Group 1 - POLA ORBIS HOLDINGS announced a leadership change, appointing Takahiro Tabata as CEO of Jurlique, replacing Loic Rethore [2] - Takahiro Tabata has significant experience in the Chinese market and currently holds leadership positions in three companies under POLA Group [2] - Jurlique, an Australian organic skincare brand, was acquired by POLA Group in 2011 and has been a focus of brand development since 2019 [2] Group 2 - Jurlique's performance in China has declined, with the number of stores dropping from over 100 at its peak to only 44 by 2021, and a sales decline of 9.8% reported for mid-2025 [3] - POLA Group's major brands, including POLA and ORBIS, account for over 80% of total sales, indicating that Jurlique and other brands contribute less than 20% [3] - The appointment of a leader with Chinese market expertise suggests POLA Group's intention to explore growth opportunities in China [4] Group 3 - POLA Group has faced challenges in the Chinese market, including business shrinkage and significant losses from its subsidiary ORBIS in recent years [4] - The company remains committed to the Chinese market as a long-term strategic focus, emphasizing high-quality products and services while planning to enhance localization and innovation [4] - Industry experts suggest that Japanese cosmetic companies need to strengthen their e-commerce presence and focus on product innovation to regain growth in China [5]

Core Viewpoint - POLA ORBIS HOLDINGS has announced the dissolution and liquidation of its subsidiary, Orbis Beijing, indicating challenges in the Chinese market but not a complete exit from China [1][3][5]. Company Overview - POLA ORBIS was established in 1929, focusing on beauty care, real estate, and other sectors, with beauty care accounting for 97% of its total revenue in 2024 [6]. - The Orbis brand, launched in 1984, targets the mid-range market with products priced between 2,000 and 5,000 yen (approximately 101 to 252 RMB) [8]. Financial Performance - Orbis Beijing's revenue for 2024 was 783 million yen (approximately 39 million RMB), the lowest in three years, with continuous losses in operating profit and net profit [8][9]. - The financial data shows a decline in net assets and total assets over the past three years, with net sales dropping significantly [9]. Strategic Decisions - The decision to dissolve Orbis Beijing aligns with POLA's "VISION 2029" strategy, which aims to expand globally and optimize brand portfolios [10]. - The company cited the slowing Chinese economy and intensified e-commerce competition as reasons for the inability to achieve short-term profitability [10][11]. Market Challenges - POLA faces significant competition in the Japanese cosmetics market, ranking last among the top four Japanese cosmetic groups [11]. - The overall performance of POLA's brands has been declining, with the main brand POLA and Jurlique experiencing revenue drops, while Orbis showed some growth [15][20]. Industry Context - The Chinese beauty market is becoming increasingly competitive, with local brands like Proya and Han Shu achieving significant revenue growth, contrasting with the struggles of international brands [21]. - The challenges faced by POLA are not unique, as other Japanese cosmetic companies are also experiencing difficulties in the Chinese market [20][21].