Core Insights - Kose Group is transitioning from a defensive strategy to a strategic offensive approach in the Chinese market, emphasizing localization and technological differentiation in response to the evolving beauty market dynamics [3][31]. Group 1: Kose's Market Strategy - Kose has participated in the China International Import Expo for five consecutive years, showcasing its commitment to the Chinese market [3]. - The company aims to transform China from an "important market" to an "innovation engine" through its unique "smart beauty" logic [3][4]. - Kose's recent strategic shift includes a focus on local innovation and technology, moving away from mere scale expansion [3][31]. Group 2: Product Innovation - The launch of "Decorte AQ Active Pore Cleansing Oil," a product developed using quantum computing technology, marks a significant innovation in the cosmetics industry [5][7]. - This product is the first of its kind to apply quantum computing in cosmetics formulation, significantly reducing the time required for product development [7][10]. - Kose's research team has created a universal artificial pore model to address the complex issue of pore blockage, leading to the development of a scientifically-backed product [11][15]. Group 3: Market Performance - Kose's recent financial report indicates a remarkable 20.9% growth in the Chinese market, signaling a recovery after six consecutive quarters of decline [34]. - The company is expected to achieve profitability for the year, reflecting a successful turnaround strategy [34]. Group 4: Corporate Governance - Kose Group is transitioning to a holding company structure, marking a significant shift in its governance model, which is expected to enhance its adaptability to market changes [34][37]. - The appointment of a new CEO from within the company signifies a move towards modern corporate management practices [35][37]. Group 5: Future Outlook - Kose plans to leverage advanced technologies like quantum computing and iPS cell research to develop products tailored to Chinese consumer needs [42]. - The company is committed to expanding its brand presence and product offerings in China, aiming for a more localized approach to meet diverse consumer demands [40][41].

Core Insights - The eighth China International Import Expo (CIIE) showcases a significant shift in the beauty industry from "Chinese market" to "Chinese model," highlighting the increasing importance of the Chinese market for global beauty giants [3][4] - Major beauty companies are intensifying their product launches, with record numbers of new products and brands being introduced, indicating a strategic focus on innovation and local market adaptation [3][24] Group 1: Industry Trends - Beauty giants are building a global value creation system centered around the Chinese market, emphasizing the importance of "Chinese-style beauty" in their research, technology, and brand culture [4][62] - The expo features a variety of new brands and products tailored for the Chinese consumer, reflecting a trend towards precision targeting and niche market development within the beauty sector [24][30] Group 2: Company Highlights - L'Oréal's theme "Beauty Without Limits" emphasizes inclusivity and the exploration of beauty's cultural and economic impact through interactive experiences [8][9] - Procter & Gamble focuses on "Innovation Lights Up a Beautiful Life," showcasing a full-chain digital innovation approach and sustainable development initiatives [11][73] - Estée Lauder's "Reconstructing New Beauty" theme highlights its commitment to innovation and consumer engagement through immersive technology [13][77] - Shiseido's "Create Beauty" theme integrates technology and aesthetics, showcasing its long-standing research and development capabilities [15][30] - Amorepacific's "Embrace New Beauty" reflects its dedication to co-growth with the Chinese market, featuring a design inspired by its historical roots [17][71] - Kao's "Beauty Coexists, Good Future" theme showcases its commitment to quality and innovation, with a focus on local production and technology [19][71] Group 3: Product Innovations - The introduction of high-tech skincare products and green personal care items tailored for local consumers marks a significant trend in the beauty industry [24][51] - New brands such as Dr.G and RQ PYOLOGY focus on specific consumer needs, such as sensitive skin and post-aesthetic care, indicating a shift towards specialized offerings [25][30] - Innovations in product formulations, such as OLAY's new protein reconstruction technology and Shiseido's dual contouring technology, highlight the industry's focus on advanced ingredients and efficacy [35][37] Group 4: Sustainability and Future Outlook - Companies are increasingly prioritizing sustainability, with initiatives like P&G's "Mission 2030" and Amorepacific's five commitments to sustainable development [73][75] - The expo serves as a platform for beauty companies to showcase their long-term strategies and innovations aimed at meeting evolving consumer demands and environmental responsibilities [77][78]