustments and upgrades through front-line research, listening to market feedback, and figuring out consumer needs to rapidly increase consumer awareness of the brand in the face of fierce market competition in order to constantly adapt to the changing market and demand. “Last year, in the the 35th anniversary of the launch of SEKKISEI, a rebranding was carried out for the first time with the concept of ‘CLEAN BEAUTY’. In the spirit of ‘elements of sustainability’, we introduced a new basic skincare series”

For Yasuhiro Miyata’s view, Generation Z is leading consumer trends in the Chinese cosmetics market. “In the post-epidemic era, we are concerned about market trends in China. Generation Z, which is increasingly concerned about environmentally conscious cosmetics, is expanding rapidly. We expect to see a trend toward premiumization in the future. At this year’s China International Import Expo, the new products, which symbolize the rebirth concept and core values of the SEKKISEI, will also receive a strong and focused promotion.”

In addition, the iconic product of the DECORTE, DECORTE Moisturizing Lotion, will also receive its first upgrade after 29 years on the market. It will be renewed as “DECORTE Liposome Advanced”. It is no longer just a moisturizing serum but an all-around skin activating treatment lotion that repairs and changes from the root of the skin. It is said that each drop of the newly upgraded lotion contains about 1 trillion “new multi-layered micro-lipidic capsule”. The concentration of beauty nourishing ingredients in the capsule is 1.5 times than the previous generation, which can achieve 24-hour moisturizing and the use of the efficacy of the expansion to reduce lines, stabilization, brightening, firming and other 11 dimensions to effectively balance the micro-ecology of skin.

“In the future, for companies like ours, each product upgrade must be done through repeated research. And it will continue to be a five-position system of research, production, planning, design and sales. All ideas will be customer-centric and deliver the ‘ultimate skin aesthetics’ to everyone.” Yasuhiro Miyata said.

Products in flagship store have been aimed at market demand and ushering in a comprehensive upgrade. Kose, which pursuing excellent product quality, sees decades as a day to adhere to the craftsmanship. Kose brings the ultimate product power to consumers while develop a key step for Chinese market by fighting the high-end war in China with its high quality

Combination of technology and beauty

Technology has gradually become the new driving force for the development of the beauty industry. In the market, consumers’ perception of their own needs became more clear. Their requirements for the technological content and practicality of beauty products become more higher. That will prompt beauty companies to continuously introduce innovations that are truly applicable to the Chinese market.

Yasuhiro Miyata recognizes that consumers do not like brands that are set in stone, they want new experiences and try to find a link to the brand from new pleasures.

That’s why, while Kose is dedicated to developing quality products, it is also constantly exploring cutting-edge technologies. “The fusion of technology and beauty has become an important factor in the development and innovation of the beauty industry. At this China International Import Expo, Kose Group, which is exhibiting for the first time this year, is offering new experiences to visitors, namely a nail printer and a personalized custom mask machine.” Yasuhiro Miyata introduced.

It is reported that Nail Printer, a nail printer from the Kose Group in collaboration with CASIO, is able to recognize the shape, curvature and contour of the nail and then print out a fitted nail directly. Consumers simply stick their fingers into the machine, select a pattern of their choice, press a button, and the machine will spray the pattern on their nails. At the same time, Nail Printer is a convenient new experience service that confirms the breakthrough and innovation in technology of the Kose Group.

Another new experience tool is the “Customized Mask”, which creates 3D data through the Bellus3D and then prints and provides customized mask cloths on site, adapting and matching different cosmetics to the different needs and face shapes of consumers, providing a differentiated and refined service.

“I firmly believe that we can eliminate customer anxiety and give them peace of mind and safe access to cosmetics, ultimately achieving consumers’ ‘beauty’ and ‘smiles by providing such non-contact personalized customer service and experience'” Yasuhiro Miyata said.

As a professional cosmetics group founded in 1946, Kose is known for its outstanding quality and research and development capabilities. Since its founding, Kose has always been dedicated to the field of cosmetics and to bringing beauty to consumers by sincerely exploring the true meaning of beauty as their starting ideal. It is for this reason that Kose has been able to differentiate itself with its strengths and has won the hearts of consumers while catering to their individuality.

China is the most important market

Kazuyuki Shinohara, General Manager of Kose Cosmetics Sales (China) Co., Ltd. said at a pre-show roadshow at the 4th China International Import Expo: “In 2020, Kose China has achieved the highest sales and profits in years by increasing revenue and profit. In the last three years, our sales have tripled. This is a valuable opportunity brought about by China’s rapid economic development and the rapid growth of the high-end cosmetics market.”

Yasuhiro Miyata said this is based on China’s rapid economic recovery from the new pandemic and our ability to capture “the changing preferences and motivations of consumers” and respond adequately accordingly. By largely expanding both online and offline to provide reassuring and trustworthy products to a core group of customers across a wide range of sectors and needs, Kose China meets consumer demands by responding to ongoing challenges.

“As consumers spend more time at home and wear masks for longer periods of time due to COVID-19, the importance of skin care has been refreshed. In terms of makeup, consumers are focusing on lipsticks that are less likely to fall off and foundations that provide good coverage and do not easily get on the mask. There has been a huge change in customer demand, which in turn has created a whole new set of needs. Such changes are not a crisis, but should be viewed positively as a business opportunity and then seized and moved forward with the momentum.”

In 2026, the 80th anniversary of the founding of the Kose Group, China is the most important market in the “VISION 2026”, the medium and long-term vision of the Kose Group for the 80th anniversary of the founding of the company, which influences the growth of the entire group. With China as the focus of global development, the Kose Group will also actively promote the integration of the brand in the Chinese market both online and offline to interact more deeply with young consumers online and further strengthen face-to-face services with consumers offline to fully convey the brand’s sense of value and world view.

“This year’s Expo is presented as the Kose Group. In order to correspond to all of our group’s customers and consumers, the Chinese market will definitely be the most important market.” Yasuhiro Miyata said that in the future, we will be more flexible in using group collaboration to actively conduct business. They are committed to closely integrate brand, product and experience to better lead the Chinese market.

Talking about the next growth point for Kose in China, Yasuhiro Miyata believes that in the midst of social unrest caused by the COVID-19, people are increasingly looking for nourishment, color and the joy of being healed in their lives. People are looking to cosmetics to make our world a brighter place and this essential value is now being fully recognized again. The current trend in the Chinese market is the “ingredient party” and “CLEAN BEAUTY”. The concern for products containing healthy and safe natural ingredients. The penetration of cosmetics that are friendly to people and the environment are two trends that are rapidly expanding among the consumer base centered on Generation Z.

At the same time, he said, consumers’ information-gathering paths and purchasing methods are rapidly changing and diversifying as a result of the pandemic. Both digitalization and e-commerce continue to accelerate. Kose China merged online and offline customer data and will communicate more closely with customers in the future. We combine the service power that our company is known for with the latest digital technology to personalize the customer experience. We create a beauty experience that only Kose can create. “We promise that not only for the exterior but Kose also wants to take care of every customer’s heart.”

Through 33 years of development in China, Kose is deeply rooted in China. From product development to marketing and promotion, all of our products are closely focused on the needs of Chinese consumers and China has become an important engine for Kose’s global development. With the continuous improvement and innovation of Kose’s localization strategy, more possibilities will be opened in the future.