Kose's Sekkisei spent 30 years building China counters — then pulled them in 3 months

Kose Corporation, founded in 1946, is one of Japan's three largest cosmetics companies, with flagship brands Sekkisei and DECORTÉ. Its Sekkisei brand entered China in the 1990s and built a presence in nearly every major department store over 30 years, becoming one of the most trusted Japanese beauty brands among Chinese consumers.

By 2022, the trajectory had reversed. Chinese domestic brands like Proya and Winona captured market share through livestream and social commerce — channels where Sekkisei had no presence. Geopolitical tensions between China and Japan accelerated the shift away from Japanese brands. In 2024, Kose closed its Kose-brand Tmall flagship store, a first sign of retreat. Sekkisei's department store counters followed: Shanghai's New World Daimaru closed March 14, 2025; Jinan closed around March 20; Shenyang closed by end of March.

The financial impact was severe. Kose's Asia (ex-Japan) net sales fell 23% year-on-year in 2024 to ¥40.62 billion (¥19.91 billion), the only region in the group to decline and the second consecutive year of contraction. Asia dropped from Kose's second-largest market to third. The company's operating profit from cosmetics fell for the third consecutive year. Kose projected another 10% decline in China mainland sales and 30% in China travel retail for 2025, with recovery not expected until 2026.