The encyclopedia · Strategy & Leadership · Strategic decision · 2023–2025
Addiction Tokyo launched in the US with a cult following — it lasted two years
Kosé's prestige makeup brand entered America in 2023 with a devoted Japanese fanbase. By July 2025, tariffs and weak sales forced it to wind down.
Addiction Tokyo · Kosé Corporation · 2025-07-24
What happened
Addiction Tokyo was a Japanese prestige makeup brand launched by Kosé Corporation, one of Japan's three largest cosmetics companies. The brand built a cult following in Japan and Asia for its single eyeshadows, lip products, and nail colours — a curated, professional-grade line that earned a reputation among beauty editors and makeup artists. By the early 2020s, it had a loyal enough base that a US expansion seemed like the natural next step.
Kosé launched Addiction Tokyo in the United States around 2023, with an English-language website and a standalone US online store. The brand had name recognition among beauty enthusiasts who followed Japanese cosmetics, but it faced the same challenge every Asian beauty brand encounters in America: building a retail presence and marketing spend from zero in a market dominated by Estée Lauder, L'Oréal, and a dozen direct-to-consumer insurgents.
On July 24, 2025, Addiction Tokyo announced via Instagram that it would wind down its US operations — just two years after entering the market. The stated reasons were tariff uncertainty and Kosé Corporation's lagging sales in North America. The parent company's overall North American performance was weak enough that the added cost of US tariffs on Japanese imports made the business case untenable. The US online store offered 25% off sitewide before closing.
The withdrawal did not affect Addiction Tokyo's operations in Japan or Asia, where the brand continues to sell. But the rapid exit — two years, a single online store, no retail footprint — made it a case study in how even a cult brand with a strong domestic base can miscalculate the cost and complexity of entering the US market.
Why it happened
- US tariffs on Japanese imports added cost pressure that made the already-marginal US business case unviable — a risk Kosé either did not anticipate or could not mitigate.
- Kosé's wider North American sales were already weak, so the parent company had no appetite to subsidize Addiction Tokyo's US losses through a long ramp-up period.
- Addiction Tokyo entered the US with only an online store and no retail partnerships, limiting its ability to build brand awareness beyond the existing Japanese-beauty enthusiast niche.
- Addiction Tokyo's mid-premium price point put it in direct competition with established brands that had far larger marketing budgets.
The lesson
A cult following in one market does not mean a viable business in another. The cost of building a brand from zero in the US — even online — can be higher than the revenue a niche brand can generate.
Aftermath
Addiction Tokyo's US operations ceased in 2025. The brand continued selling in Japan and Asia through its existing channels. Kosé Corporation did not announce any further US market entry plans for its other brands in the wake of the withdrawal.
Sources
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