Core Viewpoint - Kose Corporation has decided to raise product prices to offset rising raw material costs, which is a common strategy among beauty brands to alleviate performance pressure [1][6]. Price Adjustment Details - Kose's subsidiary, Decorte, will implement price adjustments on 172 products starting June 1, with price increases ranging from 550 to 1100 yen, averaging 3.3% to 5% [3][2]. - The highest price increase is for the AQ Melority Intensive Cream, which will rise from 132,000 yen to 137,500 yen, an increase of 5,500 yen [3]. Industry Trends - Price hikes have become a standard practice among major beauty brands to counteract rising raw material costs, with Shiseido and L'Oréal also announcing price increases earlier this year [3][4]. - The global economic environment is influencing raw material prices, prompting brands to adjust retail prices to maintain profit margins [4]. Financial Performance Context - Kose's financial results for 2024 show a net sales figure of 322.758 billion yen, a year-on-year increase of 7.4%, but net profit has decreased by 35.6% to 7.51 billion yen [6]. - The Asian market, particularly China, has seen a significant sales decline of 23%, highlighting challenges in this region [6][8]. Consumer Sentiment - Consumer reactions to price increases are mixed, with some expressing reluctance to purchase due to higher prices, indicating potential risks for Kose's strategy [7][8]. Structural Reforms - Kose is undergoing structural reforms in the Greater China region, which have incurred costs of 4.4 billion yen, suggesting that while price increases may provide short-term relief, long-term solutions are necessary [9][8].