Core Viewpoint - The essence of business is to serve "living individuals" rather than just "consumers," reflecting Kao's 138-year philosophy of understanding people in their specific life contexts [2][3]. Group 1: Kao's Business Philosophy - Kao emphasizes the importance of understanding the desires and needs of individuals in their daily lives, focusing on how products integrate into and enhance their routines [3]. - The concept of "living individuals" shifts the focus from mere product usage to the overall experience and emotional connection with the brand [8]. Group 2: Innovation and Local Adaptation - At the China International Import Expo, Kao launched the VIC (Value Innovation Center) showcasing its commitment to innovation and quality, highlighting the integration of global innovation with local needs [5][6]. - The VIC area presents Kao's historical achievements and its consumer co-creation approach, emphasizing the transformation of user pain points into innovative solutions [6][10]. Group 3: Financial Performance - In the first three quarters of the year, Kao's cosmetics division achieved sales of 181.2 billion yen (approximately 84.1 billion RMB), with a year-on-year growth of 4.9%, and an operating profit of 30 billion yen (approximately 1.4 billion RMB) [10]. - The third quarter saw a significant sales increase of 10.6%, indicating a strong recovery trend in the cosmetics business [10]. Group 4: Localization Strategy - The establishment of the global headquarters for Freeplus in Shanghai marks a strategic shift towards localization, allowing for "China-defined" global R&D [12][20]. - Kao's localized approach has led to faster product development cycles, with new products being launched in China at a pace more than double that of Japan [14][20]. Group 5: ESG Commitment - Kao has integrated sustainability into its product development and supply chain management, achieving significant milestones in environmental responsibility [22][24]. - The company has been recognized for its green supply chain practices, ranking first in the IPE green supply chain for 11 consecutive years [24]. Group 6: Future Outlook - Kao aims to deepen collaboration with local academic institutions and industry partners to create an innovative ecosystem addressing environmental and health challenges [10][26]. - The company's long-term vision includes expanding its localized products to the Asia-Pacific market, reinforcing the importance of "Made in China" in the global value chain [20][26].

Group 1 - The core viewpoint of the articles highlights Kao Group's participation in the 8th China International Import Expo, showcasing its commitment to innovation and local adaptation in the Chinese market [1] - Kao Group has established a VIC technology and quality exhibition area for the first time, demonstrating its quality system through tangible products and data, addressing user pain points with innovative solutions [1] - The exhibition features localized products such as upgraded cleansing oils and solutions targeting specific issues faced by Chinese consumers, indicating a strong focus on customization [1] Group 2 - Kao Group is extending its chemical technology into the agricultural sector, introducing products like flower preservation solutions that can extend the lifespan of cut flowers up to one month [2] - The company has developed soil conditioners that utilize surfactant technology to improve soil structure and address waterlogging issues in farmland [2] - The introduction of a specialized aerial application agent for drones significantly enhances the control of wheat scab disease, achieving a control rate of over 97% and increasing crop yield by more than 15% [2]