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.

Kose pulled its counters and Tmall flagship, but Asia sales still fell 23% in 2024 to ¥40.62 billion, as channel absence outweighed brand heritage.

Sekkisei's 30-year department store counter model could not compete with Chinese domestic brands on livestream and social commerce efficiency

Geopolitical frictions made Japanese brands a liability for Chinese consumers, eroding trust built over decades

Kose was slow to shift distribution — it shut the Kose Tmall flagship only after sales had already fallen for two years

A 30-year distribution network is not a moat when it depends on a channel the market has left behind — and brand heritage cannot compensate for channel absence.

Kose pivoted to its premium DECORTÉ brand in China, opening larger counters in high-end department stores, while shifting Sekkisei to a specialty-store format. The company announced a '2030 Milestone' vision aiming for structural reform and a return to profitability in China within two to three years. The decline was widely cited as emblematic of Japanese beauty brands' retreat from China in 2024–2025.