Core Insights - Kao Group showcased a more ambitious and localized strategy at the 8th China International Import Expo, emphasizing a blend of global innovation and local implementation [1][12] - The company is focusing on a "long-termism" approach, adapting its research and development to meet the unique demands of Chinese consumers [4][9] Product Development and Localization - Kao has significantly localized its product development, with most new products being produced domestically to better address the needs of Chinese consumers [5][6] - The company has transformed its product development cycle from a traditional model to a more agile "local research and local sales" approach, allowing for quicker market responses [9][12] - The introduction of the new Amino Acid Cleansing Oil and the Curel series exemplifies Kao's strategy of rapid product adaptation based on local consumer insights [6][7] Research and Innovation Strategy - Kao's research strategy is characterized by a collaborative approach across disciplines, enhancing innovation efficiency while ensuring safety [8][12] - The establishment of a Central Research Institute allows for focused investment in cutting-edge fields such as skin science and analytical chemistry, avoiding redundant research efforts [8] - Kao's commitment to safety is paramount, with rigorous testing protocols in place for new products, ensuring they meet diverse consumer needs [12] Market Positioning and Future Plans - Kao's localization strategy is evolving from "China supplying China" to "China supplying globally," with plans to export locally developed products to the Asia-Pacific region and even Japan [12] - The company aims to shift from merely manufacturing in China to creating value through innovation that originates in China, addressing the changing landscape for foreign enterprises in the market [12]

Core Viewpoint - The 2025 China International Import Expo (CIIE) saw a lower participation rate from leading beauty companies, reflecting a trend of market growth slowing down and companies opting for cost-saving measures while still seeking innovative product development and localized strategies [1][2]. Group 1: Product Innovation and Localization - New products are taking center stage, with a focus on localized customization being a key theme among multinational companies [2][4]. - Shiseido's medical beauty brand RQ PYOLOGY showcased a new project developed in collaboration with local institutions, emphasizing the importance of local partnerships in innovation [2][4]. - The introduction of a unique "skin rhythm" evaluation system by RQ PYOLOGY aims to provide precise skin condition analysis, highlighting a shift towards research-driven, localized product strategies [4][20]. Group 2: Mature Brand Strategy - Multinational companies are increasingly favoring the introduction of mature brands into the Chinese market as a pragmatic response to slowing growth, leveraging established supply chains and faster market entry [9][11]. - Shiseido's fragrance and beauty brand Serge Lutens made its debut at the expo, with plans for formal entry into the Chinese market next year [11][13]. - The professional skincare sector is also witnessing a wave of established brands entering the market, such as Amorepacific's Aestheline and L'Oréal's Dr.G, indicating a trend towards stability and reliability in brand offerings [11][13]. Group 3: Technological Innovation - Technology is redefining competitive boundaries, with brands like Kosé utilizing quantum computing to enhance product formulation efficiency [17][20]. - L'Oréal released a white paper on PDRN (Polydeoxyribonucleotide) applications in skincare, showcasing its potential in anti-aging and skin longevity [20][22]. - Chinese companies like Huaxi Bio are also responding to global anti-aging trends with systematic research on ECM (extracellular matrix) solutions, indicating a robust focus on scientific innovation [22][24]. Group 4: Market Trends and Consumer Focus - Beauty brands are shifting from aggressive marketing tactics to enhancing user experience, focusing on product efficacy and consumer needs [9][20]. - The emphasis on practical innovation reflects a broader industry consensus that growth is returning to a more rational and realistic trajectory, prioritizing verifiable product effectiveness over mere concepts [24].

Core Insights - The 8th China International Import Expo (CIIE) is being held from November 5 to 10, attracting over 4,100 foreign enterprises from 155 countries and regions [1] Company Highlights - Lululemon has participated in CIIE for the second year, noting significant brand awareness growth and community engagement through yoga events across 43 cities in China [3][7] - Kao Group has been in China for 30 years and emphasizes a localization strategy, showcasing products tailored to Chinese consumer needs, with many new products produced locally [4] - LVMH has deepened its presence in China since entering the market in 1990, showcasing brands like Bulgari and Dior at CIIE to strengthen ties with the Chinese market [5] - Nike has been in China since 1981 and has witnessed the rise of Chinese sports, emphasizing its commitment to the market through the launch of new products and the establishment of the Nike China Creative Center in Shanghai [6][12] Market Trends - The demand for sports and wellness products is increasing in China, prompting Lululemon to expand its product categories beyond yoga to include running, training, tennis, and golf [7] - Shiseido introduced its first skincare brand specifically for Asian skin at CIIE, highlighting the importance of local partnerships in innovation [10] - L'Oréal's "BIG BANG Beauty Tech Co-Creation Program" aims to collaborate with startups to develop innovative beauty technology solutions, with 64% of its products sold in China being locally produced [11][12] Investment and Economic Impact - Thai company Tsingtao Group launched special edition products at CIIE, reflecting its growth from exhibitor to investor in China, with over 4.3 billion yuan invested in the last five years [13] - APP (China) has adopted a sustainable development model and plans to achieve approximately 89.4 billion yuan in sales by the end of 2024, actively participating in regional trade initiatives [13]

Core Viewpoint - The eighth China International Import Expo (CIIE) is being held in Shanghai, where Kao Corporation showcases its commitment to the Chinese market with products tailored to local consumer needs [1][2]. Group 1: Product Customization and Development - Kao has introduced several products specifically designed for the Chinese market, focusing on skincare, sun protection, hair dye, and feminine care, with most new products being locally produced [3][5]. - The new Curel Ryukou Shuhon series targets Chinese women with sensitive skin, addressing issues like dryness and redness, leveraging nearly 40 years of research in ceramide care [3]. - The brand Fino has also localized its production, with the launch of the "Net Clear Oil Control Cleansing Foam" and "Moisture Essence Cleansing Oil," showcasing innovative amino acid formulations [4][5]. Group 2: Strategic Positioning in Shanghai - Shanghai is a key market for Kao, serving as the initial entry point into China and the location for the global headquarters of the Fino brand, reflecting the city's advantages in policy, talent, and consumer insights [7][8]. - The company emphasizes the importance of local R&D and product optimization to meet the evolving demands of Chinese consumers, particularly in response to trends like the rise of domestic brands and green consumption [8]. Group 3: Future Plans and Market Insights - Kao plans to continue leveraging the CIIE as a platform for innovation that integrates Japanese technology with Chinese consumer needs, aiming for further growth in the local market [9]. - The company has successfully captured the Z-generation's preferences through a localized team in Shanghai, which allows for precise market testing and product promotion [8].

Core Insights - The eighth China International Import Expo (CIIE) is being held from November 5 to 10 in Shanghai, with Kao Corporation showcasing its commitment to the Chinese market through the theme "Co-creating a Beautiful Future" [1][3]. Product Customization - Kao's participation features a strong focus on customized products tailored to Chinese consumers' needs, including skincare, sun protection, hair dye, and feminine care [4][6]. - The newly launched Curel Ryukou Shuhon series addresses common skin issues faced by Chinese women, leveraging nearly 40 years of research in ceramide care [4]. - The brand Fressy has developed products that consider environmental stressors and emotional fluctuations, exemplified by the innovative amino acid-based cleansing products [4][6]. Localization Strategy - Kao has established its global headquarters for Fressy in Shanghai, enhancing product development efficiency by 30% since the move, allowing for quicker adaptation to local market demands [6][11]. - The company has successfully localized the production of its popular hair dye brand, Liese, which debuted at the CIIE in 2022 and has since been well-received in the Chinese market [7][11]. Market Insights - Shanghai is pivotal for Kao's development strategy, providing unique advantages in policy, talent, and consumer insights, which have accelerated the company's localization efforts [11][12]. - The changing consumer landscape in Shanghai, characterized by the rise of domestic brands and a shift towards green consumption, has prompted Kao to enhance its R&D and branding strategies [14]. Future Outlook - Kao aims to leverage the CIIE as a platform for further integrating Japanese technology with Chinese consumer needs, continuing to innovate and optimize its product offerings [14].